Donnelley Financial: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 29, 2026, Donnelley Financial (NYSE:DFIN) highlighted rising software adoption and sustained margin expansion. The corporate transaction environment remains volatile, but high-margin recurring software revenues give the business a far more resilient profit engine than it possessed in past cycles.

Three things management said stand out.

1. ActiveDisclosure Crosses Milestone as IPOs Move to Software

Software sales reached 51.5% of total quarterly revenue, driven by ActiveDisclosure's expanding client base and higher average contract values. Companies are increasingly choosing software over traditional managed services for initial public offering (IPO) filings.

Our third-quarter software solutions sales growth continues to be led by the performance of ActiveDisclosure, which grew approximately 24% year-over-year, marking the fifth consecutive quarter of 20% plus growth.
-- Daniel Leib, President and Chief Executive Officer

2. Decade-Long Evolution Replaces Print Revenue With High-Margin Software

Ten years after spinning out as a public entity, the firm has systematically replaced declining legacy printing contracts with predictable compliance software. That multiyear mix shift fundamentally elevates cash flow generation across market cycles.

As a result, software solutions have increased from approximately 14% of our revenue in 2016 to nearly 50% today. While Print and distribution has declined from approximately 40% to approximately 14% over the same period.
-- Daniel Leib, President and Chief Executive Officer

3. Shared Technology Architecture Unlocks Growth in Alternative Investments

Management is expanding its addressable market by deploying ArcFlex, a purpose-built tool for private funds built directly onto its core compliance software foundation. Reusing infrastructure lowers software development overhead while creating an easy upgrade path for asset managers.

Positioning ArcFlex as a module within ActiveDisclosure reflects our broader platform strategy of leveraging common technology and capabilities across our software offerings to serve distinct client needs and markets.
-- Daniel Leib, President and Chief Executive Officer

Looking Ahead

Software expansion momentum is accelerating, and management is leaning into the transition from traditional services to cloud-based Software-as-a-Service (SaaS). Deep regulatory integration and long-standing client relationships keep retention tight, while management watches software adoption rates and pricing discipline across volatile deal markets.

In 2027, we expect to build on the positive momentum in growing our software solutions portfolio, including accelerating the shift of traditional services to SaaS, continued investments to drive new avenues of future growth...
-- Daniel Leib, President and Chief Executive Officer

By combining tech-enabled services with proprietary compliance software, the business maintains a clear moat against point-solution competitors entering regulatory reporting.

We believe our opportunities ahead are greater than we have accomplished so far, and we remain very well positioned to drive increased value for our clients, employees and shareholders in the years to come.
-- Daniel Leib, President and Chief Executive Officer

The Motley Fool has positions in and recommends Donnelley Financial Solutions. The Motley Fool has a disclosure policy.