Shares of Deluxe Corporation (DLX) surged 6.04% on November 7, 2024, following the company's impressive third-quarter earnings report and strategic progress updates. Despite facing some revenue headwinds, Deluxe showcased robust profitability growth, driven by its North Star efficiency program and strategic growth initiatives.

The key highlights from Deluxe's Q3 2024 results included a 6.9% year-over-year increase in Adjusted EBITDA to $104.5 million, coupled with a 140 basis point improvement in Adjusted EBITDA margin to 19.8%. The company also reported strong free cash flow generation of $46.7 million for the quarter and a $45 million sequential reduction in net debt.

While total revenue declined by 1.7% year-over-year on a reported basis, Deluxe demonstrated its ability to drive profitability through operational efficiencies and strategic initiatives. The North Star program, aimed at optimizing procurement, technology, and overall operations, has already reached a milestone with over $100 million of the targeted $130 million annualized EBITDA improvements either in execution or completed.