Shares of Donnelley Financial Solutions, Inc. (DFIN) plummeted 5.19% in Friday's trading session following the release of its second-quarter 2025 earnings report. Despite beating earnings expectations, the company's revenue miss and weak forward guidance appear to have spooked investors.

DFIN reported non-GAAP earnings per share of $1.49, surpassing the consensus estimate of $1.42. However, revenue fell short of expectations, coming in at $218.1 million compared to the anticipated $225.5 million. This represents a 10.1% year-over-year decline, highlighting ongoing challenges in the company's legacy print and distribution business.

While DFIN's Software Solutions segment showed promising growth, hitting a record $92.2 million in sales and now accounting for 42.3% of total revenue, it wasn't enough to offset the significant contraction in other areas. Print and distribution sales plummeted 25.9% to $40.7 million, while tech-enabled services declined 16.6% compared to the same period last year. The company's outlook for the third quarter of 2025 further dampened investor sentiment, with GAAP net sales projected between $165 million and $175 million, signaling continued pressure on revenues. The projected adjusted EBITDA margin of 23% to 25% for Q3 also indicates a notable step down from the current quarter, raising concerns about profitability in the near term.