Shares of Donnelley Financial Solutions, Inc. (DFIN) soared 5.26% in pre-market trading on Wednesday following the release of the company's impressive first-quarter 2025 financial results. The financial communications and data services provider reported earnings that significantly exceeded analyst expectations, driving investor enthusiasm.

DFIN announced adjusted earnings per share of $1.24 for Q1, handily beating the analyst consensus estimate of $0.69 by 79.71%. This represents a substantial 36.26% increase from the $0.91 per share reported in the same period last year. The company's quarterly sales also outperformed, coming in at $201.10 million compared to the expected $191.87 million, though this figure represents a slight 1.13% year-over-year decrease.

The strong performance was driven by record first-quarter software solutions net sales of $84.6 million, up 5.4% year-over-year. DFIN's focus on expanding its recurring compliance software products paid off, with ActiveDisclosure and Arc Suite sales growing approximately 16% in aggregate. The company's adjusted EBITDA margin expanded significantly to 33.9%, up about 680 basis points from the first quarter of 2024, demonstrating improved operational efficiency. Despite ongoing market volatility, DFIN's CEO Daniel N. Leib expressed confidence in the company's strategy of increasing recurring sales mix and managing costs to drive shareholder value.