Shares of Donnelley Financial Solutions, Inc. (DFIN) plunged 5.19% in Friday's trading session following the release of its second-quarter 2025 financial results. While the company reported better-than-expected earnings per share, revenue fell short of analyst estimates, highlighting ongoing challenges in its traditional business segments.

Donnelley Financial Solutions posted non-GAAP earnings per share of $1.49, surpassing the consensus estimate of $1.42. However, revenue for the quarter came in at $218.1 million, missing expectations of $225.5 million and representing a 10.1% year-over-year decline. The company's software solutions segment showed growth, with record sales of $92.2 million, now accounting for 42.3% of total revenue. Despite this positive development, the print and distribution business continued to face significant headwinds, with sales dropping 25.9% compared to the same period last year.

Investors appear to be concerned about the company's outlook, as management guided for further revenue declines in the third quarter. The projected GAAP net sales of $165 million to $175 million for Q3 2025 represent a decrease both sequentially and year-over-year. Additionally, the expected adjusted EBITDA margin of 23% to 25% for Q3 indicates ongoing pressure from lower transactional and print revenues. While Donnelley Financial Solutions continues to focus on growing its software mix and managing costs, the market seems wary of the persistent challenges in the company's legacy businesses and the uncertain pace of its transition to a software-focused model.