MINNEAPOLIS and TORONTO, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, today released The Retirement Divide, a new report that shows deep and growing disparities in how American workers are saving for retirement. The research examines trends in retirement savings rates, employee and employer contributions, participation in employer and individual retirement plans, and loan use among the full-time U.S. workf ...

Core Insights - Dayforce (DAY) reported Q3 2025 earnings of $0.37 per share, missing the Zacks Consensus Estimate by 33.93% and decreasing 21.3% year over year [1][6] - Revenues reached $481.6 million, aligning with the Zacks Consensus Estimate, and increased 9.5% year over year, with a 9.6% increase on a constant currency basis [1][6] - Excluding float, total revenues were $439.4 million, reflecting an 11.4% year-over-year increase [1] Revenue Breakdown - Recurring revenues, which constitute 83.7% of total revenues, increased 7.2% year over year to $403.1 million [2] - Excluding float revenues, recurring revenues totaled $333.0 million, showing robust growth of 14% year over year [2] - Powerpay's recurring revenues reached $19.7 million, reflecting a decrease of 2.5% year over year [3] - Professional Services and Other, making up 16.3% of total revenues, increased 22.5% year over year to $78.5 million [3] Operating Performance - Selling and marketing expenses were $86.8 million, up 1.2% year over year [4] - General and Administrative expenses totaled $81.2 million, up 28.1% year over year [4] - Adjusted EBITDA was $147.3 million, up 16.8% year over year, with an adjusted EBITDA margin of 30.6%, an increase of 190 basis points [4] - Adjusted operating profit amounted to $119.1 million, up 15.4% year over year, with an operating margin expansion of 130 basis points to 24.7% [4] Balance Sheet & Cash Flow - As of September 30, 2025, cash and cash equivalents were $627.6 million, slightly up from $625.2 million as of June 30, 2025 [5] - Cash provided by operating activities in Q3 2025 was $31.2 million, down from $112.7 million in the prior quarter [5] - Free cash flow was $5 million compared to $87.1 million in the previous quarter [5]

分组1 - Dayforce reported quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.56 per share, and down from $0.47 per share a year ago, representing an earnings surprise of -33.93% [1] - The company posted revenues of $481.6 million for the quarter ended September 2025, in line with the Zacks Consensus Estimate, and up from $440 million year-over-year [2] - Dayforce has surpassed consensus revenue estimates four times over the last four quarters [2] 分组2 - The stock has underperformed, losing about 5.8% since the beginning of the year compared to the S&P 500's gain of 17.2% [3] - The current consensus EPS estimate for the coming quarter is $0.69 on revenues of $518.49 million, and for the current fiscal year, it is $2.44 on revenues of $1.95 billion [7] - The Zacks Industry Rank for Internet - Software is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Core Insights - Dayforce reported third-quarter profit that fell below analysts' estimates, indicating potential challenges in the company's financial performance [1] - The labor market uncertainty and increasing concerns over trade tariffs have led companies to reduce their software spending, impacting Dayforce's revenue [1] Company Summary - Dayforce's third-quarter profit was lower than expected, reflecting broader economic concerns [1] - The company is facing headwinds due to external factors such as labor market dynamics and trade policy uncertainties, which are influencing corporate spending behavior [1] Industry Summary - The software industry is experiencing a slowdown in spending as companies become more cautious amid economic uncertainties [1] - Trade tariffs and labor market conditions are significant factors affecting investment decisions in the software sector [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the quarterly reporting period ended September 30, 2025 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Dayforce, Inc. 3311 East Old Shakopee Road Minneapolis, Minnesota 55425 (952) 853-8100 (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registra ...

Financial Performance - Dayforce's total revenue for Q3 2025 was $481.6 million, an increase of 9.5% year-over-year, and 9.6% on a constant currency basis[7] - Recurring revenue, excluding float, reached $333 million, up 14% year-over-year, and 14.1% on a constant currency basis[7] - Operating profit was $30.5 million, compared to $20.8 million in the previous year, while adjusted operating profit increased to $119.1 million from $103.2 million[7] - The net loss for the quarter was $196.8 million, compared to a net income of $2 million, resulting in a net profit margin of (40.9)%[7] - Adjusted EBITDA was $147.3 million, with an adjusted EBITDA margin of 30.6%, up from 28.7% year-over-year[7] - Total revenue for Q3 2025 was $481.6 million, an increase of 9.1% compared to $440.0 million in Q3 2024[23] - Recurring services revenue reached $403.1 million, up 7.3% from $375.9 million year-over-year[23] - Net loss for Q3 2025 was $196.8 million, compared to a net income of $2.0 million in Q3 2024[23] - Operating profit for the nine months ended September 30, 2025, was $103.8 million, a significant increase from $75.6 million in the same period of 2024[23] - Total revenue for the nine months ended September 30, 2025, was $1,428.1 million, a 10.3% increase from $1,294.8 million in the same period of 2024[27] - Total recurring revenue for the nine months was $1,206.7 million, reflecting a 7.4% increase from $1,123.6 million in the prior year[27] - Operating profit for Q3 2025 was $30.5 million, with an operating margin of 6.3%[31] - The company reported an EBITDA of $(101.9) million for Q3 2025, with an adjusted EBITDA of $147.3 million[31] - For the nine months ended September 30, 2025, the operating profit was $103.8 million, representing a margin of 7.3%, compared to $75.6 million and a margin of 5.8% for the same period in 2024[33] - The net loss for the nine months ended September 30, 2025, was $160.6 million, a decrease from a net income of $7.3 million in 2024, reflecting a margin of (11.2)% compared to 0.6%[33] - EBITDA for the nine months ended September 30, 2025, was $234.3 million, with an EBITDA margin of 31.6%, up from $221.4 million and a margin of 28.8% in 2024[33] - Free cash flow for the nine months ended September 30, 2025, was $111.6 million, with a free cash flow margin of 7.8%, compared to $117.3 million and a margin of 9.1% in 2024[34] - The net cash provided by operating activities for the nine months ended September 30, 2025, was $193.5 million, down from $200.1 million in 2024, resulting in a margin of 13.5% compared to 15.5%[34] - Adjusted net income for the nine months ended September 30, 2025, was $252.6 million, with an adjusted net profit margin of 17.7%, compared to $218.7 million and a margin of 16.9% in 2024[33] - The adjusted diluted net income per share for the nine months ended September 30, 2025, was $1.56, compared to $1.37 in 2024[33] Customer Metrics - As of September 30, 2025, Dayforce had 7,025 customers live on its platform, representing a 4.4% increase year-over-year[7] - The average float balance for customer funds was $4.54 billion, with a yield of 3.7%, generating float revenue of $42.2 million for the quarter[7] Mergers and Acquisitions - Dayforce entered into a merger agreement with Thoma Bravo, with an enterprise value of approximately $12.3 billion, expected to close in late 2025 or early 2026[9] - Restructuring expenses of $27.6 million related to the Thoma Bravo transaction negatively impacted free cash flow in Q3[13] - The company incurred $57.3 million in restructuring expenses for the nine months ended September 30, 2025, primarily related to the Thoma Bravo Transaction[33] Recognition and Awards - Dayforce was recognized as a Leader in the 2025 Gartner Magic Quadrant for Cloud HCM Suites for the sixth consecutive year[13] Balance Sheet - Total current assets as of September 30, 2025, were $5,531.5 million, down from $5,983.5 million at the end of 2024[21] - Total liabilities decreased to $5,981.5 million from $6,570.7 million at the end of 2024[21] - Cash and equivalents at the end of Q3 2025 were $627.6 million, compared to $494.1 million at the end of Q3 2024[25] - Customer funds obligations decreased to $4,413.3 million from $5,024.2 million at the end of 2024[21] - The company reported a total stockholders' equity of $2,694.7 million as of September 30, 2025, up from $2,546.3 million at the end of 2024[21] - The company reported a net interest expense of $21.7 million for the nine months ended September 30, 2025, compared to $33.2 million in 2024[33] - The company’s capital expenditures for the nine months ended September 30, 2025, were $81.9 million, slightly down from $82.8 million in 2024[34]

Core Insights - Dayforce (DAY) is set to release its third-quarter 2025 results on October 29, with expected revenues between $476 million and $486 million, reflecting a growth of 10.1% to 12.6% on a GAAP basis [1][9] Revenue Expectations - The Zacks Consensus Estimate for third-quarter revenues is $481.60 million, indicating a year-over-year increase of 9.45% [2] - The company anticipates recurring revenues excluding float to be between $329 million and $339 million, representing growth of 12.7% to 16.1% on a GAAP basis [4] Customer Growth and Recurring Revenue - As of June 30, 2025, Dayforce had 6,984 customers, a 4.9% increase year over year, with recurring revenue per customer reaching $171,075, up 10.4% from the previous year [3][9] AI and Product Developments - Dayforce's growth is supported by advancements in AI capabilities, including the Dayforce AI Assistant and enhancements in mobile and learning platforms, which are expected to drive platform adoption and revenue growth [5][9] Global Presence - The company is experiencing success in various regions, including the US, Canada, Australia, New Zealand, the UK, and Germany, which provides opportunities for further growth in international markets [6] Earnings Expectations - Dayforce currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating a neutral outlook for earnings performance [7]

Core Insights - The proposed sale of Dayforce, Inc. to Thoma Bravo involves a cash offer of $70.00 per share for Dayforce shareholders [1] - Kahn Swick & Foti, LLC is investigating whether the sale price adequately reflects the value of Dayforce and the process leading to this valuation [1] Company Overview - Dayforce, Inc. is currently listed on the NYSE under the ticker symbol DAY [1] - The investigation by Kahn Swick & Foti, LLC is led by former Louisiana Attorney General Charles C. Foti, Jr. [1][2] Legal Considerations - Shareholders who believe the transaction undervalues Dayforce are encouraged to discuss their legal rights with Kahn Swick & Foti, LLC [2] - The law firm is offering consultations without obligation or cost to the shareholders [2]

Core Insights - Dayforce, Inc. is hosting its flagship Dayforce Discover conference from October 6-9, 2025, at Wynn Las Vegas, with live stream registration now open [1] - The conference aims to foster transformative innovation and empower attendees in the realm of human capital management [2] Event Highlights - The conference will feature keynotes from industry leaders, including an Innovation Keynote by Dayforce Chair and CEO David Ossip, focusing on new ways to work, learn, and lead using AI-powered solutions [7] - Guest speaker Salman Khan, founder of Khan Academy, will discuss the future of personalized learning and AI in the workplace [7] - Tracee Ellis Ross will deliver a closing keynote on the importance of joy in the workplace and how to cultivate a joyful culture [7] Partner Network - The Dayforce Partner Network connects customers with expertise and solutions to maximize the value of the Dayforce platform, featuring over 70 partner organizations [4] Company Overview - Dayforce is a global leader in human capital management technology, focusing on enabling organizations to unlock workforce potential through its AI-powered platform [6]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the sale of Dayforce, Inc. to Thoma Bravo for $70.00 per share in cash, focusing on the interests of Dayforce shareholders [1]. Company Investigation - The investigation is centered on whether Dayforce and its board acted in the best interests of shareholders during the sale process [1]. - Dayforce shareholders are encouraged to explore their legal rights and options regarding the transaction [1]. Contact Information - Shareholders can contact Daniel Sadeh or Zachary Halper at Halper Sadeh LLC for more information [1].