Revenue and Profitability - Revenue for Q3 2025 was $481.6 million, an increase of 9.5% from $440.0 million in Q3 2024[43]. - Operating profit for Q3 2025 reached $30.5 million, up 46.6% from $20.8 million in Q3 2024[43]. - Total revenue for the three months ended September 30, 2025, was $481.6 million, a 9.1% increase from $440.0 million in the same period of 2024[94]. - Recurring services revenue reached $403.1 million for the three months ended September 30, 2025, compared to $375.9 million in the prior year, reflecting a growth of 7.9%[94]. Expenses and Costs - Labor and benefits expenses decreased slightly to $178.4 million in Q3 2025 from $181.4 million in Q3 2024[43]. - Other expenses increased to $272.7 million in Q3 2025 compared to $237.8 million in Q3 2024[43]. - Net periodic pension and postretirement costs for Q3 2025 were $177.1 million, significantly higher than $2.5 million in Q3 2024[44]. - Total share-based compensation expense was $44.8 million for the three months ended September 30, 2025, compared to $39.6 million for the same period in 2024[87]. - Income tax expense for the three months ended September 30, 2025, was $43.9 million, which included $40.6 million attributable to non-deductible items[105]. Financial Position and Assets - Total customer funds as of September 30, 2025, amounted to $4,433.8 million, reflecting the company's management of customer assets[53]. - The fair value of available-for-sale customer funds assets was $2,616.7 million as of September 30, 2025, compared to $2,327.3 million at the end of 2024[47]. - Goodwill increased to $2,384.9 million as of September 30, 2025, up from $2,336.7 million as of December 31, 2024, due to an acquisition and foreign currency fluctuations[62]. - The company's total debt as of September 30, 2025, was $1,222.9 million, slightly down from $1,228.3 million as of December 31, 2024[65]. - The fair value of investments due in one year or less was $2,306.7 million as of September 30, 2025[57]. Debt and Financing - The Term Debt bears interest rates of 6.3% and 7.1% as of September 30, 2025, with a total of $641.9 million outstanding[65]. - The company capitalized $7.5 million in additional financing costs and recognized a loss on debt extinguishment of $4.3 million for the nine months ended September 30, 2024[70]. - The carrying amount of the Convertible Senior Notes was $573.5 million, with principal of $575.0 million net of issuance costs of $1.5 million[76]. - Future principal payments and maturities of the company's indebtedness total $1.2169 billion, with $581.5 million due in 2026[79]. - The fair value of the company's debt was estimated to be $1.20 billion as of September 30, 2025[80]. Shareholder Actions - The company announced a share repurchase program on July 31, 2024, with authorization to purchase up to $500 million of its common stock, although no additional repurchases will occur during the pendency of the Merger Agreement[118]. - In Q3 2025, the total number of shares purchased was 152,425 at an average price of $56.91, resulting in a total cost of approximately $8.67 million[120]. Future Expectations and Risks - The company expects to recognize approximately $1.52 billion in revenue from remaining performance obligations over the next three years[101]. - The company is exposed to foreign currency exchange rate risks, particularly with the Canadian Dollar, but believes a hypothetical 10% change would not materially affect operations[205]. - A 100 basis point decrease in market investment rates could lead to an estimated $27 million decrease in float revenue over the next twelve months[208]. - The company expects a 100 basis point decrease in applicable reference rates to result in approximately $6 million decrease in interest expense over the next twelve months[209]. Acquisitions and Corporate Actions - The company completed the acquisition of Agentnoon on October 1, 2025, a startup focused on workforce planning and organization design software[119]. Tax and Valuation - The company recorded a valuation allowance of $39.5 million against certain deferred tax assets as of September 30, 2025[104]. - The total amount of unrecognized tax benefits as of September 30, 2025, was $3.8 million, which could impact the effective income tax rate if recognized[107].

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% from $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 last year[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%[32] - The company reported an EBITDA of $(101.9) million for Q3 2025, with an adjusted EBITDA of $147.3 million[32] - 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 the prior year, reflecting a margin change from 0.6% to (11.2)%[33] - EBITDA for the nine months ended September 30, 2025, was $234.3 million, with an adjusted EBITDA margin of 31.6%, compared to $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, down from $117.3 million in 2024, with a free cash flow margin of 7.8% compared to 9.1%[34] - The net cash provided by operating activities for the nine months ended September 30, 2025, was $193.5 million, slightly lower than $200.1 million in 2024, resulting in a margin of 13.5% versus 15.5%[34] - Adjusted diluted net income per share for the nine months ended September 30, 2025, was $1.56, compared to $1.37 in the prior year[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 related to the Thoma Bravo Transaction for the nine months ended September 30, 2025[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 assets decreased to $8,676.2 million as of September 30, 2025, down from $9,117.0 million at the end of 2024[21] - Cash and equivalents increased to $627.6 million from $579.7 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] - Customer funds obligations decreased to $4,413.3 million from $5,024.2 million at the end of 2024[21] Cash Flow - Cash flows from operating activities for the nine months ended September 30, 2025, were $193.5 million, compared to $200.1 million in 2024[25] - Net cash used in investing activities was $292.6 million for the nine months ended September 30, 2025, down from $458.1 million in 2024[25]

Core Insights - Dayforce, Inc. reported a total revenue of $481.6 million for Q3 2025, representing a year-over-year increase of 9.5%, or 9.6% on a constant currency basis [7] - Recurring revenue, excluding float, reached $333 million, up 14% year-over-year on both GAAP and constant currency basis [7] - The company experienced a net loss of $196.8 million, compared to a net income of $2 million in the same quarter last year, resulting in a net profit margin of (40.9)% [7] Financial Performance - Total revenue for the nine months ended September 30, 2025, was $1.428 billion, an increase of 10.3% compared to $1.295 billion for the same period in 2024 [27] - Adjusted EBITDA for Q3 2025 was $147.3 million, with an adjusted EBITDA margin of 30.6%, compared to 28.7% in Q3 2024 [7][34] - Year-to-date net cash provided by operating activities was $194 million, down from $200 million for the same period in 2024 [7] Customer Metrics - As of September 30, 2025, Dayforce had 7,025 customers live on its platform, marking a 4.4% increase year-over-year [7] - The average recurring revenue per customer was $175,172 for the trailing twelve months ended September 30, 2025, reflecting a 9.8% increase [7] Strategic Developments - Dayforce entered into a merger agreement with Thoma Bravo, L.P., under which Thoma Bravo will acquire Dayforce for $70.00 per share, totaling an enterprise value of approximately $12.3 billion [8] - The transaction is expected to close in late 2025 or early 2026, pending customary closing conditions [8] Market Position - Dayforce was recognized as a Leader in the 2025 Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises for the sixth consecutive year [13] - The company achieved record attendance at its annual customer conference, Dayforce Discover 2025, indicating strong engagement with its customer base [13]

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 Viewpoint - Dayforce, Inc. is set to release its third quarter 2025 financial results on October 29, 2025, following its acquisition agreement with Thoma Bravo [1][2]. Group 1: Financial Results Announcement - Dayforce will announce its third quarter 2025 financial results after market trading on October 29, 2025 [1]. - The company will not host an earnings conference call or provide forward-looking guidance due to the acquisition agreement [2]. Group 2: Company Overview - Dayforce is a global leader in human capital management (HCM) technology, focused on improving work life for customers and employees [3]. - The company offers a single AI-powered platform for HR, Pay, Time, Talent, and Analytics, benefiting organizations of all sizes [3].

Core Insights - Dayforce Inc. (DAY) is a human capital management software company with a market cap of $10.9 billion, providing cloud-based HR solutions that cover the entire employee lifecycle [1] - The company is expected to announce its fiscal third-quarter earnings for 2025 soon, with analysts predicting a profit of $0.34 per share, a 54.6% increase from the previous year [2] - For the full fiscal year, analysts forecast an EPS of $1.54, reflecting a 55.6% increase from $0.99 in fiscal 2024, and an expected rise to $1.86 in fiscal 2026 [3] Performance Metrics - DAY stock has underperformed the S&P 500 Index, which gained 13.4% over the past 52 weeks, with DAY shares only increasing by 9.2% during the same period [4] - The stock also lagged behind the Technology Select Sector SPDR Fund, which saw a 20.8% gain in the same timeframe [4] Recent Financial Results - On August 6, DAY reported Q2 results with an adjusted EPS of $0.61, exceeding Wall Street's expectation of $0.52, and revenue of $464.7 million, surpassing forecasts of $458.2 million [5] - The company anticipates full-year revenue between $1.9 billion and $2 billion [5] Analyst Ratings - The consensus opinion on DAY stock is cautious, with a "Hold" rating from 14 out of 16 analysts, while 2 analysts recommend a "Strong Buy" [6] - The average analyst price target for DAY is $70.18, suggesting a potential upside of 3% from current levels [6]

Summary of Dayforce Conference Call Company Overview - **Company**: Dayforce (NYSE: DAY) - **Event**: Discover 2025 Conference - **Date**: October 09, 2025 Key Points Industry Insights - The conference emphasized the importance of community engagement and collaboration within the Dayforce ecosystem, highlighting the role of customer advocates and advisory board members in shaping the company's direction and offerings [4][8][9]. Core Themes - **Optimism and Technology**: The discussions underscored a positive outlook on technology's role in enhancing work experiences, with a focus on AI and its potential benefits for future generations [4]. - **Community Building**: The event celebrated the growth of the Basecamp community, which has expanded to over 2,800 members, fostering connections among customers and enhancing the overall Dayforce experience [13][15]. - **Recognition of Contributions**: The "Make Work-Life Better Award" was presented to Evan Strom, recognizing his significant contributions to the Dayforce community and his role in connecting customers [10][15]. Customer Engagement - The conference featured various sessions aimed at inspiring attendees, with a focus on sharing stories and experiences that highlight the value of collaboration and support within the Dayforce community [7][9][21]. - The importance of customer feedback and advocacy was emphasized, with calls for increased participation in user groups and community initiatives [19]. Leadership and Personal Development - Tracee Ellis Ross, a guest speaker, discussed the significance of authenticity and joy in work, encouraging attendees to embrace their true selves and find fulfillment in their careers [24][54]. - The conversation highlighted the journey of self-discovery and the importance of resilience in overcoming challenges, with Ross sharing personal anecdotes about her career and the lessons learned along the way [106][110]. Business Growth and Strategy - The discussions included insights into the challenges of scaling a business, with a focus on the need for effective leadership and the importance of empowering team members [157][164]. - Ross shared her experiences in building Pattern Beauty, emphasizing the joy of creating products that resonate with customers and support their self-care journeys [175]. Conclusion - The conference concluded with a strong emphasis on community, collaboration, and the pursuit of joy in work, reinforcing Dayforce's commitment to making work-life better for its customers and employees alike [21][175].

Summary of Dayforce Conference Call Company Overview - **Company**: Dayforce (NYSE: DAY) - **Event**: 2025 Conference held on October 08, 2025 Key Industry Insights - **AI Integration**: Dayforce emphasizes the intrinsic integration of AI within its platform, stating that AI is not an afterthought but a core component of its architecture [3][4][5] - **Customer-Centric Approach**: The company focuses on customer success, aiming to simplify operations and enhance employee experiences through technology [2][4] - **Transformation Challenges**: Acknowledges that transformations bring disruption and uncertainty, but reassures customers that Dayforce is a partner in navigating these changes [2] Core Points Discussed - **AI as a Tool for Transformation**: AI is positioned as a means to achieve measurable business results rather than just a technological novelty. Dayforce aims to use AI to enhance creativity and problem-solving among employees [3][4][5] - **Real-World Applications**: Examples of successful AI implementations include: - On The Good and BCU Credit Union utilizing Dayforce AI Assistant for improved employee interactions and efficiency [5][6] - AI helping HR teams streamline processes such as employee pulse surveys and compensation checks, significantly reducing time spent on manual tasks [24][25][26] - **Employee Experience**: The focus is on creating a seamless employee experience, allowing HR teams to concentrate on strategic initiatives rather than administrative tasks [6][24] Important Statistics - **Generative AI Pilots**: A study indicates that 95% of generative AI pilots fail to deliver measurable business value, primarily due to issues related to change management and organizational readiness [17] - **Training Gaps**: 71% of surveyed employees have not received training on AI, while 63% believe AI is critical for their career growth [17][18] Additional Insights - **Cultural Change**: The integration of AI is seen as a cultural shift within organizations, necessitating collaboration between HR and IT departments [7][20] - **Democratization of AI**: Dayforce is implementing a three-tier approach to AI, focusing on making AI tools accessible to all employees, enhancing productivity, and ultimately transforming work processes [22][23] - **Human Element in AI**: Emphasizes the importance of maintaining a humanistic approach in the use of AI, ensuring that technology complements rather than replaces human interaction [36] Conclusion - Dayforce is committed to leveraging AI to enhance operational efficiency and employee satisfaction while navigating the complexities of technological transformation. The focus remains on customer success and the integration of AI as a fundamental aspect of its platform.

Mergers and Acquisitions Overview - 89bio, Inc. will be acquired by Roche for $14.50 per share in cash, plus a contingent value right of up to $6.00 per share, with investigations into the Board's fiduciary duties regarding fair process and value [2] - Barinthus Biotherapeutics plc will merge with Clywedog Therapeutics, with Barinthus shareholders receiving one share of the new company for each ADS or ordinary share owned, and Clywedog shareholders receiving 4.358932 shares, raising questions about the Board's fiduciary duties [4] - Dayforce, Inc. is set to be acquired by Thoma Bravo for $70.00 per share in cash, with an enterprise value of $12.3 billion, while investigations focus on whether the deal consideration is fair compared to the 52-week high of $82.69 [6] - Verint Systems Inc. will also be acquired by Thoma Bravo for $20.50 per share, with investigations into the Board's fiduciary duties and the deal's fairness compared to the 52-week high of $34.80 [8]

Core Viewpoint - Dayforce's largest shareholder plans to vote against Thoma Bravo's proposed $12.3 billion buyout, describing the offer as "underwhelming" and suggesting it is an attempt to take advantage of the company [1] Group 1: Shareholder Reaction - The largest shareholder's opposition indicates a lack of confidence in the buyout offer [1] - The characterization of the offer as "underwhelming" suggests that the shareholder believes the valuation does not reflect the true worth of Dayforce [1] Group 2: Buyout Details - Thoma Bravo's proposed buyout is valued at $12.3 billion, highlighting the significant financial implications for both the acquirer and the target company [1]