Financial Data and Key Metrics Changes - Dayforce reported a total revenue of $465 million, representing a 10% increase year-over-year, with recurring revenue excluding float growing by 14% to $315.5 million [24][25] - Adjusted EBITDA increased by 27% to $147.2 million, achieving a margin of 31.7%, which is an expansion of 420 basis points [25][26] - Free cash flow for the quarter was $87.1 million, or 18.7% of revenue, with year-to-date free cash flow rising to $106.6 million, up 500 basis points from the previous year [6][7][26] Business Line Data and Key Metrics Changes - Professional services revenue grew by 23% to $71.6 million, indicating strong demand for implementation services [25] - New client bookings across all segments performed well, with bookings growing over 40% year-to-date [9][10] - Sales to existing customers increased by over 50% in the second quarter, representing 40% of total bookings [10] Market Data and Key Metrics Changes - The demand environment remains strong, with year-to-date bookings growth exceeding 40% [26] - Employment levels at customer organizations have shown moderate growth of approximately 1% [26][81] - Foreign exchange rates improved during the quarter, positively impacting guidance [26] Company Strategy and Development Direction - The company aims to grow Dayforce recurring revenue above 15% and has increased free cash flow margin guidance from 12% to between 13.5% and 14% [7][28] - Dayforce is focusing on a single data model to enhance AI capabilities and streamline operations, which is expected to drive higher sales productivity and profitability [19][70] - The company is actively hiring additional sales personnel to capitalize on market opportunities and improve conversion rates [102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $1 billion in free cash flow by 2031, supported by strong operational efficiencies and favorable legislative changes [7][31][32] - The company anticipates solid growth in the fourth quarter, driven by revenue from go-lives related to strong bookings from previous quarters [29] - Management noted that the market demand for a single system is strong, driven by the need for efficiency and better decision-making capabilities [70][74] Other Important Information - The company is in the final stages of terminating legacy pension plans, which is expected to impact cash flow guidance positively [32] - Dayforce's AI roadmap includes the introduction of over 30 AI agents, enhancing the platform's capabilities [18][50] Q&A Session Summary Question: Sales growth from SI partners - Management reported that SI-led sales were up 80% for the first half of the year, with strong full suite attachment rates across segments [36][38] Question: Bookings translating to revenue - Management indicated that it typically takes about 12 months to onboard new clients, with add-ons occurring faster than new client implementations [42][43] Question: Updates on AI products - Management highlighted the introduction of various AI products, with significant potential for upselling to existing clients [47][50] Question: Free cash flow guidance - Management confirmed that the increase in free cash flow margin is primarily driven by tax changes, alongside underlying operational efficiencies [89][90] Question: Phasing of the Government of Canada contract - Management stated that the contract is progressing well, with revenue recognition expected to phase through the back half of the year [98][99]

Financial Data and Key Metrics Changes - Dayforce's recurring revenue excluding float grew by 14% on a constant currency basis, reaching $315.5 million [5][25] - Adjusted EBITDA margin increased by 420 basis points to 31.7%, with adjusted EBITDA at $147.2 million, up 27% [5][25] - Free cash flow for the quarter was $87.1 million, representing 18.7% of revenue, and year-to-date free cash flow increased by 500 basis points to $106.6 million [5][6][25] Business Line Data and Key Metrics Changes - Professional services revenue rose by 23% to $71.6 million, indicating strong demand for services [25] - New client bookings across all segments performed well, with bookings growing over 40% year-to-date [8][27] - Back to base sales strategy saw sales to existing customers grow over 50%, representing 40% of total bookings [9] Market Data and Key Metrics Changes - The demand environment remains strong, with year-to-date bookings growth over 40% [27] - Employment levels at customers have shown moderate growth, estimated at just under 1% [27][81] - Foreign exchange rates improved against the U.S. Dollar in Canada, the UK, and Australia, positively impacting guidance [27] Company Strategy and Development Direction - The company aims to grow Dayforce recurring revenue above 15% and has increased free cash flow margins guidance from 12% to between 13.5% to 14% [6][29] - Dayforce is focusing on consolidating an average of 12 systems into one, enhancing customer value and operational efficiency [7][19] - The company is positioning itself as an AI leader, integrating AI across its suite and enhancing product offerings [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $1 billion in free cash flow by 2031, supported by strong operational performance and market demand [6][32] - The company noted that the macroeconomic environment remains favorable for its business, particularly in sectors like hospitality and retail [81] - Management highlighted the importance of a single data model for AI capabilities, which differentiates Dayforce from competitors [19][72] Other Important Information - The company repurchased $20.8 million of common stock during the second quarter, bringing the year-to-date total to $51.2 million [26] - The government of Canada selected Dayforce for HR and payroll transformation, marking a significant contract win [14][49] Q&A Session Summary Question: Sales growth from system integrator partners - System integrator-led sales were up 80% for the first half of the year, with strong full suite attachment rates [36][39] Question: Bookings translating to revenue and go-live initiatives - Onboarding a new client typically takes about 12 months, with add-ons happening quicker than new clients [42][43] Question: AI product introduction and pricing - The company is launching around 30 AI agents, with significant potential to reintroduce these to current clients [47][50] Question: Impact of the One Big Beautiful Bill Act on R&D - The act allows immediate expensing of domestic R&D costs, providing a cash tax benefit of $40 million to $50 million this year [56][58] Question: Phasing of the Government of Canada contract - The contract is expected to phase through the back half of the year, with about half of the revenue recognized so far [96][97] Question: Sales strategy and hiring plans - The company is leaning into hiring additional sellers to capitalize on strong sales momentum [100]

Revenue Growth - Total revenue increased by $41.4 million, or 9.8%, to $464.7 million for the three months ended June 30, 2025, compared to $423.3 million for the same period in 2024[128] - Total revenue increased by $91.7 million, or 10.7%, to $946.5 million for the six months ended June 30, 2025, compared to $854.8 million for the same period in 2024[145] - Total recurring services revenue reached $393.1 million, a 7.7% increase from $365.0 million in the same period in 2024[126] - Professional services revenue increased by $13.3 million, or 22.8%, to $71.6 million for the three months ended June 30, 2025[126] Customer Metrics - The number of live Dayforce customers increased by 4.9% to 6,984 at June 30, 2025, from 6,657 at June 30, 2024[128] - Dayforce recurring revenue per customer grew to $171,075 for the trailing twelve months ended June 30, 2025, compared to $154,998 for the comparable period in 2024[128] Profitability - Operating profit for the three months ended June 30, 2025, was $42.3 million, a 200% increase from $14.1 million in the same period in 2024[126] - Operating profit for the six months ended June 30, 2025, was $73.3 million, compared to $54.8 million for the same period in 2024, reflecting a 33.8% increase[155] - Net income for the three months ended June 30, 2025, was $21.3 million, compared to a net loss of $1.8 million for the same period in 2024, representing a 1283.3% increase[126] - Net income for the six months ended June 30, 2025, was $36.2 million, compared to a net income of $5.3 million for the same period in 2024, representing a 583.0% increase[143] Costs and Expenses - Costs of recurring services increased by $3.4 million, or 3.8%, primarily due to a $4.5 million rise in consulting and contract labor[130] - Total costs and expenses increased by $73.2 million, or 9.2%, for the six months ended June 30, 2025, compared to the same period in 2024[143] - General and administrative expenses increased by $15.0 million, or 13.0%, for the six months ended June 30, 2025, primarily due to an $18.1 million increase in labor and benefit expenses[153] Cash Flow and Liquidity - Cash and equivalents as of June 30, 2025, totaled $625.2 million, while total debt stood at $1,224.6 million[161] - Net cash provided by operating activities increased to $162.3 million for the six months ended June 30, 2025, compared to $108.3 million in the prior year[166] - Free cash flow for the three months ended June 30, 2025, was $87.1 million, with a free cash flow margin of 18.7%[186] - The company believes its cash flow from operations and available cash will be sufficient to meet liquidity needs for the next twelve months[164] Investment and Development - Investment in software development was $113.3 million for the six months ended June 30, 2025, compared to $105.9 million for the same period in 2024[150] - Capital expenditures for the six months ended June 30, 2025, included $47.8 million for software and technology[168] Tax and Other Expenses - The company incurred an income tax expense increase of $8.1 million for the six months ended June 30, 2025, primarily due to current operations[159] - Other expense, net, improved to $0.9 million for the six months ended June 30, 2025, compared to $12.0 million in the same period of 2024, largely due to foreign currency translation gains[158] Future Outlook and Risks - The company is closely monitoring changes in international trade relations and economic policies that could impact its operating results[117] - The company expects no material impact from a hypothetical 10% change in foreign currency exchange rates on its operations[189] - A 100 basis point decrease in market investment rates could result in approximately $27 million decrease in float revenue over the next twelve months[192] Pension Plan - The pension plan for certain U.S. employees was closed to new participants on January 2, 1995, and benefits were frozen as of December 31, 2007[196] - The company is finalizing the wind down of the pension plan, expecting to transfer associated liabilities to an insurance company by 2025[197] - Future pension benefit costs will depend on actual returns on plan assets and actuarial assumptions, with the effective discount rate for 2024 ranging from 5.06% to 5.35%[197] - The expected rate of return on plan assets for qualified pension benefits in 2025 is set at 5.10%[197]

Exhibit 99.1 Dayforce Reports Second Quarter 2025 Results 1 Dayforce® recurring revenue, excluding float, of $316 million, up 14% on a GAAP and constant currency basis Total revenue of $465 million, up 10%, and excluding float, up 12% on a GAAP and constant currency basis Year-to-date net cash provided by operating activities of $162 million Minneapolis, MN and Toronto, ON, August 6, 2025 - Dayforce, Inc. ("Dayforce" or the "Company") (NYSE:DAY) (TSX:DAY), a global leader in human capital management ("HCM") ...

Core Insights - Dayforce (DAY) is set to report its second-quarter 2025 results on August 4, with expected revenues between $454 million and $460 million, reflecting a year-over-year growth of 8.3% [1][9] - The Zacks Consensus Estimate for second-quarter revenues is $458.2 million, indicating an 8.3% year-over-year increase, with earnings estimated at 52 cents per share, also showing 8.3% growth [2] - Dayforce has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 17.04% [2] Revenue and Customer Growth - The anticipated revenue for the upcoming quarter, excluding float revenues of $46 million, is projected to be between $408 million and $414 million [1] - As of March 31, 2025, Dayforce had 6,929 customers, marking a 5.4% year-over-year increase, and recurring revenue per customer reached $167,600, up 11.5% from the previous year [4] Technological Advancements - Dayforce is enhancing its AI capabilities with tools like Dayforce AI Assistant, which is now available on mobile platforms, and improvements in various workflows, expected to drive platform adoption and revenue growth [5] - The company is also expanding compliance features for global statutory requirements, which is anticipated to attract new clients [6] Market Performance - Since the release of first-quarter 2025 results on May 7, DAY shares have increased by 6.1%, underperforming the broader Zacks Computer and Technology sector, which appreciated by 14.2%, and the Zacks Internet Software industry, which returned 17.2% [3]

Core Viewpoint - Dayforce, Inc. is set to release its second quarter 2025 earnings on August 6, 2025, and will participate in several upcoming investor conferences [1][2][4]. Earnings Release - The financial results for the second quarter of 2025 will be announced before the market opens on August 6, 2025 [2]. - A live webcast and conference call will be held at 8:00 a.m. Eastern Time on the same day to discuss the financial results [3]. Investor Conferences - Dayforce management will participate in multiple investor conferences, including: - KeyBanc Capital Markets Technology Leadership Forum on August 11, 2025 [7]. - Deutsche Bank Technology Conference on August 28, 2025 [7]. - Citi Global TMT Conference on September 3, 2025 [7]. - Wolfe Research TMT Conference on September 10, 2025 [7]. - Webcasts and replays of the presentations will be available on the Dayforce Investor Relations website [4]. Company Overview - Dayforce is a global leader in human capital management (HCM) technology, focusing on improving work life for customers and employees [5]. - The company offers a single AI-powered platform for HR, Pay, Time, Talent, and Analytics, enabling organizations to unlock workforce potential and realize quantifiable value [5].

Core Insights - Dayforce, Inc. is hosting its flagship conference, Dayforce Discover, from October 6-9 at Wynn Las Vegas, focusing on enhancing work life through human capital management [1][2] - The conference will feature keynotes, learning opportunities, and a community-driven experience centered around the theme of meaningful work in the age of AI [2][3] Event Highlights - The conference will include an Innovation Keynote by Dayforce CEO David Ossip and Chief Strategy Officer Joe Korngiebel, discussing new ways for customers to work and learn using AI innovations [7] - Guest speaker Salman Khan will address the future of personalized learning and AI in the workplace [7] - Closing Keynote by Tracee Ellis Ross will focus on the importance of joy in the workplace and how to cultivate a joyful culture [7] - Attendees can participate in hands-on labs, breakout sessions, and earn certifications from recognized organizations [7] Community and Networking - Dayforce Discover aims to create an authentic community experience, allowing attendees to connect with like-minded peers and industry leaders [3][5] - The event will feature a Customer Support Zone for personalized assistance and a Dayforce Exploration Expo for hands-on interaction with the platform [7] Company Overview - Dayforce is a global leader in human capital management technology, providing an AI-powered platform that supports HR, payroll, time, talent, and analytics for organizations of all sizes [8]

Core Insights - Dayforce, Inc. has announced the registration and agenda for its flagship conference, Dayforce Discover, scheduled for October 6-9, 2025, at Wynn Las Vegas [1][8] - The conference will focus on the theme of "doing the work you're meant to do," particularly in the context of the rise of AI [2][3] Event Highlights - The conference will feature keynotes from notable speakers, including Dayforce CEO David Ossip, Salman Khan of Khan Academy, and Tracee Ellis Ross, emphasizing innovation, personalized learning, and the importance of joy in the workplace [6][3] - Attendees can expect hundreds of learning opportunities, including interactive training, hands-on labs, breakout sessions, and a customer support zone [5][6] Community and Experience - Dayforce Discover aims to create an authentic community experience, encouraging attendees to feel seen, heard, and inspired to enact real change [3][2] - The event will culminate in a themed celebration, "Space Disco," highlighting the community aspect of the conference [7]

Core Insights - The report by Dayforce highlights that 88% of respondents experience friction in their work environment, which includes ineffective communication, complicated processes, and lack of resources [1][2] - A significant majority (84%) of respondents have faced organizational change in the past year, indicating a need for leaders to simplify processes to enhance productivity [2][3] Friction Types - **Staffing Friction**: 65% of workers report that when someone is absent, there is often no coverage for their work. Middle managers identify workforce scheduling (36%) and labor forecasting (31%) as major challenges [6] - **Agility Friction**: Over half (51%) of respondents believe they could add more value in different roles, yet only 43% say their organization has a structured upskilling process [6] - **Change Friction**: 52% of respondents feel that organizational changes negatively impact efficiency, and only 44% rate their organization as effective in communicating changes [6] - **Technology Friction**: 69% of respondents feel their organization uses too many technology platforms, and 66% believe that new technologies often reduce efficiency [6] Survey Methodology - The survey was conducted by Hanover Research from April 14 to May 1, 2025, involving 6,178 respondents from companies with at least 100 employees across multiple countries [4][5]

Group 1: Labor Market Overview - The U.S. job market exceeded expectations for the 11th consecutive month, with 147,000 jobs added in June compared to the forecast of 110,000 [1] - The unemployment rate decreased from 4.2% to 4.1%, better than the expected 4.3% [1] - Average hourly earnings increased by 0.2% month-over-month and 3.7% year-over-year [1] Group 2: Payroll Stocks Performance - Paylocity Holding Corporation (PCTY) and Dayforce (DAY) saw stock increases of over +2% and +1% respectively, both classified as Zacks Rank 3 (Hold) [2] - Paychex (PAYX) is noted for its integrated Human Capital Management (HCM) solutions and has a Zacks Rank 2 (Buy), with expectations for steady growth in top and bottom lines [3] - Maximus (MMS) is identified as a strong buy with a Zacks Rank 1 (Strong Buy), despite a 21% decline from its 52-week high, attributed to a spike in FY25 EPS estimates by 7% [5] Group 3: Market Reactions and Economic Implications - The dip in Maximus stock followed the announcement of 7,000 federal government job cuts, but this may be an overreaction given the addition of 47,000 state government jobs and 19,000 social assistance jobs [6] - The resilient labor market and better-than-expected jobs report contribute positively to the stock market's recovery, making payroll stocks particularly attractive [8]