Ceridian(DAY) - 2025 Q2 - Quarterly Results

Revenue Performance - Dayforce's recurring revenue, excluding float, reached $316 million, reflecting a 14% increase on a GAAP and constant currency basis[2]. - Total revenue for the second quarter was $465 million, up 10%, and excluding float, total revenue was $417.3 million, an increase of 11.5% on a GAAP and constant currency basis[7]. - Total revenue for Q2 2025 was $464.7 million, a 9.4% increase from $423.3 million in Q2 2024[30]. - Total revenue for Q2 2025 reached $464.7 million, representing a 9.8% increase compared to $423.3 million in Q2 2024[34]. - For the first half of 2025, total revenue was $946.5 million, a 10.7% increase from $854.8 million in the first half of 2024[34]. - The company reported a total revenue excluding float of $417.3 million, which is an 11.5% increase from $374.4 million in Q2 2024[34]. Recurring Revenue - Dayforce recurring revenue increased by 13.6% to $315.5 million, compared to $277.7 million in Q2 2024[34]. - Recurring services revenue reached $393.1 million, up 7.7% from $365.0 million year-over-year[30]. - Total recurring revenue for the first half of 2025 was $803.6 million, reflecting a 7.5% increase from $747.7 million in the prior year[34]. - Dayforce's recurring revenue per customer increased to $171,075, a 10.4% rise year-over-year[14]. Profitability Metrics - Adjusted EBITDA for the second quarter was $147.2 million, with an adjusted EBITDA margin of 31.7%, up from 27.5% year-over-year[7]. - Operating profit for Q2 2025 was $42.3 million, significantly higher than $14.1 million in Q2 2024[30]. - For the six months ended June 30, 2025, operating profit was $73.3 million with a margin of 7.7%, compared to $54.8 million and 6.4% for the same period in 2024, representing a 33.5% increase in operating profit[41]. - Adjusted operating profit for the six months ended June 30, 2025, was $94.4 million, with an adjusted operating profit margin of 27.2%[41]. - Net income for the six months ended June 30, 2025, was $36.2 million, a 584.9% increase from $5.3 million in the same period of 2024, resulting in a net income margin of 3.8%[41]. - Net income for Q2 2025 was $21.3 million, translating to a diluted net income per share of $0.13[39]. Cash Flow and Financial Position - Year-to-date net cash provided by operating activities was $162 million, compared to $108.3 million for the same period in 2024, representing a margin increase from 12.7% to 17.1%[7]. - Dayforce's free cash flow for the first half of 2025 was $106.6 million, compared to $53.9 million for the same period in 2024, indicating a free cash flow margin increase from 6.3% to 11.3%[7]. - The company aims for $1 billion in free cash flow by 2031, supported by strong go-live execution and disciplined cost management[4]. - The guidance for free cash flow for the twelve months ending December 31, 2025, is projected to be between $261 million and $274 million[43]. - The company’s free cash flow margin for the six months ended June 30, 2025, was 11.3%, compared to 6.3% in 2024[43]. Customer Metrics - Dayforce had 6,984 customers live on its platform as of June 30, 2025, marking a 4.9% year-over-year increase[7]. Balance Sheet Highlights - Total assets decreased to $8,500.8 million as of June 30, 2025, down from $9,117.0 million at the end of 2024[28]. - Current liabilities increased to $5,117.8 million from $5,314.8 million at the end of 2024, primarily due to customer funds obligations[28]. - Cash and equivalents at the end of Q2 2025 were $625.2 million, compared to $579.7 million at the end of 2024[28]. - Total liabilities decreased to $5,798.5 million from $6,570.7 million at the end of 2024[28]. Shareholder Information - The company reported a basic net income per share of $0.13 for Q2 2025, compared to a loss of $0.01 per share in Q2 2024[30]. - The company reported a diluted net income per share of $0.22 for the six months ended June 30, 2025, compared to $0.03 in 2024[41]. - The company incurred $94.3 million in share-based compensation expense for the six months ended June 30, 2025, compared to $78.8 million in 2024[32]. Adjustments and Other Financial Metrics - The adjustments to net income for the six months ended June 30, 2025, included $10.5 million related to the termination of a frozen U.S. pension plan and a $10.2 million foreign exchange gain[41]. - EBITDA for the six months ended June 30, 2025, was $179.5 million, reflecting a 26.3% increase from $142.2 million in 2024, with an EBITDA margin of 32.1%[41]. - Adjusted EBITDA for Q2 2025 was $98.6 million, with an adjusted EBITDA margin of 21.2%[39].