Ceridian(US:CDAY)2025-10-29 20:20Financial Performance - 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]. - Net loss for the three months ended September 30, 2025, was $196.8 million, compared to a net income of $2.0 million in the same period of 2024[116]. - 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 7.5%[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]. Customer Funds and Investments - 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 increased to $2,616.7 million as of September 30, 2025, from $2,327.3 million at the end of 2024[47]. - Invested customer funds were reported at $4,384.3 million with a fair value of $4,402.7 million as of September 30, 2025[57]. - Investment income from customer funds for Q3 2025 was $42.2 million, down from $45.6 million in Q3 2024[52]. Debt and Financing - 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 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 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]. 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]. - A share repurchase program was approved on July 31, 2024, with authorization to purchase up to $500 million of common stock, although no additional repurchases can be made during the pendency of the Merger Agreement[118]. - A total of 152,425 shares were purchased in Q3 2025 at an average price of $56.91, totaling approximately $8.67 million in cost[120]. Future Projections 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 expects that a hypothetical 10% change in foreign currency exchange rates would not materially affect its operational needs or result in significant foreign currency losses[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]. - A 100 basis point decrease in applicable reference rates would result in approximately $6 million decrease in interest expense over the next twelve months[209]. Accounting and Valuation - The company is currently evaluating the impact of recently issued accounting standards on its financial statements[39][40]. - The company recorded a valuation allowance of $39.5 million against certain deferred tax assets as of September 30, 2025[104]. - The effective discount rate for pension obligations in 2024 ranged from 5.06% to 5.35%, with an expected rate of return on plan assets for qualified pension benefits in 2025 set at 5.10%[214].