Ceridian(US:DAY)2025-10-29 20:18Financial 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]