Core Insights - Dayforce (DAY) reported Q3 2025 earnings of $0.37 per share, missing the Zacks Consensus Estimate by 33.93% and decreasing 21.3% year over year [1][6] - Revenues reached $481.6 million, aligning with the Zacks Consensus Estimate, and increased 9.5% year over year, with a 9.6% increase on a constant currency basis [1][6] - Excluding float, total revenues were $439.4 million, reflecting an 11.4% year-over-year increase [1] Revenue Breakdown - Recurring revenues, which constitute 83.7% of total revenues, increased 7.2% year over year to $403.1 million [2] - Excluding float revenues, recurring revenues totaled $333.0 million, showing robust growth of 14% year over year [2] - Powerpay's recurring revenues reached $19.7 million, reflecting a decrease of 2.5% year over year [3] - Professional Services and Other, making up 16.3% of total revenues, increased 22.5% year over year to $78.5 million [3] Operating Performance - Selling and marketing expenses were $86.8 million, up 1.2% year over year [4] - General and Administrative expenses totaled $81.2 million, up 28.1% year over year [4] - Adjusted EBITDA was $147.3 million, up 16.8% year over year, with an adjusted EBITDA margin of 30.6%, an increase of 190 basis points [4] - Adjusted operating profit amounted to $119.1 million, up 15.4% year over year, with an operating margin expansion of 130 basis points to 24.7% [4] Balance Sheet & Cash Flow - As of September 30, 2025, cash and cash equivalents were $627.6 million, slightly up from $625.2 million as of June 30, 2025 [5] - Cash provided by operating activities in Q3 2025 was $31.2 million, down from $112.7 million in the prior quarter [5] - Free cash flow was $5 million compared to $87.1 million in the previous quarter [5]

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, Inc. reported strong financial results for Q1 2025, with total revenue of $481.8 million, representing an increase of 11.7% year-over-year, or 13.6% on a constant currency basis [6][9] - The company's recurring revenue, excluding float, was $323.1 million, up 14.4% year-over-year, or 15.9% on a constant currency basis [6][29] - Dayforce's net income for the quarter was $14.9 million, compared to $7.1 million in the previous year, reflecting a net profit margin increase to 3.1% from 1.6% [6][23] Financial Performance - Total revenue of $481.8 million, up 11.7%, or 13.6% on a constant currency basis [6][29] - Recurring revenue, excluding float, was $323.1 million, an increase of 14.4%, or 15.9% on a constant currency basis [6][29] - Operating profit was $31.0 million, down from $40.7 million, while adjusted operating profit rose to $132.3 million from $109.1 million [6][23] - Adjusted EBITDA was $156.7 million, compared to $129.9 million, with an adjusted EBITDA margin of 32.5% [6][23] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $49.6 million, significantly up from $9.1 million in the prior year [6][25] - Free cash flow for the quarter was $19.5 million, compared to a negative $18.8 million in the previous year [6][39] - The company repurchased approximately $30 million worth of shares during the quarter under its $500 million repurchase program, returning over $66 million of capital to stockholders to date [3][6] Customer Growth and Market Position - As of March 31, 2025, Dayforce had 6,929 customers live on its platform, a 5.4% increase year-over-year [6][29] - Dayforce recurring revenue per customer was $167,600 for the trailing twelve months, an increase of 11.5% [6][29] - The company announced an expanded partnership with Microsoft, making its platform available in the Microsoft Azure Marketplace [12] Business Outlook - Dayforce provided guidance for Q2 2025, projecting total revenue of $454 million to $460 million, and full-year revenue of $1,929 million to $1,944 million [13][14] - The company anticipates continued growth in recurring revenue, with expectations of an increase of approximately 12.1% to 13.1% on a GAAP basis for the full year [13][14]