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Dayforce (DAY) investor relations material

Dayforce Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary29 Oct, 2025

Executive summary

  • Revenue for Q3 2025 increased 9.5% year-over-year to $481.6 million, with recurring revenue (excluding float) at $333.0 million, up 14.0% year-over-year.

  • Operating profit rose 46.6% year-over-year to $30.5 million, and adjusted operating profit increased to $119.1 million from $103.2 million.

  • Net loss for Q3 2025 was $196.8 million, compared to net income of $2.0 million in Q3 2024, mainly due to a $172.1 million non-cash pension settlement loss and restructuring expenses.

  • Adjusted EBITDA was $147.3 million, up from $126.1 million, with a margin of 30.6%.

  • A merger agreement was signed with Thoma Bravo to acquire the company for $70.00 per share, with completion expected late 2025 or early 2026.

Financial highlights

  • Recurring services revenue grew 7.2% year-over-year to $403.1 million; professional services revenue rose 22.5% to $78.5 million.

  • Total revenue excluding float was $439.4 million, up 11.4% year-over-year.

  • Free cash flow for the nine months ended September 30, 2025 was $111.6 million, with a margin of 7.8%.

  • Adjusted net income was $60.5 million, down from $74.5 million year-over-year.

  • Diluted net loss per share was $1.23, while adjusted diluted net income per share was $0.37.

Outlook and guidance

  • No forward-looking guidance or updates to previously issued guidance will be provided due to the pending Thoma Bravo acquisition.

  • Management expects continued growth in Dayforce customers and recurring revenue per customer.

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Frequently asked questions

Dayforce Inc. is a human capital management (HCM) software company with a global presence, including in the United States, Canada, and other international markets. The company's product is also called Dayforce, and is a comprehensive cloud HCM platform that delivers a wide range of functionalities, such as human resources, payroll and tax, workforce management, wallet, benefits, and talent intelligence. Additionally, Dayforce Inc. provides Powerpay, a specialized cloud HR and payroll solution aimed at the small business segment. The firm also extends payroll and payroll-related services alongside implementation and professional services, catering to a diverse client base through direct sales and third-party channels. The company is headquartered in Minneapolis, Minnesota, and its shares are listed on the NYSE.

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