Dayforce Reports Third Quarter 2025 Results

Executive Summary

• Dayforce reported Q3 2025 total revenue of $481.6 M (up 9.5% YoY) and recurring revenue (excluding float) of $333.0 M (up 14.0% YoY).
• The company posted a net loss of $196.8 M ($1.23 per diluted share), compared with net income of $2.0 M in Q3 2024.
• The pending Thoma Bravo Transaction will take Dayforce private; no forward‑looking guidance or earnings call will be provided for this quarter or future quarters.

Key Details

• Revenue Highlights
• Total revenue: $481.6 M (9.5% YoY, 9.6% constant‑currency).
• Recurring services revenue: $403.1 M (7.2% YoY).
• Professional services revenue: $78.5 M (22.5% YoY).

• Float revenue: $42.2 M (down 7.5%).

• Profitability

• Operating profit: $30.5 M (vs. $20.8 M in Q3 2024).
• Adjusted operating profit: $119.1 M (vs. $103.2 M YoY).
• Net loss: $(196.8) M; adjusted net income: $60.5 M.

• Diluted net loss per share: $1.23; adjusted diluted EPS: $0.37.

• Cash Flow

• Net cash provided by operating activities (9‑month): $193.5 M (down from $200.1 M YoY).

• Free cash flow (9‑month): $111.6 M (down from $117.3 M YoY).

• Customer Metrics

• Live customers: 7,025 (up 4.4% YoY).
• Recurring revenue per customer (TTM): $175,172 (up 9.8%).

• Average float balance: $4.54 B; average float yield: 3.7%.

• Thoma Bravo Transaction

• Merger agreement signed Aug 20 2025 – Thoma Bravo to acquire Dayforce at $70.00 per share (≈$12.3 B enterprise value).

• Expected close late 2025 or early 2026, subject to shareholder and regulatory approvals.

• Recent Developments

• Strong sales momentum continued in Q3.
• Declining employment levels at customer sites negatively impacted recurring revenue (excluding float).
• Restructuring expenses of $27.6 M related to the Thoma Bravo Transaction reduced free cash flow.

• Dayforce named a Leader in Gartner’s 2025 Magic Quadrant for Cloud HCM Suites (1,000+ employee enterprises) – sixth consecutive year.

• Outlook & Investor Relations

• No forward‑looking guidance will be provided due to the pending transaction.
• No earnings conference call or webcast will be held for this quarter or future quarters.

Notable Quotes

(No direct CEO/President quotes were included in the release.)