Dayforce Reports Second Quarter 2025 Results¹

Dayforce® recurring revenue, excluding float, of $316 million, up 14% on a GAAP and constant currency basis

Total revenue of $465 million, up 10%, and excluding float, up 12% on a GAAP and constant currency basis

Year-to-date net cash provided by operating activities of $162 million

MINNEAPOLIS and TORONTO, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Dayforce, Inc. ("Dayforce" or the "Company") (NYSE:DAY) (TSX:DAY), a global leader in human capital management ("HCM") technology, today announced its financial results for the second quarter ended June 30, 2025.

"Dayforce's momentum remained strong through the second quarter, with year-to-date bookings growing over 40% year-over-year," said David Ossip, Chair and CEO of Dayforce. "Our track record for 12-to-1 system simplification continues to resonate across industries and company sizes, helping us win new customers and deliver measurable value. Reinforcing our long-term growth opportunity, we continue to see a steady stream of customers going live with Dayforce, realizing the benefits of our single platform. We believe we are well positioned for AI, with strong uptake of our current AI offerings and our single-database HCM platform built on a foundation of robust data privacy and security — giving us a structural advantage to scale AI-powered improvements that create durable advantages for our customers and our operations."

"Second quarter results came in strong across all key metrics, driven by solid go-live execution and disciplined cost management," said Jeremy Johnson, CFO of Dayforce. "As we progress into the second half of 2025, we have increased confidence in our ability to achieve our long term target of $1 billion in free cash flow by 2031, while sustaining the technology leadership that powers our growth."

Financial Highlights for the Second Quarter 2025¹

• Total revenue was $464.7 million, an increase of 9.8% on a GAAP and constant currency basis. Excluding float, total revenue was $417.3 million, an increase of 11.5% on a GAAP and constant currency basis.
• Dayforce recurring revenue, excluding float, was $315.5 million, an increase of 13.6%, or 13.5% on a constant currency basis.
• Operating profit was $42.3 million, compared to $14.1 million. Adjusted operating profit was $124.9 million, compared to $94.9 million.
• Net income was $21.3 million, compared to net loss $1.8 million and net profit margin was 4.6%, compared to (0.4)%. Adjusted net income was $98.2 million, compared to $76.2 million.
• Adjusted EBITDA was $147.2 million, compared to $116.3 million. Adjusted EBITDA margin was 31.7%, compared to 27.5%.
• Diluted net income per share was $0.13, compared to diluted net loss per share of $0.01. Adjusted diluted net income per share was $0.61, compared to $0.48.
• Net cash provided by operating activities for the six months ended June 30, 2025 was $162.3 million, compared to $108.3 million for the six months ended June 30, 2024. Net cash provided by operating activities margin for the six months ended June 30, 2025 was 17.1%, compared to 12.7% for the six months ended June 30, 2024.
• Free cash flow for the six months ended June 30, 2025 was $106.6 million, compared to $53.9 million for the six months ended June 30, 2024. Free cash flow margin for the six months ended June 30, 2025 was 11.3%, compared to 6.3% for the six months ended June 30, 2024.

Supplemental Detail

• 6,984 customers were live on the Dayforce platform as of June 30, 2025, an increase of 4.9% year-over-year.²
• Dayforce recurring revenue per customer was $171,075 for the trailing twelve months ended June 30, 2025, an increase of 10.4%.³
• The average float balance for Dayforce's customer funds during the quarter was $5.08 billion and the average yield on Dayforce's float balance was 3.7%. Float revenue from invested customer funds was $47.4 million for the three months ended June 30, 2025.
  
  
  
  

¹ The financial highlights are on a year-over-year basis, unless otherwise stated. All financial results are reported in United States ("U.S.") dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"), unless otherwise stated.

² Excluding Ascender, ADAM HCM, and eloomi.

³ Excluding float revenue, Ascender, ADAM HCM, and eloomi revenue, and on a constant currency basis. Please refer to the "Non-GAAP Financial Measures" section for discussion of percentage change in revenue on a constant currency basis.

Recent Highlights

• The Government of Canada is moving forward with Dayforce for HR and Pay transformation to help drive increased efficiency and effectiveness. Following the final build and testing phase, the Dayforce platform will replace a significant number of HR systems and help drive business and digital transformation across the Government of Canada.
• Named a Leader in the Nucleus 2025 WFM Value Matrix and Exemplary in four categories of the ISG Buyer's Guide (WFM Basics, WFM Suites, WFM Manufacturing, and WFM Retail).
• A global leader in everyday apparel and essentials has expanded its relationship with Dayforce, adopting the full suite to support its global workforce of 37,000 employees.
• A leading U.S.-based provider of essential infrastructure services has selected Dayforce Managed Payroll, Workforce Management, HR, and Talent solutions to support 10,000 employees across 45 states.
• Delivered key enhancements across Dayforce, including AI-powered skills-based learning and shift visibility, advanced letter and compensation management features, mobile-first Experience Hub for frontline workers, total rewards for pay transparency, and over 230 compliance updates to elevate workforce and HR operations.
  
  
  
  

Business Outlook

Based on information available as of August 6, 2025, Dayforce is issuing the following guidance for the third quarter and full year ("FY") of 2025 as indicated below. Comparisons are on a year-over-year basis, unless stated otherwise.

Third Quarter 2025 Guidance

• Total revenue of $476 million to $486 million.
• Total revenue, excluding float, of $434 million to $444 million, an increase of 10.1% to 12.6% on a GAAP basis, or approximately 11% to 13% on a constant currency basis.
• Dayforce recurring revenue, excluding float, of $329 million to $339 million, an increase of 12.7% to 16.1% on a GAAP basis, or approximately 13% to 17% on a constant currency basis.
• Float revenue of $42 million.
• Adjusted EBITDA margin of 30.0% to 30.5%.
  
  
  
  

Full Year 2025 Guidance

• Total revenue of $1,935 million to $1,955 million.
• Total revenue, excluding float, of $1,749 million to $1,769 million, an increase of 12.1% to 13.4% on a GAAP basis, or approximately 13% to 14% on a constant currency basis, reflecting the ongoing shift in professional services to our systems integrator partners.
• Dayforce recurring revenue, excluding float, of $1,324 million to $1,344 million, an increase of 14.2% to 15.9% on a GAAP basis, or approximately 15% to 17% on a constant currency basis.
• Float revenue of $186 million.
• Adjusted EBITDA margin of 32%.
• Free cash flow margin of 13.5% to 14.0%, reflecting an increase from the previously issued guidance of 12.0%. This increase reflects the impact of the One Big Beautiful Bill Act, enacted by the U.S. Congress in July 2025. The legislative changes are expected to impact our future cash tax remittances, resulting from changes to tax deductibility rules for domestic research and development costs.

Please refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" section for a reconciliation of Dayforce's free cash flow margin guidance. Dayforce has not reconciled the Adjusted EBITDA margin ranges for the third quarter and full year of 2025 to the directly comparable GAAP financial measures because applicable information for the future period, on which these reconciliations would be based, is not available without unreasonable efforts due to uncertainty regarding, and the potential variability of, depreciation and amortization, share-based compensation expense and related employer taxes, changes in foreign currency exchange rates, and other items.

Foreign Exchange

For the third quarter and full year of 2025, Dayforce's guidance assumes an average U.S. dollar to key foreign currencies as follows:

		% of 2024 total revenue		Foreign exchange rate assumed in Q3 2025 guidance		Foreign exchange rate assumed in FY 2025 guidance		Foreign exchange rate in Q3 2024		Foreign exchange rate in FY 2024
U.S. dollar to Canadian dollar		21%		1.38		1.40		1.36		1.37
U.S. dollar to Australian dollar		4%		1.56		1.56		1.49		1.52
U.S. dollar to Great British pound		3%		0.76		0.77		0.77		0.78

Conference Call Details

Dayforce will host a live webcast and conference call to discuss the second quarter 2025 earnings at 8:00 a.m. Eastern Time on August 6, 2025. Those wishing to participate via the webcast should access the call through the Investor Relations section of the Dayforce website. Those wishing to participate via the telephone may dial in at 877-497-9071 (USA) or 201-689-8727 (International). The webcast replay will be available through the Investor Relations section of the Dayforce website.

About Dayforce

Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on enabling thousands of customers and millions of employees around the world do the work they're meant to do. With our single AI-powered people platform for HR, Pay, Time, Talent, and Analytics, organizations of all sizes and industries are benefiting from simplicity at scale with Dayforce to help unlock their full workforce potential, operate with confidence, and realize quantifiable value. To learn more, visit dayforce.com.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this press release are forward-looking statements. Forward-looking statements give Dayforce's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance, and business. Users can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements in this press release include statements relating to the third quarter and full year of 2025, as well as those relating to future growth initiatives. These statements may include words such as "anticipate," "estimate," "expect," "assume", "project," "seek," "plan," "intend," "believe," "will," "may," "could," "continue," "likely," "should," and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on assumptions that Dayforce has made in light of its industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances. As users consider this press release, it should be understood that these statements are not guarantees of performance or results. These assumptions and Dayforce's future performance or results involve risks and uncertainties (many of which are beyond its control). In particular:

• our ability to continue to sustain and grow revenue from our recurring services solutions;
• any information security breach of our systems or the loss of, or unauthorized access to, customer information or sensitive company information;
• disruptions to the movement of funds to initiate payroll-related transactions on behalf of our customers, or customer inability to provide funds sufficient to cover the amounts paid on their behalf, or funds advanced to them via our Dayforce Wallet product;
• our aging software infrastructure and technology;
• our ability to manage our growth effectively;
• our ability to compete effectively in the competitive markets in which we participate;
• our exposure to risks inherent to our international sales and operations;
• any failure to manage our technical operations infrastructure, or the impact of service outages or delays in the implementation of our applications, or the failure of our applications to perform properly;
• our reliance on strategic relationships with third parties to drive additional growth;
• any failure to offer high-quality support services;
• any dissatisfaction of our customers with the quality and pace of the implementation and professional services provided by us or our partners;
• any loss of key employees or the inability to attract and retain highly skilled employees;
• any loss of customer funds and wage funds of their employees that our trustees and third-party financial institution partners hold;
• our acquisition of other companies or technologies;
• the implementation of new accounting systems or other applications;
• any failure to protect our intellectual property rights or any lawsuits against us for alleged infringement of third-party proprietary rights;
• the use of open source software in our applications;
• our failure, or the failure of our third-party service providers, to comply with laws and regulations, or to update our solutions to reflect changes in applicable laws and regulations;
• additional regulatory requirements placed on our software and services;
• any litigation and regulatory investigations aimed at us;
• any actual or perceived failure to comply with evolving regulatory frameworks around the development and use of AI;
• our existing and future debt obligations;
• volatility in the price of our common stock or the issuance of additional common stock;
• our share repurchase program;
• any change in our intention to not pay cash dividends in the foreseeable future;
• provisions in our certificate of incorporation and bylaws and Delaware law that might discourage, delay or prevent a change of control of the Company or changes in our management;
• any failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act;
• adverse economic and market conditions;
• fluctuations in our quarterly results;
• catastrophic events and our disclosures and ambitions related to sustainability matters;
• our being subject to taxation in multiple jurisdictions; and any changes in generally accepted accounting principles in the United States.
  
  
  
  

Although Dayforce has attempted to identify important risk factors, additional factors or events that could cause Dayforce's actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for Dayforce to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of Dayforce's assumptions prove incorrect, its actual financial condition, results of operations, future performance, and business may vary in material respects from the performance projected in these forward-looking statements. In addition to any factors and assumptions set forth above in this press release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the general economy remains stable; the competitive environment in the HCM market remains stable; the demand environment for HCM solutions remains stable; Dayforce's implementation capabilities and cycle times remain stable; foreign exchange rates, both current and those used in developing forward-looking statements, specifically U.S. dollar to Canadian dollar, remain stable at, or near, current rates; Dayforce will be able to maintain its relationships with its employees, customers, and partners; Dayforce will continue to attract qualified personnel to support its development requirements and the support of its new and existing customers; and that the risk factors noted above, individually or collectively, do not have a material impact on Dayforce. Any forward-looking statement made by Dayforce in this press release speaks only as of the date on which it is made. Dayforce undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Dayforce, Inc. Condensed Consolidated Balance Sheets (Unaudited)
		June 30,				December 31,
		2025				2024
(In millions, except per share data)
Assets
Current assets:
Cash and equivalents		$	625.2			$	579.7
Trade and other receivables, net			271.2				264.8
Prepaid expenses and other current assets			158.4				137.5
Total current assets before customer funds			1,054.8				982.0
Customer funds			4,259.5				5,001.5
Total current assets			5,314.3				5,983.5
Right of use lease assets, net			12.1				12.3
Property, plant, and equipment, net			236.7				223.7
Goodwill			2,382.8				2,336.7
Other intangible assets, net			142.6				189.2
Deferred sales commissions			250.8				231.8
Other assets			161.5				139.8
Total assets		$	8,500.8			$	9,117.0
Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt		$	582.3			$	7.3
Current portion of long-term lease liabilities			6.1				5.7
Accounts payable			85.1				77.0
Deferred revenue			46.9				42.3
Employee compensation and benefits			121.0				126.8
Other accrued expenses			26.3				31.5
Total current liabilities before customer funds obligations			867.7				290.6
Customer funds obligations			4,250.1				5,024.2
Total current liabilities			5,117.8				5,314.8
Long-term debt, less current portion			631.8				1,209.1
Employee benefit plans			5.3				5.9
Long-term lease liabilities, less current portion			9.2				10.8
Other liabilities			34.4				30.1
Total liabilities			5,798.5				6,570.7
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par, 500.0 shares authorized, 159.8 and 159.0 shares issued and outstanding, respectively			1.6				1.6
Additional paid in capital			3,437.6				3,363.2
Accumulated deficit			(350.8	)			(335.8	)
Accumulated other comprehensive loss			(386.1	)			(482.7	)
Total stockholders' equity			2,702.3				2,546.3
Total liabilities and stockholders' equity		$	8,500.8			$	9,117.0

Dayforce, Inc. Condensed Consolidated Statements of Operations (Unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
(In millions, except per share data)
Revenue:
Recurring services		$	393.1			$	365.0			$	803.6			$	747.7
Professional services			71.6				58.3				142.9				107.1
Total revenue			464.7				423.3				946.5				854.8
Costs and expenses:
Costs of recurring services			92.7				89.3				191.1				177.7
Costs of professional services			76.6				69.6				157.9				135.7
Product development and management			57.3				58.3				116.6				111.4
Selling and marketing			83.7				82.4				170.5				160.8
General and administrative			58.9				59.0				130.0				115.0
Depreciation and amortization			53.2				50.6				107.1				99.4
Total costs and expenses			422.4				409.2				873.2				800.0
Operating profit			42.3				14.1				73.3				54.8
Interest expense, net			7.1				11.1				15.0				24.4
Other (income) expense, net			(3.1	)			3.0				0.9				12.0
Income before income taxes			38.3				—				57.4				18.4
Income tax expense			17.0				1.8				21.2				13.1
Net income (loss)		$	21.3			$	(1.8	)		$	36.2			$	5.3
Net income (loss) per share:
Basic		$	0.13			$	(0.01	)		$	0.23			$	0.03
Diluted		$	0.13			$	(0.01	)		$	0.22			$	0.03
Weighted average shares outstanding:
Basic			159.9				157.9				159.6				157.4
Diluted			161.0				157.9				161.8				159.8

Dayforce, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)
		Six Months Ended June 30,
		2025				2024
(In millions)
Cash flows from operating activities
Net income		$	36.2			$	5.3
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax benefit			(24.6	)			(17.4	)
Depreciation and amortization			107.1				99.4
Amortization of debt issuance costs and debt discount			2.2				2.1
Loss on debt extinguishment			—				4.3
Provision for doubtful accounts			4.5				3.8
Net periodic pension and postretirement cost			9.6				5.1
Share-based compensation expense			94.3				78.8
Changes in operating assets and liabilities, excluding effects of acquisitions:
Trade and other receivables			(13.0	)			(34.5	)
Prepaid expenses and other current assets			(14.0	)			(2.6	)
Deferred sales commissions			(14.5	)			(14.8	)
Accounts payable and other accrued expenses			1.7				(7.6	)
Deferred revenue			2.7				(1.6	)
Employee compensation and benefits			(19.1	)			(12.3	)
Accrued taxes			(6.0	)			7.3
Other assets and liabilities			(4.8	)			(7.0	)
Net cash provided by operating activities			162.3				108.3
Cash flows from investing activities
Purchases of customer funds marketable securities			(363.2	)			(322.9	)
Proceeds from sale and maturity of customer funds marketable securities			230.8				167.9
Purchases of marketable securities			(3.7	)			(4.0	)
Proceeds from sale and maturity of marketable securities			11.5				3.0
Expenditures for property, plant, and equipment			(7.9	)			(6.7	)
Expenditures for software and technology			(47.8	)			(47.7	)
Acquisition costs, net of cash acquired			—				(173.1	)
Net cash used in investing activities			(180.3	)			(383.5	)
Cash flows from financing activities
Decrease in customer funds obligations, net			(854.2	)			(3.0	)
Proceeds from issuance of common stock under share-based compensation plans			8.9				27.4
Taxes paid related to the net share settlement of awards under share-based compensation plans			(18.5	)			(10.6	)
Repurchases of common stock			(50.9	)			—
Proceeds from debt issuance			—				650.0
Repayment of long-term debt obligations			(3.6	)			(644.7	)
Payment of debt refinancing costs			(1.2	)			(11.4	)
Net cash (used in) provided by financing activities			(919.5	)			7.7
Effect of exchange rate changes on cash, restricted cash, and equivalents			24.9				(21.7	)
Net decrease in cash, restricted cash, and equivalents			(912.6	)			(289.2	)
Cash, restricted cash, and equivalents at beginning of period			3,253.9				3,421.4
Cash, restricted cash, and equivalents at end of period		$	2,341.3			$	3,132.2
Reconciliation of cash, restricted cash, and equivalents to the condensed consolidated balance sheets
Cash and equivalents		$	625.2			$	465.4
Restricted cash			—				0.8
Restricted cash and equivalents included in customer funds			1,716.1				2,666.0
Total cash, restricted cash, and equivalents		$	2,341.3			$	3,132.2

Dayforce, Inc. Revenue Financial Measures (Unaudited)
		Three Months Ended June 30,								Percentage change in revenue				Impact of changes in foreign currency (a)				Percentage change in revenue on a constant currency basis (a)
		2025				2024				2025 vs. 2024								2025 vs. 2024
		(In millions)
Revenue:
Recurring services:
Dayforce recurring		$	315.5			$	277.7				13.6	%			0.1	%			13.5	%
Powerpay recurring			19.9				19.9				(—	)%			(1.0	)%			1.0	%
Other recurring			10.3				18.5				(44.3	)%			(0.5	)%			(43.8	)%
Float			47.4				48.9				(3.1	)%			(0.2	)%			(2.9	)%
Total recurring services			393.1				365.0				7.7	%			(—	)%			7.7	%
Professional services			71.6				58.3				22.8	%			(0.2	)%			23.0	%
Total revenue		$	464.7			$	423.3				9.8	%			(—	)%			9.8	%
Total revenue, excluding float		$	417.3			$	374.4				11.5	%			(—	)%			11.5	%

		Six Months Ended June 30,								Percentage change in revenue				Impact of changes in foreign currency (a)				Percentage change in revenue on a constant currency basis (a)
		2025				2024				2025 vs. 2024								2025 vs. 2024
		(In millions)
Revenue:
Recurring revenue:
Dayforce recurring		$	638.6			$	560.1				14.0	%			(0.7	)%			14.7	%
Powerpay recurring			38.9				40.4				(3.7	)%			(3.7	)%			(—	)%
Other recurring			23.4				37.6				(37.8	)%			(3.0	)%			(34.8	)%
Float			102.7				109.6				(6.3	)%			(0.8	)%			(5.5	)%
Total recurring revenue			803.6				747.7				7.5	%			(0.9	)%			8.4	%
Professional services			142.9				107.1				33.4	%			(1.8	)%			35.2	%
Total revenue		$	946.5			$	854.8				10.7	%			(1.0	)%			11.7	%
Total revenue, excluding float		$	843.8			$	745.2				13.2	%			(1.1	)%			14.3	%

a) Dayforce has calculated the percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the "Non-GAAP Financial Measures" section for discussion of percentage change in revenue on a constant currency basis.

Dayforce, Inc. Share-Based Compensation Expense and Related Employer Taxes (Unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
		(in millions)
Costs of recurring services		$	3.4			$	3.6			$	6.7			$	7.7
Costs of professional services			4.2				3.9				8.4				7.7
Product development and management			10.1				8.9				19.4				16.9
Selling and marketing			11.1				9.3				22.2				17.8
General and administrative			19.6				15.1				37.7				28.7
Total		$	48.4			$	40.8			$	94.4			$	78.8

Dayforce, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
The following tables reconcile Dayforce's reported results to its non-GAAP financial measures:
		Three Months Ended June 30, 2025
		As reported			As reported margins (a)			Share-based compensation			Amortization			Other (b)				As adjusted (b)			As adjusted margins (a)
		(Dollars in millions, except per share data)
Operating profit		$	42.3		9.1	%		$	48.4		$	31.1		$	3.1			$	124.9		26.9	%
Net income		$	21.3		4.6	%		$	48.4		$	31.1		$	(2.6	)		$	98.2		21.1	%
Interest expense, net			7.1						—			—			—				7.1
Income tax expense (c)			17.0						—			—			(2.8	)			19.8
Depreciation and amortization			53.2						—			31.1			—				22.1
EBITDA		$	98.6					$	48.4		$	—		$	0.2			$	147.2		31.7	%
Net income per share - diluted		$	0.13					$	0.30		$	0.19		$	(0.02	)		$	0.61

		Three Months Ended June 30, 2024
		As reported				As reported margins (a)			Share-based compensation			Amortization			Other (b)				As adjusted (b)			As adjusted margins (a)
		(Dollars in millions, except per share data)
Operating profit		$	14.1			3.3	%		$	40.8		$	29.5		$	10.5			$	94.9		22.4	%
Net (loss) income		$	(1.8	)		(0.4	)%		$	40.8		$	29.5		$	7.7			$	76.2		18.0	%
Interest expense, net			11.1							—			—			—				11.1
Income tax expense (c)			1.8							—			—			(6.1	)			7.9
Depreciation and amortization			50.6							—			29.5			—				21.1
EBITDA		$	61.7						$	40.8		$	—		$	13.8			$	116.3		27.5	%
Net (loss) income per share - diluted (d)		$	(0.01	)					$	0.26		$	0.18		$	0.05			$	0.48

a) Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the "Non-GAAP Financial Measures" section for additional information on the as adjusted margins.

b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items. For the three months ended June 30, 2025, the adjustments to operating profit consist of $3.1 million of restructuring expenses and the adjustments to net income also include $5.2 million of costs associated with the planned termination of its frozen U.S. pension plan, $8.1 million of foreign exchange gain, and a $2.8 million net adjustment for the effect of income taxes related to these items. For the three months ended June 30, 2024, the adjustments to operating profit consist of $10.5 million of restructuring expenses and the adjustments to net income also include $3.3 million of costs associated with the planned termination of its frozen U.S. pension plan, and a $6.1 million net adjustment for the effect of income taxes related to these items. Please refer below for additional information on the as adjusted metrics.

c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.

d) Adjusted diluted net income per share is calculated based upon 159.5 million weighted average shares of common stock.

		Six Months Ended June 30, 2025
		As reported			As reported margins (a)			Share-based compensation			Amortization			Other (b)				As adjusted (b)			As adjusted margins (a)
		(Dollars in millions, except per share data)
Operating profit		$	73.3		7.7	%		$	94.4		$	59.8		$	29.7			$	257.2		27.2	%
Net income		$	36.2		3.8	%		$	94.4		$	59.8		$	1.7			$	192.1		20.3	%
Interest expense, net			15.0						—			—			—				15.0
Income tax expense (c)			21.2						—			—			(28.3	)			49.5
Depreciation and amortization			107.1						—			59.8			—				47.3
EBITDA		$	179.5					$	94.4		$	—		$	30.0			$	303.9		32.1	%
Net income per share - diluted		$	0.22					$	0.58		$	0.37		$	0.01			$	1.19

		Six Months Ended June 30, 2024
		As reported			As reported margins (a)			Share-based compensation			Amortization			Other (b)				As adjusted (b)			As adjusted margins (a)
		(Dollars in millions, except per share data)
Operating profit		$	54.8		6.4	%		$	78.8		$	57.9		$	12.5			$	204.0		23.9	%
Net income		$	5.3		0.6	%		$	78.8		$	57.9		$	2.2			$	144.2		16.9	%
Interest expense, net			24.4						—			—			—				24.4
Income tax expense (c)			13.1						—			—			(23.0	)			36.1
Depreciation and amortization			99.4						—			57.9			—				41.5
EBITDA		$	142.2					$	78.8		$	—		$	25.2			$	246.2		28.8	%
Net income per share - diluted		$	0.03					$	0.49		$	0.36		$	0.01			$	0.90

a) Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the "Non-GAAP Financial Measures" section for additional information on the as adjusted margins.

b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items. For the six months ended June 30, 2025, the adjustments to operating profit consist of $29.7 million of restructuring expenses and the adjustments to net income also include $10.5 million of costs associated with the planned termination of its frozen U.S. pension plan, $10.2 million of foreign exchange gain, and a $28.3 million net adjustment for the effect of income taxes related to these items. For the six months ended June 30, 2024, the adjustments to operating profit consist of $12.5 million of restructuring expenses and the adjustments to net income also include $6.5 million of costs associated with the planned termination of its frozen U.S. pension plan, $6.2 million of foreign exchange loss, and a $23.0 million net adjustment for the effect of income taxes related to these items. Please refer below for additional information on the as adjusted metrics.

c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.

Dayforce, Inc. Reconciliation of Free Cash Flow (Unaudited)
The following table reconciles Dayforce's reported results to free cash flow and free cash flow margin:
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
		(In millions)
Net cash provided by operating activities		$	112.7			$	99.2			$	162.3			$	108.3
Capital expenditures			(25.6	)			(26.5	)			(55.7	)			(54.4	)
Free cash flow		$	87.1			$	72.7			$	106.6			$	53.9
Net cash provided by operating activities margin (a)			24.3	%			23.4	%			17.1	%			12.7	%
Free cash flow margin			18.7	%			17.2	%			11.3	%			6.3	%

The following table reconciles Dayforce's free cash flow and free cash flow margin guidance:

		Twelve Months Ended December 31, 2025
		Low range				High range
		(In millions)
Net cash provided by operating activities		$	366			$	379
Capital expenditures			(105	)			(105	)
Free cash flow		$	261			$	274
Net cash provided by operating activities margin (a)			18.9	%			19.4	%
Free cash flow margin			13.5	%			14.0	%

(a) Net cash provided by operating activities margin is determined by calculating the percentage that net cash provided by operating activities is of total revenue.

Non-GAAP Financial Measures

Dayforce uses certain non-GAAP financial measures in this release including:

Non-GAAP Financial Measure		GAAP Financial Measure
EBITDA		Net income (loss)
Adjusted EBITDA		Net income (loss)
Adjusted EBITDA margin		Net profit margin
Adjusted operating profit		Operating profit
Adjusted operating profit margin		Operating profit margin
Adjusted net income		Net income (loss)
Adjusted net profit margin		Net profit margin
Adjusted diluted net income per share		Diluted net income (loss) per share
Free cash flow		Net cash provided by operating activities
Free cash flow margin		Net cash provided by operating activities margin
Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis		Percentage change in revenue, including total revenue and revenue by solution
Dayforce recurring revenue per customer		No directly comparable GAAP measure

Dayforce believes that these non-GAAP financial measures are useful to management and investors as supplemental measures to evaluate its overall operating performance including comparison across periods and with competitors. Dayforce's management team uses these non-GAAP financial measures to assess operating performance because these financial measures exclude the results of decisions that are outside the normal course of its business operations, and are used for internal budgeting and forecasting purposes both for short- and long-term operating plans. Additionally, Adjusted operating profit, free cash flow, and free cash flow margin are components of certain management compensation plans. Additionally, Dayforce believes that the non-GAAP financial measures free cash flow and free cash flow margin are meaningful to investors because they are measures of liquidity that provides useful information in understanding and evaluating the strength of Dayforce's liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business. The reduction of capital expenditures facilitates comparisons of Dayforce's liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of Dayforce's liquidity.

These non-GAAP financial measures are not required by, defined under, or presented in accordance with, GAAP, and should not be considered as alternatives to Dayforce's results as reported under GAAP, have important limitations as analytical tools, and its use of these terms may not be comparable to similarly titled measures of other companies in its industry. Dayforce's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by similar items to those eliminated in this presentation. Please refer to Dayforce's full financial results, including further discussion of non-GAAP financial measures, on the Investor Relations portion of its website at investors.dayforce.com.

Dayforce defines its non-GAAP financial measures as follows:

• EBITDA is defined as net income (loss) before interest, taxes, depreciation, and amortization, and Adjusted EBITDA is EBITDA, as adjusted to exclude share-based compensation expense and related employer taxes, and certain other items.
• Adjusted EBITDA margin is determined by calculating the percentage Adjusted EBITDA is of total revenue.
• Adjusted operating profit is defined as operating profit, as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items.
• Adjusted operating profit margin is determined by calculating the percentage Adjusted operating profit is of total revenue.
• Adjusted net income is defined as net income (loss), as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items, all of which are adjusted for the effect of income taxes.
• Adjusted net profit margin is determined by calculating the percentage Adjusted net income is of total revenue.
• Adjusted diluted net income per share is calculated by dividing adjusted net income by diluted weighted average shares outstanding. When adjusted net income is positive, diluted weighted average shares outstanding incorporate the effect of dilutive equity instruments.
• Free cash flow is defined as net cash provided by operating activities, reduced by capital expenditures.
• Free cash flow margin is determined by calculating the percentage that free cash flow is of total revenue.
• Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis is calculated by applying the average foreign exchange rate in effect during the comparable prior period.
• Dayforce recurring revenue per customer is an indicator of the average size of Dayforce recurring revenue customers. To calculate Dayforce recurring revenue per customer, we start with Dayforce recurring revenue on a constant currency basis by applying the same exchange rate to all comparable periods for the trailing twelve months and excludes float revenue, and Ascender, ADAM HCM, and eloomi revenue. This amount is divided by the number of live Dayforce customers at the end of the trailing twelve month period, excluding Ascender, ADAM HCM, and eloomi. We have not reconciled Dayforce recurring revenue per customer to a GAAP financial measure because there is no directly comparable GAAP financial measure.
  
  
  
  

Source: Dayforce, Inc.

For further information, please contact:

Investor Relations

1-844-829-9499

[email protected]

Public Relations

1-647-417-2117

[email protected]