Dayforce Reports $481.6 Million Revenue with Net Loss of $196.8 Million in Q3 2025

Dayforce, Inc. reported a total revenue of $481.6 million for the third quarter of 2025, marking a 9.5% increase from $440.0 million in the same period last year. The growth was primarily driven by a rise in recurring services revenue, which reached $403.1 million, up from $375.9 million, and professional services revenue, which increased to $78.5 million from $64.1 million. However, the company experienced a net loss of $196.8 million for the quarter, a significant decline from a net income of $2.0 million in Q3 2024. This loss was largely attributed to a non-cash charge of $172.1 million related to the partial settlement of pension obligations.

In comparison to the previous fiscal period, Dayforce's financial performance showed notable changes. For the nine months ended September 30, 2025, total revenue increased by 10.3% to $1.428 billion, compared to $1.295 billion in the same period of 2024. The recurring services segment also saw a 7.4% increase, while professional services revenue surged by 29.3%. Despite this revenue growth, the company reported a net loss of $160.6 million for the nine-month period, compared to a net income of $7.3 million in the prior year, again reflecting the impact of pension-related charges.

Strategically, Dayforce is in the process of being acquired by Thoma Bravo, with the merger agreement announced on August 20, 2025. The acquisition is valued at approximately $12.3 billion, with Thoma Bravo offering $70.00 per share in cash. The transaction is expected to close in late 2025 or early 2026, pending regulatory approvals and stockholder consent. In connection with this transaction, Dayforce incurred $22.2 million in non-recurring acquisition and transaction fees during the third quarter.

Operationally, Dayforce reported an increase in its customer base, with the number of live Dayforce customers rising by 4.4% to 7,025 as of September 30, 2025. The average recurring revenue per customer also grew to $175,172, up from $159,496 in the previous year. However, the company faced challenges with float revenue, which decreased due to lower average yields, despite a slight increase in the average float balance of customer funds. The company’s total cash and equivalents stood at $627.6 million, with total debt amounting to $1.222 billion as of the end of the quarter.

Looking ahead, Dayforce anticipates that the completion of the Thoma Bravo transaction will provide additional resources to support its growth strategy. The company remains focused on enhancing its product offerings and expanding its market presence, particularly in the human capital management sector. However, management has acknowledged the potential risks associated with market conditions and the ongoing integration of its operations following the acquisition.