Dayforce, Inc. is a global human capital management (HCM) software company that optimizes the management of the entire employee lifecycle. The company offers a comprehensive suite of cloud-based solutions that integrate HR, payroll, benefits, workforce management, and talent management functionalities into a single application. Dayforce, Inc. targets organizations of all sizes, providing them with tools to enhance decision-making and streamline workflows.
- Dayforce Recurring Revenue - Provides a flagship cloud HCM platform that integrates multiple HR functionalities into a single application, offering real-time data access for decision-making.
- Professional Services and Other - Offers additional services that complement the core HCM platform, enhancing customer engagement and support.
- Powerpay Recurring Revenue - Delivers a cloud HR and payroll solution specifically designed for the Canadian small business market.
- Other Recurring Revenue - Includes various other recurring revenue streams that support the company's comprehensive service offerings.
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Employee volumes came in slightly below expectations in Q4 due to a muted holiday spike and extreme weather events; what measures are you taking to mitigate such fluctuations going forward, and how do you anticipate these factors affecting Q1 and beyond?
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You plan to repurchase more than 1 million shares during 2025, effectively doubling 2024 purchases; given your goal of minimizing dilution from stock-based compensation, how does this align with your overall capital allocation strategy, especially considering the $575 million convertible debt maturing in March 2026 that you plan to retire with cash on hand?
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With the Canadian government deal targeting April 2025 for milestones and being on track, can you elaborate on the risks associated with this timeline and how potential delays might impact your recurring revenue growth expectations?
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Despite increasing adjusted EBITDA margin guidance by 100 basis points to 32% , you did not raise your free cash flow guidance; can you explain the factors limiting free cash flow growth, and how you plan to improve cash conversion moving forward?
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You reported 60 unit sales of your Copilot AI product after its announcement; how sustainable do you believe this early momentum is, and what strategies are in place to maintain a competitive advantage in the rapidly evolving AI-driven HCM market?
Research analysts who have asked questions during Dayforce earnings calls.
Brad Reback
Stifel
4 questions for DAY
Mark Marcon
Baird
4 questions for DAY
Mark Murphy
JPMorgan Chase & Co.
4 questions for DAY
Scott Berg
Needham & Company, LLC
4 questions for DAY
Bhavin Shah
Deutsche Bank
3 questions for DAY
Daniel Jester
BMO Capital Markets
3 questions for DAY
Kevin McVeigh
Credit Suisse Group AG
3 questions for DAY
Raimo Lenschow
Barclays
3 questions for DAY
Samad Samana
Jefferies
3 questions for DAY
Sitikantha Panigrahi
Mizuho
3 questions for DAY
Steven Enders
Citigroup Inc.
3 questions for DAY
Aleksandr Zukin
Wolfe Research
2 questions for DAY
Jared Levine
TD Cowen
2 questions for DAY
Jason Celino
KeyBanc Capital Markets
2 questions for DAY
Michael Turrin
Wells Fargo
2 questions for DAY
Alex Zukin
Wolfe Research LLC
1 question for DAY
Allan Verkhovski
Scotiabank
1 question for DAY
Jake Roberge
William Blair & Company, L.L.C
1 question for DAY
Ryan Krieger
Wolfe Research
1 question for DAY
Sheldon McMeans
Barclays
1 question for DAY
Siti Panigrahi
Mizuho Securities
1 question for DAY
Steve Enders
Citigroup
1 question for DAY
Zane Meehan
KeyBanc Capital Markets Inc.
1 question for DAY
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
eloomi A/S | 2024 | eloomi A/S was acquired by Dayforce, Inc. for $179.6 million on February 1, 2024, with the purchase price allocated across goodwill, intangible assets (developed technology and customer relationships), and other assets/liabilities; the deal is strategically aimed at enhancing Dayforce's portfolio through integration of a leading learning experience platform, though the purchase accounting remains provisional as of September 30, 2024. |
ADAM HCM | 2022 | The ADAM HCM acquisition (including ATI ROW, LLC and ADAM HCM MEXICO) was finalized with a total purchase price of $34.5 million on December 3, 2021, positioning the company as a leading payroll and HCM provider in Latin America by enabling Dayforce customers in 33 countries to access global HCM solutions; purchase accounting was finalized by June 30, 2022, with detailed allocations for goodwill, intangibles, and other adjustments. |
Recent press releases and 8-K filings for DAY.
- Dayforce, Inc. entered into an agreement on September 11, 2025, to transfer all defined benefit pension obligations for approximately 6,200 U.S. employees and beneficiaries to Nationwide Life & Annuity Insurance Company and Nationwide Life Insurance Company.
- This transfer, expected to be completed in Q3 2025, involves the purchase of a nonparticipating single premium group annuity contract, making the Insurer solely responsible for pension payments from December 1, 2025.
- The transaction will be funded by Plan assets and a cash contribution of approximately $7 million from Dayforce, Inc..
- As a result, Dayforce, Inc. anticipates recognizing a one-time non-cash pre-tax pension settlement charge of approximately $170 million to $190 million in Q3 2025.
- The Ademi Firm is investigating Dayforce (NYSE: DAY) for potential breaches of fiduciary duty and other legal violations concerning its transaction with Thoma Bravo.
- Shareholders are expected to receive $70.00 per share in an all-cash transaction valued at approximately $12.3 billion.
- The investigation focuses on whether Dayforce is obtaining a fair price for its public shareholders, citing concerns about substantial benefits for insiders and a significant penalty for accepting competing bids.
- Dayforce, Inc. has entered into a definitive agreement with Thoma Bravo to become a privately held company.
- The all-cash transaction has an enterprise value of US$12.3 billion, with Dayforce stockholders set to receive US$70.00 per share.
- This per share purchase price represents a 32% premium over the Company’s unaffected closing share price on August 15, 2025.
- The transaction, which includes a significant minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority, is expected to close in early 2026.
- Upon completion, Dayforce's common stock will no longer be listed on any public stock exchange.
- Private equity firm Thoma Bravo is in advanced negotiations to acquire Dayforce, a human resources management software company, in a deal valued at around $8.4 to $9 billion.
- The potential acquisition would take Dayforce private, with its shares surging over 20% on the news, despite having fallen approximately 60% from their peak in 2021.
- Dayforce, which provides AI-driven recruitment, payroll, and employee career development software, has experienced revenue growth exceeding 70% from 2021 to 2024.
- Dayforce is experiencing strong demand, with 40%+ bookings growth for three consecutive quarters, starting in Q4 last year and continuing through Q2, with Q3 also showing strength.
- Dayforce recurring revenue is forecast to accelerate, with Q3 expected at 13% to 16% and Q4 at 16% to 19%, signaling continued strength through 2026 and beyond.
- The company is successfully moving upmarket, securing wins with the Government of Canada and a large U.S. Federal agency, and taking live its largest customer ever, which is scaling to 500,000+ employees.
- Dayforce has launched an AI assistant, which has been attached to approximately 50% of sales year-to-date, and plans to introduce about 30 AI agents over the next few years, leveraging its single database advantage.
- Dayforce aims to achieve $1 billion in free cash flow by 2031 and expand free cash flow margins to 20%+ by 2031, with current margins at 13.5% to 14%, up from 9.7%.
- Dayforce reported strong Q2 2025 results, with Dayforce recurring revenue (excluding float on a constant currency basis) growing 14% and adjusted EBITDA margin expanding 420 basis points to 31.7%.
- The company raised its full-year 2025 free cash flow margin guidance to 13.5% to 14%, up from 12%, partly due to an estimated $40-50 million benefit from the One Big Beautiful Bill Act. Dayforce aims for $1 billion in free cash flow by 2031.
- Sales momentum continued with year-to-date bookings growing over 40%, and sales to existing customers increasing over 50% in Q2, comprising 40% of total bookings.
- For Q3 2025, Dayforce expects total revenue between $476 million and $486 million, and Dayforce recurring revenue (excluding float) between $329 million and $339 million.
- CFO Jeremy Johnson emphasized Dayforce’s integrated HCM suite featuring a continuous pay and time calculation engine, with managed services experiencing 70% growth in Q1.
- The company is simplifying its financial presentation—terminating its defined benefit pension plan and executing a 5% workforce reduction—while targeting $1B free cash flow and $5B in revenue.
- Management expects modest 1% employment growth amid a challenging macro environment and is leveraging AI and automation to boost productivity.
- Q1 2025 revenue: Dayforce delivered total revenue of approximately $482 million, registering strong growth [up 14% on a constant currency basis and 11.7% on a reported basis (13.6% constant currency) ].
- Financial performance: Achieved an adjusted EBITDA margin of 32.5% – up 240 basis points year-over-year .
- Recurring revenue reached about $323 million, with growth of 14.4% (15.9% constant currency) during the quarter .
- Profitability highlights: Operating profit was $31.0 million, adjusted operating profit improved to $132.3 million, and net income increased to $14.9 million .
- Operational achievements: Maintained a record sales pipeline, secured significant government contracts (including a Canadian extension valued at CAD 105 million/USD 72 million), and advanced its AI strategy with a 50% attachment rate on the AI assistant .
- Efficiency measures: Implemented a 5% workforce reduction and repurchased approximately $30 million in shares under a $500 million repurchase program to enhance shareholder returns .