Total Revenue ($USD Millions)

Q3 2025

$454 to $460 "

$476,000,000 to $486,000,000 "

raised

Total Revenue, Excluding Float ($USD Millions)

Q3 2025

$408 to $414 (growth of 9% to 11% or 10% to 11%) "

$434,000,000 to $444,000,000 "

raised

Float Revenue ($USD Millions)

Q3 2025

$46 "

$42,000,000 "

lowered

Adjusted EBITDA Margin (%)

Q3 2025

30.5% to 31.5% "

30% to 30.5% "

lowered

Dayforce Recurring Revenue, Excluding Float ($USD Millions)

Q3 2025

no prior guidance

$329,000,000 to $339,000,000 "

no prior guidance

Total Revenue ($USD)

FY 2025

$1.929 to $1.944 "

$1,935,000,000 to $1,955,000,000 "

raised

Total Revenue, Excluding Float

FY 2025

$1.749 to $1.764 (growth of 12.1% to 13.1% or 14% to 15%) "

$1,749,000,000 to $1,769,000,000 "

raised

Dayforce Recurring Revenue, Excluding Float

FY 2025

$1.317 to $1.342 (growth of 13.6% to 15.7% or 15% to 17%) "

$1,324,000,000 to $1,344,000,000 "

raised

Float Revenue

FY 2025

$180 "

$186,000,000 "

raised

Adjusted EBITDA Margin (%)

FY 2025

32% "

32% "

no change

Free Cash Flow Margin (%)

FY 2025

12% "

13.5% to 14% " "

raised

Sales Momentum and Bookings

Q1, Q4, and Q3 calls repeatedly highlighted strong sales momentum, record bookings growth, and a robust pipeline – with SI-led sales, add-on and full suite deals, and even challenges like elongated sales cycles in Q3 ( " " " " ).

Q2 call emphasized “remarkable” sales momentum with over 40% ytd bookings growth, higher SI-led sales (45% of new sales vs. 35% previously), and strong back-to-base contributions ( " " ).

The topic remains consistent with an overall optimistic sentiment. There is a slight shift to an increased focus on SI-led sales and a stronger emphasis on full suite and AI-enabled deals, indicating enhanced confidence and strategic refinement.

AI Integration and Product Differentiation

Previous periods (Q1, Q4, Q3) focused on the introduction and early success of AI features – such as the AI copilot, integration across mobile and desktop, the 12:1 system consolidation, and strong product differentiation that set Dayforce apart ( " " " " " ).

Q2 call showcased expanded AI adoption with over 50% of wins including AI Assistant, a detailed roadmap with 30+ AI agents, and reinforced the value of the single data model driving better insights ( " " " " ).

Consistent emphasis on leveraging AI remains. The narrative has evolved from early introductions of AI features to a mature, integrated, and expanding portfolio of AI capabilities, reinforcing its role as a competitive differentiator.

Operational Efficiency and Free Cash Flow Conversion

Earlier calls (Q1, Q4, Q3) discussed initiatives such as workforce reductions, strong cost control measures, and improvements in gross margins and EBITDA conversion – with Q1 detailing restructuring actions and Q4 highlighting cost control through automation and efficiency gains ( " " " " ).

In Q2, Dayforce reported impressive free cash flow margins (e.g. 18.7% of revenue for the quarter) and emphasized automation, AI-driven efficiencies, and a clear path toward scaling free cash flow, with expanded guidance and detailed cash charge benefits ( " " " ).

The focus on efficiency is steady but appears more refined in Q2 with a stronger linkage to free cash flow expansion. There is a noticeable shift from cost-cutting measures to leveraging technology for sustainable margin expansion, indicating improved operational maturity.

Revenue Guidance Volatility and Seasonality

Across Q1, Q4, and Q3 discussions, executives noted seasonal patterns (with Q1 typically boosted by year-end service spikes and Q4 influenced by holiday employee volume), and acknowledged some volatility in revenue guidance due to contractual adjustments and seasonal timing ( " " " ).

Q2 guidance continues to reflect seasonality – noting an “air pocket” from historical sales growth challenges – and expects sequential growth in recurring revenue (13%–16% in Q3, accelerating to 16%–19% in Q4), while maintaining constant currency expectations ( " " ).

Although seasonality and volatility remain inherent, the presentation of guidance has become more transparent and strategic. The narrative is steadily shifting toward clarity on sequential growth expectations while managing natural seasonal fluctuations.

Execution and Implementation Risks

Previous quarters (Q1, Q4, Q3) mentioned elongated sales cycles, reliance on SI partnerships, and some isolated issues such as contract amendments and headwinds in go-lives – yet overall execution was seen as strong with mitigating factors like SI support and phased implementation plans ( " " " " ).

Q2 discussion downplayed explicit risks, instead emphasizing smooth go-lives, solid SI-led implementations (45% of new sales), and a phased approach for large projects like the Government of Canada deployment, suggesting robust operational execution ( " " ).

While the inherent risks of complex implementations remain, the focus in Q2 is more on positive execution and effective use of partners. The sentiment has shifted from addressing potential risks to confidently managing them through strategic partner leverage and systematic go-live processes.

Government Contracts and Large Deals

Q1, Q4, and Q3 periods repeatedly underscored success with government contracts (e.g. Government of Canada, U.S. federal deals) and landmark large enterprise wins with significant employee bases, often driven by full suite deals and accelerated by events (e.g. Discover) ( " " " " ).

Q2 highlights include the formal announcement of the Government of Canada contract for HR and payroll transformation, along with multiple large deals spanning multinational companies and major enterprise customers – reinforcing Dayforce’s ability to scale for vast employee bases ( " " " ).

The focus remains strong with consistent wins in government and large deals. The sentiment is highly positive, with an increased emphasis on the scale and impact of these contracts, indicating their growing importance to the future trajectory of the company.

Macro-Economic Sensitivity

Previous periods (Q1, Q4, Q3) discussed macro-economic factors including employment level stability, interest rate impacts (including rate cuts and FX effects), and overall resilient demand amid volatility ( " " " " ).

Q2 notes moderate employment growth (only about 1% vs. historical 2%), yet strong demand signals, with clear performance across geographies and industry segments – reflecting a balanced view amid a slightly cautious environment ( " " ).

Macro sensitivity remains an important contextual factor. While the overall demand remains strong, there is a noted moderation in employment growth and adjustments in interest rate expectations. The company appears well-positioned to navigate these factors, maintaining steady sentiment.

Float Revenue and Yield Headwinds

Earlier calls (Q1, Q4, Q3) provided detailed insights on float revenue performance, with discussions on effective yields, laddering strategies, and anticipated headwinds from expected rate cuts – with explicit figures and sensitivity in Q1 and Q4, and further discussion in Q3 ( " " " " ).

In Q2, this topic is not mentioned at all, with no updates provided on float revenue or yield headwinds.

This topic, previously a focus point with detailed figures, is noticeably absent in Q2. Its omission suggests a potential de‐prioritization or that float revenue dynamics remain unchanged and are no longer a significant focus in the current earnings dialogue.

Pension Termination Payments Impact

Q3 previously touched on pension termination with projections of $20–$25 million impacting free cash flow, while Q1 and Q4 did not address this topic significantly ( " ).

Q2 provides detailed discussion on pension termination payments with distinct cash and non-cash charges scheduled for Q3 and Q4 2025, indicating a more granular focus on these legacy costs and their impact on cash flow ( " ).

The topic is consistently recognized from Q3 to Q2 but with increased detail in the current period. This deeper disclosure reflects its growing relevance to free cash flow forecasting and operational clarity, potentially impacting future financial performance.

Reliance on One-Off Tax Benefits

There was no discussion of one-off tax benefits in Q1, Q4, or Q3 calls (no mention in those periods).

Q2 introduces a detailed discussion on the positive impact of the OBVBA changes, which provide a $40–$50 million benefit in 2025 and an ongoing $20 million annual benefit from domestic R&D costs, thereby boosting free cash flow margins ( " " " ).

This is a new topic in Q2. Its emergence indicates a shift in the discussion toward leveraging one-off tax benefits as part of the broader free cash flow expansion strategy, thereby diversifying the sources of margin improvement beyond operational efficiencies.

Shift in Revenue Guidance Philosophy

Q1, Q4, and Q3 calls all discussed changes in how revenue is presented and guided – from simplifying revenue breakdowns, early guidance and reduced details in Q3, to shifting from quarterly to annual outlooks to improve comparability with peers ( " " " ).

Q2 continues this emphasis with guidance now explicitly broken out by quarter (13%–16% in Q3 and 16%–19% in Q4 for Dayforce recurring revenue excluding float), reinforcing sequential growth expectations and transparent communication to analysts ( " ).

The focus on refining revenue guidance remains consistent and is evolving toward greater clarity and precision. The sentiment is increasingly proactive, using guidance shifts to set clearer expectations and align internal management with market communications, a key factor in building investor confidence.