Company: PAYX
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0000950170-25-045216
Chunk: 51

Company: PAYCHEX INC
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 51
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 realization and product penetration, including HR solutions and retirement; and

oLower revenue from ancillary services, primarily due to the expiration of our ERTC program during the three-month period ended February 29, 2024.

•PEO and Insurance Solutions revenue: $365.4 million for the third quarter and $1.0 billion for the nine months, reflecting increases of 6% and 7%, respectively:

oGrowth in the number of average PEO worksite employees; and

oIncrease in PEO insurance revenues.

•Interest on funds held for clients: $42.9 million for the third quarter reflecting a decrease of 2%, primarily due to lower average interest rates. $116.5 million for the nine months, reflecting an increase of 8%, primarily due to higher average interest rates and average investment balances.

We invest in highly liquid, investment-grade fixed income securities. Details regarding our combined funds held for clients and corporate cash equivalents and investment portfolios were as follows:

    For the three months ended

    For the nine months ended

    February 28,
     
    February 29,

    February 28,
     
    February 29,

    $ in millions
     
    2025
     
    2024
     
    Change(1)
     
    2025
     
    2024
     
    Change(1)

    Average investment balances:

    Funds held for clients
     
    $
     
    5,116.8

    $
     
    4,975.7

    3
     
    %
     
    $
     
    4,551.7

    $
     
    4,389.6

    4
     
    %

    Corporate cash equivalents and investments

    1,541.4

    1,526.8

    1
     
    %

    1,544.3

    1,591.3

    (3
    )
    %

    Total
     
    $
     
    6,658.2

    $
     
    6,502.5

    2
     
    %
     
    $
     
    6,096.0

    $
     
    5,980.9

    2
     
    %

    Average interest rates earned (exclusive of net realized (losses)/gains):

    Funds held for