Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 118

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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2025.

Total Expenses

Three Months EndedNine Months EndedMarch 31,March 31, 20252024%Change20252024%ChangeCosts of revenues:Operating expenses$2,534.7 $2,406.5 5 %$7,196.6 $6,777.4 6 %Research and development247.1 242.7 2 %719.2 707.8 2 %Depreciation and amortization122.4 119.0 3 %364.6 359.9 1 %Total costs of revenues2,904.2 2,768.2 5 %8,280.4 7,845.1 6 %Selling, general and administrative expenses1,015.8 940.9 8 %2,948.6 2,743.6 7 %Interest expense74.8 62.7 19 %342.2 259.2 32 %Total expenses$3,994.8 $3,771.8 6 %$11,571.2 $10,847.9 7 %

For the three months ended March 31, 2025, operating expenses increased primarily due to an increase of  $73.7 million of PEO Services zero-margin benefits pass-through costs from $1,016.3 million to $1,090.0 million. Additionally, for the three months ended March 31, 2025 operating expenses increased by $28.8 million due to higher service and implementation costs in support 

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of our growing revenue and by $23.9 million due to an increase in costs related to workers' compensation coverage and state unemployment taxes for worksite employees.

For the nine months ended March 31, 2025, operating expenses increased primarily due to an increase of  $230.7 million of PEO Services zero-margin benefits pass-through costs from $2,963.7 million to $3,194.4 million. Additionally, for the nine months ended March 31, 2025 operating expenses increased by $89.5 million due to higher service and implementation costs in support of our growing revenue and by $54.2 million due to an increase in costs related to workers' compensation coverage and state unemployment taxes for worksite employees.

Research and development expenses increased for the three and nine months ended March 31, 202