Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 48

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 to shareholder friendly actions. We are committed to building upon our past successes by investing in our business through enhancements in research and development of our products and services and by driving meaningful transformation in the way we operate. Our financial condition remains solid at September 30, 2025 and we remain well positioned to support our associates and our clients.

RESULTS AND ANALYSIS OF CONSOLIDATED OPERATIONS

Total Revenues

Three Months EndedSeptember 30,20252024Total Revenues$5,175.2 $4,832.7   YoY Growth7 %7 %  YoY Growth, Organic Constant Currency6 %7 %

Total revenues increased for the three months ended September 30, 2025 due to new business started from new business bookings, strong client retention, an increase in interest on funds held for clients, the impact from the WorkForce Software acquisition, and an increase in zero-margin benefits pass-throughs.

Total revenues for the three months ended September 30, 2025 include interest on funds held for clients of $286.8 million, as compared to $253.3 million for the three months ended September 30, 2024. The increase in interest earned on funds held for 

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clients resulted from an increase in our average client funds balances of 6.5% to $34.9 billion for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, coupled with an increase in our average interest rate earned to 3.3% for the three months ended September 30, 2025, as compared to 3.1% for the three months ended September 30, 2024.

Total Expenses

Three Months EndedSeptember 30, 20252024%ChangeCosts of revenues:Operating expenses$2,461.6 $2,285.8 8 %Research and development251.2 232.6 8 %Depreciation and amortization123.3 115.3 7 %Total costs of revenues2,836.1 2,633.7 8 %Selling, general and administrative expenses1,006.3 926.7 9 %Interest expense135.4 137.8 (2)%Total expenses$3,977.8 $3,698.2 8 %

Operating expenses increased for the three months ended September 30, 2025 due to