# EDGAR Filing Document

**Accession Number:** 0001725057
**File Stem:** 0000950170-25-103537
**Filing Date:** 2025-8
**Character Count:** 252884
**Document Hash:** 549c5c4cfc1a7367a61d91d8d25aff39
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-103537.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0000950170-25-103537

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 98

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Dayforce, Inc.
- **CENTRAL INDEX KEY:** 0001725057
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 463231686
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38467
- **FILM NUMBER:** 251187443

**BUSINESS ADDRESS:**
- **STREET 1:** 3311 EAST OLD SHAKOPEE ROAD
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55425
- **BUSINESS PHONE:** 952-853-8100

**MAIL ADDRESS:**
- **STREET 1:** 3311 EAST OLD SHAKOPEE ROAD
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55425

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Ceridian HCM Holding Inc.
- **DATE OF NAME CHANGE:** 20171212

?xml version='1.0' encoding='ASCII'? 10-Q

[**<u>**Table of Contents**</u>**](#toc_page)

**r**

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM** 10-Q

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☒ **Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

**For the quarterly reporting period ended** **June 30,** 2025

☐ **Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

**For the transition period from to** 

**Commission file number** 001-38467

![img4456053_0.jpg](img4456053_0.jpg)

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Dayforce, Inc.

**(Exact name of registrant as specified in its charter)** 

------

---

| | |
|:---|:---|
| Delaware | 46-3231686 |
| **(State or Other Jurisdiction of<br>Incorporation or Organization)** | **(I.R.S. Employer**<br>**Identification Number)** |

---

3311 East Old Shakopee Road

Minneapolis**,** Minnesota 55425

**(**952**)** 853-8100

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)** 

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Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, $0.01 par value | DAY | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 30, 2025, there were 159,692,530 shares of common stock, par value of $0.01 per share, outstanding.

------

[**<u>**Table of Contents**</u>**](#toc_page)

**Dayforce, Inc.** 

**Table of Contents** 

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Page** |
| &nbsp;&nbsp;&nbsp;&nbsp;[<u>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</u>](#cautionary_note_regarding_forwardlooking) | &nbsp;&nbsp;&nbsp;&nbsp;[<u>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</u>](#cautionary_note_regarding_forwardlooking) | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;&nbsp;&nbsp;[<u>PART I. FINANCIAL INFORMATION</u>](#part_i_financial_information) | &nbsp;&nbsp;&nbsp;&nbsp;[<u>PART I. FINANCIAL INFORMATION</u>](#part_i_financial_information) | &nbsp;&nbsp;5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1. | [<u>Condensed Consolidated Financial Statements (unaudited)</u>](#item_1_condensed_consolidated_financial_) | &nbsp;&nbsp;5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_analysis_f) | &nbsp;&nbsp;26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 3. | [<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#item_3_quantitative_qualitative_disclosu) | &nbsp;&nbsp;39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 4. | [<u>Controls and Procedures</u>](#item_4_controls_procedures) | &nbsp;&nbsp;40 |
| &nbsp;&nbsp;&nbsp;&nbsp;[<u>PART II. OTHER INFORMATION</u>](#part_ii_or_information) | &nbsp;&nbsp;&nbsp;&nbsp;[<u>PART II. OTHER INFORMATION</u>](#part_ii_or_information) | &nbsp;&nbsp;41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1. | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | &nbsp;&nbsp;41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | &nbsp;&nbsp;41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 2. | [<u>Unregistered Sales of Equity Securities, Use of Proceeds</u>](#item_2_unregistered_sales_equity_securit)<u>, and Issuer Purchases of Equity Securities</u> | &nbsp;&nbsp;41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 3. | [<u>Defaults Upon Senior Securities</u>](#item_3_defaults_upon_senior_securities) | &nbsp;&nbsp;41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | &nbsp;&nbsp;41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 5. | [<u>Other Information</u>](#item_5_or_information) | &nbsp;&nbsp;42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 6. | [<u>Exhibits</u>](#item_6_exhibits) | 43 |

---

2 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Consequently, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national, or global political, economic, business, competitive, market, and regulatory conditions. In particular:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to continue to sustain and grow revenue from our recurring services solutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any information security breach of our systems or the loss of, or unauthorized access to, customer information or sensitive company information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•disruptions to the movement of funds to initiate payroll-related transactions on behalf of our customers, or customer inability to provide funds sufficient to cover the amounts paid on their behalf, or funds advanced to them via our Dayforce Wallet product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our aging software infrastructure and technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to manage our growth effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to compete effectively in the competitive markets in which we participate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our exposure to risks inherent to our international sales and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any failure to manage our technical operations infrastructure, or the impact of service outages or delays in the implementation of our applications, or the failure of our applications to perform properly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our reliance on strategic relationships with third parties to drive additional growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any failure to offer high-quality support services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any dissatisfaction of our customers with the quality and pace of the implementation and professional services provided by us or our partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any loss of key employees or the inability to attract and retain highly skilled employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any loss of customer funds and wage funds of their employees that our trustees and third-party financial institution partners hold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our acquisition of other companies or technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the implementation of new accounting systems or other applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any failure to protect our intellectual property rights or any lawsuits against us for alleged infringement of third-party proprietary rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the use of open source software in our applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our failure, or the failure of our third-party service providers, to comply with laws and regulations, or to update our solutions to reflect changes in applicable laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•additional regulatory requirements placed on our software and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any litigation and regulatory investigations aimed at us;

3 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any actual or perceived failure to comply with evolving regulatory frameworks around the development and use of Artificial Intelligence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our existing and future debt obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•volatility in the price of our common stock or the issuance of additional common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our share repurchase program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any change in our intention to not pay cash dividends in the foreseeable future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provisions in our certificate of incorporation and bylaws and Delaware law that might discourage, delay or prevent a change of control of the Company or changes in our management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•adverse economic and market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fluctuations in our quarterly results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•catastrophic events and our disclosures and ambitions related to sustainability matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our being subject to taxation in multiple jurisdictions; and any changes in generally accepted accounting principles in the United States.

Please refer to Part II, Item IA. "Risk Factors" of this Form 10-Q and Part I, Item IA, "Risk Factors" of our most recently filed Annual Report on Form 10-K, for the year ended December 31, 2024 ("2024 Form 10-K"), for a further description of these and other factors. Although we have attempted to identify important risk factors, there may be other risk factors not presently known to us or that we presently believe are not material that could cause actual results and developments to differ materially from those made in or suggested by the forward-looking statements contained in this Form 10-Q. If any of these risks materialize, or if any of the above assumptions underlying forward-looking statements prove incorrect, actual results and developments may differ materially from those made in or suggested by the forward-looking statements contained in this Form 10-Q. For the reasons described above, we caution against relying on any forward-looking statements. Any forward-looking statement made by us in this Form 10-Q speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by law. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should be viewed as historical data.

Investors and others should note that we have in the past announced, and expect in the future to continue to announce, material business and financial information to our investors using our investor relations website (www.investors.dayforce.com), our filings and furnishings with the Securities and Exchange Commission ("SEC"), webcasts, press releases, conference calls, and other channels of distribution that are compliant with SEC regulations.

In the future, we may also announce material business and financial information to our investors using our corporate X (formerly known as Twitter) account (@Dayforce), our blog (www.dayforce.com/blog), and our corporate LinkedIn account (www.linkedin.com/company/dayforce). We use these mediums, including our website, to communicate with investors and the general public about us, our products, and other issues. It is possible that the information that we make available on these mediums may be deemed to be material information. We therefore encourage investors and others interested in us to review the information that we make available through these channels.

4 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**PART I. FINANCIAL INFORMATION** 

**ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**Dayforce, Inc.** 

**Condensed Consolidated Balance Sheets** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **December 31,** |
|  | **2025** | **2024** |
| **(In millions, except per share data)** |  |  |
| Assets |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and equivalents | $625.2 | $579.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables, net | 271.2 | 264.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 158.4 | 137.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets before customer funds | 1054.8 | 982.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer funds | 4259.5 | 5001.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 5314.3 | 5983.5 |
| Right of use lease assets, net | 12.1 | 12.3 |
| Property, plant, and equipment, net | 236.7 | 223.7 |
| Goodwill | 2382.8 | 2336.7 |
| Other intangible assets, net | 142.6 | 189.2 |
| Deferred sales commissions | 250.8 | 231.8 |
| Other assets | 161.5 | 139.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8500.8 | $9117.0 |
| Liabilities and stockholders' equity |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | $582.3 | $7.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term lease liabilities | 6.1 | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 85.1 | 77.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 46.9 | 42.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | 121.0 | 126.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses | 26.3 | 31.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities before customer funds obligations | 867.7 | 290.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer funds obligations | 4250.1 | 5024.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 5117.8 | 5314.8 |
| Long-term debt, less current portion | 631.8 | 1209.1 |
| Employee benefit plans | 5.3 | 5.9 |
| Long-term lease liabilities, less current portion | 9.2 | 10.8 |
| Other liabilities | 34.4 | 30.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5798.5 | 6570.7 |
| Commitments and contingencies (Note 13) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par, 500.0 shares authorized, 159.8 and 159.0 shares issued and outstanding, respectively | 1.6 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital | 3437.6 | 3363.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (350.8) | (335.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (386.1) | (482.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 2702.3 | 2546.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $8500.8 | $9117.0 |

---

See accompanying notes to condensed consolidated financial statements.

5 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**Dayforce, Inc.**

**Condensed Consolidated Statements of Operations** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **(In millions, except per share data)** |  |  |  |  |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring services | $393.1 | $365.0 | $803.6 | $747.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services | 71.6 | 58.3 | 142.9 | 107.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 464.7 | 423.3 | 946.5 | 854.8 |
| Costs and expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs of recurring services | 92.7 | 89.3 | 191.1 | 177.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs of professional services | 76.6 | 69.6 | 157.9 | 135.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Product development and management | 57.3 | 58.3 | 116.6 | 111.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing | 83.7 | 82.4 | 170.5 | 160.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 58.9 | 59.0 | 130.0 | 115.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 53.2 | 50.6 | 107.1 | 99.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 422.4 | 409.2 | 873.2 | 800.0 |
| Operating profit | 42.3 | 14.1 | 73.3 | 54.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 7.1 | 11.1 | 15.0 | 24.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (3.1) | 3.0 | 0.9 | 12.0 |
| Income before income taxes | 38.3 |  | 57.4 | 18.4 |
| Income tax expense | 17.0 | 1.8 | 21.2 | 13.1 |
| Net income (loss) | $21.3 | $(1.8) | $36.2 | $5.3 |
| Net income (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.13 | $(0.01) | $0.23 | $0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.13 | $(0.01) | $0.22 | $0.03 |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 159.9 | 157.9 | 159.6 | 157.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 161.0 | 157.9 | 161.8 | 159.8 |

---

See accompanying notes to condensed consolidated financial statements.

6 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**Dayforce, Inc.**

**Condensed Consolidated Statements of Comprehensive Income (Loss)** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **(In millions)** |  |  |  |  |
| Net income (loss) | $21.3 | $(1.8) | $36.2 | $5.3 |
| Items of other comprehensive income (loss) before income taxes: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in foreign currency translation adjustment | 54.7 | (4.8) | 65.4 | (27.5) |
| &nbsp;&nbsp;&nbsp;Change in unrealized loss from invested customer funds | 7.5 | 7.1 | 32.4 | (0.3) |
| &nbsp;&nbsp;&nbsp;Change in pension liability adjustment | 4.5 | 2.8 | 9.7 | 6.0 |
| Other comprehensive income (loss) before income taxes | 66.7 | 5.1 | 107.5 | (21.8) |
| Income tax expense, net | 3.2 | 2.6 | 10.9 | 1.5 |
| Other comprehensive income (loss) after income taxes | 63.5 | 2.5 | 96.6 | (23.3) |
| Comprehensive income (loss) | $84.8 | $0.7 | $132.8 | $(18.0) |

---

See accompanying notes to condensed consolidated financial statements.

7 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**Dayforce, Inc.**

**Condensed Consolidated Statements of Stockholders' Equity**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Additional<br>Paid In** | **Accumulated** | **Accumulated<br>Other<br>Comprehensive** | **Total<br>Stockholders'** |
|  | **Shares** | **Capital** | **Deficit** | **Loss** | **Equity** |
| **(In millions)** |  |  |  |  |  |
| Balance as of December 31, 2024 | 159.0 | $3363.2 | $(335.8) | $(482.7) | $2546.3 |
| Net income |  |  | 14.9 |  | 14.9 |
| Issuance of common stock under share-based compensation plans | 1.5 | 4.4 |  |  | 4.4 |
| Taxes paid related to the net share settlement of equity awards |  | (17.1) |  |  | (17.1) |
| Repurchases of common stock | (0.5) |  | (30.4) |  | (30.4) |
| Share-based compensation |  | 40.9 |  |  | 40.9 |
| Foreign currency translation |  |  |  | 10.7 | 10.7 |
| Change in unrealized loss, net of tax of $6.4 |  |  |  | 18.5 | 18.5 |
| Change in pension liability adjustment, net of tax of $1.3 |  |  |  | 3.9 | 3.9 |
| Balance as of March 31, 2025 | 160.0 | $3391.4 | $(351.3) | $(449.6) | $2592.1 |
| Net income |  |  | 21.3 |  | 21.3 |
| Issuance of common stock under share-based compensation plans | 0.2 | 4.5 |  |  | 4.5 |
| Taxes paid related to the net share settlement of equity awards |  | (1.4) |  |  | (1.4) |
| Repurchases of common stock | (0.4) |  | (20.8) |  | (20.8) |
| Share-based compensation |  | 43.1 |  |  | 43.1 |
| Foreign currency translation |  |  |  | 54.7 | 54.7 |
| Change in unrealized loss, net of tax of $2.0 |  |  |  | 5.5 | 5.5 |
| Change in pension liability adjustment, net of tax of $1.2 |  |  |  | 3.3 | 3.3 |
| Balance as of June 30, 2025 | 159.8 | $3437.6 | $(350.8) | $(386.1) | $2702.3 |

---

8 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Additional<br>Paid In** | **Accumulated** | **Accumulated<br>Other<br>Comprehensive** | **Total<br>Stockholders'** |
|  | **Shares** | **Capital** | **Deficit** | **Loss** | **Equity** |
| **(In millions)** |  |  |  |  |  |
| Balance as of December 31, 2023 | 156.3 | $3151.1 | $(317.8) | $(436.7) | $2398.2 |
| Net income |  |  | 7.1 |  | 7.1 |
| Issuance of common stock under share-based compensation plans | 1.6 | 21.7 |  |  | 21.7 |
| Taxes paid related to the net share settlement of equity awards |  | (6.4) |  |  | (6.4) |
| Share-based compensation |  | 38.0 |  |  | 38.0 |
| Foreign currency translation |  |  |  | (22.7) | (22.7) |
| Change in unrealized loss, net of tax of ($1.9) |  |  |  | (5.5) | (5.5) |
| Change in pension liability adjustment, net of tax of $0.8 |  |  |  | 2.4 | 2.4 |
| Balance as of March 31, 2024 | 157.9 | $3204.4 | $(310.7) | $(462.5) | $2432.8 |
| Net loss |  |  | (1.8) |  | (1.8) |
| Issuance of common stock under share-based compensation plans | 1.9 | 5.7 |  |  | 5.7 |
| Taxes paid related to the net share settlement of equity awards |  | (4.2) |  |  | (4.2) |
| Share-based compensation |  | 40.8 |  |  | 40.8 |
| Foreign currency translation |  |  |  | (4.8) | (4.8) |
| Change in unrealized loss, net of tax of $1.9 |  |  |  | 5.2 | 5.2 |
| Change in pension liability adjustment, net of tax of $0.7 |  |  |  | 2.1 | 2.1 |
| Balance as of June 30, 2024 | 159.8 | $3246.7 | $(312.5) | $(460.0) | $2475.8 |

---

See accompanying notes to condensed consolidated financial statements.

9 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**Dayforce, Inc.**

**Condensed Consolidated Statements of Cash Flows** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **(In millions)** |  |  |
| Cash flows from operating activities |  |  |
| &nbsp;&nbsp;Net income | $36.2 | $5.3 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax benefit | (24.6) | (17.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 107.1 | 99.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs and debt discount | 2.2 | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful accounts | 4.5 | 3.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic pension and postretirement cost | 9.6 | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 94.3 | 78.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, excluding effects of acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables | (13.0) | (34.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (14.0) | (2.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred sales commissions | (14.5) | (14.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other accrued expenses | 1.7 | (7.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 2.7 | (1.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | (19.1) | (12.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued taxes | (6.0) | 7.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities | (4.8) | (7.0) |
| &nbsp;&nbsp;Net cash provided by operating activities | 162.3 | 108.3 |
| Cash flows from investing activities |  |  |
| &nbsp;&nbsp;Purchases of customer funds marketable securities | (363.2) | (322.9) |
| &nbsp;&nbsp;Proceeds from sale and maturity of customer funds marketable securities | 230.8 | 167.9 |
| &nbsp;&nbsp;Purchases of marketable securities | (3.7) | (4.0) |
| &nbsp;&nbsp;Proceeds from sale and maturity of marketable securities | 11.5 | 3.0 |
| &nbsp;&nbsp;Expenditures for property, plant, and equipment | (7.9) | (6.7) |
| &nbsp;&nbsp;Expenditures for software and technology | (47.8) | (47.7) |
| &nbsp;&nbsp;Acquisition costs, net of cash acquired |  | (173.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (180.3) | (383.5) |
| Cash flows from financing activities |  |  |
| &nbsp;&nbsp;Decrease in customer funds obligations, net | (854.2) | (3.0) |
| &nbsp;&nbsp;Proceeds from issuance of common stock under share-based compensation plans | 8.9 | 27.4 |
| &nbsp;&nbsp;Taxes paid related to the net share settlement of awards under share-based compensation plans | (18.5) | (10.6) |
| &nbsp;&nbsp;Repurchases of common stock | (50.9) |  |
| &nbsp;&nbsp;Proceeds from debt issuance |  | 650.0 |
| &nbsp;&nbsp;Repayment of long-term debt obligations | (3.6) | (644.7) |
| &nbsp;&nbsp;Payment of debt refinancing costs | (1.2) | (11.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (919.5) | 7.7 |
| Effect of exchange rate changes on cash, restricted cash, and equivalents | 24.9 | (21.7) |
| &nbsp;&nbsp;Net decrease in cash, restricted cash, and equivalents | (912.6) | (289.2) |
| Cash, restricted cash, and equivalents at beginning of period | 3253.9 | 3421.4 |
| Cash, restricted cash, and equivalents at end of period | $2341.3 | $3132.2 |
| Reconciliation of cash, restricted cash, and equivalents to the condensed<br> consolidated balance sheets |  |  |
| Cash and equivalents | $625.2 | $465.4 |
| Restricted cash |  | 0.8 |
| Restricted cash and equivalents included in customer funds | 1716.1 | 2666.0 |
| &nbsp;&nbsp;Total cash, restricted cash, and equivalents | $2341.3 | $3132.2 |

---

See accompanying notes to condensed consolidated financial statements.

10 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**Dayforce, Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)** 

**1. Organization** 

Dayforce, Inc. and its direct and indirect subsidiaries (also referred to in this report as "we," "our," "us," or the "Company") offer a broad range of services and software designed to help employers more effectively manage employment processes, such as payroll, payroll-related tax filing, human resource information systems, employee self-service, time and labor management, employee assistance programs, and recruitment and applicant screening. Our technology-based services are typically provided through long-term customer relationships that result in a high level of recurring revenue. While we operate in 19 countries globally, our operations are primarily located in the United States and Canada.

**2. Summary of Significant Accounting Policies** 

***Basis of Presentation*** 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accounting policies we follow are set forth in Part II, Item 8, Note 2, "Summary of Significant Accounting Policies," to our audited consolidated financial statements in our [<u>2024 Form 10-K</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm). The following notes should be read in conjunction with these policies and other disclosures in our 2024 Form 10-K.

In the opinion of management, the unaudited condensed consolidated financial statements contained herein reflect all adjustments (consisting only of normal recurring adjustments, except as set forth in these notes to the condensed consolidated financial statements) necessary to present fairly in all material respects the financial position, results of operations, comprehensive income (loss), and cash flows from all periods presented. Interim results are not necessarily indicative of results for a full year.

***Recently Issued Accounting Pronouncements from the Financial Accounting Standards Board***

In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses* ("ASU 2024-03"), which requires the disaggregation of certain expenses in the notes of the financial statements, to provide enhanced transparency into the expense captions presented on the condensed consolidated statements of operations. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027 and may be applied either prospectively or retrospectively. We are currently evaluating the impact that ASU 2024-03 will have on our condensed consolidated financial statements and related disclosures, including the adoption date and transition method.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740) – Improvements to Income Tax Disclosures*, which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendment is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the presentational impact that this ASU will have on our condensed consolidated financial statements.

***Segment Information***

We operate as a single reporting unit, a single operating segment and a single reporting segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and assessing performance. Our CODM is our chief executive officer ("CEO"). Our CODM uses operating profit as the measure of segment profitability to assess performance.

11 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

In addition to the information contained in the condensed consolidated statements of operations, the significant segment expense category regularly provided to the CODM is labor and benefits. Both operating profit and labor and benefits expense are used to monitor budget versus actual results to assess performance of the segment. The labor and benefits expense information provided to the CODM primarily consists of base salaries and wages, payroll taxes, healthcare and insurance benefits, and retirement benefits. Expenses related to share-based compensation, incentive compensation, commissions, and external consulting and contract labor are excluded.

The following table sets forth our segment information of revenue, expenses, and operating profit:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Revenue | $464.7 | $423.3 | $946.5 | $854.8 |
| Labor and benefits | 177.5 | 177.2 | 357.8 | 353.3 |
| Other expenses | 244.9 | 232.0 | 515.4 | 446.7 |
| Operating profit | $42.3 | $14.1 | $73.3 | $54.8 |

---

***Reclassifications***

Beginning in 2025, we have reclassified depreciation and amortization in our condensed consolidated statements of operations into a single financial statement line item. We made this change to enhance comparability with our peers and to better align reporting with how management assesses performance. Application of this change is being made on a retrospective basis. The following presents the line items in which depreciation and amortization were previously included for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **(In millions)** | **(In millions)** |
| Cost of revenue | $19.3 | $37.8 |
| Selling and marketing | 0.7 | 1.3 |
| General and administrative | 30.6 | 60.3 |
| Total depreciation and amortization | $50.6 | $99.4 |

---

***Efficiency Plan***

On February 26, 2025, we announced an efficiency plan which included a reduction of approximately 5% of our workforce. The headcount reduction was substantially completed by March 31, 2025. In connection with this plan, we incurred non-recurring restructuring charges in the three and six months ended June 30, 2025 of approximately $2.7 million and $31.9 million, respectively, including severance payments, employee benefits and related costs, and non-cash charges for share-based compensation. These charges were recorded in all line items in costs and expenses in the condensed consolidated statements of operations, excluding depreciation and amortization. For the six months ended June 30, 2025, there were $25.8 million of restructuring charges paid or otherwise settled. As of June 30, 2025, the liability associated with this plan was $6.1 million.

**3. Fair Value Measurements**

***Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Assets |  |  |  |  |
| Available for sale customer funds assets | $— | $2543.4<br> (a) | $— | $2543.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets measured at fair value | $— | $2543.4 | $— | $2543.4 |

---

12 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Assets |  |  |  |  |
| Available for sale customer funds assets | $— | $2327.3<br> (a) | $— | $2327.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets measured at fair value | $— | $2327.3 | $— | $2327.3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Fair value is based on inputs that are observable for the asset or liability, other than quoted prices.

***Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis*** 

During the six months ended June 30, 2025, we did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis. During the year ended December 31, 2024, assets acquired and liabilities assumed as part of a business combination, and liabilities recognized as a part of a debt issuance, were measured at fair value on a nonrecurring basis.

**4. Customer Funds** 

***Overview***

In certain jurisdictions, we collect funds for payment of payroll and taxes; temporarily hold such funds until payment is due; remit the funds to the customers' employees and appropriate taxing authorities; file federal, state, and local tax returns; and handle related regulatory correspondence and amendments. The customer assets are held in segregated accounts intended for the specific purpose of satisfying customer funding obligations and therefore are not freely available for our general business use. In the U.S. and Canada, these customer funds are held in trusts.

Our customer funds are held and invested with the primary objectives being to protect the principal balance and to ensure adequate liquidity to meet cash flow requirements. Accordingly, we maintain on average approximately 45% to 55% of customer funds in liquidity portfolios with maturities ranging from one to 120 days, consisting of high-quality bank deposits, money market mutual funds, commercial paper, or collateralized short-term investments; and we maintain on average approximately 45% to 55% of customer funds in fixed income portfolios with maturities ranging from 120 days to 10 years, consisting of U.S. Treasury and agency securities, Canada government and provincial securities, as well as highly rated asset-backed, mortgage-backed, municipal, corporate, and bank securities. To maintain sufficient liquidity to meet payment obligations, we also have financing arrangements and may pledge fixed income securities for short-term financing.

***Financial Statement Presentation***

Investment income from invested customer funds, also referred to as float revenue or float, is a component of our compensation for providing services under agreements with our customers. Investment income from invested customer funds included in recurring revenue was $47.4 million and $48.9 million for the three months ended June 30, 2025, and 2024, respectively, and $102.7 million and $109.6 million for the six months ended June 30, 2025, and 2024, respectively. Investment income includes interest income, realized gains and losses from sales of customer funds' investments, and unrealized credit losses determined to be unrecoverable.

13 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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The amortized cost of customer funds as of June 30, 2025, and December 31, 2024, is the original cost of assets acquired. The amortized cost and fair values of investments of customer funds available for sale were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Amortized** | **Gross Unrealized** | **Gross Unrealized** | **Fair** |
|  | **Cost** | **Gain** | **Loss** | **Value** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Money market securities, investments carried at cost <br> and other cash equivalents | $1690.0 | $— | $— | $1690.0 |
| Available for sale investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government and agency securities | 869.3 | 4.7 | (14.1) | 859.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canadian and provincial government securities | 498.8 | 5.9 | (1.9) | 502.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 798.9 | 12.5 | (3.0) | 808.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 205.4 | 2.3 | (0.3) | 207.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 105.1 | 1.6 | (0.3) | 106.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities | 58.4 | 0.3 | (0.2) | 58.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available for sale investments | 2535.9 | 27.3 | (19.8) | 2543.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Invested customer funds | 4225.9 | $27.3 | $(19.8) | 4233.4 |
| Receivables | 26.1 |  |  | 26.1 |
| Total customer funds | $4252.0 |  |  | $4259.5 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized** | **Gross Unrealized** | **Gross Unrealized** | **Fair** |
|  | **Cost** | **Gain** | **Loss** | **Value** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Money market securities, investments carried at cost <br> and other cash equivalents | $2650.9 | $— | $— | $2650.9 |
| Available for sale investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government and agency securities | 818.3 | 0.5 | (27.1) | 791.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canadian and provincial government securities | 449.2 | 4.6 | (3.6) | 450.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 734.7 | 7.7 | (7.0) | 735.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 202.9 | 1.9 | (0.6) | 204.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 83.5 | 0.1 | (1.3) | 82.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities | 64.3 | 0.1 | (0.9) | 63.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available for sale investments | 2352.9 | 14.9 | (40.5) | 2327.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Invested customer funds | 5003.8 | $14.9 | $(40.5) | 4978.2 |
| Receivables | 23.3 |  |  | 23.3 |
| Total customer funds | $5027.1 |  |  | $5001.5 |

---

The following represents the gross unrealized losses and the related fair value of the investments of customer funds available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Less than 12 months** | **Less than 12 months** | **12 months or more** | **12 months or more** | **Total** | **Total** |
|  | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| U.S. government and agency securities | $(0.6) | $96.7 | $(13.5) | $388.6 | $(14.1) | $485.3 |
| Canadian and provincial government securities |  | 10.0 | (1.9) | 158.4 | (1.9) | 168.4 |
| Corporate debt securities | (0.1) | 39.1 | (2.9) | 240.5 | (3.0) | 279.6 |
| Asset-backed securities |  | 12.5 | (0.3) | 33.5 | (0.3) | 46.0 |
| Mortgage-backed securities | (0.1) | 7.4 | (0.2) | 7.1 | (0.3) | 14.5 |
| Other securities |  | 8.5 | (0.2) | 24.4 | (0.2) | 32.9 |
| Total available for sale investments | $(0.8) | $174.2 | $(19.0) | $852.5 | $(19.8) | $1026.7 |

---

14 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

Management does not believe that any individual unrealized loss was unrecoverable as of June 30, 2025. The unrealized losses are primarily attributable to changes in interest rates and not to credit deterioration. We currently do not intend to sell or expect to be required to sell the securities before the time required to recover the amortized cost.

The amortized cost and fair value of investment securities available for sale at June 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or to prepay obligations with or without call or prepayment penalties.

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** |
|  | **Cost** | **Fair Value** |
|  | **(In millions)** | **(In millions)** |
| Due in one year or less | $2129.6 | $2126.3 |
| Due in one to three years | 910.1 | 902.5 |
| Due in three to five years | 726.6 | 739.5 |
| Due after five years | 459.6 | 465.1 |
| Invested customer funds | $4225.9 | $4233.4 |

---

**5. Trade and Other Receivables, Net**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
|  | **(In millions)** | **(In millions)** |
| Trade receivables from customers | $238.0 | $226.9 |
| Interest receivable from invested customer funds | 16.2 | 16.8 |
| Dayforce Wallet on-demand pay receivables | 3.0 | 9.5 |
| Other (a) | 32.4 | 34.4 |
| Total gross receivables | 289.6 | 287.6 |
| Less: reserve for sales adjustments and allowance for doubtful accounts | (18.4) | (22.8) |
| Trade and other receivables, net | $271.2 | $264.8 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Other includes short-term investments not classified as cash equivalents, lease receivables, and other current receivables.

***Receivables Securitization Program***

We are party to a receivables securitization program (the "Receivables Securitization Program") with MUFG Bank, Ltd. ("MUFG"), under which MUFG acts as an agent to facilitate the sale of certain Dayforce receivables (the "Receivables") to certain investors unaffiliated with Dayforce (the "Purchasers"). The sale of these Receivables to the Purchasers is accounted for as a sale of assets under Accounting Standards Codification ("ASC") 860, *Transfers and Servicing*, and as such the Receivables are derecognized from our condensed consolidated balance sheets. We continue to service any Receivables sold to the Purchasers. In connection with the Receivables Securitization Program, we sell certain trade and other receivables to special purpose entities (the "SPEs"), which are wholly-owned by Dayforce, which in turn sell a portion of these receivables to the Purchasers on a monthly basis. Per the terms of the Receivables Purchase Agreement between us and MUFG entered into in connection with the Receivables Securitization Program, we may have a maximum of $150.0 million of accounts receivable sold to the Purchasers outstanding at any point in time. The portion of the receivables held by the SPEs, but not sold to the Purchasers, serve as collateral to the Purchasers on the sold Receivables, and are considered restricted accounts receivable. Cash receipts from the sale of Receivables to the Purchasers are reflected in net cash provided by operating activities in the condensed consolidated statements of cash flows.

As of June 30, 2025, there was $217.6 million of restricted accounts receivable held by the SPEs that is reported within trade and other receivables, net on our condensed consolidated balance sheets. Of the Receivables sold to the Purchasers since the inception of the Receivables Securitization Program, $56.1 million remained outstanding as of June 30, 2025.

15 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**6. Goodwill and Other Intangible Assets, Net**

***Goodwill*** 

Our goodwill balance was $2,382.8 million and $2,336.7 million as of June 30, 2025 and December 31, 2024, respectively. The change in goodwill was due to fluctuations in foreign currency exchange rates.

***Other Intangible Assets, Net***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Gross Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net** | **Weighted Average Remaining Amortization Period** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In years)** |
| Amortized - definite lived: |  |  |  |  |
| Customer lists and relationships | $298.4 | $(249.0) | $49.4 | 5.7 |
| Trade name | 177.0 | (170.2) | 6.8 | 0.1 |
| Technology | 316.9 | (234.9) | 82.0 | 5.1 |
| Total definite lived intangible assets | $792.3 | $(654.1) | $138.2 | 4.9 |
| Unamortized - indefinite lived: |  |  |  |  |
| Trade name | 6.3 | (1.9) | 4.4 | n/a |
| Total other intangible assets | $798.6 | $(656.0) | $142.6 | n/a |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net** | **Weighted Average Remaining Amortization Period** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In years)** |
| Amortized - definite lived: |  |  |  |  |
| Customer lists and relationships | $291.1 | $(239.8) | $51.3 | 6.2 |
| Trade name | 176.4 | (127.3) | 49.1 | 0.6 |
| Technology | 300.3 | (215.7) | 84.6 | 5.3 |
| Total definite lived intangible assets | $767.8 | $(582.8) | $185.0 | 4.2 |
| Unamortized - indefinite lived: |  |  |  |  |
| Trade name | 6.0 | (1.8) | 4.2 | n/a |
| Total other intangible assets | $773.8 | $(584.6) | $189.2 | n/a |

---

Amortization expense related to definite lived intangible assets was $31.1 million and $29.5 million for the three months ended June 30, 2025, and 2024, respectively, and $59.8 million and $57.9 million for the six months ended June 30, 2025, and 2024, respectively.

16 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**7. Debt** 

***Overview*** 

Our debt obligations consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** |
| Term Debt, interest rate of 6.3% and 7.1%, respectively | $643.5 | $646.8 |
| Revolving Credit Facility ($350.0 million available capacity less $0.5 million and $0.2 million reserved for letters of credit, respectively) |  |  |
| Convertible Senior Notes, interest rate of 0.25% | 575.0 | 575.0 |
| Line of Credit ($0.3 million and $0.9 million letter of credit capacity, respectively, which were fully utilized) |  |  |
| Financing lease liabilities | 6.1 | 6.5 |
| Total debt | 1224.6 | 1228.3 |
| Less unamortized debt issuance costs and discount | 10.5 | 11.9 |
| Less current portion of long-term debt | 582.3 | 7.3 |
| Long-term debt, less current portion | $631.8 | $1209.1 |

---

Accrued interest and fees related to the debt obligations was $7.4 million and $8.6 million as of June 30, 2025 and December 31, 2024, respectively, and is included within other accrued expenses in our condensed consolidated balance sheets.

***Senior Secured Credit Facility***

On February 29, 2024, we completed the refinancing of our debt by entering into a new credit agreement, which was subsequently amended on February 14, 2025 (the "Credit Agreement") to effect a refinancing. Pursuant to the terms of the Credit Agreement, we became the borrower of (i) a $650.0 million senior secured term loan facility (the "Term Debt") and (ii) a $350.0 million senior secured revolving credit facility (the "Revolving Credit Facility", and collectively, with the Term Debt, the "Senior Secured Credit Facility"). The Term Debt and the Revolving Credit Facility will mature on March 1, 2031 and March 1, 2029, respectively. Our obligations under the Senior Secured Credit Facility are secured by a lien on substantially all of our assets, as well as guarantees and pledged assets by our domestic subsidiaries, subject to certain exceptions.

The Term Debt is subject to amortization of principal, payable in equal quarterly installments on the last day of each fiscal quarter, commencing on September 30, 2024, with 0.25% of the aggregate principal amount of all initial term loans outstanding at closing to be payable each quarter prior to the maturity date of the Term Debt. The remaining initial aggregate principal amount will be payable at the maturity date of the Term Debt. The Term Debt bears interest at rates based upon, at our option, either (i) a base rate plus an applicable percentage of 1.0% or (ii) a term Secured Overnight Financing Rate ("SOFR") plus an applicable percentage of 2.0%.

The Revolving Credit Facility bears interest at rates based upon, at our option, either (i) the base rate or the Canadian prime rate, as applicable, plus an applicable percentage of between 1.0% and 1.5% per annum, depending on our consolidated first lien leverage ratio or (ii) the term SOFR or the Canadian Overnight Repo Rate Average ("CORRA") rate plus an applicable percentage of between 2.25% and 2.75% per annum, depending on our consolidated first lien leverage ratio. The February 2025 amendment to the Senior Secured Credit Facility reduced the base rate applicable percentage to between 1.0% and 1.5%, and reduced the SOFR applicable percentage to between 2.0% and 2.5%.

In connection with the refinancing of our debt in February 2024, we capitalized $7.5 million of additional financing costs and recognized a loss on debt extinguishment of $4.3 million within interest expense, net in our condensed consolidated statements of operations for the six months ended June 30, 2024.

The Senior Secured Credit Facility documents contain a requirement that we maintain a ratio of first lien net leverage to Credit Facility EBITDA below specified levels on a quarterly basis; however, such requirement is applicable only if more than 35% of the Revolving Credit Facility is utilized. As of June 30, 2025, no portion of the available capacity of the Revolving Credit Facility was drawn.

17 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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***Convertible Senior Notes***

In March 2021, we issued $575.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due March 2026 in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act, and pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws, including the exercise in full by the initial purchasers of their option to purchase an additional $75.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2026 (collectively, the "Convertible Senior Notes"). The Convertible Senior Notes bear interest at a rate of 0.25% per year and interest is payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. The Convertible Senior Notes mature on March 15, 2026, unless earlier converted, redeemed, or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and other debt issuance costs, were $561.8 million.

The following table presents details of the Convertible Senior Notes:

---

| | | |
|:---|:---|:---|
|  | **Initial Conversion Rate per $1,000 Principal** | **Initial Conversion Price per Share** |
| Convertible Senior Notes | 7.5641 shares | $132.20 |

---

The Convertible Senior Notes will be convertible at the option of the holders at any time only under certain circumstances as outlined in Part II, Item 8, Note 10, "Debt," to our audited consolidated financial statements in our [<u>2024 Form 10-K</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm). The conditions allowing holders of the Convertible Senior Notes to convert have not been met and therefore were not convertible as of June 30, 2025.

On December 30, 2021, we notified the holders of the Convertible Senior Notes of our irrevocable election to settle the conversion obligation in connection with the Convertible Senior Notes submitted for conversion on or after January 1, 2022, or at maturity with a combination of cash and shares of our common stock. Generally, under this settlement method, the conversion value will be settled in cash in an amount no less than the principal amount being converted, and any excess of the conversion value over the principal amount will be settled, at our election, in cash or shares of common stock.

The Convertible Senior Notes are accounted for as a single liability, and the carrying amount of the Convertible Senior Notes was $572.7 million as of June 30, 2025, with principal of $575.0 million, net of issuance costs of $2.3 million. The Convertible Senior Notes are included within current portion of long-term debt in our condensed consolidated balance sheets as of June 30, 2025. The issuance costs related to the Convertible Senior Notes are being amortized to interest expense over the contractual term of the Convertible Senior Notes at an effective interest rate of 5.1%.

Interest expense recognized related to the Convertible Senior Notes was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Contractual interest expense | $0.3 | $0.3 | $0.7 | $0.7 |
| Amortization of debt issuance costs | 0.7 | 0.8 | 1.5 | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1.0 | $1.1 | $2.2 | $2.2 |

---

***Capped Calls***

In March 2021, in connection with the pricing of the Convertible Senior Notes, we entered into capped call transactions with the option counterparties (the "Capped Calls"). The Capped Calls each have an initial strike price of $132.20 per share, and an initial cap price of $179.26 per share, both subject to certain adjustments. The capped call transactions are generally expected to reduce potential dilution to our common stock upon any conversion of the Convertible Senior Notes and/or offset any potential cash payments we would be required to make in excess of the principal amount of converted Convertible Senior Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Convertible Senior Notes. As the Capped Calls qualify for a scope exception from derivative accounting for instruments that are both indexed to the issuer's own stock and classified in stockholder's equity in our condensed consolidated balance sheets, we have recorded an amount of $33.0 million as a reduction to additional paid-in capital which will not be remeasured. This represents the premium of $45.0 million paid for the purchase of the Capped Calls, net of the deferred tax impact of $12.0 million.

18 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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***Future Payments and Maturities of Debt*** 

The future principal payments and maturities of our indebtedness, excluding financing lease obligations, are as follows:

---

| | |
|:---|:---|
| **Years Ending December 31,** | **Amount** |
|  | **(In millions)** |
| 2025 | $3.2 |
| 2026 | 581.5 |
| 2027 | 6.5 |
| 2028 | 6.5 |
| 2029 | 6.5 |
| Thereafter | 614.3 |
|  | $1218.5 |

---

***Fair Value of Debt*** 

Our debt does not trade in active markets and was considered to be a Level 2 measurement at June 30, 2025. The fair value of the Term Debt was based on the borrowing rates currently available to us for bank loans with similar terms, maturities, and volumes as our debt. The fair value of the Convertible Senior Notes was determined based on the closing trading price per $1,000 of the Convertible Senior Notes as of the last day of trading for the period and is primarily affected by the trading price of our common stock and market interest rates. The fair value of our debt was estimated to be $1.20 billion as of June 30, 2025 and December 31, 2024.

**8. Employee Benefit Plans** 

Our benefit plans include defined contribution plans for the majority of our employees.

We also maintain defined benefit pension plans covering certain of our current and former U.S. employees (the U.S. pension plan and nonqualified defined benefit plan, collectively referred to as our "defined benefit plans"), as well as a postretirement benefit plan for certain U.S. retired employees that include heath care and life insurance benefits.

The U.S. defined benefit plans were terminated with an effective date of September 30, 2024. We are in the process of finalizing the wind down of the plans, which includes transferring the associated liabilities to an insurance company, which we expect will be completed in 2025. These steps include settling all future obligations under our defined pension plans through a combination of lump sum payments to eligible, electing participants and the transfer of any remaining benefits to a third-party insurance company through a group annuity contract.

The components of net periodic cost (gain) for our defined benefit pension plans and for our postretirement benefit plan are included in the following tables:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Interest cost | $5.7 | $4.1 | $11.4 | $8.2 |
| Actuarial loss amortization | 5.0 | 3.3 | 10.0 | 6.6 |
| Less: Expected return on plan assets | (5.5) | (4.4) | (11.0) | (8.8) |
| Net periodic pension cost | $5.2 | $3.0 | $10.4 | $6.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Interest cost | $0.1 | $0.1 | $0.2 | $0.2 |
| Actuarial gain amortization | (0.5) | (0.6) | (1.0) | (1.1) |
| Net periodic postretirement benefit gain | $(0.4) | $(0.5) | $(0.8) | $(0.9) |

---

**9. Share-Based Compensation**

Our share-based compensation consists of stock options, restricted stock units ("RSU"), and performance stock units ("PSU"), and is used to compensate certain employees and non-employee directors. We also offer an employee stock purchase plan to eligible employees.

19 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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As of June 30, 2025, there were 11.8 million stock options, RSUs, and PSUs outstanding and 7.3 million shares available for grant under approved equity compensation plans.

Total share-based compensation expense was $48.4 million and $40.8 million for the three months ended June 30, 2025, and 2024, respectively, and $94.3 million and $78.8 million for the six months ended June 30, 2025, and 2024, respectively. As of June 30, 2025, there was $270.8 million of share-based compensation expense related to unvested share-based equity awards not yet recognized, which is expected to be recognized over a weighted average period of 2.0 years.

***Performance-Based Stock Options***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Weighted<br>Average<br>Exercise<br>Price<br>(per share)** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Term<br>(in years)** | **Aggregate<br>Intrinsic<br>Value<br>(in millions)** |
| Outstanding at December 31, 2024 | 1729781 | $65.26 | 5.4 | $12.8 |
| Granted |  |  |  |  |
| Exercised |  |  |  |  |
| Forfeited or expired | (750000) | (65.26) |  |  |
| Outstanding at June 30, 2025 | 979781 | $65.26 | 4.9 | $— |
| Exercisable at June 30, 2025 | 979781 | $65.26 | 4.9 | $— |

---

***Performance Stock Units***

---

| | |
|:---|:---|
|  | **Shares** |
| Outstanding at December 31, 2024 | 1091885 |
| Granted | 576401 |
| Vested and released | (450957) |
| Forfeited or canceled | (66021) |
| Outstanding at June 30, 2025 | 1151308 |

---

***Term-Based Stock Options***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Weighted<br>Average<br>Exercise<br>Price<br>(per share)** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Term<br>(in years)** | **Aggregate<br>Intrinsic<br>Value<br>(in millions)** |
| Outstanding at December 31, 2024 | 4477645 | $56.53 | 4.7 | $79.7 |
| Granted |  |  |  |  |
| Exercised | (45903) | (40.18) |  |  |
| Forfeited or expired | (28640) | (64.00) |  |  |
| Outstanding at June 30, 2025 | 4403102 | $56.66 | 4.3 | $24.4 |
| Exercisable at June 30, 2025 | 4401511 | $56.65 | 4.3 | $24.4 |

---

For most term-based stock options, we estimated an expected term of 7.0 years, based on the vesting period and contractual life.

20 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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***Restricted Stock Units***

---

| | |
|:---|:---|
|  | **Shares** |
| Outstanding at December 31, 2024 | 4110131 |
| Granted | 2618637 |
| Vested and released | (1358035) |
| Forfeited or canceled | (153021) |
| Outstanding at June 30, 2025 | 5217712 |

---

***Global Employee Stock Purchase Plan***

---

| | | |
|:---|:---|:---|
| **Period Ended** | **Shares Issued** | **Purchase Price<br>(per share)** |
| March 31, 2025 | 69467 | $49.58 |
| June 30, 2025 | 67285 | $47.08 |

---

A total of 1.0 million shares of common stock were available for future issuances under the plan as of June 30, 2025.

**10. Revenue and Revenue-Related Activity**

***Disaggregation of Revenue***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recurring services: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dayforce recurring | $315.5 | $277.7 | $638.6 | $560.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Powerpay recurring | 19.9 | 19.9 | 38.9 | 40.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other recurring | 10.3 | 18.5 | 23.4 | 37.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Float | 47.4 | 48.9 | 102.7 | 109.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total recurring services | 393.1 | 365.0 | 803.6 | 747.7 |
| &nbsp;&nbsp;&nbsp;Professional services | 71.6 | 58.3 | 142.9 | 107.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $464.7 | $423.3 | $946.5 | $854.8 |

---

Prior year amounts presented in the table above have been reclassified to conform to the current year presentation. The presentation was changed to enhance comparability with our peers and to better align reporting with how management assesses performance.

***Contract Balances***

In accordance with ASC 606, a contract asset is generally recorded when revenue recognized for professional service performance obligations exceed the contractual amount of billings for implementation related professional services. Additions to contract assets generally represent increases to professional services revenues, and reductions to contract assets generally represent reductions to recurring services revenue during the initial contract term. Contract assets expected to be recognized in revenue within twelve months are included within prepaid expenses and other current assets, with the remaining contract assets included within other assets on our condensed consolidated balance sheets.

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** |
| Contract assets, beginning of period | $100.2 | $89.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 55.6 | 46.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reductions | (49.4) | (41.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation | 2.1 | (0.6) |
| Contract assets, end of period | $108.5 | $93.0 |

---

21 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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***Deferred Revenue***

Deferred revenue primarily consists of payments received in advance of revenue recognition.

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** |
| Deferred revenue, beginning of period | $42.3 | $40.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;New billings | 654.8 | 493.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired billings |  | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue recognized | (651.1) | (495.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of exchange rate | 0.9 | (0.6) |
| Deferred revenue, end of period | $46.9 | $46.5 |

---

***Deferred Sales Commissions***

In accordance with ASC 606, sales commissions paid based on the annual contract value of a signed customer contract are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid based on the annual contract value are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be ten years. Amortization expense for deferred sales commissions was $8.5 million and $6.6 million for the three months ended June 30, 2025, and 2024, respectively, and $16.5 million and $12.9 million for the six months ended June 30, 2025, and 2024, respectively.

***Transaction Price for Remaining Performance Obligations*** 

As of June 30, 2025, approximately $1.43 billion of revenue is expected to be recognized over the next three years from remaining performance obligations, which represents contracted revenue for recurring services and fixed price professional services, primarily implementation services, that has not yet been recognized, including deferred revenue and unbilled amounts that will be recognized as revenue in future periods. Performance obligations that are billed and recognized as they are delivered, primarily professional services contracts that are on a time and materials basis, are excluded from the transaction price for remaining performance obligations disclosed above.

**11. Accumulated Other Comprehensive Loss**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Foreign<br>Currency<br>Translation<br>Adjustment** | **Unrealized Gain<br>(Loss) from<br>Invested<br>Customer Funds** | **Pension<br>Liability<br>Adjustment** | **Total** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Balance as of December 31, 2024 | $(297.4) | $(27.6) | $(157.7) | $(482.7) |
| Other comprehensive income before income taxes and reclassifications | 65.4 | 32.4 | 0.7 | 98.5 |
| Income tax expense |  | (8.4) | (2.5) | (10.9) |
| Reclassifications to earnings |  |  | 9.0 | 9.0 |
| Other comprehensive income | 65.4 | 24.0 | 7.2 | 96.6 |
| Balance as of June 30, 2025 | $(232.0) | $(3.6) | $(150.5) | $(386.1) |

---

22 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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**12. Income Taxes** 

Our income tax provision represents federal, state, and international taxes on our income recognized for financial statement purposes and includes the effects of temporary differences between financial statement income and income recognized for tax return purposes. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets to reflect the net deferred tax assets that we believe will be realized. In assessing the likelihood that we will be able to recover our deferred tax assets and the need for a valuation allowance, we consider all available evidence, both positive and negative, including historical levels of pre-tax book income, expiration of net operating losses, changes in our debt and equity structure, expectations and risks associated with estimates of future taxable income, ongoing prudent and feasible tax planning strategies, as well as current tax laws. As of June 30, 2025, we have a valuation allowance of $39.4 million against certain deferred tax assets consisting primarily of $27.7 million attributable to other deferred tax assets consisting largely of foreign intangible assets and $11.7 million attributable to state and foreign net operating loss carryovers.

We recorded income tax expense of $17.0 million during the three months ended June 30, 2025, which included tax expense of $8.0 million attributable to current operations, $4.4 million attributable to share-based compensation, $3.0 million attributable to non-deductible items, and $2.1 million attributable to state income taxes. As a percentage of income before income taxes as compared to the three months ended June 30, 2024, income tax expense increased due to an increase in current operations and share-based compensation.

We recorded income tax expense of $21.2 million during the six months ended June 30, 2025, which included tax expense of $12.1 million attributable to current operations, $4.2 million attributable to state income taxes, and $4.0 million attributable to share-based compensation. As a percentage of income before income taxes as compared to the six months ended June 30, 2024, income tax expense decreased due to a reduction in share-based compensation and the Global Intangible Low Taxed Income regime.

The total amount of unrecognized tax benefits as of June 30, 2025, and December 31, 2024, was $3.4 million and $2.7 million, respectively. The $3.4 million represents the amount that, if recognized, would impact our effective income tax rate as of June 30, 2025. We adjust these reserves when facts and circumstances change, such as the closing of tax audits or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results.

We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2020.

On July 4, 2025, the U.S. Congress enacted the One Big Beautiful Bill Act ("OBBBA"), which includes significant provisions, including tax cut extensions and modifications to the international tax framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. We will continue to monitor and evaluate the implications of the OBBBA on our condensed consolidated financial statements for future reporting periods.

**13. Commitments and Contingencies** 

***Legal Matters***

We are subject to claims and a number of judicial and administrative proceedings considered normal in the course of our current and past operations, including employment-related disputes, contract disputes, disputes with our competitors, intellectual property disputes, government audits and proceedings, customer disputes, and tort claims. In some proceedings, the claimant seeks damages as well as other relief, which, if granted, would require substantial expenditures on our part.

Our general terms and conditions in customer contracts frequently include a provision indicating we will indemnify and hold our customers harmless from and against any and all claims alleging that the services and materials furnished by us violate any third party's patent, trade secret, copyright, or other intellectual property right. We are not aware of any material pending litigation concerning these indemnifications.

23 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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Some of these matters raise difficult and complex factual and legal issues and are subject to many uncertainties, including the facts and circumstances of each particular action, and the jurisdiction, forum, and law under which each action is proceeding. Because of these complexities, final disposition of some of these proceedings may not occur for several years. As such, we are not always able to estimate the amount of our possible future liabilities, if any.

There can be no certainty that we may not ultimately incur charges in excess of presently established or future financial accruals or insurance coverage. Although occasional adverse decisions or settlements may occur, it is management's opinion that the final disposition of these proceedings will not, considering the merits of the claims and available resources or reserves and insurance, and based upon the facts and circumstances currently known, have a material adverse effect on our financial position or results of operations.

**14. Net Income (Loss) per Share** 

We compute net income (loss) per share of common stock using the treasury stock method.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** |
| Numerator: |  |  |  |  |
| Net income (loss) | $21.3 | $(1.8) | $36.2 | $5.3 |
| Denominator: |  |  |  |  |
| Weighted average shares outstanding - basic | 159.9 | 157.9 | 159.6 | 157.4 |
| Effect of dilutive equity instruments | 1.1 |  | 2.2 | 2.4 |
| Weighted average shares outstanding - diluted | 161.0 | 157.9 | 161.8 | 159.8 |
| Net income (loss) per share - basic | $0.13 | $(0.01) | $0.23 | $0.03 |
| Net income (loss) per share - diluted | $0.13 | $(0.01) | $0.22 | $0.03 |

---

The following potentially dilutive weighted average shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Stock options | 2.7 | 4.1 | 2.8 | 3.0 |
| Restricted stock units | 1.5 | 2.8 | 0.1 | 1.3 |
| Performance stock units |  | 1.3 |  | 0.8 |

---

The shares underlying the conversion option in the Convertible Senior Notes were not considered in the calculation of diluted net income (loss) per share as the effect would have been anti-dilutive. Based on the initial conversion price, the entire outstanding principal amount of the Convertible Senior Notes as of June 30, 2025 would have been convertible into approximately 4.3 million shares of our common stock. Since we expect to settle the principal amount of the Convertible Senior Notes in cash, we use the treasury stock method for calculating any potential dilutive effect on diluted net income (loss) per share, if applicable. As a result, only the amount by which the conversion value exceeds the aggregate principal amount of the Convertible Senior Notes (the "conversion spread") is considered in the diluted earnings per share computation. The conversion spread has a dilutive impact on diluted net income (loss) per share when the average market price of our common stock for a given period exceeds the initial conversion price of $132.20 per share for the Convertible Senior Notes. We excluded the potentially dilutive effect of the conversion spread of the Convertible Senior Notes as the average market price of our common stock during the three and six months ended June 30, 2025 was less than the conversion price of the Convertible Senior Notes. In connection with the issuance of the Convertible Senior Notes, we entered into Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive.

24 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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**15. Share Repurchase Program**

On July 31, 2024, we announced that our Board of Directors had approved a share repurchase program with authorization to purchase up to $500 million of our common stock.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| Total number of shares purchased | 364059 | 882968 |
| Average price paid per share (a) | $57.05 | $57.99 |
| Total cost of shares purchased | $20770844 | $51207241 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Average price paid includes costs associated with the repurchases.

25 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following is a discussion and analysis of our financial condition and results of operations as of, and for, the periods presented and should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto included elsewhere in this report and with our audited consolidated financial statements and notes thereto in our* [*<u>2024 Form 10-K</u>*](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm)*. This discussion and analysis contains forward-looking statements, including statements regarding industry outlook, our expectations for the future of our business, and our liquidity and capital resources as well as other non-historical statements. These statements are based on current expectations and are subject to numerous risks and uncertainties, including but not limited to the risks and uncertainties described in* [*<u>Part II, Item 1A, "Risk Factors"</u>*](#part_ii_or_information) *and* [*<u>"Cautionary Note Regarding Forward-Looking Statements."</u>*](#cautionary_note_regarding_forwardlooking) *Our actual results may differ materially from those contained in or implied by these forward-looking statements. Any reference to a "Note" in this discussion relates to the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report unless otherwise indicated.*

**Overview** 

Dayforce, Inc. is a global human capital management ("HCM") software company. We categorize our solutions into two categories: recurring services and professional services. Recurring services are generated from HCM solutions that are primarily delivered via two offerings: Dayforce, our flagship HCM platform, and Powerpay, a human resources ("HR") and payroll solution for the Canadian small business market. Revenue from our recurring services solutions include investment income generated from holding customer funds, also referred to as float revenue or float.

Dayforce provides HR, payroll and tax, benefits, workforce management, and talent management functionality. Our platform is used by organizations of all sizes, from small businesses to global organizations, regardless of industry, to optimize management of the entire employee lifecycle, including attracting, hiring, engaging, paying, and developing their people. Dayforce was built as a single application from the ground up that combines a modern, consumer-grade user experience with proprietary application architecture, including a single employee record and a rules engine spanning all areas of HCM. Dayforce provides continuous real-time calculations across all modules to enable, for example, payroll administrators access to data through the entire pay period, and managers access to real-time data to optimize work schedules. Our platform is designed to drive efficiencies for our customers and their employees by improving HCM decision-making processes, streamlining workflows, revealing strategic organizational insights, and simplifying legislative compliance. The platform is designed to ease administrative work for both employees and managers, creating opportunities for companies to increase employee engagement. We sell Dayforce through our direct sales force on a subscription per-employee, per-month ("PEPM") basis. Our subscriptions are typically structured with an initial fixed term of between three and five years, with evergreen renewal thereafter.

**Our Business Model** 

Our business model focuses on supporting the rapid growth of Dayforce and maximizing the lifetime value of our Dayforce customer relationships. Our ratable recognition of subscription revenues over the term of the subscription period combined with our high revenue retention rates yield a high level of visibility into our future revenues. The profitability of a customer depends, in large part, on how long they have been a customer. We estimate that it takes approximately two years before we are able to recover our implementation, customer acquisition, and other direct costs on a new Dayforce customer contract.

Over the lifetime of the customer relationship, we have the opportunity to realize additional PEPM revenue, both as the customer grows or offers the Dayforce solution to additional employees, and also by selling additional functionality to existing customers that do not currently utilize all of the modules we offer. We also incur costs to manage the account, to retain customers, and to sell additional functionality, however, these costs are significantly less than the costs initially incurred to acquire and to take customers live.

**Global Events** 

We are closely monitoring changes in international trade relations, economic policies, and legislation and regulations, which could adversely impact the global economy and our operating results. Currently, we are not experiencing any material impact to our operating results as a result of the direct impact of tariffs on goods to certain countries from which we export hardware for our time clocks. However, prolonged changes and uncertainty in interest rates and foreign exchange rates, and shifts in the overall macroeconomic demand for our services could adversely impact our operating results.

26 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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Additionally, on July 4, 2025, U.S. Congress enacted the OBBBA, which includes significant provisions, including tax cut extensions and modifications to the international tax framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. These legislative changes are expected to impact our future cash tax remittances, resulting from changes to tax deductibility rules for domestic research and development costs.

Additional discussion of the ways in which adverse economic and market conditions could affect our business, operating results, or financial condition is referenced below and contained in [<u>Part II, Item 1A, "Risk Factors"</u>](#item_1a_risk_factors) in this Form 10-Q and in Part I, Item 1A. "Risk Factors" in our [<u>2024 Form 10-K</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm)<u>.</u>

**How We Assess Our Performance** 

In assessing our performance, we consider a variety of annual and quarterly performance indicators in addition to revenue and net income. Set forth below are descriptions of our quarterly key performance measures. Additional information on our annual performance measures is described in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the heading "How We Assess Our Performance" contained in our [<u>2024 Form 10-K</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm). Please refer to the [<u>"Non-GAAP Financial Measures"</u>](#non_gaap_measures) and [<u>"Results of Operations"</u>](#results_of_operations)sections below for further description and definitions of certain performance indicators which are considered non-GAAP financial measures.

***Live Dayforce Customers*** 

We use the number of live Dayforce customers as an indicator of future revenue and the overall performance of the business and to assess the performance of our implementation services.

***Dayforce Recurring Revenue Per Customer***

We use Dayforce recurring revenue per customer, a non-GAAP financial measure, as an indicator of the average size of our Dayforce customer, which we believe is also useful to management and investors. We calculate and monitor Dayforce recurring revenue per customer on a quarterly basis. Our Dayforce recurring revenue per customer may fluctuate as a result of a number of factors, including the number of live Dayforce customers and the number of modules purchased by each customer.

***Constant Currency Revenue***

We present percentage change in revenue on a constant currency basis, a non-GAAP financial measure, to assess how our underlying business performed, excluding the effect of foreign currency rate fluctuations, which we believe is useful to management and investors. The average U.S. dollar to Canadian dollar, Australian dollar, and Great British pound foreign exchange rates were $1.38, $1.56, and $0.75 for the three months ended June 30, 2025, respectively, compared to $1.37, $1.52, and $0.79 for the three months ended June 30, 2024, respectively. The average U.S. dollar to Canadian dollar, Australian dollar, and Great British pound foreign exchange rates were $1.41, $1.58, and $0.77 for the six months ended June 30, 2025, respectively, compared to $1.36, $1.52, and $0.79 for the six months ended June 30, 2024, respectively.

***Adjusted Operating Profit, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Free Cash Flow Margin***

We believe that Adjusted operating profit, Adjusted EBITDA, Adjusted EBITDA margin, free cash flow, and free cash flow margin, non-GAAP financial measures, are useful to management and investors as supplemental measures to evaluate our overall operating performance. Adjusted operating profit, free cash flow, and free cash flow margin are components of certain management compensation plans, and these metrics are used by management to assess performance and to compare our operating performance to our competitors. Management believes that these non-GAAP financial measures are helpful in highlighting management performance trends because these metrics exclude the results of decisions that are outside the normal course of our business operations. Additionally, we believe that the non-GAAP financial measure free cash flow and free cash flow margin are meaningful to investors because they are measures of liquidity that provide useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. The reduction of capital expenditures facilitates comparisons of our liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.

27 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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**Results of Operations**

***Three Months Ended June 30, 2025 Compared With Three Months Ended June 30, 2024*** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Increase/(Decrease)** | **Increase/(Decrease)** | **Percentage of Revenue** | **Percentage of Revenue** |
|  | **2025** | **2024** | **Amount** | **%** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** |  |  |  |  |
| Revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring services | $393.1 | $365.0 | $28.1 | 7.7% | 84.6% | 86.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services | 71.6 | 58.3 | 13.3 | 22.8% | 15.4% | 13.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 464.7 | 423.3 | 41.4 | 9.8% | 100.0% | 100.0% |
| Costs and expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs of recurring services | 92.7 | 89.3 | 3.4 | 3.8% | 19.9% | 21.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs of professional services | 76.6 | 69.6 | 7.0 | 10.1% | 16.5% | 16.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Product development and management | 57.3 | 58.3 | (1.0) | (1.7)% | 12.3% | 13.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing | 83.7 | 82.4 | 1.3 | 1.6% | 18.0% | 19.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 58.9 | 59.0 | (0.1) | (0.2)% | 12.7% | 13.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 53.2 | 50.6 | 2.6 | 5.1% | 11.4% | 12.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost and expenses | 422.4 | 409.2 | 13.2 | 3.2% | 90.9% | 96.7% |
| Operating profit | 42.3 | 14.1 | 28.2 | 200.0% | 9.1% | 3.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (4.7) | (3.0) | (1.7) | (56.7)% | (1.0)% | (0.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 11.8 | 14.1 | (2.3) | (16.3)% | 2.5% | 3.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (3.1) | 3.0 | (6.1) | (203.3)% | (0.7)% | 0.7% |
| Income before income taxes | 38.3 |  | 38.3 | 100.0% | 8.2% |  |
| Income tax expense | 17.0 | 1.8 | 15.2 | 844.4% | 3.7% | 0.4% |
| Net income (loss) | $21.3 | $(1.8) | $23.1 | 1283.3% | 4.6% | (0.4)% |

---

<u>Revenue.</u> The following table sets forth certain information regarding our revenues for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Percentage change in revenue** | **Impact of<br>changes in<br>foreign<br>currency (a)** | **Percentage change in revenue on a constant currency basis (a)** |
|  | **2025** | **2024** | **2025 vs. 2024** |  | **2025 vs. 2024** |
|  | **(In millions)** | **(In millions)** |  |  |  |
| Revenue: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recurring services: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dayforce recurring | $315.5 | $277.7 | 13.6% | 0.1% | 13.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Powerpay recurring | 19.9 | 19.9 | (—)% | (1.0)% | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other recurring | 10.3 | 18.5 | (44.3)% | (0.5)% | (43.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Float | 47.4 | 48.9 | (3.1)% | (0.2)% | (2.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total recurring services | 393.1 | 365.0 | 7.7% | (—)% | 7.7% |
| &nbsp;&nbsp;&nbsp;Professional services | 71.6 | 58.3 | 22.8% | (0.2)% | 23.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $464.7 | $423.3 | 9.8% | (—)% | 9.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue, excluding float | $417.3 | $374.4 | 11.5% | (—)% | 11.5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)We have calculated the percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the [<u>"Non-GAAP Financial Measures"</u>](#non_gaap_measures) section for discussion of percentage change in revenue on a constant currency basis.

28 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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Total revenue increased $41.4 million, or 9.8%, to $464.7 million for the three months ended June 30, 2025, compared to $423.3 million for the three months ended June 30, 2024. This increase was primarily attributable to the increase in the number of live Dayforce customers and the increase in Dayforce recurring revenue per customer. The number of live Dayforce customers increased 4.9% to 6,984 at June 30, 2025 from 6,657 at June 30, 2024. Additionally, for the trailing twelve months ended June 30, 2025, Dayforce recurring revenue per customer grew to $171,075 compared to $154,998 for the comparable period in 2024. Please refer to the [<u>"How We Assess Our Performance"</u>](#how_we_assess_performance) and [<u>"Non-GAAP Financial Measures"</u>](#non_gaap_measures) section for discussion of and the definition of Dayforce recurring revenue per customer.

The increase in total revenue was partially offset by a decrease in float revenue, which was driven by a decrease in average yield of 40 basis points compared to the three months ended June 30, 2024. This was partially offset by a 7.2% increase in average float balance for our customer funds for the three months ended June 30, 2025, which increased to $5.08 billion, compared to $4.74 billion for the three months ended June 30, 2024.

<u>Costs of recurring services.</u> The increase of $3.4 million, or 3.8%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was due to a $4.5 million increase in consulting and contract labor, partially offset by a decrease of $1.1 million in employee labor and benefits, share-based compensation, and incentives.

<u>Costs of professional services.</u> The increase of $7.0 million, or 10.1%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to a $7.2 million increase in consulting and contract labor incurred to implement new customers and additional modules.

<u>Product development and management expense.</u> The decrease of $1.0 million, or 1.7%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to a $3.5 million decrease in labor and benefit expenses, including decreases in severance, incentives, and employee labor and benefits. These decreases were partially offset by a $2.2 million increase in share-based compensation and consulting and contract labor.

For the three months ended June 30, 2025, and 2024, our investment in software development was $57.5 million and $55.5 million, respectively, consisting of $31.7 million and $32.3 million of research and development expense, and $25.8 million and $23.2 million in capitalized software development costs, respectively.

<u>Selling and marketing expense.</u> The increase of $1.3 million, or 1.6%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to increases in labor and benefit expenses, including increases in share-based compensation, commissions, and employee labor and benefits, partially offset by decreases in consulting and contract labor and severance.

<u>General and administrative expense.</u> The decrease of $0.1 million, or 0.2%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to a $3.7 million decrease in labor and benefit expenses, including consulting and contract labor and severance, and a $2.3 million decrease in bad debt expense. These decreases were partially offset by a $4.5 million increase in share-based compensation.

<u>Depreciation and amortization expense.</u> The increase of $2.6 million, or 5.1%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily driven by our continued capitalization and subsequent amortization of Dayforce related and other development costs.

<u>Operating profit.</u> For the three months ended June 30, 2025, operating profit was $42.3 million, compared to $14.1 million for the three months ended June 30, 2024. Operating profit increased as a result of the higher revenue, which was partially offset by increased labor and benefits expenses, primarily consulting and contract labor and share-based compensation.

<u>Interest income.</u> The increase of $1.7 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to higher invested balances, partially offset by lower interest rates during the period.

<u>Interest expense.</u> The decrease of $2.3 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to lower applicable reference rates on our Term Debt, which resulted from the debt refinancing completed in February 2025.

<u>Other (income) expense, net.</u> We realized other income, net of $3.1 million for the three months ended June 30, 2025 and we incurred other expense, net of $3.0 million for the three months ended June 30, 2024. The change was primarily due to foreign currency translation gain of $8.2 million for the three months ended June 30, 2025 compared to foreign currency

29 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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translation loss of $0.4 million for the three months ended June 30, 2024, partially offset by an increase in net periodic pension expense of $2.1 million.

<u>Income tax expense.</u> The increase of $15.2 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to increases of $8.0 million related to current operations, $2.5 million of non-deductible items, $2.4 million of state income taxes, and $2.2 million of tax credits.

<u>Net income (loss).</u> We realized net income of $21.3 million for the three months ended June 30, 2025, compared to net loss of $1.8 million for the three months ended June 30, 2024. The change was primarily due to an increase in revenue, partially offset by increases in total costs and expenses.

***Six Months Ended June 30, 2025 Compared With Six Months Ended June 30, 2024***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Increase/(Decrease)** | **Increase/(Decrease)** | **Percentage of Revenue** | **Percentage of Revenue** |
|  | **2025** | **2024** | **Amount** | **%** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** |  |  |  |  |
| Revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring services | $803.6 | $747.7 | $55.9 | 7.5% | 84.9% | 87.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services | 142.9 | 107.1 | 35.8 | 33.4% | 15.1% | 12.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 946.5 | 854.8 | 91.7 | 10.7% | 100.0% | 100.0% |
| Costs and expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs of recurring services | 191.1 | 177.7 | 13.4 | 7.5% | 20.2% | 20.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs of professional services | 157.9 | 135.7 | 22.2 | 16.4% | 16.7% | 15.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Product development and management | 116.6 | 111.4 | 5.2 | 4.7% | 12.3% | 13.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing | 170.5 | 160.8 | 9.7 | 6.0% | 18.0% | 18.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 130.0 | 115.0 | 15.0 | 13.0% | 13.7% | 13.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 107.1 | 99.4 | 7.7 | 7.7% | 11.3% | 11.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost and expenses | 873.2 | 800.0 | 73.2 | 9.2% | 92.3% | 93.6% |
| Operating profit | 73.3 | 54.8 | 18.5 | 33.8% | 7.7% | 6.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (9.6) | (8.5) | (1.1) | (12.9)% | (1.0)% | (1.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 24.6 | 32.9 | (8.3) | (25.2)% | 2.6% | 3.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | 0.9 | 12.0 | (11.1) | (92.5)% | 0.1% | 1.4% |
| Income before income taxes | 57.4 | 18.4 | 39.0 | 212.0% | 6.1% | 2.2% |
| Income tax expense | 21.2 | 13.1 | 8.1 | 61.8% | 2.2% | 1.5% |
| Net income | $36.2 | $5.3 | $30.9 | 583.0% | 3.8% | 0.6% |

---

30 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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<u>Revenue.</u> The following table sets forth certain information regarding our revenues for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Percentage change in revenue** | **Impact of<br>changes in<br>foreign<br>currency (a)** | **Percentage change in revenue on a constant currency basis (a)** |
|  | **2025** | **2024** | **2025 vs. 2024** |  | **2025 vs. 2024** |
|  | **(In millions)** | **(In millions)** |  |  |  |
| Revenue: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recurring revenue: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dayforce recurring | $638.6 | $560.1 | 14.0% | (0.7)% | 14.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Powerpay recurring | 38.9 | 40.4 | (3.7)% | (3.7)% | (—)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other recurring | 23.4 | 37.6 | (37.8)% | (3.0)% | (34.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Float | 102.7 | 109.6 | (6.3)% | (0.8)% | (5.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total recurring revenue | 803.6 | 747.7 | 7.5% | (0.9)% | 8.4% |
| &nbsp;&nbsp;&nbsp;Professional services | 142.9 | 107.1 | 33.4% | (1.8)% | 35.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $946.5 | $854.8 | 10.7% | (1.0)% | 11.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue, excluding float | $843.8 | $745.2 | 13.2% | (1.1)% | 14.3% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)We have calculated the percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the [<u>"Non-GAAP Financial Measures"</u>](#non_gaap_measures) section for discussion of percentage change in revenue on a constant currency basis.

Total revenue increased $91.7 million, or 10.7%, to $946.5 million for the six months ended June 30, 2025, compared to $854.8 million for the six months ended June 30, 2024. This increase was primarily attributable to the increase in live Dayforce customers, and the increase in Dayforce recurring revenue per customer. The number of live Dayforce customers increased 4.9% to 6,984 at June 30, 2025 from 6,657 at June 30, 2024. Additionally, for the trailing twelve months ended June 30, 2025, Dayforce recurring revenue per customer grew to $171,075 compared to $154,998 for the comparable period in 2024. Please refer to the [<u>"How We Assess Performance"</u>](#how_we_assess_performance) and [<u>"Non-GAAP Financial Measures"</u>](#non_gaap_measures) section for discussion of and the definition of Dayforce recurring revenue per customer.

The increase in revenue was partially offset by a decrease in float revenue. The decrease in float revenue was driven by a decrease in average yield of 47 basis points compared to the six months ended June 30, 2024, partially offset by a 5.6% increase in average float balance for our customer funds for the six months ended June 30, 2025, which increased to $5.47 billion, compared to $5.18 billion for the six months ended June 30, 2024.

<u>Costs of recurring services.</u> The increase of $13.4 million, or 7.5%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was due to a $10.0 million increase in labor and employee benefit expense, including increases in consulting and contract labor and severance as well as a $3.5 million increase of certain costs related to product partnerships.

<u>Costs of professional services.</u> The increase of $22.2 million, or 16.4%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to a $22.5 million increase in labor and benefit expenses, including increases in consulting and contract labor, severance, employee labor and benefits, and share-based compensation.

<u>Product development and management expense.</u> The increase of $5.2 million, or 4.7%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to a $5.7 million increase in labor and benefit expenses, including increases in share-based compensation, severance, and consulting and contract labor.

For the six months ended June 30, 2025, and 2024, our investment in software development was $113.3 million and $105.9 million, respectively, consisting of $65.1 million and $60.7 million of research and development expense, and $48.2 million and $45.2 million in capitalized software development costs, respectively.

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<u>Selling and marketing expense.</u> The increase of $9.7 million, or 6.0%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to a $13.3 million increase in labor and benefit expenses, including increases in share-based compensation, severance, commissions, employee labor and benefits, and incentives. These increases were partially offset by a reduction of $3.3 million in consulting and contract labor expenses.

<u>General and administrative expense.</u> The increase of $15.0 million, or 13.0%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to an $18.1 million increase in labor and benefit expenses, including increases in share-based compensation, employee labor and benefits, severance, and incentives. These increases were partially offset by a reduction of $4.6 million in consulting and contract labor expenses.

<u>Depreciation and amortization expense.</u> The increase of $7.7 million, or 7.7%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily driven by our continued capitalization and subsequent amortization of Dayforce related and other development costs.

<u>Operating profit.</u> For the six months ended June 30, 2025, operating profit was $73.3 million, compared to $54.8 million for the six months ended June 30, 2024. Operating profit increased as a result of the higher revenue, which was partially offset by increased labor and benefits expenses, primarily consulting and contract labor, severance, and share-based compensation related.

<u>Interest income.</u> The increase of $1.1 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to higher invested balances during the period.

<u>Interest expense.</u> The decrease of $8.3 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to a $4.3 million loss on debt extinguishment recognized during the six months ended June 30, 2024 related to the refinancing of certain credit agreements and due to lower applicable reference rates on our Term Debt, which resulted from the debt refinancing completed in February 2025. Please refer to [<u>Part I, Item 1. Note 7, "Debt"</u>](#fn_debt) for additional information.

<u>Other expense, net.</u> We realized other expense, net of $0.9 million for the six months ended June 30, 2025 and we incurred other expense, net of $12.0 million for the six months ended June 30, 2024. The change was primarily due to foreign currency translation gains of $10.1 million for the six months ended June 30, 2025, compared to foreign currency translation loss of $6.3 million for the six months ended June 30, 2024, partially offset by an increase in net periodic pension expense of $4.6 million.

<u>Income tax expense.</u> The increase of $8.1 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to increases of $8.2 million related to current operations.

<u>Net income.</u> We realized net income of $36.2 million for the six months ended June 30, 2025, compared to $5.3 million for the six months ended June 30, 2024. The change was primarily due to an increase in revenue, lower other expense, net, and lower interest expense, partially offset by increases in total costs and expenses.

**Liquidity and Capital Resources** 

Our primary sources of liquidity are our existing cash and equivalents, cash provided by operating activities, availability under our Revolving Credit Facility and the Receivables Securitization Program, and proceeds from debt issuances and equity offerings. As of June 30, 2025, we had cash and equivalents of $625.2 million and our total debt was $1,224.6 million.

Our primary liquidity needs are related to funding of general business requirements, including the payment of interest and principal on our debt, capital expenditures, fulfilling our contractual commitments, product development, funding Dayforce Wallet on-demand pay requests on behalf of our customers, and executing purchases under our share repurchase program. From time to time, we have made investments in businesses or acquisitions of companies, which are also liquidity needs.

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We believe that our cash flow from operations, available cash and equivalents, and availability under our Revolving Credit Facility and the Receivables Securitization Program will be sufficient to meet our liquidity needs for the next twelve months and for the foreseeable future. Our liquidity and our ability to meet our obligations and to fund our capital requirements, Dayforce Wallet on-demand pay requests, and share repurchases are also dependent on our future financial performance, which is subject to general economic, financial, and other factors that are beyond our control. Accordingly, we cannot provide assurance that our business will generate sufficient cash flow from operations or that future borrowings will be available from additional indebtedness or otherwise to meet our liquidity needs. If we decide to pursue one or more significant acquisitions, we may incur additional debt or raise additional equity to finance such acquisitions, which would result in additional expenses and/or dilution.

Our customer funds are held and invested with the primary objectives being to protect the principal balance and to ensure adequate liquidity to meet cash flow requirements. Our cash flows can vary significantly due to purchases of and proceeds from the sale and maturity of customer fund marketable securities, as well as the carrying value of customer fund accounts as of period end dates due to several factors, including the specific day of the week the period ends, which impacts the timing of funds collected from customers and payments made to satisfy customer obligations to employees, taxing authorities, and others. The customer assets are held in segregated accounts intended for the specific purpose of satisfying customer funding obligations and therefore are not freely available for our general business use, however, are evaluated and tracked separately by management. Please refer to [<u>Part 1, Item 1, Note 4, "Customer Funds"</u>](#fn_customer_funds) for further discussion of these funds.

***Cash Flows***

The table below summarizes the activity within the condensed consolidated statements of cash flows:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** |
| Net cash provided by operating activities | $162.3 | $108.3 |
| Net cash used in investing activities | (180.3) | (383.5) |
| Net cash (used in) provided by financing activities | (919.5) | 7.7 |
| Effect of exchange rate changes on cash, restricted cash, and equivalents | 24.9 | (21.7) |
| &nbsp;&nbsp;&nbsp;Net decrease in cash, restricted cash, and equivalents | (912.6) | (289.2) |
| Cash, restricted cash, and equivalents at beginning of period | 3253.9 | 3421.4 |
| Cash, restricted cash, and equivalents at end of period | 2341.3 | 3132.2 |
| Cash and equivalents | 625.2 | 465.4 |
| Restricted cash and equivalents | 1716.1 | 2666.8 |
| Total cash, restricted cash, and equivalents | $2341.3 | $3132.2 |

---

*Operating Activities*

Net cash provided by operating activities was $162.3 million for the six months ended June 30, 2025 compared to $108.3 million for the six months ended June 30, 2024. For both periods, cash inflows from operating activities are primarily generated from the subscriptions of our solutions. Cash outflows from operating activities for both periods are primarily comprised of personnel-related expenditures, including the payout of year-end employee compensation, and the renewals of prepaid annual contracts that are integral to our business operations. The positive cash inflows in both periods is primarily due to our growing revenue, partially offset by our operating costs, mainly, investment in our sales force to support our growth initiatives and those product development and management costs which are not eligible for capitalization.

*Investing Activities* 

During the six months ended June 30, 2025, net cash used in investing activities was $180.3 million, consisting of purchases of customer funds marketable securities of $363.2 million, capital expenditures of $55.7 million, and purchases of marketable securities of $3.7 million, partially offset by proceeds from the sale and maturity of customer funds marketable securities of $230.8 million and proceeds from the sale and maturity of marketable securities of $11.5 million. Our capital expenditures included $47.8 million for software and technology and $7.9 million for property, plant, and equipment.

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During the six months ended June 30, 2024, net cash used in investing activities was $383.5 million, consisting of purchases of customer funds marketable securities of $322.9 million, acquisition costs, net of cash acquired, of $173.1 million, capital expenditures of $54.4 million, and purchases of marketable securities of $4.0 million, partially offset by proceeds from the sale and maturity of customer funds marketable securities of $167.9 million and proceeds from the sale and maturity of marketable securities of $3.0 million. Our capital expenditures included $47.7 million for software and technology and $6.7 million for property, plant, and equipment.

*Financing Activities*

Net cash used in financing activities was $919.5 million during the six months ended June 30, 2025. This cash outflow is primarily attributable to a decrease in net customer fund obligations of $854.2 million, repurchases of common stock of $50.9 million, taxes paid related to the net share settlement of equity awards of $18.5 million, payments on our long-term debt obligations of $3.6 million, and payment of debt refinancing costs of $1.2 million, partially offset by proceeds from issuance of common stock under our share-based compensation plans of $8.9 million.

Net cash provided by financing activities was $7.7 million during the six months ended June 30, 2024. This cash inflow is primarily attributable to an increase in proceeds from our debt issuance of $650.0 million and proceeds from issuance of common stock under our share-based compensation plans of $27.4 million, partially offset by payments on our long-term debt obligations of $644.7 million, payment of debt refinancing costs of $11.4 million, taxes paid related to the net share settlement of awards under our share-based compensation plans of $10.6 million, and a decrease in net customer fund obligations of $3.0 million.

**Backlog**

Backlog is equivalent to our remaining performance obligations, which represents contracted revenue for recurring services and fixed price professional services, primarily implementation services, that has not yet been recognized, including deferred revenue and unbilled amounts that will be recognized as revenue in future periods. As of June 30, 2025, our remaining performance obligations were approximately $1.43 billion. Please refer to [<u>Part 1, Item 1, Note 10, "Revenue and Revenue-Related Activities"</u>](#fn_revenue) for further discussion of our remaining performance obligations.

**Off-Balance Sheet Arrangements**

As of June 30, 2025, we did not have any "off-balance sheet arrangements" (as such term is defined in Item 303 of Regulation S-K).

**Contractual Obligations**

During the six months ended June 30, 2025, there were no significant changes to our contractual obligations as described in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the heading "Contractual Obligations" contained in our [<u>2024 Form 10-K</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm).

**Critical Accounting Policies and Estimates** 

During the six months ended June 30, 2025, there were no significant changes to our critical accounting policies and estimates as described in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the heading "Critical Accounting Policies and Estimates" contained in our [<u>2024 Form 10-K</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm).

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**Non-GAAP Financial Measures**

We use certain non-GAAP financial measures in this document including:

---

| | |
|:---|:---|
| **Non-GAAP Financial Measure** | **GAAP Financial Measure** |
| EBITDA | Net income (loss) |
| Adjusted EBITDA | Net income (loss) |
| Adjusted EBITDA margin | Net profit margin |
| Adjusted operating profit | Operating profit |
| Adjusted operating profit margin | Operating profit margin |
| Adjusted net income | Net income (loss) |
| Adjusted net profit margin | Net profit margin |
| Adjusted diluted net income per share | Diluted net income (loss) per share |
| Free cash flow | Net cash provided by operating activities |
| Free cash flow margin | Net cash provided by operating activities margin |
| Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis | Percentage change in revenue, including total revenue and revenue by solution |
| Dayforce recurring revenue per customer | No directly comparable GAAP measure |

---

We believe that these non-GAAP financial measures are useful to management and investors as supplemental measures to evaluate our overall operating performance including comparison across periods and with competitors. Our management team uses these non-GAAP financial measures to assess operating performance because these financial measures exclude the results of decisions that are outside the normal course of our business operations, and are used for internal budgeting and forecasting purposes both for short- and long-term operating plans. Additionally, Adjusted operating profit, free cash flow, and free cash flow margin are components of certain management compensation plans. Additionally, we believe that the non-GAAP financial measures free cash flow and free cash flow margin are meaningful to investors because they are measures of liquidity that provide useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. The reduction of capital expenditures facilitates comparisons of our liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.

These non-GAAP financial measures are not required by, defined under, or presented in accordance with, GAAP, and should not be considered as alternatives to our results as reported under GAAP, have important limitations as analytical tools, and our use of these terms may not be comparable to similarly titled measures of other companies in our industry. Our presentation of non-GAAP financial measures should not be construed to imply that our future results will be unaffected by similar items to those eliminated in this presentation.

We define our non-GAAP financial measures as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•EBITDA is defined as net income (loss) before interest, taxes, depreciation, and amortization, and Adjusted EBITDA is EBITDA, as adjusted to exclude share-based compensation expense and related employer taxes, and certain other items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted EBITDA margin is determined by calculating the percentage Adjusted EBITDA is of total revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted operating profit is defined as operating profit, as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted operating profit margin is determined by calculating the percentage Adjusted operating profit is of total revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted net income is defined as net income (loss), as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items, all of which are adjusted for the effect of income taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted net profit margin is determined by calculating the percentage Adjusted net income is of total revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted diluted net income per share is calculated by dividing adjusted net income by diluted weighted average shares outstanding. When adjusted net income is positive, diluted weighted average shares outstanding incorporate the effect of dilutive equity instruments.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Free cash flow is defined as net cash provided by operating activities, reduced by capital expenditures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Free cash flow margin is determined by calculating the percentage that free cash flow is of total revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis is calculated by applying the average foreign exchange rate in effect during the comparable prior period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Dayforce recurring revenue per customer is an indicator of the average size of Dayforce recurring revenue customers. To calculate Dayforce recurring revenue per customer, we start with Dayforce recurring revenue on a constant currency basis by applying the same exchange rate to all comparable periods for the trailing twelve months and excludes float revenue, and Ascender, ADAM HCM, and eloomi revenue. This amount is divided by the number of live Dayforce customers at the end of the trailing twelve month period, excluding Ascender, ADAM HCM, and eloomi. We have not reconciled Dayforce recurring revenue per customer to a GAAP financial measure because there is no directly comparable GAAP financial measure.

The following tables reconcile our reported results to our non-GAAP financial measures:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
|  | **As reported** | **As reported margins (a)** | **Share-based<br>compensation** | **Amortization** | **Other (b)** | **As adjusted (b)** | **As adjusted margins (a)** |
|  | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** |
| Operating profit | $42.3 | 9.1% | $48.4 | $31.1 | $3.1 | $124.9 | 26.9% |
| Net income | $21.3 | 4.6% | $48.4 | $31.1 | $(2.6) | $98.2 | 21.1% |
| Interest expense, net | 7.1 |  |  |  |  | 7.1 |  |
| Income tax expense (c) | 17.0 |  |  |  | (2.8) | 19.8 |  |
| Depreciation and amortization | 53.2 |  |  | 31.1 |  | 22.1 |  |
| EBITDA | $98.6 |  | $48.4 | $— | $0.2 | $147.2 | 31.7% |
| Net income per share - diluted | $0.13 |  | $0.30 | $0.19 | $(0.02) | $0.61 |  |

---

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **As reported** | **As reported margins (a)** | **Share-based<br>compensation** | **Amortization** | **Other (b)** | **As adjusted (b)** | **As adjusted margins (a)** |
|  | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** |
| Operating profit | $14.1 | 3.3% | $40.8 | $29.5 | $10.5 | $94.9 | 22.4% |
| Net (loss) income | $(1.8) | (0.4)% | $40.8 | $29.5 | $7.7 | $76.2 | 18.0% |
| Interest expense, net | 11.1 |  |  |  |  | 11.1 |  |
| Income tax expense (c) | 1.8 |  |  |  | (6.1) | 7.9 |  |
| Depreciation and amortization | 50.6 |  |  | 29.5 |  | 21.1 |  |
| EBITDA | $61.7 |  | $40.8 | $— | $13.8 | $116.3 | 27.5% |
| Net (loss) income per share - diluted (d) | $(0.01) |  | $0.26 | $0.18 | $0.05 | $0.48 |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net (loss) income are of total revenue. Please refer above for additional information on the as adjusted margins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items. For the three months ended June 30, 2025, the adjustments to operating profit consist of $3.1 million of restructuring expenses and the adjustments to net income also include $5.2 million of costs associated with the planned termination of our frozen U.S. pension plan, $8.1 million of foreign exchange gain, and a $2.8 million net adjustment for the effect of income taxes related to these items. For the three months ended June 30, 2024, the adjustments to operating profit consist of $10.5 million of restructuring expenses and the adjustments to net income also include $3.3 million of costs associated with the planned termination of our frozen U.S. pension plan, and a $6.1 million net adjustment for the effect of income taxes related to these items. Please refer above for additional information on the as adjusted metrics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Adjusted diluted net income per share is calculated based upon 159.5 million weighted average shares of common stock.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
|  | **As reported** | **As reported margins (a)** | **Share-based<br>compensation** | **Amortization** | **Other (b)** | **As adjusted (b)** | **As adjusted margins (a)** |
|  | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** |
| Operating profit | $73.3 | 7.7% | $94.4 | $59.8 | $29.7 | $257.2 | 27.2% |
| Net income | $36.2 | 3.8% | $94.4 | $59.8 | $1.7 | $192.1 | 20.3% |
| Interest expense, net | 15.0 |  |  |  |  | 15.0 |  |
| Income tax expense (c) | 21.2 |  |  |  | (28.3) | 49.5 |  |
| Depreciation and amortization | 107.1 |  |  | 59.8 |  | 47.3 |  |
| EBITDA | $179.5 |  | $94.4 | $— | $30.0 | $303.9 | 32.1% |
| Net income per share - diluted | $0.22 |  | $0.58 | $0.37 | $0.01 | $1.19 |  |

---

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **As reported** | **As reported margins (a)** | **Share-based<br>compensation** | **Amortization** | **Other (b)** | **As adjusted (b)** | **As adjusted margins (a)** |
|  | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** |
| Operating profit | $54.8 | 6.4% | $78.8 | $57.9 | $12.5 | $204.0 | 23.9% |
| Net income | $5.3 | 0.6% | $78.8 | $57.9 | $2.2 | $144.2 | 16.9% |
| Interest expense, net | 24.4 |  |  |  |  | 24.4 |  |
| Income tax expense (c) | 13.1 |  |  |  | (23.0) | 36.1 |  |
| Depreciation and amortization | 99.4 |  |  | 57.9 |  | 41.5 |  |
| EBITDA | $142.2 |  | $78.8 | $— | $25.2 | $246.2 | 28.8% |
| Net income per share - diluted | $0.03 |  | $0.49 | $0.36 | $0.01 | $0.90 |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer above for additional information on the as adjusted margins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items. For the six months ended June 30, 2025, the adjustments to operating profit consist of $29.7 million of restructuring expenses and the adjustments to net income also include $10.5 million of costs associated with the planned termination of our frozen U.S. pension plan, $10.2 million of foreign exchange gain, and a $28.3 million net adjustment for the effect of income taxes related to these items. For the six months ended June 30, 2024, the adjustments to operating profit consist of $12.5 million of restructuring expenses and the adjustments to net income also include $6.5 million of costs associated with the planned termination of our frozen U.S. pension plan, $6.2 million of foreign exchange loss, and a $23.0 million net adjustment for the effect of income taxes related to these items. Please refer above for additional information on the as adjusted metrics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.

The following table reconciles net cash provided by operating activities and net cash provided by operating activities margin to the non-GAAP financial measures free cash flow and free cash flow margin:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Net cash provided by operating activities | $112.7 | $99.2 | $162.3 | $108.3 |
| Capital expenditures | (25.6) | (26.5) | (55.7) | (54.4) |
| Free cash flow | $87.1 | $72.7 | $106.6 | $53.9 |
| Net cash provided by operating activities margin (a) | 24.3% | 23.4% | 17.1% | 12.7% |
| Free cash flow margin | 18.7% | 17.2% | 11.3% | 6.3% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Net cash provided by operating activities margin is determined by calculating the percentage that net cash provided by operating activities is of total revenue.

38 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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[**<u>**Table of Contents**</u>**](#toc_page)

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK** 

We are exposed to market risks related to foreign currency exchange rates, interest rates, and pension obligations. We seek to minimize or to manage these market risks through normal operating and financing activities. These market risks may be amplified by events and factors surrounding global events. We do not trade or use instruments with the objective of earning financial gains on market fluctuations, nor do we use instruments where there are not underlying exposures.

*Foreign Currency Risk*. Our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian Dollar. Our exposure to foreign currency exchange rates has historically been partially hedged as our foreign currency denominated inflows create a natural hedge against our foreign currency denominated expenses. Accordingly, our results of operations and cash flows were not materially affected by fluctuation in foreign currency exchange rates, and we believe that a hypothetical 10% change in foreign currency exchange rates or an inability to access foreign funds would not materially affect our ability to meet our operational needs or result in a material foreign currency loss in the future. Due to the relative size of our international operations to date, we have not instituted an active hedging program. We expect our international operations to continue to grow in the near term, and we are monitoring the foreign currency exposure to determine if we should begin a hedging program.

*Interest Rate Risk*. Our operating results and financial condition are subject to fluctuations due to changes in interest rates, primarily in relation to: (1) our customer funds market valuation and float revenue derived therefrom, (2) our debt and the interest paid on such, and (3) our cash and equivalents and the interest income earned on these balances. Collectively, we do not believe that a change in interest rates of 100 basis points would have a material effect on our operating results or financial condition.

In certain jurisdictions, we collect funds for payment of payroll and taxes; temporarily hold such funds in segregated accounts until payment is due; remit the funds to the customers' employees and appropriate taxing authority; file federal, state and local tax returns; and handle related regulatory correspondence and amendments. We invest the customer funds in high- quality bank deposits, money market mutual funds, commercial paper or collateralized short-term investments. We may also invest these funds in government securities, as well as highly rated asset-backed, mortgage-backed, corporate, and bank securities.

We have exposure to risks associated with changes in laws and regulations that may affect customer fund balances. For example, a change in regulations, either reducing the amount of taxes to be withheld or allowing less time to remit taxes to government authorities, would reduce our average customer fund balances and float revenue. Based on current market conditions, portfolio composition and investment practices, a 100 basis point decrease in market investment rates would result in approximately $27 million decrease in float revenue over the ensuing twelve month period. There are no incremental costs of revenue associated with changes in float revenue.

We pay floating rates of interest on our Term Debt and Revolving Credit Facility. The interest paid on these borrowings will fluctuate up or down in relation to changes in market interest rates. A 100 basis point decrease in the applicable reference rates would result in approximately $6 million decrease in our interest expense over the ensuing twelve month period. Please refer to [<u>Part I, Item 1. Note 7, "Debt"</u>](#fn_debt) for additional information. In addition, certain fees related to our Receivables Securitization Program fluctuate based on changes in market interest rates.

We do not enter into investments for trading or speculative purposes. Our cash equivalents and our portfolio of marketable securities are subject to market risk due to changes in interest rates. Fixed rate securities may have their market value adversely affected due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall. Due in part to these factors, our future investment income may fall short of expectation due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates.

However, because we classify our securities as "available for sale," no gains or losses are recognized due to changes in interest rates unless such securities are sold prior to maturity or declines in fair value are determined to be unrecoverable. Fluctuations in the value of our investment securities caused by a change in interest rates (gains or losses on the carrying value) are recorded in other comprehensive income, and are realized only if we sell the underlying securities. Please refer to [<u>Part I, Item 1. Note 4, "Customer Funds"</u>](#fn_customer_funds) for additional information.

39 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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*Pension Obligation Risk*. We provide a pension plan for certain current and former U.S. employees that closed to new participants on January 2, 1995. In 2007, the U.S. pension plan was amended (1) to exclude from further participation any participant or former participant who was not employed by us or another participating employer on January 1, 2008, (2) to discontinue participant contributions, and (3) to freeze the accrual of additional benefits as of December 31, 2007.

We are in the process of finalizing the wind down of the plan, which includes transferring the associated liabilities to an insurance company, which we expect will be completed in 2025. These steps include settling all future obligations through a combination of lump sum payments to eligible, electing participants and the transfer of any remaining benefits to a third-party insurance company through a group annuity contract. In applying relevant accounting policies, we have made critical estimates related to actuarial assumptions, including assumptions of expected returns on plan assets, discount rates, and health care cost trends. The cost of pension benefits in future periods will depend on actual returns on plan assets, assumptions for future periods, contributions, and benefit experience. The effective discount rate used in accounting for pension and other benefit obligations in 2024 ranged from 5.06% to 5.35%. The expected rate of return on plan assets for qualified pension benefits in 2025 is 5.10%.

**ITEM 4. CONTROLS AND PROCEDURES** 

**Evaluation of Disclosure Controls and Procedures** 

Management, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Disclosure controls and procedures are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Based on that evaluation our Chief Executive Officer and our Chief Financial Officer concluded that as of June 30, 2025, our disclosure controls and procedures were effective at the reasonable assurance level. While our disclosure controls and procedures are designed to provide reasonable assurance of their effectiveness, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

**Changes in Internal Control over Financial Reporting**

There were no changes to our internal control over financial reporting during the six months ended June 30, 2025 that have materially affected, or that are reasonably likely to materially affect, our internal controls over financial reporting.

40 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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**PART II. OTHER INFORMATION** 

**ITEM 1. LEGAL PROCEEDINGS**

We are subject to claims and a number of judicial and administrative proceedings considered normal in the course of our current and past operations, including employment-related disputes, contract disputes, disputes with our competitors, intellectual property disputes, government audits and proceedings, customer disputes, and tort claims. In some proceedings, the claimant seeks damages as well as other relief, which, if granted, would require substantial expenditures on our part.

Some of these matters raise difficult and complex factual and legal issues and are subject to many uncertainties, including the facts and circumstances of each particular action, and the jurisdiction, forum, and law under which each action is proceeding. Because of these complexities, final disposition of some of these proceedings may not occur for several years. As such, we are not always able to estimate the amount of our possible future liabilities, if any. We are not presently a party to any legal proceedings that, if determined adversely to us, we believe would individually or taken together have a material adverse effect on our business, financial condition or liquidity.

**ITEM 1A. RISK FACTORS** 

In addition to the other information set forth in this Form 10-Q, such as Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations", the reader should carefully consider the factors discussed in Part I, Item 1A. "Risk Factors" in our [<u>2024 Form 10-K</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm). There have been no material changes in our risk factors from those disclosed in Part I, Item 1A. of our [<u>2024 Form 10-K</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/1725057/000095017025029980/day-20241231.htm).

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES**

The table below presents information with respect to Dayforce common stock purchases made during the three months ended June 30, 2025 by Dayforce or any "affiliated purchaser" of Dayforce, as defined in Rule 10b-18(a)(3) under the Exchange Act:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares Purchased (a)** | **Average Price Paid per Share (b)** | **Total Number of Shares Purchased as Part of Publicly Announced Program** | **Approximate Dollar Value of Shares that May Yet be Purchased Under the Program** |
|  |  |  |  | **(In millions)** |
| April 1 - 30, 2025 | 129486 | $55.11 | 129486 | $426.3 |
| May 1 - 31, 2025 | 121673 | 58.30 | 121673 | 419.2 |
| June 1 - 30, 2025 | 112900 | 57.94 | 112900 | 412.7 |
| Total | 364059 | $57.05 | 364059 | $412.7 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)On July 31, 2024, we announced that our Board of Directors had approved a share repurchase program with authorization to purchase up to $500 million of our common stock. The share repurchase program has no expiration date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Average price paid includes costs associated with the repurchases.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES** 

None.

**ITEM 4. MINE SAFETY DISCLOSURES** 

Not applicable.

41 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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**ITEM 5. OTHER INFORMATION** 

**Insider Adoption or Termination of Trading Arrangements**

During the fiscal quarter ended June 30, 2025, none of our directors or officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement.

42 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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**ITEM 6. EXHIBITS** 

(a) Exhibits

The following exhibits are filed or furnished as a part of this report:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description**  |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [<u>Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q filed by the Registrant on May 7, 2025).</u>](https://www.sec.gov/Archives/edgar/data/1725057/000095017025065024/day-ex3_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | [<u>Amended and Restated Bylaws of the Registrant (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the Registrant on October 30, 2024).</u>](https://www.sec.gov/Archives/edgar/data/1725057/000095017024118588/day-ex3_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1 | [<u>Registration Rights Agreement, dated April 30, 2018, by and among the Registrant and the other parties thereto (incorporated by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q filed by the Registrant on May 24, 2018).</u>](https://www.sec.gov/Archives/edgar/data/1725057/000119312518173632/d574762dex44.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.2 | [<u>Indenture, dated as of March 5, 2021, between the Registrant and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by the Company on March 5, 2021).</u>](https://www.sec.gov/Archives/edgar/data/1725057/000119312521071502/d119247dex41.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.3 | [<u>Form of 0.25% Convertible Senior Notes due 2026 (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by the Registrant on March 5, 2021).</u>](https://www.sec.gov/Archives/edgar/data/1725057/000119312521071502/d119247dex41.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;10.1\*^ | [<u>Form of Indemnification and Advancement Agreement.</u>](day-ex10_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;10.2\*^ | [<u>Dayforce, Inc. Third Amended and Restated Director Compensation Program.</u>](day-ex10_2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;10.3\*^ | [<u>Dayforce, Inc. Amended and Restated Non-Employee Director Deferral Program.</u>](day-ex10_3.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;31.1^ | [<u>Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](day-ex31_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;31.2^ | [<u>Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](day-ex31_2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;32.1# | [<u>Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](day-ex32_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;32.2# | [<u>Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](day-ex32_2.htm) |
| 101.INS^ | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
| 101.SCH^ | Inline XBRL Taxonomy Extension Schema with Embedded Linkbases Document. |
| 104^ | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

\* Management compensatory plan or arrangement.

^ Filed herewith.

# In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release Nos. 33-8238 and 34-47986, Final Rule: Management's Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed "filed" for purpose of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

43 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  | **DAYFORCE, INC.** | **DAYFORCE, INC.** | **DAYFORCE, INC.** |
| Date: August 6, 2025 | By: | /s/ David D. Ossip | /s/ David D. Ossip |
|  |  | Name: | David D. Ossip |
|  |  | Title: | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |
| Date: August 6, 2025 | By: | /s/ Jeremy R. Johnson | /s/ Jeremy R. Johnson |
|  |  | Name: | Jeremy R. Johnson |
|  |  | Title: | Executive Vice President and Chief Financial Officer |
|  |  |  | (Principal Financial Officer) |

---

44 \| ![img4456053_1.jpg](img4456053_1.jpg)Q2 2025 Form 10-Q

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## Exhibit 10.1

**Exhibit 10.1**

**<u>INDEMNIFICATION And Advancement AGREEMENT</u>**

This Indemnification and Advancement Agreement ("Agreement") is made as of ________ __, 20__ by and between Dayforce, Inc., a Delaware corporation (the "Company"), and ______________, [a member of the Board of Directors/an officer/an employee/an agent] of the Company ("Indemnitee"). This Agreement supersedes and replaces any and all previous Agreements between the Company and Indemnitee covering indemnification and advancement of expenses.

**RECITALS**

WHEREAS, the Board of Directors of the Company (the "Board") believes that highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers, or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification and advancement of expenses against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

WHEREAS, the Board has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Company's Amended and Restated Bylaws (as may be further amended and restated from time to time, the "Bylaws") and Amended and Restated Certificate of Incorporation (as may be further amended and restated from time to time, the "Certificate of Incorporation") require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the "DGCL"). The Bylaws, the Certificate of Incorporation, and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and its directors, officers, and other persons with respect to indemnification and advancement of expenses;

WHEREAS, the uncertainties relating to such insurance, to indemnification, and to advancement of expenses may increase the difficulty of attracting and retaining such persons;

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

------

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

WHEREAS, this Agreement is a supplement to, and in furtherance of, the Bylaws, the Certificate of Incorporation and any resolutions adopted pursuant thereto, as well as any rights of Indemnitee under any directors' and officers' liability insurance policy, and is not a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder; and

WHEREAS, Indemnitee does not regard the protection available under the Bylaws, the Certificate of Incorporation, and available insurance as adequate in the present circumstances, and may not be willing to serve or continue to serve as a/an [officer/director/employee/agent] without adequate additional protection, and the Company desires Indemnitee to serve or continue to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified and be advanced expenses.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1.<u>Services to the Company.</u> Indemnitee agrees to serve as [a/an] [director/officer/employee/agent] of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law). This Agreement does not create any obligation on the Company to continue Indemnitee in such position and is not an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.

Section 2.<u>Definitions.</u> As used in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"Agent" means any person who is authorized by the Company or an Enterprise to act for or represent the interests of the Company or an Enterprise, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)A "Change in Control" occurs upon the earliest to occur after the date of this Agreement of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Acquisition of Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company's then outstanding securities unless the change in relative beneficial ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Change in Board of Directors. During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a

------

director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv) of this Agreement) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Corporate Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Liquidation. The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Other Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.For purposes of this Section 2(b), the following terms have the following meanings:

1"Person" has the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person excludes (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

2"Beneficial Owner" has the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner excludes any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"Corporate Status" describes the status of a person who is or was acting as a director, officer, employee, or Agent of the Company or an Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"Disinterested Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)"Enterprise" means any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity for which Indemnitee is or was serving at the request of the Company as a director, officer, employee, or Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)"Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)"Expenses" includes all reasonable attorneys' fees, retainers, court costs, transcript costs, fees and other costs of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, excise taxes and penalties under the Employee Retirement Income Security Act of 1974, as amended, and all other disbursements, obligations, or expenses of the types customarily incurred in connection with preparing for or participating in a Proceeding. Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 14(d) of this Agreement only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, by litigation or otherwise. Expenses, however, do not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)"Independent Counsel" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the five years prior to its selection or appointment has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"Proceeding" includes any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, regulatory, or investigative (formal or informal) nature,

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including any appeal therefrom, in which Indemnitee was, is, or will be involved as a party, potential party, non-party witness, or otherwise by reason of Indemnitee's Corporate Status or by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee's part while acting pursuant to Indemnitee's Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement. A Proceeding also includes a situation the Indemnitee believes in good faith may lead to, or culminate in, the institution of a Proceeding.

Section 3.<u>Indemnity in Third-Party Proceedings.</u> The Company will indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with, or in respect of, such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue, or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that Indemnitee's conduct was unlawful.

Section 4.<u>Indemnity in Proceedings by or in the Right of the Company.</u> The Company will indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Company. The Company will not indemnify Indemnitee for Expenses under this Section 4 related to any claim, issue, or matter in a Proceeding for which Indemnitee has been finally adjudged by a court to be liable to the Company, unless, and only to the extent that, the Court of Chancery of the state of Delaware (the "Delaware Court") or any court in which the Proceeding was brought determines upon application by Indemnitee that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

Section 5.<u>Indemnification for Expenses of a Party Who is Wholly or Partly Successful.</u> To the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with any Proceeding to the extent that Indemnitee is successful, on the merits or otherwise. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues, or matters in such Proceeding, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with or related to each successfully resolved

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claim, issue or matter to the fullest extent permitted by law. For purposes of this Section 5 and without limitation, the termination of any claim, issue, or matter in such a Proceeding by dismissal, with or without prejudice, will be deemed to be a successful result as to such claim, issue, or matter.

Section 6.<u>Indemnification for Expenses of a Witness.</u> To the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with any Proceeding to which Indemnitee is not a party but to which Indemnitee is a witness, deponent, interviewee, or otherwise asked to participate or provide information.

Section 7.<u>Partial Indemnification.</u> If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company will indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

Section 8.<u>Additional Indemnification.</u> Notwithstanding any limitation in Sections 3, 4, or 5 of this Agreement, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law (including but not limited to, the DGCL and any amendments to or replacements of the DGCL adopted after the date of this Agreement that expand the Company's ability to indemnify its officers, directors, employees or Agents) if Indemnitee is a party to, or threatened to be made a party to, any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor).

Section 9.<u>Exclusions.</u> Notwithstanding any provision in this Agreement, the Company is not obligated under this Agreement to indemnify Indemnitee for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)for any amount actually paid to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except to the extent provided in Section 15(b) of this Agreement and except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the

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compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)any Proceeding initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Proceeding or part of any Proceeding is to enforce Indemnitee's rights to indemnification or advancement, of Expenses, including a Proceeding (or any part of any Proceeding) initiated pursuant to Section 14 of this Agreement, (ii) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

Section 10.<u>Advances of Expenses.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company will advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.any Proceeding (or any part of any Proceeding) not initiated by Indemnitee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any Proceeding (or any part of any Proceeding) initiated by Indemnitee if

1the Proceeding or part of any Proceeding is to enforce Indemnitee's rights to obtain indemnification or advancement of Expenses from the Company or Enterprise, including a proceeding initiated pursuant to Section 14 of this Agreement, or

2the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Company will advance the Expenses within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding eligible for advancement of expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Advances will be unsecured and interest free. Indemnitee hereby undertakes to repay any amounts so advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company, thus Indemnitee qualifies for advances upon the execution of this Agreement and delivery to the Company. No other form of undertaking is required other than the execution of this Agreement. The Company will make advances without regard to Indemnitee's ability to repay the Expenses and without regard to Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement.

Section 11.<u>Procedure for Notification of Claim for Indemnification or Advancement.</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Indemnitee will notify the Company in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. Indemnitee will include in the written notification to the Company a description of the nature of the Proceeding and the facts underlying the Proceeding and provide such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding. Indemnitee's failure to notify the Company will not relieve the Company from any obligation it may have to Indemnitee under this Agreement, and any delay in so notifying the Company will not constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the Company will, promptly upon receipt of such a request for indemnification or advancement, advise the Board in writing that Indemnitee has requested indemnification or advancement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Company will be entitled to participate in the Proceeding at its own expense.

Section 12.<u>Procedure Upon Application for Indemnification.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Unless a Change of Control has occurred, the determination of Indemnitee's entitlement to indemnification will be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.by a majority vote of the Disinterested Directors, even though less than a quorum of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by written opinion provided by Independent Counsel selected by the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.if so directed by the Board, by the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If a Change in Control has occurred, the determination of Indemnitee's entitlement to indemnification will be made by written opinion provided by Independent Counsel selected by Indemnitee (unless Indemnitee requests such selection be made by the Board).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The party selecting Independent Counsel pursuant to subsection (a)(iii) or (b) of this Section 12 will provide written notice of the selection to the other party. The notified party may, within ten (10) days after receiving written notice of the selection of Independent Counsel, deliver to the selecting party a written objection to such selection; <u>provided</u>, <u>however</u>, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 2 of this Agreement, and the objection will set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected will act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not

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serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit. If, within thirty (30) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) of this Agreement and the final disposition of the Proceeding, Independent Counsel has not been selected or, if selected, any objection to such selection has not been resolved, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court designates. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel will be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Indemnitee will cooperate with the person, persons or entity making the determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons, or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. The Company will advance and pay any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making the indemnification determination irrespective of the determination as to Indemnitee's entitlement to indemnification and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. The Company promptly will advise Indemnitee in writing of the determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied and providing a copy of any written opinion provided to the Board by Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)If it is determined that Indemnitee is entitled to indemnification, the Company will make payment to Indemnitee within thirty (30) days after such determination.

Section 13.<u>Presumptions and Effect of Certain Proceedings.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)In making a determination with respect to entitlement to indemnification under this Agreement, the person, persons, or entity making such determination will, to the fullest extent not prohibited by law, presume Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company will, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper under the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, will be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the determination of the Indemnitee's entitlement to indemnification has not been made pursuant to Section 12 of this Agreement within sixty (60) days after the later of (i) receipt by the Company of Indemnitee's request for indemnification pursuant to Section 11(a) of this Agreement and (ii) the final disposition of the Proceeding for which Indemnitee requested Indemnification (the "Determination Period"), the requisite determination of entitlement to indemnification will, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee will be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under applicable law. The Determination Period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, the Determination Period will not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a)(iv) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The termination of any Proceeding or of any claim, issue, or matter therein by judgment, order, settlement or conviction, or upon a plea of <u>nolo</u> <u>contendere</u> or its equivalent, will not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee's conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)For purposes of any determination of good faith, Indemnitee will be deemed to have acted in good faith if Indemnitee acted based on (i) the records or books of account of the Company, its subsidiaries, or an Enterprise, including financial statements, (ii) information supplied to Indemnitee by the directors or officers of the Company, its subsidiaries, or an Enterprise in the course of their duties, (iii) the advice of legal counsel for the Company, its subsidiaries, or an Enterprise or (iv) information or records given or reports made to the Company or an Enterprise by an independent certified public accountant or by an appraiser, financial advisor or other expert selected with reasonable care by or on behalf of the Company, its subsidiaries, or an Enterprise. Further, Indemnitee will be deemed to have acted in a manner "not opposed to the best interests of the Company," as referred to in this Agreement if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan. The provisions of this Section 13(d) are not exclusive

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and do not limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The knowledge and/or actions, or failure to act, of any other person affiliated with the Company or an Enterprise (including, but not limited to, a director, officer, trustee, partner, managing member, Agent or employee) may not be imputed to Indemnitee for purposes of determining Indemnitee's right to indemnification under this Agreement.

Section 14.<u>Remedies of Indemnitee.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Indemnitee may commence litigation against the Company in the Delaware Court to obtain indemnification or advancement of Expenses provided by this Agreement in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company does not advance Expenses pursuant to Section 10 of this Agreement, (iii) the determination of entitlement to indemnification is not made pursuant to Section 12 of this Agreement within the Determination Period, (iv) the Company does not indemnify Indemnitee pursuant to Section 5 or 6 or the second to last sentence of Section 12(d) of this Agreement within thirty (30) days after receipt by the Company of a written request therefor, (v) the Company does not indemnify Indemnitee pursuant to Section 3, 4, 7, or 8 of this Agreement within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder. Alternatively, Indemnitee, at Indemnitee's option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee must commence such Proceeding seeking an adjudication or an award in arbitration within one hundred and eighty (180) days following the date on which Indemnitee first has the right to commence such Proceeding pursuant to this Section 14(a); <u>provided</u>, <u>however</u>, that the foregoing clause does not apply in respect of a Proceeding brought by Indemnitee to enforce Indemnitee's rights under Section 5 of this Agreement. The Company will not oppose Indemnitee's right to seek any such adjudication or award in arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 will be conducted in all respects as a *de novo* trial or arbitration on the merits and Indemnitee may not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 14 the Company will have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and will not introduce evidence of the determination made pursuant to Section 12 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is entitled to indemnification, the Company will be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14 unless (i) a made of

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a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with Indemnitees' request for indemnification, or (ii) the Company is prohibited from indemnifying Indemnitee under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Company is, to the fullest extent not prohibited by law, precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding, or enforceable and will stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement, or defense of Indemnitee's rights under this Agreement, by litigation or otherwise, because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee under this Agreement. The Company, to the fullest extent permitted by law, will (within thirty (30) days after receipt by the Company of a written request therefor) advance to Indemnitee such Expenses which are incurred by Indemnitee in connection with a Proceeding concerning this Agreement, Indemnitee's other rights to indemnification or advancement of Expenses from the Company, or concerning any directors' and officers' liability insurance policies maintained by the Company, and will indemnify Indemnitee against any and all such Expenses unless the court determines that Indemnitee's claims in such action were made in bad faith or frivolous, or that the Company is prohibited by law from indemnifying Indemnitee for such Expenses.

Section 15.<u>Non-exclusivity; Survival of Rights; Insurance; Subrogation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The indemnification and advancement of Expenses provided by this Agreement are not exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders, a resolution of the board of directors, or otherwise. The indemnification and advancement of Expenses provided by this Agreement may not be limited or restricted by any amendment, alteration or repeal of this Agreement in any way with respect to any action taken or omitted by Indemnitee in Indemnitee's Corporate Status occurring prior to any amendment, alteration or repeal of this Agreement. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Bylaws, the Certificate of Incorporation, or this Agreement, it is the intent of the parties hereto that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy is cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, will not prevent the concurrent assertion or employment of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement of Expenses and/or insurance provided by one or more

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other Persons with whom or which Indemnitee may be associated. The relationship between the Company and such other Persons, other than an Enterprise, with respect to Indemnitee's rights to indemnification, advancement of Expenses, and insurance is described by this subsection, subject to the provisions of subsection (d) of this Section 15 with respect to a Proceeding concerning Indemnitee's Corporate Status with an Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.The Company hereby acknowledges and agrees:

1)the Company's obligations to Indemnitee are primary and any obligation of any other Persons, other than an Enterprise, are secondary (i.e., the Company is the indemnitor of first resort) with respect to any request for indemnification or advancement of Expenses made pursuant to this Agreement concerning any Proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.any obligation of any other Persons with whom or which Indemnitee may be associated to indemnify Indemnitee and/or advance Expenses to Indemnitee in respect of any proceeding are secondary to the Company's obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the Company will indemnify Indemnitee and advance Expenses to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may have against any other Person with whom or which Indemnitee may be associated or an insurer of any such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.the Company irrevocably waives, relinquishes and releases (A) any other Person with whom or which Indemnitee may be associated from any claim of contribution, subrogation, reimbursement, exoneration or indemnification, or any other recovery of any kind in respect of amounts paid by the Company to Indemnitee pursuant to this Agreement and (B) any right to participate in any claim or remedy of Indemnitee against any Person, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any Person, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.In the event any other Person with whom or which Indemnitee may be associated or their insurers advances or extinguishes any liability or loss for Indemnitee, the payor has a right of subrogation against the Company or its insurers for all amounts so paid which would otherwise be payable by the Company or its insurers under this Agreement. In no event will payment by any other Person with whom or which Indemnitee may be associated or their insurers affect the obligations of the Company hereunder or shift primary liability for the Company's obligation to indemnify or advance Expenses to any other Person with whom or which Indemnitee may be associated.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.Any indemnification or advancement of Expenses provided by any other Person with whom or which Indemnitee may be associated is specifically in excess over the Company's obligation to indemnify and advance Expenses or any valid and collectible insurance (including but not limited to any malpractice insurance or professional errors and omissions insurance) provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or Agents of the Company, the Company will obtain a policy or policies covering Indemnitee to the maximum extent of the coverage available for any such director, officer, employee or Agent under such policy or policies, including coverage in the event the Company does not or cannot, for any reason, indemnify or advance Expenses to Indemnitee as required by this Agreement. If, at the time of the receipt of a notice of a claim pursuant to this Agreement, the Company has director and officer liability insurance in effect, the Company will give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies. The Company will thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. Indemnitee agrees to assist the Company's efforts to cause the insurers to pay such amounts and will comply with the terms of such policies, including selection of approved panel counsel, if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Company's obligation to indemnify or advance Expenses hereunder to Indemnitee for any Proceeding concerning Indemnitee's Corporate Status with an Enterprise will be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such Enterprise. The Company and Indemnitee intend that any such Enterprise (and its insurers) be the indemnitor of first resort with respect to indemnification and advancement of Expenses for any Proceeding related to or arising from Indemnitee's Corporate Status with such Enterprise. The Company's obligation to indemnify and advance Expenses to Indemnitee is secondary to the obligations the Enterprise or its insurers owe to Indemnitee. Indemnitee agrees to take all reasonably necessary and desirable action to obtain from an Enterprise indemnification and advancement of Expenses for any Proceeding related to, or arising from, Indemnitee's Corporate Status with such Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)In the event of any payment made by the Company under this Agreement, the Company will be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee from any Enterprise or its insurance carrier. Indemnitee will execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

Section 16.<u>Duration of Agreement.</u> The indemnification and advancement of Expenses rights provided by or granted pursuant to this Agreement are (i) binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), (ii) continue as to an Indemnitee who has ceased to be a director, officer, employee or Agent of the Company or of any other Enterprise, and (iii) inure to the benefit of

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Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

Section 17.<u>Severability.</u> If any provision or provisions of this Agreement is held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will not in any way be affected or impaired thereby and will remain enforceable to the fullest extent permitted by law; (b) such provision or provisions will be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will be construed so as to give effect to the intent manifested thereby.

Section 18.<u>Interpretation</u>. Any ambiguity in the terms of this Agreement will be resolved in favor of Indemnitee and in a manner to provide the maximum indemnification and advancement of Expenses permitted by law. The Company and Indemnitee intend that this Agreement provide to the fullest extent permitted by law for indemnification and advancement of Expenses in excess of that expressly provided, without limitation, by the Certificate of Incorporation, the Bylaws, vote of the Company's stockholders or disinterested directors, or applicable law.

Section 19.<u>Enforcement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director, officer, employee, or Agent of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to serve as director, officer, employee, or Agent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws, any directors' and officers' insurance maintained by the Company, and applicable law, is not a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder.

Section 20.<u>Modification and Waiver.</u> No supplement, modification or amendment of this Agreement is binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement will be valid unless executed in writing by the party entitled to enforce the provision to be waived and any such waiver will not be deemed or constitutes a waiver of any other provisions of this Agreement nor will any waiver constitute a continuing waiver.

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Section 21.<u>Notice by Indemnitee.</u> Indemnitee agrees to promptly notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company does not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise.

Section 22.<u>Notices.</u> All notices, requests, demands and other communications under this Agreement will be in writing and will be deemed to have been duly given if (a) delivered by hand to the other party, (b) sent by reputable overnight courier to the other party or (c) sent by facsimile transmission or electronic mail, with receipt of oral confirmation that such communication has been received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee provides to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If to the Company to:

Dayforce, Inc.

3311 East Old Shakopee Road

Minneapolis, Minnesota 55425

Attention: Executive Vice President, Chief Legal and Compliance Officer, and Corporate Secretary

or to any other address as may have been furnished to Indemnitee by the Company.

Section 23.<u>Contribution.</u> To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, will contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees and Agents) and Indemnitee in connection with such event(s) and/or transaction(s).

Section 24.<u>Applicable Law and Consent to Jurisdiction.</u> This Agreement and the legal relations among the parties are governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (a) agree that any action, claim, or proceeding between the parties arising out of or in connection with this Agreement may be brought only in the Delaware Court and not in any other state or federal court in the United States

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of America or any court in any other country, (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action, claim, or proceeding arising out of or in connection with this Agreement, (c) waive any objection to the laying of venue of any such action, claim, or proceeding in the Delaware Court, and (d) waive, and agree not to plead or to make, any claim that any such action, claim, or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

Section 25.<u>Identical Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which will for all purposes be deemed to be an original but all of which together constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

Section 26.<u>Headings.</u> The headings of this Agreement are inserted for convenience only and do not constitute part of this Agreement or affect the construction thereof.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

DAYFORCE, INC. INDEMNITEE<br>By: <br>Name: Name:<br>Office: Address: <br>

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## Exhibit 10.2

**Exhibit 10.2**

**DAYFORCE, INC.**

#  **<u>Third Amended and Restated Director Compensation Program</u>** 
<u>Director Annual Retention Fee</u>.

Each of our non-employee directors (a "<u>Non-Employee Director</u>") will receive an annual retention fee of $300,000 to be paid following our annual stockholders meeting. The annual retention fee is comprised of restricted stock units valued at $250,000 and $50,000 in cash. The Non-Employee Director may also elect to be paid the $50,000 cash retainer in whole or in part in the form of additional restricted stock units. Any cash retention fees will be paid in quarterly installments. The annual equity awards will vest quarterly (i.e., twenty-five percent (25%) will vest every three months).

<u>Board Committee Chair Fees</u>.

A Non-Employee Director who is (i) the chair of the Acquisition and Finance Committee receives an additional annual cash fee of $7,500, (ii) the chair of the Audit Committee receives an additional annual cash fee of $30,000, (iii) the chair of the Compensation Committee receives an additional annual cash fee of $20,000, and (iv) the chair of the Corporate Governance and Nominating Committee receives an additional annual cash fee of $12,500. The Non-Employee Director may also elect to be paid in whole or in part in the form of additional restricted stock units. Such cash Chair Fees will be paid in quarterly installments.

<u>Board Committee Member Fees</u>.

A Non-Employee Director who is not a committee chair for the respective committee and is (i) a member of the Audit Committee receives an additional annual cash fee of $15,000, (ii) a member of the Compensation Committee receives an additional annual cash fee of $10,000, and (iii) a member of the Corporate Governance and Nominating Committee receives an additional annual cash fee of $5,000. The Non-Employee Director may also elect to be paid in whole or in part in the form of additional restricted stock units. Such cash Member Fees will be paid in quarterly installments.

<u>Lead Director Fee</u>.

The Independent Director who serves as lead, independent director ("<u>Lead Director</u>") receives an additional annual cash fee of $50,000. The Lead Director may also elect to be paid in whole or in part in the form of additional restricted stock units. Such cash Lead Director fees will be paid in quarterly installments.

<u>Reimbursement of Expenses</u>.

Our Non-Employee Directors will be reimbursed for approved director education courses. Directors will also be reimbursed for reasonable out-of-pocket travel expenses incurred in connection with attendance at Board of Directors and Board committee meetings and other Board-related activities.

<u>One Time Equity Award</u>.

A Non-Employee Director will also receive a one-time restricted stock unit award with a value of $200,000 which shall vest annually over three years from the date of grant following the Non-Employee Director's initial appointment to the Board of Directors of the Company.

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**Exhibit 10.2**

\*All amounts are reflected in USD

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## Exhibit 10.3

![img214350602_0.jpg](img214350602_0.jpg)

**Exhibit 10.3**

# **DAYFORCE, INC.** 
**AMENDED AND RESTATED NON-EMPLOYEE DIRECTOR DEFERRAL PROGRAM**

**<u>ARTICLE I—PURPOSE</u>**

The purpose of this Dayforce, Inc. Non-Employee Director Deferral Program (the "Program") is to provide non-employee directors ("Directors") of Dayforce, Inc. (the "Company") with the opportunity to defer settlement of restricted stock units ("RSUs") granted under the Dayforce, Inc. 2018 Equity Incentive Plan, or any successor plan (the "Equity Incentive Plan"), including (i) RSUs granted in lieu of Director Fees (as defined below) earned for services as members of the Board of Directors (the "Board") of the Company ("Director Fee RSUs"), and (ii) RSUs otherwise granted to the Directors under the Equity Incentive Plan ("Annual RSUs").

For purposes of the Program, "Director Fees" means the retainer fees payable to a Director in the form of cash or RSUs, at the Director's election, for services rendered as a member of the Board, with "Base Retainer Fees" meaning the annual base retainer fee paid to a Director, and "Additional Retainer Fees" meaning any additional retainer fee paid for service on a committee, as Chair of the Board or of a committee, as lead independent director, or for such other specific role, but in each case excluding any fees such as extra meeting fees, per diem fees or other fees that are not retainer fees.

**<u>ARTICLE II—PARTICIPANT ELECTIONS</u>**

**Section 2.1—Deferral of RSUs**

On an annual basis, a Director may, through an electronic or written election on a form prescribed by the Company (the "Election Form") elect to receive his or her Base Retainer Fees and/or Additional Retainer Fees for the Board service period commencing in the following calendar year (generally, the period commencing in May of such year and ending in April of the following year) (the "Compensation Period") in the form of Director Fee RSUs (such election, an "RSU Election"). Additionally, on an annual basis, a Director may, through the Election Form, elect to defer settlement of any such Director Fee RSUs, as well as any Annual RSUs to be granted during the Compensation Period (together, such deferred Director Fee RSUs and deferred Annual RSUs, the "Deferred RSUs" and such election, a "Deferral Election"). Settlement of Deferred RSUs will be made in accordance with Article III below. Deferred RSUs in respect of each Compensation Period will be separately designated and tracked under the Program on behalf of each Director.

**Section 2.2—Election Timing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Default Election Timing.** Unless otherwise set forth in this Section 2.2, an Election Form with respect to Director Fees to be earned or Annual RSUs to be granted during a particular Compensation Period must be completed and submitted to the Company no later than December 31 of the calendar year prior to the year in which such Compensation Period commences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Initial Eligibility.** Notwithstanding the default election timing requirements set forth in Section 2.2(a), to the extent permitted by the Company, an individual who first becomes a Director during a Compensation Period may complete and submit an Election Form on or before the deadline established by the Company, which in no event shall be later than 30 days after such individual first becomes eligible to participate in the Program, in order to receive Deferred RSUs to be earned or granted, as applicable, in that same Compensation Period (an "Initial Eligibility Election"), provided that any Initial Eligibility Election to receive Deferred RSUs may apply only to (i) Director Fee RSUs

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![img214350602_0.jpg](img214350602_0.jpg)

**Exhibit 10.3**

that relate to Director Fees earned for services provided after such Initial Eligibility Election and (ii) Annual RSUs granted after such Initial Eligibility Election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Irrevocability.** The choices reflected in the Director's Election Form become irrevocable on the applicable election deadline set forth in Section 2.2(a) or (b), as applicable. If a Director fails to submit a properly completed Election Form by the applicable election deadline, the Director will be ineligible to receive Deferred RSUs for the applicable Compensation Period or portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**RSU Election.** The Company may, in its sole discretion, permit a Director to make an RSU Election at a time other than that specified in Section 2.2(a) and (b) above, provided that such RSU Election does not (i) result in an impermissible election to defer compensation for purposes of Section 409A ("Section 409A") of the Internal Revenue Code of 1986, as amended, (the "Code"), (ii) alter the timing of payment of any compensation subject to an existing effective Deferral Election, or (iii) otherwise result in a violation of Section 409A. For avoidance of doubt, in no event may a Director make a Deferral Election other than in accordance with the timing requirements specified in Section 2.2(a) or (b).

**Section 2.3—Election Amount**

A Director may not elect to defer only a portion of his or her Director Fee RSUs or Annual RSUs with respect to a Compensation Period and must elect to defer all, if any, of such RSUs. Further, an election to defer settlement of any RSUs with respect to a Compensation Period (or portion thereof) will apply to all Director Fee RSUs to be earned and all Annual RSUs to be granted in that Compensation Period, except to the extent RSUs cannot be deferred pursuant to an Initial Eligibility Election due to the limitations set forth in Section 2.2(b) above. Therefore, except to the extent RSUs cannot be deferred pursuant to an Initial Eligibility Election, if a Director elects to defer only a portion of any RSUs with respect to a Compensation Period, that election will be taken as an election to defer all Director Fee RSUs to be earned and all Annual RSUs to be granted in that Compensation Period.

**Section 2.4—Form of Settlement**

In the Election Form, a Director may elect to receive settlement of Deferred RSUs in respect of each Compensation Period in either a single lump sum or in 10 annual installment payments. In the event that a Director fails to specify the form of settlement, settlement will be made in a single lump sum. Unless otherwise determined by the Committee, Deferred RSUs will be settled in shares of the Company's common stock, par value $0.01 per share ("Common Stock"), on a one-for one basis.

**Section 2.5—Grant of RSUs**

All grants of RSUs will be approved by the Committee (as defined in the Equity Incentive Plan). RSUs will be granted under, and subject to the terms of, the Equity Incentive Plan and will be evidenced by an Award Agreement (as defined in the Equity Incentive Plan) that will set out any vesting conditions and other terms and conditions of the RSUs.

**<u>ARTICLE III—SETTLEMENT OF DEFERRED RSUs</u>**

**Section 3.1—Settlement on Separation from Service**

Settlement of Deferred RSUs will be made or will commence, as applicable, following the Director's "separation from service" (within the meaning of Section 409A) in a single lump sum or in installments as provided in subsections 3.1(a) and 3.1(b) below, except as otherwise set forth in Section 3.2 or 3.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Settlement in Lump Sum**. In the event that a Director elects to receive settlement of the

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![img214350602_0.jpg](img214350602_0.jpg)

**Exhibit 10.3**

Deferred RSUs for a particular year in a single lump sum, the Director's Deferred RSUs for such year will be settled within 90 days following the Director's separation from service; provided, however, that if the Director is a "specified employee" within the meaning of Section 409A on the date of the Director's separation from service, settlement will be made on the date that is the first day of the seventh month after the date of the Director's separation from service with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Settlement in Installments**. In the event that a Director elects to receive settlement of Deferred RSUs for a particular year in installments, the Director's Deferred RSUs for such year will be settled in ten (10) substantially equal annual installment payments, with the first installment made during the first month of the calendar year following the year of the Director's separation from service (the "Standard First Installment Date"); provided, however, that if the Director is a "specified employee" within the meaning of Section 409A on the date of the Director's separation from service and the Standard First Installment Date would occur within six months following the Director's separation from service, then the first installment will instead be made on the date that is the first day of the seventh month after the date of the Director's separation from service with the Company. Subsequent installments will be made during the first calendar month of each succeeding year until all of the Director's Deferred RSUs for the applicable year have been settled. If the amount of any installment payment includes a fractional RSU, then the number of shares of Common Stock delivered on the applicable installment payment date will be rounded up to the nearest whole share; provided, however, that the number of shares delivered on the last installment payment date will be rounded down to such number that will result in the total number of shares delivered equaling the total number of the Deferred RSUs for that particular year.

**Section 3.2—Settlement on Change of Control**

Notwithstanding Section 3.1 above or any election made by a Director on an Election Form, in the event of a Change of Control (as defined in the Equity Incentive Plan) that constitutes a permissible distribution event under Section 409A(a)(2) of the Code, all then-outstanding and vested Deferred RSUs will be settled to each applicable current or former Director in a single lump sum payment within 90 days following the effective date of such Change of Control.

**Section 3.3—Settlement on Death**

Notwithstanding Section 3.1 above or any election made by a Director on an Election Form, in the event of a current or former Director's death, all of such Director's then-outstanding and vested Deferred RSUs will be settled in a single lump sum payment to the beneficiary eligible to receive such payment under the terms of the Equity Incentive Plan (or in separate payments to the beneficiaries if more than one were designated by the Director) or to the Director's estate, as the case may be, subject to the terms of the Equity Incentive Plan. Such settlement will be made within 90 days of the Director's death, or where additional time is needed for administrative reasons, at such later time as is permitted under Section 409A.

**<u>ARTICLE IV—ADMINISTRATION, AMENDMENT AND TERMINATION OF PROGRAM</u>**

**Section 4.1—Administration**

The Program shall be administered by the Committee, provided that to the extent consistent with applicable laws, day-to-day ministerial tasks and operational matters may be handled by the appropriate officers and employees of the Company. The Committee shall have full and exclusive authority and discretion to interpret the provisions of the Program and to establish such administrative procedures as it deems necessary and appropriate to carry out the purposes of the Program.

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![img214350602_0.jpg](img214350602_0.jpg)

**Exhibit 10.3**

**Section 4.2—Amendment, Suspension and Termination**

Subject to compliance with Section 409A, the Committee may, at any time, amend, suspend, or terminate the Program in whole or in part, provided that no such action may decrease the amount or value of any outstanding Deferred RSUs or associated dividend equivalent rights, if any, as of the date such action is taken.

**<u>ARTICLE V—MISCELLANEOUS PROVISIONS</u>**

**Section 5.1—Section 409A Compliance**

The Program is intended to comply with the requirements of Section 409A of the Code, and the Program and any Election Form or Award Agreement shall be interpreted in a manner that satisfies the requirements of Section 409A and shall be administered accordingly. If any provision of the Program or any term or condition of any Election Form or Award Agreement would otherwise frustrate or conflict with this intent, such provision, term or condition will be interpreted and deemed amended so as to avoid this conflict. Each payment payable under this Program is intended to constitute a separate payment for purposes of Section 409A. Neither the Company nor the Committee warrants that the Program will comply with Section 409A with respect to any Director or with respect to any payment. In no event shall the Company or any subsidiary or affiliate or any director, officer, or employee of the Company (other than the Director) be liable for any additional tax, interest, or penalty incurred by any Director or beneficiary as a result of the Program's failure to satisfy the requirements of Section 409A, or as a result of the Program's failure to satisfy any other requirements of applicable tax laws.

**Section 5.2—Dividend Equivalent Rights**

In the event that the Company pays dividends on its Common Stock and RSUs are granted by the Committee with dividend equivalent rights, any such dividend equivalent rights on Deferred RSUs will be paid at the same time and in the same form as the RSUs to which they relate.

**Section 5.3—Unsecured General Creditor**

The Company's obligations under the Program constitute an unfunded and unsecured promise to distribute shares of Common Stock and/or cash in the future. Directors' and beneficiaries' rights under the Program are solely those of general unsecured creditors of the Company. No assets will be placed in trust, set aside or otherwise segregated to fund or offset liabilities in respect of the Program.

**Section 5.4 —Equity Incentive Plan Terms**

The Program is adopted pursuant to Section 15.4 of the Equity Incentive Plan and is subject to the terms and conditions of the Equity Incentive Plan. In the event of any conflict between the provisions of the Equity Incentive Plan and the Program, the provisions of the Program shall prevail to the extent needed to comply with Section 409A.

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, David D. Ossip, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Dayforce, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 6, 2025

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| | |
|:---|:---|
| By: | /s/ David D. Ossip |
|  | David D. Ossip <br>Principal Executive Officer |

---

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Jeremy R. Johnson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Dayforce, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 6, 2025

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| | |
|:---|:---|
| By: | /s/ Jeremy R. Johnson |
|  | Jeremy R. Johnson<br>Principal Financial Officer |

---

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. §1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned hereby certifies that he is the duly appointed and acting Chief Executive Officer of Dayforce, Inc., a Delaware corporation (the "Company"), and hereby further certifies to the best of his knowledge as follows.

1. The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2. The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company.

In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite his signature below.

Date: August 6, 2025

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| | |
|:---|:---|
| By: | /s/ David D. Ossip |
|  | David D. Ossip |
|  | Principal Executive Officer |

---

This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Dayforce, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

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## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. §1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned hereby certifies that he is the duly appointed and acting Executive Vice President and Chief Financial Officer of Dayforce, Inc., a Delaware corporation (the "Company"), and hereby further certifies as follows.

1. The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2. The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company.

In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite his signature below.

Date: August 6, 2025

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| | |
|:---|:---|
| By: | /s/ Jeremy R. Johnson |
|  | Jeremy R. Johnson |
|  | Principal Financial Officer |

---

This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Dayforce, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

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