Ceridian HCM (CDAY) Financials

Note: The data provided appears to pertain to Dayforce, Inc. (DAY) rather than Ceridian HCM (CDAY). If you intended CDAY data, please share the Ceridian statements and I’ll adjust the analysis accordingly.

Here are high-level trends from the last eight quarters of the Dayforce statements (roughly spanning 2022 through 2025), highlighting potential implications for investors. I’ve organized the bullets with positive items first, then neutral, then negative items.

• Operational cash flow stays positive in most periods. Examples: Q2 2025 net cash from continuing operating activities ≈ +$99.2M, Q1 2025 ≈ +$49.6M, Q4 2024 ≈ +$81.0M, indicating solid cash generation from core operations over time.
• Top-line remains in the mid-to-high $400M range with evidence of growth. For example, Q3 2025 revenue ≈ $481.6M, up from prior periods in the mid-$400Ms range, signaling revenue resilience amid fluctuating margins.
• Gross margin shown as healthy in some periods. Q3 2025 gross profit ≈ $386M on $481.6M revenue, implying a strong gross margin relative to software/SaaS-like offerings; margin has varied across quarters, but the high single-quarter level is notable.
• Voluntary financing activity provides liquidity support in some quarters. For instance, Q3 2025 includes a positive “Other Financing Activities, net” ≈ +$194.1M and issuance of common equity ≈ +$13.6M, providing additional cash headroom.
• Net cash from financing activities occasionally adds to liquidity. In several quarters, financing activities contribute cash, helping funding for working capital and investments when operating cash flow is variable.
• Large restricted cash balance on the balance sheet. In many periods, Restricted Cash runs into the billions (e.g., ≈ $4.4B at Q3 2025), which is cash that is not readily available for day-to-day operations and reduces immediate liquidity there.
• Significant customer deposits and current deferred revenue create large current liabilities. Customer Deposits around ≈ $4.4B–$4.5B (varies by quarter) and Current Deferred Revenue around tens of millions to low hundreds of millions, indicating substantial deferred obligations that reverse into revenue over time.
• Debt levels are moderate relative to equity, with a mix of current and noncurrent liabilities. Long-Term Debt and other liabilities are present, but total liabilities are outpaced by equity in several periods, suggesting manageable leverage in some quarters while remaining watchful of future obligations.
• Quarterly profitability can be volatile due to non-cash items and one-off effects. Net income fluctuates; some quarters show modest profits, while others (e.g., a large negative in Q3 2025) reflect non-cash adjustments or unusual charges that may not reflect ongoing operations.
• Q3 2025 net income declines sharply (≈ -$196.8M), driven by substantial non-cash adjustments and/or unusual charges. This creates an earnings gap that could raise questions about sustainability of near-term profitability versus ongoing cash generation.
• Near-term liquidity risk from high current liabilities versus cash on hand. Cash & equivalents ≈ $627M at Q3 2025, while Total Current Liabilities ≈ $5.3B and restricted cash ≈ $4.4B, which can constrain liquidity despite positive operating cash flow in some periods.