Slide 1: Third Quarter Highlights and Financial Results Fiscal 2025
Third Quarter Highlights and Financial Results Fiscal 2025 Copyright 2025, Paychex, Inc. All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements Certain written statements in this presentation may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation
Slide 3: Paychex Overview
Paychex • Digitally-driven HCM solutions company Overview • Leading-edge technology platform backed by decades of HR and compliance expertise An industry-leading human capital management (“HCM”) company • Industry leader in comprehensive HR outsourcing delivering a full suite of technology solutions
Slide 4: Third Quarter Highlights
Third Quarter Highlights 4
Slide 5: Third Quarter Financial Highlights
Third Quarter Financial Highlights Total Revenue Adjusted Operating Income(1) Adjusted Diluted EPS(1) 5% 9% 8% $708M $1.49 $1,509M $1,439M $650M $1.38 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 (1) Adjusted operating income and adjusted diluted earnings per share (“EPS”) are not U.S. generally
Slide 6: Third Quarter Revenue
Third Quarter Revenue Key Drivers Total Revenue Total Revenue: +6% excluding ERTC 5% Management Solutions $1,509 $1,439 • Continued growth in the number of clients served across our suite of HCM solutions and $43 $44 -2% client worksite employees for HR Solutions • Higher revenue per client resultin
Slide 7: Third Quarter Business Highlights
Third Quarter Business Highlights Sustained growth in revenue and earnings o Solid revenue growth of 5% (6% ex-ERTC) and adjusted diluted EPS(1) growth of 8% o Adjusted operating margin(1) expanded 180 basis points year-over-year, driven by investments in automation and technology o Strong performan
Slide 8: Pending Acquisition of Paycor
Pending Acquisition of Paycor Transaction Financial Financing & Timing & Overview Impact Capital Return Approvals Announced signing of definitive Expected annual cost synergies of Obtained committed financing The acquisition is expected to close agreement to acquire 100% of Paycor more than $80 mill
Slide 9: Paycor is a Leading HR, Payroll, and Talent Platform
Paycor is a Leading HR, Payroll, and Talent Platform, Purpose-Built for Larger Organizations Nasdaq: PYCR $655M IPO in 2021 FY24 revenue Cincinnati, OH 92% Headquarters FY24 recurring revenue 49,400 19% Clients(1) FY24 revenue growth 2.7M 50%+ Active employees Win rates on the platform Note: Paycor
Slide 10: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs 10
Slide 11: Recent Awards and Recognition
Recent Awards and Recognition Paychex was recognized for its innovative technology, market leadership, and corporate culture Fortune® 2025 America’s Most Innovative World’s Most Ethical Companies Brandon Hall Group 2024 Technology Companies Excellence Award Paychex was recognized once again by Paych
Slide 12: Sustained Financial Performance
Sustained Financial Performance (in uncertain times) (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $4.72 $5,132 $4.27 $4,907 $4,554 $3.77 $1,266 $3,997 $1,177 $3,954 $1,111 $3.04 $974 $3.00 $991 $3,730 $3,866 $3,443 $2,963 $3,023 FY20 FY21 FY22 FY23 FY24 FY20
Slide 13: Fiscal 2025 Outlook
Fiscal 2025 Outlook 13
Slide 14: Fiscal Year 2025 Outlook
Fiscal Year 2025 Outlook Excluding Paycor March 26, 2025 December 19, 2024 October 1, 2024 June 26, 2024 Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Total Revenue 4.0% - 5.5% 4.0% - 5.5% 4.0% - 5.5% 4.0% - 5.5% (1) Adjusted Diluted EPS 5% - 7% 5% - 7% 5% -
Slide 15: Financial Results
Financial Results 15
Slide 16: Financial Results
Financial Results For the Three Months and Nine Months ended February 28, 2025 Three Months Ended % Nine Months Ended % (In millions, except per share amounts) February 28, 2025 Change February 28, 2025 Change Management Solutions $ 1,100.7 5% $ 3,025.3 3% PEO and Insurance Solutions $ 365.4 6% $ 1,
Slide 17: Financial Highlights
(In millions) February 28, 2025 May 31, 2024 Financial Cash, Restricted Cash, & Total Corporate Investments $ 1,650.1 $ 1,554.3 Highlights Total Debt, Net of Debt Issuance Costs (1) $ 816.6 $ 817.3 ($ in Millions) Net Cash Position $ 833.5 $ 737.0 • Strong liquidity position with no net Return on Eq
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months and Nine Months ended February 28, 2025 (In millions, except per share amounts) Three Months Ended Nine Months Ended February 28, February 29, % February 28, February, 29 % 2025 2024 Change 2025 2024 Change Operating Income $ 691.8 $ 649.8 6% $ 1,776.
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months and Nine Months ended February 28, 2025 (In millions, except per share amounts) Three Months Ended Nine Months Ended February 28, February 29, % February 28, February, 29 % 2025 2024 Change 2025 2024 Change Diluted EPS(4) $ 1.43 $ 1.38 4% $ 3.76 $ 3.6
Slide 20: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Nine Months Ended February 28, Febuary 29, % February 28, Febuary 29, % ($ in millions) 2025 2024 Change 2025 2024 Change Average Investment Balances: Funds Held For Clients $ 5,116.8 $ 4,975.7 3% $ 4,551.7 $ 4,389.6 4% Corporate Cash Equivalents and I
Slide 21: Copyright 2025, Paychex, Inc. All rights reserved.
Copyright 2025, Paychex, Inc. All rights reserved.