Paychex said total revenue increased to $1.5 billion for the third quarter and $4.1 billion for the nine months, reflecting increases of 5% and 4%, respectively, compared to the prior year periods. Excluding the impact of the expiration of the Employee Retention Tax Credit program, revenue growth for both periods was 6%.

1. 01

   Paychex said total revenue increased to $1.5 billion for the third quarter and $4.1 billion for the nine months, reflecting increases of 5% and 4%, respectively, compared to the prior year periods. Excluding the impact of the expiration of the Employee Retention Tax Credit program, revenue growth for both periods was 6%.

2. 02

   The company said operating income increased 6% to $691.8 million for the third quarter and 5% to $1.8 billion for the 9 months. Adjusted operating income, excluding acquisition-related costs, increased 9% to $708.5 million for the third quarter, and acquisition-related costs were $16.7 million for both the third quarter and the 9 months.

3. 03

   Paychex said it entered into a definitive agreement on January 7, 2025 to acquire Paycor in an all-cash transaction for $22.50 per eligible share and expects the acquisition to close in April 2025. JPM committed to provide a senior unsecured bridge credit facility not to exceed $3.5 billion under the 364-day, and there were no borrowings under the commitment as of February 28, 2025.

4. 04

   The company said operating cash flows for the 9 months were $1.6 billion, and as of February 28, 2025, cash, restricted cash, and total corporate investments totaled $1.7 billion. As of the same date, short-term borrowings were $17.6 million and long-term borrowings were $800.0 million, and unused capacity under unsecured credit facilities was approximately $2.0 billion.

Key figures

Quarter ended February 28, 2025

Revenue

$1.5B

Operating income

$692M

EPS

$1.43

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.