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Dec 31, 2024
Paycor Q2 2025 Earnings Report
Paycor reported its second quarter fiscal year 2025 financial results, highlighting a definitive agreement to be acquired by Paychex, Inc., and strong revenue growth.
Key Takeaways
Paycor announced robust financial results for the second quarter of fiscal year 2025, with total revenues increasing by 13% year-over-year and operating margins expanding. The company also disclosed a definitive agreement to be acquired by Paychex, Inc. for approximately $4.1 billion.
Paycor entered into a definitive agreement to be acquired by Paychex, Inc. for approximately $4.1 billion, or $22.50 per share.
Total revenues for Q2 FY25 reached $180.4 million, marking a 13% increase year-over-year.
Operating profit improved significantly to $1.2 million, compared to an operating loss of $26.2 million in the prior year.
Adjusted operating income increased by 36% to $31.8 million, and adjusted free cash flow improved to $28.5 million.
Revenue by Segment
Forward Guidance
Due to the pending acquisition by Paychex, Inc., Paycor is suspending financial guidance for fiscal year 2025 and will not host an earnings conference call.
Challenges Ahead
- Suspension of financial guidance for fiscal year 2025.
- No earnings conference call will be hosted.
- No financial guidance will be provided for the third quarter ending March 31, 2025.
- Common stock will be delisted from Nasdaq upon completion of the merger.
- Uncertainty regarding the timing of the merger completion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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