ADP 10-Q report for 2025-12-31

Automatic Data Processing, Inc.

ADP 10-Q report for 2025-12-31 adp-20251231 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-Q ______________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2025 OR ☐ 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 1-5397 __________________________ AUTOMATIC DATA PROCESSING, INC. (Exact name of registrant as specified in its charter) __________________________ Delaware 22-1467904 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) One ADP Boulevard Roseland, NJ 07068 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: ( 973 ) 974-5000 __________________________ Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.10 Par Value (voting) ADP NASDAQ Global Select Market 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 ý    No o 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 ý    No  o 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. o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).        Yes   ☐    No  ý The number of shares outstanding of the registrant’s common stock as of January 26, 2026 was 402,644,364 . Table of Contents Page PART I – FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Statements of Consolidated Earnings Three and six months ended December 3 1 , 2025 and 2024 3 Statements of Consolidated Comprehensive Income Three and six months ended December 31 , 2025 and 2024 4 Consolidated Balance Sheets At December 31 , 2025 and June 30, 2025 5 Statements of Consolidated Cash Flows Six months ended December 31 , 2025 and 2024 6 Notes to the Consolidated Financial Statements 7 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3. Quantitative and Qualitative Disclosures About Market Risk 42 Item 4. Controls and Procedures 42 PART II – OTHER INFORMATION Item 1. Legal Proceedings 42 Item 1A. Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 5. Other Information 43 Item 6. Exhibits 44 Signatures 45 2 Part I. FINANCIAL INFORMATION Item 1. Financial Statements Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Earnings (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 REVENUES: Revenues, other than interest on funds held      for clients and PEO revenues $ 3,298.3 $ 3,114.8 $ 6,501.7 $ 6,122.0 Interest on funds held for clients 308.6 272.8 595.5 526.1 PEO revenues (A) 1,752.4 1,660.8 3,437.3 3,233.0 TOTAL REVENUES 5,359.3 5,048.4 10,534.5 9,881.1 EXPENSES: Costs of revenues: Operating expenses 2,509.0 2,376.1 4,970.6 4,661.9 Research and development 257.8 239.5 509.0 472.1 Depreciation and amortization 122.9 126.9 246.2 242.2 TOTAL COSTS OF REVENUES 2,889.7 2,742.5 5,725.8 5,376.2 Selling, general, and administrative expenses 1,068.1 1,006.1 2,074.4 1,932.8 Interest expense 124.1 129.6 259.5 267.4 TOTAL EXPENSES 4,081.9 3,878.2 8,059.7 7,576.4 Other (income)/loss, net ( 105.8 ) ( 91.1 ) ( 215.9 ) ( 192.8 ) EARNINGS BEFORE INCOME TAXES 1,383.2 1,261.3 2,690.7 2,497.5 Provision for income taxes 321.2 298.1 615.6 578.0 NET EARNINGS $ 1,062.0 $ 963.2 $ 2,075.1 $ 1,919.5 BASIC EARNINGS PER SHARE $ 2.63 $ 2.36 $ Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3. Quantitative and Qualitative Disclosures About Market Risk 42 Item 4. Controls and Procedures 42 PART II – OTHER INFORMATION Item 1. Legal Proceedings 42 Item 1A. Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 5. Other Information 43 Item 6. Exhibits 44 Signatures 45 2 Part I. FINANCIAL INFORMATION Item 1. Financial Statements Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Earnings (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 REVENUES: Revenues, other than interest on funds held      for clients and PEO revenues $ 3,298.3 $ 3,114.8 $ 6,501.7 $ 6,122.0 Interest on funds held for clients 308.6 272.8 595.5 526.1 PEO revenues (A) 1,752.4 1,660.8 3,437.3 3,233.0 TOTAL REVENUES 5,359.3 5,048.4 10,534.5 9,881.1 EXPENSES: Costs of revenues: Operating expenses 2,509.0 2,376.1 4,970.6 4,661.9 Research and development 257.8 239.5 509.0 472.1 Depreciation and amortization 122.9 126.9 246.2 242.2 TOTAL COSTS OF REVENUES 2,889.7 2,742.5 5,725.8 5,376.2 Selling, general, and administrative expenses 1,068.1 1,006.1 2,074.4 1,932.8 Interest expense 124.1 129.6 259.5 267.4 TOTAL EXPENSES 4,081.9 3,878.2 8,059.7 7,576.4 Other (income)/loss, net ( 105.8 ) ( 91.1 ) ( 215.9 ) ( 192.8 ) EARNINGS BEFORE INCOME TAXES 1,383.2 1,261.3 2,690.7 2,497.5 Provision for income taxes 321.2 298.1 615.6 578.0 NET EARNINGS $ 1,062.0 $ 963.2 $ 2,075.1 $ 1,919.5 BASIC EARNINGS PER SHARE $ 2.63 $ 2.36 $ 5.13 $ 4.71 DILUTED EARNINGS PER SHARE $ 2.62 $ 2.35 $ 5.12 $ 4.69 Basic weighted average shares outstanding 403.8 407.6 404.4 407.7 Diluted weighted average shares outstanding 404.7 409.0 405.5 409.3 (A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 20,546.9 million and $ 19,420.8 million for the three months ended December 31, 2025 and 2024, respectively, and $ 39,081.3 million and $ 36,614.4 million for the six months ended December 31, 2025 and 2024, respectively. See notes to the Consolidated Financial Statements. 3 Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Comprehensive Income (In millions) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 Net earnings $ 1,062.0 $ 963.2 $ 2,075.1 $ 1,919.5 Other comprehensive income/(loss): Currency translation adjustments 3.9 ( 101.0 ) ( 11.6 ) ( 51.8 ) Unrealized net gains/(losses) on available-for-sale securities 107.5 ( 423.8 ) 323.2 440.5 Tax effect ( 22.7 ) 94.2 ( 71.0 ) ( 103.6 ) Reclassification of realized net (gains)/losses on available-for-sale securities to net earnings 0.3 0.6 ( 1.2 ) 0.8 Tax effect — ( 0.1 ) 0.3 ( 0.1 ) Unrealized gains/(losses) on cash flow hedging activities — — — ( 12.5 )         Tax effect — — — 3.1 Amortization of unrealized (gains)/losses on cash flow hedging activities 1.6 1.4 3.0 2.5 Tax effect ( 0.4 ) ( 0.3 ) ( 0.7 ) ( 0.6 ) Reclassification of pension liability adjustment to net earnings 1.1 0.7 2.3 1.8 Tax effect ( 0.3 ) ( 0.2 ) ( 0.6 ) ( 0.5 ) Other comprehensive income/(loss), net of tax 91.0 ( 428.5 ) 243.7 279.6 Comprehensive income/(loss) $ 1,153.0 $ 534.7 $ 2,318.8 $ 2,199.1 See notes to the Consolidated Financial Statements. 4 Automatic Data Processing, Inc. and Subsidiaries Consolidated Balance Sheets (In millions, except per share amounts) (Unaudited) December 31, June 30, 2025 2025 Assets Current assets: Cash and cash equivalents $ 2,424.7 $ 3,347.8 Short-term marketable securities (A) 45.7 4,498.8     Accounts receivable, net of allowance for doubtful accounts of $ 47.5 and $ 47.1 , respectively 3,408.5 3,579.1 Other current assets 1,083.1 840.8 Total current assets before funds held for clients 6,962.0 12,266.5 Funds held for clients 67,510.1 30,985.7 Total current assets 74,472.1 43,252.2 Property, plant and equipment, net 622.7 655.4 Operating lease right-of-use asset 405.7 374.1 Deferred contract costs 3,109.1 3,154.1 Other assets 1,113.1 1,057.0 Goodwill 3,294.2 3,273.5 Intangible assets, net 1,622.5 1,603.0 Total assets $ 84,639.4 $ 53,369.3 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 143.1 $ 169.1 Accrued expenses and other current liabilities 2,478.1 3,092.4 Accrued payroll and payroll-related expenses 721.3 973.1 Dividends payable 680.5 620.6 Short-term deferred revenues 261.7 262.8 Obligations under reverse repurchase agreements (A) 45.8 38.4 Obligations under commercial paper borrowings — 4,769.5 Income taxes payable 197.3 9.1 Total current liabilities before client funds obligations 4,527.8 9,935.0 Client funds obligations 67,613.7 31,343.3 Total current liabilities 72,141.5 41,278.3 Long-term debt 3,976.4 3,974.7 Operating lease liabilities 347.6 321.2 Other liabilities 1,051.2 1,058.3 Deferred income taxes 349.5 163.6 Long-term deferred revenues 380.2 385.2 Total liabilities 78,246.4 47,181.3 Commitments and contingencies (Note 14) Stockholders' equity: Preferred stock, $ 1.00 par value: authorized, 0.3 shares; issued, no ne — — Common stock, $ 0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at December 31, 2025 and June 30, 2025;  outstanding, 403.0 and 405.3 shares at December 31, 2025 and June 30, 2025, respectively 63.9 63.9 Capital in excess of par value 2,936.8 2,788.3 Retained earnings 25,992.6 25,240.6 Treasury stock - at cost: 235.7 and 233.4 shares at December 31, 2025 and June 30, 2025, respectively ( 21,960.6 ) ( 21,021.4 ) Accumulated other comprehensive income/(loss) ( 639.7 ) ( 883.4 ) Total stockholders’ equity 6,393.0 6,188.0 Total liabilities and stockholders’ equity $ 84,639.4 $ 53,369.3 (A ) As of December 31, 2025, $ 45.7 million of short-term marketable securities and $ 0.1 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements. As of June 30, 2025, $ 38.4 million of short-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 10). See notes to the Consolidated Financial Statements. 5 A utomatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Cash Flows (In millions) (Unaudited) Six Months Ended December 31, 2025 2024 Cash Flows from Operating Activities: Net earnings $ 2,075.1 $ 1,919.5 Adjustments to reconcile net earnings to cash flows provided by operating activities: Depreciation and amortization 292.3 289.7 Amortization of deferred contract costs 598.1 565.9 Deferred income taxes 119.1 32.5 Stock-based compensation expense 131.9 139.7 Bad debt expense 22.5 23.1 Net pension (income)/loss ( 7.7 ) ( 9.8 ) Net accretion of discounts and amortization of premiums on available-for-sale securities ( 45.4 ) ( 31.5 ) Other 4.2 4.7 Changes in operating assets and liabilities: Decrease/(increase) in accounts receivable 145.9 ( 94.7 ) Increase in deferred contract costs ( 556.4 ) ( 565.3 ) Increase in other assets ( 350.1 ) ( 271.0 ) (Decrease)/increase in accounts payable ( 25.0 ) 82.4 Decrease in accrued expenses and other liabilities ( 629.3 ) ( 110.5 ) Net cash flows provided by operating activities 1,775.2 1,974.7 Cash Flows from Investing Activities: Purchases of corporate and client funds marketable securities ( 5,652.0 ) ( 3,990.7 ) Proceeds from the sales and maturities of corporate and client funds marketable securities 3,436.1 2,524.1 Capital expenditures ( 73.2 ) ( 98.2 ) Additions to intangibles ( 209.1 ) ( 175.7 ) Acquisitions of businesses, net of cash acquired ( 22.9 ) ( 1,160.6 ) Proceeds from the sale of property, plant, and equipment and other assets — 3.3 Other ( 18.4 ) ( 4.5 ) Net cash flows used in investing activities ( 2,539.5 ) ( 2,902.3 ) Cash Flows from Financing Activities: Net increase in client funds obligations 36,273.1 9,090.4 Net cash distributed from the Internal Revenue Service ( 1.2 ) ( 487.6 ) Payments of debt ( 0.5 ) ( 0.6 ) Proceeds from the issuance of debt — 988.9 Settlement of cash flow hedges — ( 12.5 ) Repurchases of common stock ( 881.8 ) ( 644.9 ) Net (repurchases)/proceeds from stock-based compensation plans and stock purchase plan ( 40.0 ) 38.6 Dividends paid ( 1,256.0 ) ( 1,145.1 ) Net (payments)/proceeds related to reverse repurchase agreements 18.5 ( 344.7 ) Net (payments)/proceeds related to commercial paper ( 4,769.5 ) — Net cash flows provided by financing activities 29,342.6 7,482.5 Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents 28.8 ( 36.7 ) Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents 28,607.1 6,518.2 Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period 5,054.6 10,086.0 Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period $ 33,661.7 $ 16,604.2 Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets Cash and cash equivalents $ 2,424.7 $ 2,216.4 Restricted cash and restricted cash equivalents included in funds held for clients (A) 31,237.0 14,387.8 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 33,661.7 $ 16,604.2 Supplemental disclosures of cash flow information: Cash paid for interest $ 253.9 $ 249.5 Cash paid for income taxes, net of income tax refunds $ 303.7 $ 583.5 (A) See Note 7 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets. See notes to the Consolidated Financial Statements. 6 Automatic Data Processing, Inc. and Subsidiaries Notes to the Consolidated Financial Statements (Tabular dollars in millions, except per share amounts or where otherwise stated) (Unaudited) Note 1.   Basis of Presentation The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Intercompany balances and transactions have been eliminated in consolidation. The Consolidated Financial Statements and footnotes thereto are unaudited. In the opinion of the Company’s management, the Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results. The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and, therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 7, “Corporate Investments and Funds Held for Clients.”  The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 (“fiscal 2025”). Certain amounts from the prior year's financial statements have been reclassified in order to conform to the current year's presentation. Note 2.   New Accounting Pronouncements Recently Adopted Accounting Pronouncements None. 7 Recently Issued Accounting Pronouncements Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software This update modernizes the accounting guidance for internal-use software costs and requires capitalization of software costs to begin when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. July 1, 2028 (fiscal 2029) The Company is assessing this guidance and has not yet determined the impact of ASU 2025-06 on its consolidated results of operations, financial condition, or cash flows. ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses This update improves financial reporting by requiring enhanced disclosures of the expense captions in Item 1A. Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 5. Other Information 43 Item 6. Exhibits 44 Signatures 45 2 Part I. FINANCIAL INFORMATION Item 1. Financial Statements Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Earnings (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 REVENUES: Revenues, other than interest on funds held      for clients and PEO revenues $ 3,298.3 $ 3,114.8 $ 6,501.7 $ 6,122.0 Interest on funds held for clients 308.6 272.8 595.5 526.1 PEO revenues (A) 1,752.4 1,660.8 3,437.3 3,233.0 TOTAL REVENUES 5,359.3 5,048.4 10,534.5 9,881.1 EXPENSES: Costs of revenues: Operating expenses 2,509.0 2,376.1 4,970.6 4,661.9 Research and development 257.8 239.5 509.0 472.1 Depreciation and amortization 122.9 126.9 246.2 242.2 TOTAL COSTS OF REVENUES 2,889.7 2,742.5 5,725.8 5,376.2 Selling, general, and administrative expenses 1,068.1 1,006.1 2,074.4 1,932.8 Interest expense 124.1 129.6 259.5 267.4 TOTAL EXPENSES 4,081.9 3,878.2 8,059.7 7,576.4 Other (income)/loss, net ( 105.8 ) ( 91.1 ) ( 215.9 ) ( 192.8 ) EARNINGS BEFORE INCOME TAXES 1,383.2 1,261.3 2,690.7 2,497.5 Provision for income taxes 321.2 298.1 615.6 578.0 NET EARNINGS $ 1,062.0 $ 963.2 $ 2,075.1 $ 1,919.5 BASIC EARNINGS PER SHARE $ 2.63 $ 2.36 $ 5.13 $ 4.71 DILUTED EARNINGS PER SHARE $ 2.62 $ 2.35 $ 5.12 $ 4.69 Basic weighted average shares outstanding 403.8 407.6 404.4 407.7 Diluted weighted average shares outstanding 404.7 409.0 405.5 409.3 (A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 20,546.9 million and $ 19,420.8 million for the three months ended December 31, 2025 and 2024, respectively, and $ 39,081.3 million and $ 36,614.4 million for the six months ended December 31, 2025 and 2024, respectively. See notes to the Consolidated Financial Statements. 3 Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Comprehensive Income (In millions) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 Net earnings $ 1,062.0 $ 963.2 $ 2,075.1 $ 1,919.5 Other comprehensive income/(loss): Currency translation adjustments 3.9 ( 101.0 ) ( 11.6 ) ( 51.8 ) Unrealized net gains/(losses) on available-for-sale securities 107.5 ( 423.8 ) 323.2 440.5 Tax effect ( 22.7 ) 94.2 ( 71.0 ) ( 103.6 ) Reclassification of realized net (gains)/losses on available-for-sale securities to net earnings 0.3 0.6 ( 1.2 ) 0.8 Tax effect — ( 0.1 ) 0.3 ( 0.1 ) Unrealized gains/(losses) on cash flow hedging activities — — — ( 12.5 )         Tax effect — — — 3.1 Amortization of unrealized (gains)/losses on cash flow hedging activities 1.6 1.4 3.0 2.5 Tax effect ( 0.4 ) ( 0.3 ) ( 0.7 ) ( 0.6 ) Reclassification of pension liability adjustment to net earnings 1.1 0.7 2.3 1.8 Tax effect ( 0.3 ) ( 0.2 ) ( 0.6 ) ( 0.5 ) Other comprehensive income/(loss), net of tax 91.0 ( 428.5 ) 243.7 279.6 Comprehensive income/(loss) $ 1,153.0 $ 534.7 $ 2,318.8 $ 2,199.1 See notes to the Consolidated Financial Statements. 4 Automatic Data Processing, Inc. and Subsidiaries Consolidated Balance Sheets (In millions, except per share amounts) (Unaudited) December 31, June 30, 2025 2025 Assets Current assets: Cash and cash equivalents $ 2,424.7 $ 3,347.8 Short-term marketable securities (A) 45.7 4,498.8     Accounts receivable, net of allowance for doubtful accounts of $ 47.5 and $ 47.1 , respectively 3,408.5 3,579.1 Other current assets 1,083.1 840.8 Total current assets before funds held for clients 6,962.0 12,266.5 Funds held for clients 67,510.1 30,985.7 Total current assets 74,472.1 43,252.2 Property, plant and equipment, net 622.7 655.4 Operating lease right-of-use asset 405.7 374.1 Deferred contract costs 3,109.1 3,154.1 Other assets 1,113.1 1,057.0 Goodwill 3,294.2 3,273.5 Intangible assets, net 1,622.5 1,603.0 Total assets $ 84,639.4 $ 53,369.3 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 143.1 $ 169.1 Accrued expenses and other current liabilities 2,478.1 3,092.4 Accrued payroll and payroll-related expenses 721.3 973.1 Dividends payable 680.5 620.6 Short-term deferred revenues 261.7 262.8 Obligations under reverse repurchase agreements (A) 45.8 38.4 Obligations under commercial paper borrowings — 4,769.5 Income taxes payable 197.3 9.1 Total current liabilities before client funds obligations 4,527.8 9,935.0 Client funds obligations 67,613.7 31,343.3 Total current liabilities 72,141.5 41,278.3 Long-term debt 3,976.4 3,974.7 Operating lease liabilities 347.6 321.2 Other liabilities 1,051.2 1,058.3 Deferred income taxes 349.5 163.6 Long-term deferred revenues 380.2 385.2 Total liabilities 78,246.4 47,181.3 Commitments and contingencies (Note 14) Stockholders' equity: Preferred stock, $ 1.00 par value: authorized, 0.3 shares; issued, no ne — — Common stock, $ 0.10 par value: authorized, 1,000.0 shares; issued, 638.7 shares at December 31, 2025 and June 30, 2025;  outstanding, 403.0 and 405.3 shares at December 31, 2025 and June 30, 2025, respectively 63.9 63.9 Capital in excess of par value 2,936.8 2,788.3 Retained earnings 25,992.6 25,240.6 Treasury stock - at cost: 235.7 and 233.4 shares at December 31, 2025 and June 30, 2025, respectively ( 21,960.6 ) ( 21,021.4 ) Accumulated other comprehensive income/(loss) ( 639.7 ) ( 883.4 ) Total stockholders’ equity 6,393.0 6,188.0 Total liabilities and stockholders’ equity $ 84,639.4 $ 53,369.3 (A ) As of December 31, 2025, $ 45.7 million of short-term marketable securities and $ 0.1 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements. As of June 30, 2025, $ 38.4 million of short-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 10). See notes to the Consolidated Financial Statements. 5 A utomatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Cash Flows (In millions) (Unaudited) Six Months Ended December 31, 2025 2024 Cash Flows from Operating Activities: Net earnings $ 2,075.1 $ 1,919.5 Adjustments to reconcile net earnings to cash flows provided by operating activities: Depreciation and amortization 292.3 289.7 Amortization of deferred contract costs 598.1 565.9 Deferred income taxes 119.1 32.5 Stock-based compensation expense 131.9 139.7 Bad debt expense 22.5 23.1 Net pension (income)/loss ( 7.7 ) ( 9.8 ) Net accretion of discounts and amortization of premiums on available-for-sale securities ( 45.4 ) ( 31.5 ) Other 4.2 4.7 Changes in operating assets and liabilities: Decrease/(increase) in accounts receivable 145.9 ( 94.7 ) Increase in deferred contract costs ( 556.4 ) ( 565.3 ) Increase in other assets ( 350.1 ) ( 271.0 ) (Decrease)/increase in accounts payable ( 25.0 ) 82.4 Decrease in accrued expenses and other liabilities ( 629.3 ) ( 110.5 ) Net cash flows provided by operating activities 1,775.2 1,974.7 Cash Flows from Investing Activities: Purchases of corporate and client funds marketable securities ( 5,652.0 ) ( 3,990.7 ) Proceeds from the sales and maturities of corporate and client funds marketable securities 3,436.1 2,524.1 Capital expenditures ( 73.2 ) ( 98.2 ) Additions to intangibles ( 209.1 ) ( 175.7 ) Acquisitions of businesses, net of cash acquired ( 22.9 ) ( 1,160.6 ) Proceeds from the sale of property, plant, and equipment and other assets — 3.3 Other ( 18.4 ) ( 4.5 ) Net cash flows used in investing activities ( 2,539.5 ) ( 2,902.3 ) Cash Flows from Financing Activities: Net increase in client funds obligations Results of Operations 27 Item 3. Quantitative and Qualitative Disclosures About Market Risk 42 Item 4. Controls and Procedures 42 PART II – OTHER INFORMATION Item 1. Legal Proceedings 42 Item 1A. Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 5. Other Information 43 Item 6. Exhibits 44 Signatures 45 2 Part I. FINANCIAL INFORMATION Item 1. Financial Statements Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Earnings (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 REVENUES: Revenues, other than interest on funds held      for clients and PEO revenues $ 3,298.3 $ 3,114.8 $ 6,501.7 $ 6,122.0 Interest on funds held for clients 308.6 272.8 595.5 526.1 PEO revenues (A) 1,752.4 1,660.8 3,437.3 3,233.0 TOTAL REVENUES 5,359.3 5,048.4 10,534.5 9,881.1 EXPENSES: Costs of revenues: Operating expenses 2,509.0 2,376.1 4,970.6 4,661.9 Research and development 257.8 239.5 509.0 472.1 Depreciation and amortization 122.9 126.9 246.2 242.2 TOTAL COSTS OF REVENUES 2,889.7 2,742.5 5,725.8 5,376.2 Selling, general, and administrative expenses 1,068.1 1,006.1 2,074.4 1,932.8 Interest expense 124.1 129.6 259.5 267.4 TOTAL EXPENSES 4,081.9 3,878.2 8,059.7 7,576.4 Other (income)/loss, net ( 105.8 ) ( 91.1 ) ( 215.9 ) ( 192.8 ) EARNINGS BEFORE INCOME TAXES 1,383.2 1,261.3 2,690.7 2,497.5 Provision for income taxes 321.2 298.1 615.6 578.0 NET EARNINGS $ 1,062.0 $ 963.2 $ 2,075.1 $ 1,919.5 BASIC EARNINGS PER SHARE $ 2.63 $ 2.36 $ 5.13 $ 4.71 DILUTED EARNINGS PER SHARE $ 2.62 $ 2.35 $ 5.12 $ 4.69 Basic weighted average shares outstanding 403.8 407.6 404.4 407.7 Diluted weighted average shares outstanding 404.7 409.0 405.5 409.3 (A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 20,546.9 million and $ 19,420.8 million for the three months ended December 31, 2025 and 2024, respectively, and $ 39,081.3 million and $ 36,614.4 million for the six months ended December 31, 2025 and 2024, respectively. See notes to the Consolidated Financial Statements. 3 Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Comprehensive Income (In millions) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 Net earnings $ 1,062.0 $ 963.2 $ 2,075.1 $ 1,919.5 Other comprehensive income/(loss): Currency translation adjustments 3.9 ( 101.0 ) ( 11.6 ) ( 51.8 ) Unrealized net gains/(losses) on available-for-sale securities 107.5 ( 423.8 ) 323.2 440.5 Tax effect ( 22.7 ) 94.2 ( 71.0 ) ( 103.6 ) Reclassification of realized net (gains)/losses on available-for-sale securities to net earnings 0.3 0.6 ( 1.2 ) 0.8 Tax effect — ( 0.1 ) 0.3 ( 0.1 ) Unrealized gains/(losses) on cash flow hedging activities — — — ( 12.5 )         Tax effect — — — 3.1 Amortization of unrealized (gains)/losses on cash flow hedging activities 1.6 1.4 3.0 2.5 Tax effect ( 0.4 ) ( 0.3 ) ( 0.7 ) ( 0.6 ) Reclassification of pension liability adjustment to net earnings 1.1 0.7 2.3 1.8 Tax effect ( 0.3 ) ( 0.2 ) ( 0.6 ) ( 0.5 ) Other comprehensive income/(loss), net of tax 91.0 ( 428.5 ) 243.7 279.6 Comprehensive income/(loss) $ 1,153.0 $ 534.7 $ 2,318.8 $ 2,199.1 See notes to the Consolidated Financial Statements. 4 Automatic Data Processing, Inc. and Subsidiaries Consolidated Balance Sheets (In millions, except per share amounts) (Unaudited) December 31, June 30, 2025 2025 Assets Current assets: Cash and cash equivalents $ 2,424.7 $ 3,347.8 Short-term marketable securities (A) 45.7 4,498.8     Accounts receivable, net of allowance for doubtful accounts of $ 47.5 and $ 47.1 , respectively 3,408.5 3,579.1 Other current assets 1,083.1 840.8 Total current assets before funds held for clients 6,962.0 12,266.5 Funds held for clients 67,510.1 30,985.7 Total current assets 74,472.1 43,252.2 Property, plant and equipment, net 622.7 655.4 Operating lease right-of-use asset 405.7 374.1 Deferred contract costs 3,109.1 3,154.1 Other assets 1,113.1 1,057.0 Goodwill 3,294.2 3,273.5 Intangible assets, net 1,622.5 1,603.0 Total assets $ 84,639.4 $ 53,369.3 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 143.1 $ 169.1 Accrued expenses and other current liabilities 2,478.1 3,092.4 Accrued payroll and payroll-related expenses 721.3 973.1 Dividends payable 680.5 620.6 Short-term deferred revenues 261.7 262.8 Obligations under reverse repurchase agreements (A) 45.8 38.4 Obligations under commercial paper borrowings — 4,769.5 Income taxes payable 197.3 9.1 Total current liabilities before client funds obligations 4,527.8 9,935.0 Client funds obligations 67,613.7 31,343.3 Total current liabi

This excerpt is only the cover page/header of Sleep Number’s Form 10-Q for the quarter ended April 4, 2026. It contains filing metadata (issuer, ticker, exchange, address) but no financial statements, MD&A, guidance, risks, or operational commentary. As a result, it is not directly actionable for trading beyond confirming the filing exists.

The provided excerpt is only the cover/filing header of SoundHound AI, Inc.’s 10‑Q for the quarter ended 2026‑03‑31. It contains listing/security identifiers (SOUN, SOUNW) but no financial statements, MD&A, guidance, risk updates, liquidity details, or material events. As a result, there is insufficient information to form high-confidence, actionable bullish/bearish theses beyond generic “company filed its 10‑Q” metadata.

The provided excerpt is only the boilerplate cover/filing-status section of Teucrium Commodity Trust’s Form 10‑Q for period ended 2026‑03‑31, with no portfolio holdings, performance, risk, or material updates included. As-is, it contains no actionable investment information beyond confirming the existence of the filing and the issuer/ticker identity (WEAT).

The provided text is only the cover/header portion of Archer Aviation’s Form 10‑Q for the quarter ended 2026‑03‑31 (issuer identity, exchange listing, and securities outstanding). It contains no operating/financial results, guidance, liquidity details, backlog, or risk-factor updates—so it is minimally actionable for trading beyond basic security identifiers and a generic dilution/optionality consideration from warrants.

This excerpt is essentially the cover page of CleanSpark, Inc.’s Form 10-Q for the quarter ended March 31, 2026. It contains identifiers (CIK/file no.), listing venue, and security descriptions (common stock and redeemable warrants with specific exercise terms), but no operating/financial results, guidance, risks, or MD&A detail. Actionability is therefore limited to capital-structure/dilution considerations around the listed warrant.

This excerpt of AST SpaceMobile’s 10‑Q is largely SEC cover-page/boilerplate (registrant info, exchange listing, filing compliance) and contains no financial results, guidance, liquidity, risk-factor updates, or operating metrics. As provided, it does not create a clear tradable catalyst beyond confirming continued reporting/listing status.

This excerpt only includes the cover page of Super Micro Computer, Inc.’s Form 10‑Q for the quarter ended March 31, 2026. It confirms the filing, issuer identity, listing (Nasdaq), and ticker (SMCI), but contains no financial results, guidance, risks, or MD&A content to support a directional investment view.

The provided text is only the cover/header portion of AbCellera Biologics Inc.’s Form 10‑Q for the quarter ended March 31, 2026 (identifying info, exchange listing, filing status). It contains no financial statements, guidance, risk updates, material events, MD&A, cash runway, pipeline/program updates, or disclosures that would support a differentiated trading view.