Thoma Bravo Eyes Dayforce: Can The HR Tech Giant Become Private Equity’s Next Big Bet?

Dayforce reported strong financial performance in its second quarter of 2025, exceeding the high end of guidance across all key metrics. The company observed a 14% growth in recurring revenue, excluding floating currency, on a constant currency basis, and a 420 basis point increase in adjusted EBITDA margin to 31.7%. Free cash flow for the quarter reached $87.1 million, representing 18.7% of revenue, and the year-to-date figure climbed by 500 basis points to $106.6 million. This growth reflects Dayforce’s strategy of balancing profitability with expansion, and the company has set a target to grow recurring revenue above 15% annually, aiming for $1 billion in free cash flow by 2031.