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Operating Expense Breakdown
Details core cost categories such as technology and product development, sales and marketing, and general & administrative expenses, revealing how ADP allocates spending. Helps assess operational efficiency, whether investments are driving future growth, and the potential impact on margins and free cash flow.SG&A is the main driver of rising operating expenses—peaks in the last year point to heavier selling spend (and PEO-related variable costs) tied to booking activity—while R&D has steadily accelerated to fund AI and Lyric HCM investments that management says are already cutting labor and client contacts. D&A is relatively stable. Crucially, ADP still widened adjusted EBIT margins and raised guidance, implying revenue and client‑funds interest are offsetting expense pressure; watch whether SG&A growth is a temporary sales push or a recurring margin headwind.
Date | Research and Development | Selling, General, and Administrative | Depreciation and Amortization | Operating Expenses |
|---|---|---|---|---|
Jun 30, 2026 | $265.90M | $1.25B | $122.50M | $2.57B |
Mar 31, 2026 | $253.90M | $1.08B | $122.10M | $2.70B |
Dec 31, 2025 | $257.80M | $1.07B | $122.90M | $2.51B |
Sep 30, 2025 | $251.20M | $1.01B | $123.30M | $2.46B |
Jun 30, 2025 | $269.30M | $1.10B | $121.50M | $2.43B |
Mar 31, 2025 | $247.10M | $1.02B | $122.40M | $2.53B |
Dec 31, 2024 | $239.50M | $1.01B | $126.90M | $2.38B |
Sep 30, 2024 | $232.60M | $926.70M | $115.30M | $2.29B |
Jun 30, 2024 | $247.90M | $1.04B | $111.00M | $2.27B |
Mar 31, 2024 | $242.70M | $940.90M | $119.00M | $2.41B |