UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended March 31, 2025

Commission File Number 1-14840

AMDOCS LIMITED

Hirzel House, Smith Street,

St. Peter Port, Island of Guernsey, GY1 2NG

Amdocs, Inc.

625 Maryville Centre Drive, Suite 200 Saint Louis, Missouri 63141

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

FORM 20-F ☑ FORM 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

YES ☐ NO ☑

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _______

AMDOCS LIMITED

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

FOR THE QUARTER ENDED MARCH 31,

2025

INDEX


PART I FINANCIAL INFORMATION	3
Item 1. Financial Statements	3
Unaudited Consolidated Financial Statements
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Changes in Equity	6
Consolidated Statements of Cash Flows	8
Notes to Unaudited Consolidated Financial Statements	9
Item 2. Operating and Financial Review and Prospects	21
PART II OTHER INFORMATION	30
Item 1. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities	30
Item 2. Reports on Form 6-K	30
SIGNATURES	31

This report on Form 6-K shall be incorporated by reference into any Registration Statement filed by the Registrant that by its terms automatically incorporates the Registrant's filings and submissions with the SEC under Sections 13(a), 13(c) or 15(d) of the Securities Exchange Act of 1934.

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

AMDOCS LIMITED

CONSOLIDATED BALANCE SHEETS

(dollar and share amounts in thousands, except per share data)


	As of
	March 31, 2025			September 30, 2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	247,390		$	346,085
Short-term interest-bearing investments		76,358			168,242
Accounts receivable, net		957,865			1,028,357
Prepaid expenses and other current assets		279,656			228,498
Total current assets		1,561,269			1,771,182
Property and equipment, net		726,701			755,601
Lease assets		148,145			149,254
Goodwill		2,884,617			2,844,908
Intangible assets, net		171,137			160,729
Other noncurrent assets		712,685			704,468
Total assets	$	6,204,554		$	6,386,142
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	346,171		$	305,928
Accrued expenses and other current liabilities		661,096			778,939
Accrued personnel costs		154,850			230,812
Lease liabilities		38,804			39,983
Deferred revenue		139,640			115,247
Total current liabilities		1,340,561			1,470,909
Deferred income taxes and taxes payable		208,523			197,923
Lease liabilities		102,338			103,462
Long-term debt, net of unamortized debt issuance costs		646,593			646,291
Other noncurrent liabilities		404,313			468,380
Total liabilities		2,702,328			2,886,965
Equity:
Amdocs Limited Shareholders' equity:
Preferred Shares — Authorized 25,000 shares; £0.01 par value; 0 shares issued and outstanding		—			—
Ordinary Shares — Authorized 700,000 shares; £0.01 par value; 290,011 and 288,485 issued and 111,219 and 112,891 outstanding, respectively		4,617			4,598
Additional paid-in capital		4,495,539			4,413,503
Treasury stock, at cost 178,792 and 175,594 ordinary shares, respectively		(8,064,154	)		(7,784,434	)
Accumulated other comprehensive loss		(4,996	)		(4,410	)
Retained earnings		7,029,751			6,827,719
Total Amdocs Limited Shareholders' equity		3,460,757			3,456,976
Noncontrolling interests		41,469			42,201
Total equity		3,502,226			3,499,177
Total liabilities and equity	$	6,204,554		$	6,386,142

The accompanying notes are an integral part of these consolidated financial statements.

AMDOCS LIMITED

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollar and share amounts in thousands, except per share data)


	Three months ended March 31,						Six months ended March 31,
	2025(a)			2024			2025(a)			2024
Revenue	$	1,128,203		$	1,245,849		$	2,238,258		$	2,491,048
Operating expenses:
Cost of revenue		698,049			801,996			1,380,308			1,614,740
Research and development		81,796			91,154			166,129			180,361
Selling, general and administrative		134,625			147,609			256,712			290,113
Amortization of purchased intangible assets and other		15,998			16,198			31,757			32,608
Restructuring charges		—			33,160			6,783			33,160
		930,468			1,090,117			1,841,689			2,150,982
Operating income		197,735			155,732			396,569			340,066
Interest and other expense, net		(8,465	)		(11,650	)		(14,874	)		(21,428	)
Income before income taxes		189,270			144,082			381,695			318,638
Income taxes		25,269			24,657			65,842			50,491
Net income	$	164,001		$	119,425		$	315,853		$	268,147
Net income attributable to noncontrolling interests		758			923			1,477			1,680
Net income attributable to Amdocs Limited	$	163,243		$	118,502		$	314,376		$	266,467
Basic earnings per share attributable to Amdocs Limited	$	1.46		$	1.02		$	2.80		$	2.28
Diluted earnings per share attributable to Amdocs Limited	$	1.45		$	1.01		$	2.78		$	2.27
Cash dividends declared per ordinary share	$	0.527		$	0.479		$	1.006		$	0.914

(a) During the first quarter of fiscal year 2025, we phased out several low-margin, non-core business activities, which were included in the three and six months ended March 31, 2024, for more details see ‘Item 2. Operating and Financial Review and Prospects’.

The accompanying notes are an integral part of these consolidated financial statements.

AMDOCS LIMITED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(dollar amounts in thousands)


	Three months ended March 31,						Six months ended March 31,
	2025			2024			2025			2024
Net income	$	164,001		$	119,425		$	315,853		$	268,147
Other comprehensive (loss) income, net of tax:
Net change in fair value of cash flow hedges(1)		(5,590	)		(1,975	)		(3,396	)		40,172
Net change in fair value of available-for-sale securities(2)		1,853			1,037			2,810			5,710
Other comprehensive (loss) income, net of tax		(3,737	)		(938	)		(586	)		45,882
Comprehensive income	$	160,264		$	118,487		$	315,267		$	314,029
Comprehensive income attributable to noncontrolling interests		758			923			1,477			1,680
Comprehensive income attributable to Amdocs Limited	$	159,506		$	117,564		$	313,790		$	312,349

(1)

Net of tax of $710 and $359 for the three months ended March 31, 2025 and 2024, respectively, and of $191 and $2,466 for the six months ended March 31, 2025 and 2024, respectively.

(2)

No tax impact for the three and six months ended March 31, 2025 and 2024.

The accompanying notes are an integral part of these consolidated financial statements.

AMDOCS LIMITED

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(dollar and share amounts in thousands, except per share data)


	Ordinary Shares
	Shares			Amount		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Loss (1)			Retained Earnings			Total Amdocs Limited Shareholders’ Equity			Non- controlling Interests (2)			Total Equity
Balance as of December 31, 2024		112,163		$	4,610	$	4,464,706	$	(7,928,917	)	$	(1,259	)	$	6,925,123		$	3,464,263		$	41,597		$	3,505,860
Comprehensive income:
Net income		—			—		—		—			—			163,243			163,243			758			164,001
Other comprehensive income		—			—		—		—			(3,737	)		—			(3,737	)		—			(3,737	)
Comprehensive income		—			—		—		—			—			—			159,506			758			160,264
Employee stock options exercised		80			1		5,180		—			—			—			5,181			—			5,181
Repurchase of shares		(1,537	)		—		—		(135,237	)		—			—			(135,237	)		—			(135,237	)
Cash dividends declared ($0.527 per ordinary share)		—			—		—		—			—			(58,615	)		(58,615	)		—			(58,615	)
Issuance of restricted stock, net of forfeitures		513			6		—		—			—			—			6			—			6
Equity-based compensation expense related to employees		—			—		25,653		—			—			—			25,653			—			25,653
Distribution to noncontrolling interests (2)		—			—		—		—			—			—			—			(886	)		(886	)
Balance as of March 31, 2025		111,219		$	4,617	$	4,495,539	$	(8,064,154	)	$	(4,996	)	$	7,029,751		$	3,460,757		$	41,469		$	3,502,226


	Ordinary Shares
	Shares			Amount		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive (Loss) (1)			Retained Earnings			Total Amdocs Limited Shareholders’ Equity			Non- controlling Interests (2)			Total Equity
Balance as of December 31, 2023		116,502		$	4,584	$	4,294,652	$	(7,379,838	)	$	(6,452	)	$	6,646,799		$	3,559,745		$	42,608		$	3,602,353
Comprehensive income:
Net income		—			—		—		—			—			118,502			118,502			923			119,425
Other comprehensive loss		—			—		—		—			(938	)		—			(938	)		—			(938	)
Comprehensive income		—			—		—		—			—			—			117,564			923			118,487
Employee stock options exercised		187			3		11,693		—			—			—			11,696			—			11,696
Repurchase of shares		(1,264	)		—		—		(115,416	)		—			—			(115,416	)		—			(115,416	)
Cash dividends declared ($0.479 per ordinary share)		—			—		—		—			—			(55,528	)		(55,528	)		—			(55,528	)
Issuance of restricted stock, net of forfeitures		492			6		—		—			—			—			6			—			6
Equity-based compensation expense related to employees		—			—		26,345		—			—			—			26,345			—			26,345
Distribution to noncontrolling interests (2)		—			—		—		—			—			—			—			(422	)		(422	)
Balance as of March 31, 2024	$	115,917		$	4,593	$	4,332,690	$	(7,495,254	)	$	(7,390	)	$	6,709,773		$	3,544,412		$	43,109		$	3,587,521

____________

(1)

As of March 31, 2025 and 2024, accumulated other comprehensive loss is comprised of unrealized (loss) gain on derivatives, net of tax, of $(359) and $5,495 unrealized loss on short-term interest-bearing investments, net of tax, of $(2,428) and $(10,493), and unrealized loss on defined benefit plan, net of tax, of $(2,209) and $(2,392), respectively.

(2)

Starting fiscal year 2023, the Company distributes earnings to the noncontrolling interests, for further details please refer to Note 2, “A summary of Significant Accounting Policies, ” in the Company’s Annual Report on Form 20-F for the fiscal year 2024.

The accompanying notes are an integral part of these consolidated financial statements.

AMDOCS LIMITED

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(dollar and share amounts in thousands, except per share data)


	Ordinary Shares
	Shares			Amount		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Loss (1)			Retained Earnings			Total Amdocs Limited Shareholders’ Equity			Non- controlling Interests (2)			Total Equity
Balance as of September 30, 2024		112,891		$	4,598	$	4,413,503	$	(7,784,434	)	$	(4,410	)	$	6,827,719		$	3,456,976		$	42,201		$	3,499,177
Comprehensive income:
Net income		—			—		—		—			—			314,376			314,376			1,477			315,853
Other comprehensive income		—			—		—		—			(586	)		—			(586	)		—			(586	)
Comprehensive income		—			—		—		—			—			—			313,790			1,477			315,267
Employee stock options exercised		213			3		13,347		—			—			—			13,350			—			13,350
Repurchase of shares		(3,198	)		—		—		(279,720	)		—			—			(279,720	)		—			(279,720	)
Cash dividends declared ($1.006 per ordinary share)		-			—		—		—			—			(112,344	)		(112,344	)		—			(112,344	)
Issuance of restricted stock, net of forfeitures		1,062			13		—		—			—			—			13			—			13
Employee share purchase plan		251			3		16,516		—			—			—			16,519			—			16,519
Equity-based compensation expense related to employees		—			—		52,173		—			—			—			52,173			—			52,173
Distribution to noncontrolling interests (2)		—			—		—		—			—			—			—			(2,209	)		(2,209	)
Balance as of March 31, 2025		111,219		$	4,617	$	4,495,539	$	(8,064,154	)	$	(4,996	)	$	7,029,751		$	3,460,757		$	41,469		$	3,502,226

	Ordinary Shares
	Shares			Amount		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive (Loss) (1)			Retained Earnings			Total Amdocs Limited Shareholders’ Equity			Non- controlling Interests (2)			Total Equity
Balance as of September 30, 2023		117,348		$	4,571	$	4,244,256	$	(7,221,313	)	$	(53,272	)	$	6,549,517		$	3,523,759		$	43,173		$	3,566,932
Comprehensive income:
Net income		—			—		—		—			—			266,467			266,467			1,680			268,147
Other comprehensive income		—			—		—		—			45,882			—			45,882			—			45,882
Comprehensive income		—			—		—		—			—			—			312,349			1,680			314,029
Employee stock options exercised		261			4		16,042		—			—			—			16,046			—			16,046
Repurchase of shares		(3,159	)		—		—		(273,941	)		—			—			(273,941	)		—			(273,941	)
Cash dividends declared ($0.958 per ordinary share)		—			—		—		—			—			(106,211	)		(106,211	)		—			(106,211	)
Issuance of restricted stock, net of forfeitures		1,192			15		—		—			—			—			15			—			15
Employee share purchase plan		275			3		19,967		—			—			—			19,970			—			19,970
Equity-based compensation expense related to employees		—			—		52,425		—			—			—			52,425			—			52,425
Distribution to noncontrolling interests (2)		—			—		—		—			—			—			—			(1,744	)		(1,744	)
Balance as of March 31, 2024	$	115,917		$	4,593	$	4,332,690	$	(7,495,254	)	$	(7,390	)	$	6,709,773		$	3,544,412		$	43,109		$	3,587,521

The accompanying notes are an integral part of these consolidated financial statements.

AMDOCS LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollar amounts in thousands)


	Six months ended March 31,
	2025			2024
Cash Flow from Operating Activities:
Net income	$	315,853		$	268,147
Reconciliation of net income to net cash provided by operating activities:
Depreciation, amortization and impairment		92,822			97,851
Amortization of debt issuance cost		300			296
Equity-based compensation expense		52,173			52,425
Deferred income taxes		2,296			559
Loss from short-term interest-bearing investments		1,739			4,640
Net changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable, net		33,174			(71,288	)
Prepaid expenses and other current assets		(32,526	)		19,305
Other noncurrent assets		5,141			(14,493	)
Lease assets and liabilities, net		(1,194	)		(6,130	)
Accounts payable, accrued expenses and accrued personnel		(126,700	)		70,073
Deferred revenue		27,846			(48,528	)
Income taxes payable, net		(11,082	)		(62,228	)
Other noncurrent liabilities		(81,829	)		4,415
Net cash provided by operating activities	$	278,013		$	315,044
Cash Flow from Investing Activities:
Purchase of property and equipment, net (b)		(43,319	)		(63,346	)
Proceeds from sale of short-term interest-bearing investments		92,955			31,141
Purchase of short-term interest-bearing investments		—			(9,061	)
Net cash paid for business acquisitions		(57,169	)		(87,129	)
Net cash from equity investments and other		16,741			(391	)
Net cash provided (used) in investing activities	$	9,208		$	(128,786	)
Cash Flow from Financing Activities:
Repurchase of shares		(279,720	)		(273,941	)
Proceeds from employee stock option exercises		11,422			16,061
Payments of dividends		(107,810	)		(101,736	)
Distribution to noncontrolling interests		(2,209	)		(1,744	)
Payment of contingent consideration and deferred payment of business acquisitions		(7,599	)		(2,063	)
Net cash used in financing activities	$	(385,916	)	$	(363,423	)
Net decrease in cash and cash equivalents		(98,695	)		(177,165	)
Cash and cash equivalents at beginning of period		346,085			520,080
Cash and cash equivalents at end of period	$	247,390		$	342,915
Supplementary Cash Flow Information
Cash paid for:
Income taxes, net of refunds (c)	$	79,009		$	114,574
Interest		20,442			16,843

(b) The amounts under "Purchase of property and equipment, net”, include immaterial proceeds from sale of property and equipment for the six months ended March 31, 2025 and 2024.

The accompanying notes are an integral part of these consolidated financial statements.

AMDOCS LIMITED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollar and share amounts in thousands, except per share data or as otherwise disclosed)

1. Nature of Entity and Basis of Presentation

Amdocs Limited (the “Company”) is a leading provider of software and services to communications, entertainment and media service providers of all sizes throughout the world. The Company and its consolidated subsidiaries operate in one segment and design, develop, market, support, implement and operate its open and modular cloud portfolio.

The Company is a Guernsey limited company, which directly or indirectly holds numerous subsidiaries around the world, the vast majority of which are wholly-owned. The majority of the Company’s customers are in North America, Europe, Asia-Pacific and the Latin America region. The Company’s main development facilities are located in Brazil, Canada, Cyprus, India, Ireland, Israel, Mexico, the Philippines, the United Kingdom and the United States.

The unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP and are denominated in U.S. dollars.

In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation of the unaudited interim consolidated financial statements have been included herein and are of a normal recurring nature. The preparation of financial statements during interim periods requires management to make numerous estimates and assumptions that impact the reported amounts of assets, liabilities, revenue and expenses. Estimates and assumptions are reviewed periodically and the effect of revisions is reflected in the results of operations for the interim periods in which changes are determined to be necessary.

The results of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for the full fiscal year. These statements do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with GAAP. These statements should be read in conjunction with the Company’s consolidated financial statements for the fiscal year ended September 30, 2024, set forth in the Company’s Annual Report on Form 20-F filed on December 17, 2024 with the U.S. Securities and Exchange Commission, or the SEC. There have been no material changes to the Company’s significant accounting policies from its Annual Report on Form 20-F for the fiscal year ended September 30, 2024.

Reclassification

From time to time, certain immaterial amounts in prior year financial statements may be reclassified to conform to the current year presentation.

2. Recent Accounting Standards

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures", to disclose in the notes of the financial statements additional information about specific expense categories. This ASU will be effective for the Company's annual report for fiscal year 2028 and for interim period reporting beginning in fiscal year 2029, with early adoption permitted and should be applied either prospectively or retroactively. The Company is currently evaluating the impact of the adoption on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, “Improvements to Income Tax Disclosures”, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This ASU will be effective for the Company's annual report for fiscal year 2026 and allows adoption on a prospective basis, with a retrospective option. This ASU will only have an impact on the Company's income tax disclosures. The Company is currently evaluating the impact of the adoption on its consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280), “Improvements to Reportable Segment Disclosures,” which enhances the disclosures required for operating segments in the annual and interim consolidated financial statements. This ASU will be effective for the Company's annual report for fiscal year 2025 and for interim period reporting beginning in fiscal year 2026 on a retrospective basis with early adoption permitted. The Company is currently evaluating the impact of the adoption on its consolidated financial statements.

AMDOCS LIMITED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollar and share amounts in thousands, except per share data or as otherwise disclosed)

3. Acquisitions

During the six months ended March 31, 2025, the Company completed three business acquisitions for an aggregate net consideration of approximately $59,000 in cash, and a potential for additional consideration which may be paid later based on achievement of certain performance metrics. The majority of this amount was paid for the acquisition of Profinit, a data science and engineering company. These acquisitions, individually and in the aggregate, were not material in the period presented. In allocating the total consideration based on the preliminary estimated fair values for Profinit, the Company recorded $29,418 of goodwill, and $18,439 of customer relationships to be amortized over approximately five years.

During the six months ended March 31, 2024, the Company completed two business acquisitions for an aggregate net consideration of approximately $84,500 in cash, and a potential for additional consideration which may be paid later based on achievement of certain performance metrics. The vast majority of this amount was paid for the acquisition of Astadia, which specializes in mainframe-to-cloud migration and modernization. These acquisitions, individually and in the aggregate, were not material in period presented. In allocating the total consideration based on the preliminary estimated fair values for Astadia, the Company recorded $86,894 of goodwill, $27,677 of customer relationships to be amortized over approximately six years, $8,001 of core technology to be amortized over approximately four years, and $1,784 of trademark to be amortized over approximately three years.

4. Revenue

Contract Balances

The following table provides information about accounts receivable, both billed and unbilled and deferred revenue:


	As of
	March 31, 2025			September 30, 2024
Accounts receivable - billed (net of allowance for credit losses of $43,838 and $32,638 as of March 31, 2025 and September 30, 2024, respectively)	$	600,255		$	665,740
Accounts receivable – unbilled (current)		357,610			362,617
Accounts receivable – unbilled (non-current)		120,047			75,050
Total Accounts receivable - unbilled		477,657			437,667
Deferred revenue (current)		(139,640	)		(115,247	)
Deferred revenue (non-current)		(8,052	)		(836	)
Total Deferred revenue	$	(147,692	)	$	(116,083	)

Revenue recognized during the three and six months ended March 31, 2025, which was included in deferred revenue (current) as of September 30, 2024 was $15,709 and $84,753. Revenue recognized during the three and six months ended March 31, 2024, which was included in deferred revenue (current) as of September 30, 2023 was $26,310 and $142,423, respectively.

As of March 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was approximately $5.6 billion. Remaining performance obligations include the remaining non-cancelable, committed and fixed portion of these contracts for their entire duration and therefore it is not comparable to what the Company considers to be next 12 months backlog. Given the profile of contract terms, the majority of this amount is expected to be recognized as revenue over the next three years.

Disaggregation of Revenue

The Company considers information that is regularly reviewed by its chief operating decision makers in evaluating financial performance to disaggregate revenue.

The following tables provide details of revenue by nature of activities and by geography:

Revenue by nature of activities


	Three months ended March 31,				Six months ended March 31,
	2025		2024		2025		2024
Managed services arrangements	$	747,108	$	720,285	$	1,475,963	$	1,442,744
Others		381,095		525,564		762,295		1,048,304
Total	$	1,128,203	$	1,245,849	$	2,238,258	$	2,491,048

AMDOCS LIMITED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollar and share amounts in thousands, except per share data or as otherwise disclosed)

Geographic Information


	Three months ended March 31,				Six months ended March 31,
	2025		2024		2025		2024
North America (mainly United States)	$	738,335	$	823,206	$	1,475,731	$	1,661,341
Europe		180,676		184,848		335,908		366,268
Rest of the world		209,192		237,795		426,619		463,439
Total	$	1,128,203	$	1,245,849	$	2,238,258	$	2,491,048

5. Fair Value Measurement

The Company accounts for certain assets and liabilities at fair value. Fair value is the price that would be received from selling an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety.

The three levels of inputs that may be used to measure fair value are as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities;

Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets), or other inputs that are observable (model-derived valuations in which significant inputs are observable) or can be derived principally from, or corroborated by, observable market data; and

Level 3: Unobservable inputs that are supported by little or no market activity that is significant to the fair value of the assets or liabilities.

The following tables present the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and September 30, 2024:


	As of March 31, 2025
	Level 1		Level 2			Level 3			Total
Available-for-sale securities:
Money market funds	$	33,849	$	—		$	—		$	33,849
Corporate bonds		—		32,345			—			32,345
U.S. government treasuries		28,135		—			—			28,135
Supranational and sovereign debt		—		13,746			—			13,746
Municipal bonds		—		1,943			—			1,943
Asset backed obligations		—		188			—			188
Total available-for-sale securities		61,984		48,222			—			110,206
Equity Investments		—					33,398			33,398
Derivative financial instruments, net		—		(4,277	)		—			(4,277	)
Acquisition-related liabilities		—		—			(49,077	)		(49,077	)
Total	$	61,984	$	43,945		$	(15,679	)	$	90,250

AMDOCS LIMITED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollar and share amounts in thousands, except per share data or as otherwise disclosed)


	As of September 30, 2024
	Level 1		Level 2			Level 3			Total
Available-for-sale securities:
Money market funds	$	142,920	$	—		$	—		$	142,920
Corporate bonds		—		108,420			—			108,420
U.S. government treasuries		35,533		—			—			35,533
Supranational and sovereign debt		—		16,660			—			16,660
Municipal bonds		—		4,191			—			4,191
Asset backed obligations		—		3,438			—			3,438
Total available-for-sale securities		178,453		132,709			—			311,162
Equity Investments		—		—			42,190			42,190
Derivative financial instruments, net		—		(6,380	)		—			(6,380	)
Acquisition-related liabilities		—		—			(52,139	)		(52,139	)
Total	$	178,453	$	126,329		$	(9,949	)	$	294,833

Available-for-sale securities that are classified as Level 2 assets are priced using observable data that may include quoted market prices for similar instruments, market dealer quotes, market spreads, non-binding market prices that are corroborated by observable market data and other observable market information. The Company’s derivative instruments are classified as Level 2 as they represent foreign currency forward and option contracts valued primarily based on observable inputs including forward rates and yield curves. The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the three and six months ended March 31, 2025. Level 3 liabilities relate to certain acquisition-related liabilities, which were generally valued using a Monte-Carlo simulation model and based on estimates of potential pay-out scenarios, valued every quarter. These liabilities were included in both accrued expenses and other current liabilities and other noncurrent liabilities as of March 31, 2025 and September 30, 2024. The decrease in Level 3 liabilities was primarily attributable to changes in the fair value recorded in the consolidated statement of income during the three and six months ended March 31, 2025, payments of certain acquisition-related liabilities, which were partially offset by new acquisition-related liabilities recorded against goodwill in connection with recent acquisitions. The decrease in Level 3 assets is primarily due to the sale of an equity investment and, to a lesser extent, changes in fair value recorded in the consolidated statement of income for the three and six months ended March 31, 2025.

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, accrued personnel costs approximate their fair value because of the relatively short maturity of these items, for the fair value of the Senior Notes, see Note 13.

6. Available-For-Sale Securities

Available-for-sale securities consist of the following interest-bearing investments:


	As of March 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Money market funds	$	33,849	$	—	$	—	$	33,849
Corporate bonds		33,334		—		989		32,345
U.S. government treasuries		28,960		—		825		28,135
Supranational and sovereign debt		14,311		—		565		13,746
Municipal bonds		1,991		—		48		1,943
Asset backed obligations		189		—		1		188
Total(1)	$	112,634	$	—	$	2,428	$	110,206

(1)

Available-for-sale securities with maturities longer than 90 days from the date of acquisition were classified as short-term interest-bearing investments and available-for-sale securities with maturities of 90 days or less from the date of acquisition were included in cash and cash equivalents on the Company’s balance sheet. As of March 31, 2025, $76,358 of securities were classified as short-term interest-bearing investments and $33,849 of securities were classified as cash and cash equivalents.

AMDOCS LIMITED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollar and share amounts in thousands, except per share data or as otherwise disclosed)


	As of September 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Money market funds	$	142,920	$	—	$	—	$	142,920
Corporate bonds		111,351		—		2,931		108,420
U.S. government treasuries		36,904		—		1,371		35,533
Supranational and sovereign debt		17,438		—		778		16,660
Municipal bonds		4,317		—		126		4,191
Asset backed obligations		3,470		—		32		3,438
Total(1)	$	316,400	$	—	$	5,238	$	311,162

(1)

Available-for-sale securities with maturities longer than 90 days from the date of acquisition were classified as short-term interest- bearing investments and available-for-sale securities with maturities of 90 days or less from the date of acquisition were included in cash and cash equivalents on the Company’s consolidated balance sheets. As of September 30, 2024, $168,242 of securities were classified as short-term interest-bearing investments and $142,920 of securities were classified as cash and cash equivalents.

As of March 31, 2025, the immaterial unrealized losses attributable to the Company’s available-for-sale securities were primarily due to credit spreads and interest rate movements. The Company assessed whether such unrealized losses for the investments in its portfolio were caused by expected credit losses. Based on this assessment, the Company did not recognize any credit losses in the three and six months ended March 31, 2025 and 2024. Realized gains and losses on short-term interest-bearing investments are included in earnings and are determined based on specific identification method. The Company does not intend to sell these investments. In addition, it is more likely than not that the Company will not be required to sell them before recovery of the amortized cost basis, which may be at maturity.

As of March 31, 2025, the Company’s available-for-sale securities had the following maturity dates:


	Market Value
Due within one year	$	77,358
1 to 2 years		32,848
	$	110,206

7. Derivative Financial Instruments

The Company’s risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative transactions for trading purposes.

The Company’s derivatives expose it to credit risks from possible non-performance by counterparties. The Company utilizes standard counterparty master netting agreements that net certain foreign currency transactions in the event of the insolvency of one of the parties to the transaction. These master netting arrangements permit the Company to net amounts due from the Company to a counterparty with amounts due to the Company from the same counterparty. Although all of the Company’s recognized derivative assets and liabilities are subject to enforceable master netting arrangements, the Company has elected to present these assets and liabilities on a gross basis. Taking into account the Company’s right to net certain gains with losses, the maximum amount of loss due to credit risk that the Company would incur if all counterparties to the derivative financial instruments failed completely to perform, according to the terms of the contracts, based on the gross fair value of the Company’s derivative contracts that are favorable to the Company, was immaterial as of March 31, 2025. The Company has limited its credit risk by entering into derivative transactions exclusively with investment-grade rated financial institutions and monitors the creditworthiness of these financial institutions on an ongoing basis.

The Company classifies cash flows from its derivative transactions as cash flows from operating activities in the consolidated statements of cash flows.

The table below presents the total volume or notional amounts of the Company’s derivative instruments as of March 31, 2025. Notional values are in U.S. dollars and are translated and calculated based on forward rates as of March 31, 2025 for forward contracts.


	Notional Value*
Foreign exchange contracts	$	1,578,764

* Gross notional amounts do not quantify risk or represent assets or liabilities of the Company but are used in the calculation of settlements under the contracts.

AMDOCS LIMITED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollar and share amounts in thousands, except per share data or as otherwise disclosed)

The Company records all derivative instruments on the consolidated balance sheets at fair value. For further information, please see Note 5 to the consolidated financial statements. The fair value of the open foreign exchange contracts recorded as an asset or a liability by the Company on its consolidated balance sheets as of March 31, 2025 and September 30, 2024, is as follows:


	As of
	March 31, 2025			September 30, 2024
Derivatives designated as hedging instruments
Prepaid expenses and other current assets	$	3,144		$	3,264
Other noncurrent assets		142			2,987
Accrued expenses and other current liabilities		(3,729	)		(4,093	)
Other noncurrent liabilities		(1,201	)		(236	)
		(1,644	)		1,922
Derivatives not designated as hedging instruments
Prepaid expenses and other current assets	$	4,670		$	2,674
Other noncurrent assets		1,245			1,236
Accrued expenses and other current liabilities		(8,548	)		(12,212	)
		(2,633	)		(8,302	)
Net fair value	$	(4,277	)	$	(6,380	)

Cash Flow Hedges

In order to reduce the impact of changes in foreign currency exchange rates on its results, the Company enters into foreign currency exchange forward and option contracts to purchase and sell foreign currencies to hedge a significant portion of its foreign currency net exposure resulting from revenue and expense transactions denominated in currencies other than the U.S. dollar. The Company designates these contracts for accounting purposes as cash flow hedges. The Company currently hedges its exposure to the variability in future cash flows for a maximum period of approximately three years. A significant portion of the forward contracts outstanding as of March 31, 2025 is scheduled to mature within the next 12 months.

The effective portion of the gain or loss on the derivative instruments is initially recorded as a component of other comprehensive (loss) income, net, a separate component of equity, and subsequently reclassified into earnings in the same line item as the related forecasted transaction and in the same period or periods during which the hedged exposure affects earnings. The cash flow hedges are evaluated for effectiveness quarterly. As the critical terms of the forward contract or option and the hedged transaction are matched at inception, the hedge effectiveness is assessed generally based on changes in the fair value for cash flow hedges, as compared to the changes in the fair value of the cash flows associated with the underlying hedged transactions. Hedge ineffectiveness, if any, is recognized immediately in interest and other expense, net.

The effect of the Company's cash flow hedging instruments in the consolidated statements of income for the three and six months ended March 31, 2025 and 2024, respectively, which partially offsets the foreign currency impact from the underlying exposures, is summarized as follows:


	Gains (Losses) Reclassified from
	Accumulated Other Comprehensive Loss (Effective Portion)
	Three months ended March 31,		Six months ended March 31,
	2025	2024	2025	2024
Line item in consolidated statements of income:

AMDOCS LTD 6-K