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PAYC

Paycom Software, Inc.

PAYC

Paycom Software, Inc. • NYSE
$161.17 ▲ 0.22% (+0.35)
Market Cap $9.03 B
52w High $267.76
52w Low $156.50
Dividend Yield 1.50%
P/E 20.05
Volume 211.74K
Outstanding Shares 56.05M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $493.3M ▲ $271.7M ▼ $110.7M ▲ 22.441% ▲ $1.97 ▲ $198.8M ▲
Q2-2025 $483.6M ▼ $283.8M ▲ $89.5M ▼ 18.507% ▼ $1.59 ▼ $160M ▼
Q1-2025 $530.5M ▲ $260.8M ▼ $139.4M ▲ 26.277% ▲ $2.49 ▲ $231.1M ▲
Q4-2024 $493.873M ▲ $261.669M ▲ $113.6M ▲ 23.002% ▲ $2.03 ▲ $192.289M ▲
Q3-2024 $451.934M $258.707M $73.278M 16.214% $1.31 $147.161M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $375M ▼ $4.245B ▲ $2.536B ▲ $1.709B ▼
Q2-2025 $532.2M ▲ $4.031B ▼ $2.229B ▼ $1.802B ▲
Q1-2025 $520.8M ▲ $4.573B ▼ $2.855B ▼ $1.717B ▲
Q4-2024 $402M ▲ $5.86B ▲ $4.284B ▲ $1.576B ▲
Q3-2024 $325.757M $3.493B $2.028B $1.465B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $110.7M ▲ $175.9M ▲ $-94M ▲ $-38.7M ▲ $-157.2M ▼ $77.9M ▲
Q2-2025 $89.5M ▼ $122.5M ▼ $-185.3M ▲ $-677.2M ▲ $11.4M ▼ $60.8M ▼
Q1-2025 $139.4M ▲ $182.5M ▲ $-379.9M ▼ $-1.452B ▼ $118.8M ▲ $144.8M ▲
Q4-2024 $113.6M ▲ $160.387M ▲ $-55.738M ▼ $2.198B ▲ $76.243M ▲ $109.036M ▲
Q3-2024 $73.278M $92.781M $-38.14M $-928.882M $-20.699M $44.567M

Revenue by Products

Product Q3-2024Q4-2024Q1-2025Q2-2025
Implementation And Other
Implementation And Other
 $10.00M ▲$0 ▼$10.00M ▲$10.00M ▲
Recurring
Recurring
 $450.00M ▲$370.00M ▼$490.00M ▲$450.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown strongly over the past five years, moving from being a smaller niche player to a sizable, scaled software business. Profitability has improved even faster than sales, with operating and net income expanding as the company adds clients without a matching rise in costs. This points to strong operating leverage and an attractive software model where each additional dollar of revenue is increasingly profitable. Earnings per share have climbed meaningfully as well, showing that growth is not just top-line, but also falling to the bottom line. The main watchpoint is that growth, while still healthy, appears to be slowing from the very high rates seen a few years ago as the company gets larger and the market becomes more competitive.

Balance Sheet

Balance Sheet The balance sheet looks conservative and strengthening. Total assets have risen steadily as the business has scaled, and shareholder equity has grown consistently, reflecting profits being retained in the company. Debt levels are low relative to the size of the business, which reduces financial risk and gives management flexibility in downturns. Cash on hand has generally increased over time, though it remains only a modest portion of total assets, which is typical for a growing software firm that invests in product and infrastructure rather than hoarding cash. Overall, the financial foundation appears solid and not overly reliant on borrowing.

Cash Flow

Cash Flow Cash generation is a key strength. Operating cash flow has risen steadily alongside earnings, indicating that reported profits are backed by actual cash coming in the door. After funding capital spending needs, the business has consistently produced positive free cash flow, and that free cash flow has grown over time. Capital expenditures have been rising but remain manageable relative to cash generation, suggesting the company is investing to support future growth while still leaving room for shareholder-friendly uses of cash. The pattern is characteristic of a mature, high-margin software platform rather than a speculative early-stage tech company.

Competitive Edge

Competitive Edge Paycom operates in a very competitive human capital management market, up against large, well-known players such as ADP, Workday, and UKG. Its main edge comes from a single, unified database and platform built in-house, rather than a patchwork of acquired systems. This design creates a smoother user experience, fewer data issues, and tighter integration across payroll and HR functions. High switching costs further strengthen its position: once clients embed Paycom into their processes and train employees, moving to another provider is painful and risky. Client retention appears high and the customer base is diversified, which reduces dependency on any one client. The flip side is ongoing pressure from bigger rivals, potential pricing competition, and the need to keep proving its value as HR and payroll buyers reassess vendors over time.

Innovation and R&D

Innovation and R&D Innovation is at the core of Paycom’s strategy. The company has built all of its tools on a single platform and continues to roll out distinctive features, such as Beti, which lets employees effectively run their own payroll, and automation tools that handle time-off decisions and other routine HR work. Analytics like Direct Data Exchange help employers measure ROI from employee usage, pushing deeper adoption. More recently, Paycom has been leaning into artificial intelligence, with conversational tools designed to let users get answers and perform tasks by simply asking. It is also extending its technology to global payroll and HR, aiming to serve multinational clients from a single system. The opportunity is to widen its moat through better automation and global reach, but there is execution risk in scaling internationally and staying ahead of fast-moving AI and software trends.

Summary

Paycom has evolved into a profitable, cash-generative software company with a clear niche in human capital management. Its financial profile shows steady revenue growth, expanding margins, a conservative balance sheet, and robust free cash flow, all of which signal a durable, scalable business model rather than a fragile growth story. Competitively, the unified platform, employee-centric design, and high switching costs provide meaningful advantages, though the company operates in a crowded field with deep-pocketed rivals. Continued investment in automation, AI, and global capabilities is central to its future, offering both upside and execution risk. Overall, Paycom looks like a mature, high-margin software platform that is still growing, with its long-term trajectory tied to maintaining product leadership and defending its position in a rapidly evolving HR technology landscape.

NEWS

November 25, 2025 · 12:03 PM UTC

Oklahoma Sports Hall of Fame and Jim Thorpe Association Proudly Reveal the Paycom Jim Thorpe Award 2025 Finalists

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November 5, 2025 · 4:05 PM UTC

Paycom Software, Inc. Reports Third Quarter 2025 Results

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November 3, 2025 · 5:00 PM UTC

Paycom Announces Quarterly Cash Dividend

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October 28, 2025 · 12:05 PM UTC

Oklahoma Sports Hall of Fame and Jim Thorpe Association Proudly Reveal the Paycom Jim Thorpe Award 2025 Semifinalists

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October 23, 2025 · 4:05 PM UTC

Automation, Tech-Forward Solutions Dominate HR Priorities for 2026, Paycom Report Reveals

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