10-Q · November 6, 2025
Paycom reported a solid Q3 with total revenue of $493.3M (up from $451.9M in Q3 2024) and diluted EPS of $1.96 (up from $1.31). Gross margin remained high at ~82.7% while operating income improved modestly to $112.6M;…
Earnings analysis · 10-Q
PAYC earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Paycom Software, Inc. reported impressive Q1 2026 results with revenues reaching $571.9 million and EPS at $3.15, exceeding consensus estimates. The company reaffirmed its full-year outlook, bolstered by continued…
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Paycom Software, Inc. reported impressive Q1 2026 results with revenues reaching $571.9 million and EPS at $3.15, exceeding consensus estimates. The company reaffirmed its full-year outlook, bolstered by continued growth in its HCM solutions.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.15
- Operating margin
- 36.8%
What stood out
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Strong Revenue Growth
Revenue increased by 7.8% year-over-year from $530.5 million.
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EPS Surplus
Diluted EPS of $3.15 surpassed the estimate of $2.89 by 9%.
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Improved Operating Margin
Operating margin improved to 36.8% from 34.9% a year earlier.
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Increased Operating Income
Operating income rose by 13.5% to $210.2 million compared to the previous year.
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Cash Flow from Operations
Net cash from operating activities increased by 17% to $213.8 million.
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Liquidity Remains Strong
Cash and equivalents total $153.9 million, supported by $2.2 billion in funds held for clients.
What to watch
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Increased Interest Expense
Interest expense soared to $4.0 million, up 416.3% from $0.8 million the previous year.
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Client Attrition Risk
Client attrition, particularly among smaller clients, has partially offset revenue growth.
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Market Competitiveness
The HCM software market remains highly competitive with ongoing pricing pressures impacting revenue.
Management's outlook
Reaffirmed outlook of 6%-7% year-over-year revenue growth.
Earlier filings 4
10-Q · May 8, 2025
Paycom reported total revenue of $530.5 million for the quarter ended March 31, 2025, up $30.6 million (+6.1%) versus the prior-year quarter (Q1 2024: $499.9 million). Gross margin was essentially flat at ~84.1% (cost…
10-K · February 20, 2025
Paycom positions itself as a single-database, end-to-end SaaS HCM provider with a strong client experience focus (approximately 37,500 clients) and high retention (annual revenue retention rate of 90% for the years…
10-Q · October 31, 2024
Q3 2024 revenue grew to $451,934,000 (up $45,631,000 or 11.2% vs Q3 2023) driven by recurring revenue growth, but gross margin compressed to ~80.5% from ~83.1% a year ago. Operating income rose to $104,874,000 (up…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.