PAYC earnings analysis
What we found in PAYC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Revenue increased by 7.8% year-over-year from $530.5 million.
- EPS Surplus
- Diluted EPS of $3.15 surpassed the estimate of $2.89 by 9%.
- Improved Operating Margin
- Operating margin improved to 36.8% from 34.9% a year earlier.
- Increased Operating Income
- Operating income rose by 13.5% to $210.2 million compared to the previous year.
- Cash Flow from Operations
- Net cash from operating activities increased by 17% to $213.8 million.
- Liquidity Remains Strong
- Cash and equivalents total $153.9 million, supported by $2.2 billion in funds held for clients.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Interest Expense
- Interest expense soared to $4.0 million, up 416.3% from $0.8 million the previous year.
- Client Attrition Risk
- Client attrition, particularly among smaller clients, has partially offset revenue growth.
- Market Competitiveness
- The HCM software market remains highly competitive with ongoing pricing pressures impacting revenue.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.15
- Operating margin
- 36.8%
What they said about what is next.
Reaffirmed outlook of 6%-7% year-over-year revenue growth.
The filing reads better than the one before it.
What came before.
- 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;…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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