PAYC · Technology

Paycom Software, Inc.

Ranked earnings events from SEC filings, earnings calls, press releases and news. Full Picture: what to focus on this earnings window

10-Q · 2026-08-06

• Operating Margin DriversImportance 64 · Surprise 56
  Operating income increased 50.0% year over year to $168.5 million in the second quarter of 2026 and 27.3% to $378.7 million for the first six months. Operating margin expanded from 23.2% to 31.7% in the quarter and…
• Liquidity and Debt PositionImportance 64 · Surprise 42
  Paycom had $900.0 million of outstanding borrowings under its Revolving Credit Facility as of June 30, 2026, with the borrowings used to fund stock repurchases. On April 23, 2026, the amended credit agreement increased…
• Capital Return ProgramImportance 64 · Surprise 42
  Paycom repurchased 10,945,515 common shares during the six months ended June 30, 2026 at an average cost of $128.48 per share, including $16.6 million of cash used for shares withheld to cover equity-award tax…
• Income Tax Rate ChangesImportance 64 · Surprise 56
  Paycom’s effective income tax rate increased to 29.3% for the six months ended June 30, 2026 from 25.6% in the comparable 2025 period. The higher rate was primarily caused by lower excess tax benefits from stock-based…
• Operating Cash Flow TrendsImportance 64 · Surprise 56
  Operating cash flow increased 40% to $427.6 million for the six months ended June 30, 2026 from $305.0 million in the prior-year period. The improvement was primarily supported by client payments, interest earned on…
• Outstanding IndebtednessImportance 64 · Surprise 42
  On April 23, 2026, Paycom amended and restated its Credit Agreement, increasing its Revolving Credit Facility to $2.125 billion and extending maturity to April 23, 2031. The company had $900.0 million outstanding at…
• Operating Expense TrendsImportance 58 · Surprise 56
  Research and development expense fell 30.6% to $51.9 million in the second quarter and 17.8% to $112.6 million for the six months, primarily because of lower employee-related expense and reduced headcount. Total…
• Market Demand TrendsImportance 54 · Surprise 40
  Recurring and other revenue increased 11.0% year over year in the second quarter and 9.8% in the first six months, driven by new clients, additional application and service sales to existing clients, increased product…
• Revenue Performance and MixImportance 49 · Surprise 32
  Total revenue increased 9.8% year over year to $531.2 million in the second quarter of 2026 and 8.8% to $1.103 billion for the six months ended June 30, 2026. Recurring and other revenue grew 11.0% to $505.2 million in…
• Interest Rate EnvironmentImportance 49 · Surprise 32
  Lower interest rates reduced interest earned on funds held for clients to $53.9 million for the six months ended June 30, 2026, down 8.7% from $59.0 million in the prior-year period. The decline was partially offset by…
• US Tax Law ChangesImportance 40 · Surprise 42
  The One Big Beautiful Bill Act, H.R. 1, was signed into U.S. law on July 4, 2025 and amended the federal tax code. The law permits immediate deductions for domestic research and development expenditures and reinstates…
• AI Automation StrategyImportance 34 · Surprise 42
  Paycom is incorporating AI and automation across its full HCM solution as a strategic differentiator for client acquisition and retention. Its IWant™ command-driven AI engine enables users to obtain employee-data…
• DividendsImportance 31 · Surprise 6
  Paycom paid quarterly cash dividends of $0.375 per share in March and June 2026, totaling $17.5 million and $17.1 million, respectively. On August 3, 2026, the Board declared another $0.375-per-share dividend payable…
• Products and TechnologyImportance 31 · Surprise 42
  Paycom provides a cloud-based, Software-as-a-Service HCM solution spanning payroll, talent acquisition, talent management, human resources management, and time and labor management. The company is incorporating AI and…
• Geographic Market CommentaryImportance 31 · Surprise 42
  Paycom launched its Global HCM solution and is expanding payroll services into certain international markets. The international capabilities are intended to make Paycom’s platform more attractive to larger companies…
• Global HCM ExpansionImportance 31 · Surprise 42
  Paycom launched its Global HCM solution and is expanding payroll services into certain international markets. Management expects the ability to serve organizations with international employees to improve the solution’s…
• Competition and Pricing PressureImportance 10 · Surprise 6
  Paycom characterizes the HCM software market as highly competitive, rapidly evolving, and fragmented. The company expects intense competition from new market entrants and disruptive technologies, alongside aggressive…
• Customer DynamicsImportance 10 · Surprise 6
  Paycom serves a diversified client base across company sizes and industries, with its average client size increasing as the company expands its operations and application portfolio. The company seeks to increase…
• Distribution ChannelsImportance 10 · Surprise 6
  Paycom generates most revenue through its direct sales force, which solicits new clients, and client relations representatives, who sell additional applications to existing clients. Marketing and lead-generation…
• Macroeconomic Factors ImpactImportance 10 · Surprise 6
  Paycom states that inflation and changes in interest rates affect clients’ hiring practices, which in turn can affect revenue because certain offerings are priced per employee. The company also identifies labor-market…

News · 2026-08-06

• Operating Income and MarginsImportance 89 · Surprise 92
  Paycom reported second-quarter adjusted EBITDA of approximately $235 million, implying a 44.2% adjusted EBITDA margin. The company attributed profitability improvement to operational efficiencies from automation and AI…
• Capital Return ProgramImportance 58 · Surprise 42
  Paycom repurchased 2,570,072 shares for approximately $345.9 million during the second quarter of 2026. The company also paid $17.9 million in cash dividends during the quarter. Separately, Paycom declared a quarterly…
• Headcount / RestructuringImportance 31 · Surprise 42
  Paycom’s second-quarter operating efficiency included headcount reductions, according to a third-party summary of its 10-Q. The reported reductions contributed to improved operating efficiency alongside AI initiatives.…
• Revenue Performance and MixImportance 25 · Surprise 32
  Paycom reported second-quarter 2026 revenue of $531.2 million for the quarter ended June 30, up 9.8% year over year. Growth was driven by broad-based demand, increased recurring revenue, and new client acquisition…
• Competition and Market ShareImportance 17 · Surprise 24
  Paycom primarily serves the midmarket, with customers averaging approximately 360 employees. Morningstar reported that the company faces increased competition as it pursues larger, upmarket customers. The competitive…

8-K · 2026-08-05

• Liquidity and Debt PositionImportance 89 · Surprise 82
  Cash and cash equivalents were $198.0 million at June 30, 2026, down from $370.0 million at December 31, 2025. Paycom had $900.0 million of long-term debt at June 30, 2026, compared with no long-term debt at year-end…
• Capital Return ProgramImportance 83 · Surprise 82
  Paycom paid $17.9 million in cash dividends during the second quarter of 2026. The company repurchased 2,570,072 common shares for an aggregate $345.9 million during the quarter. For the six months ended June 30,…
• Guidance and OutlookImportance 80 · Surprise 68
  Paycom raised its full-year 2026 outlook while projecting total revenue of $2.197 billion to $2.212 billion, representing 7% to 8% year-over-year growth. The company expects recurring and other revenue growth of 8% to…
• Operating Cash Flow and CapexImportance 69 · Surprise 64
  Six-month operating cash flow increased to $427.6 million from $305.0 million, a 40.2% year-over-year increase. Free cash flow increased to $372.7 million from $205.6 million, and free cash flow margin rose to 33.8%…
• Interest Rate EnvironmentImportance 69 · Surprise 64
  Paycom’s outlook includes approximately $105 million of interest on funds held for clients for the year ending December 31, 2026. Quarterly interest on funds held for clients was $26.0 million, compared with $28.5…
• Operating Income and MarginsImportance 64 · Surprise 56
  Second-quarter operating income increased 50.0% to $168.5 million from $112.3 million. GAAP net income rose to $107.4 million from $89.5 million, increasing net margin to 20.2% from 18.5%. Adjusted EBITDA increased to…
• Market Demand TrendsImportance 54 · Surprise 40
  Paycom’s recurring and other revenues increased 11.0% year over year to $505.2 million in the second quarter of 2026, exceeding the 9.8% growth in total revenue to $531.2 million. Recurring and other revenues…
• Operating Expense TrendsImportance 46 · Surprise 56
  Second-quarter total operating expenses declined to $362.7 million from $371.3 million, while revenue increased 9.8% year over year. Research and development expense fell 30.6% to $51.9 million from $74.8 million, and…
• Gross Margin DriversImportance 43 · Surprise 40
  Second-quarter GAAP gross profit increased to $442.1 million from $396.1 million, a $46.0 million year-over-year improvement. GAAP gross margin expanded to 83.2% from 81.9%, while adjusted gross margin increased to…
• Revenue Performance and MixImportance 42 · Surprise 14
  Second-quarter 2026 total revenue was $531.2 million, up 9.8% from $483.6 million in the year-earlier quarter. Recurring and other revenue increased 11.0% year over year to $505.2 million and represented 95.1% of total…

News · 2026-08-05

• Operating Income and MarginsImportance 89 · Surprise 92
  Paycom reported second-quarter adjusted EBITDA of approximately $235 million, implying a 44.2% adjusted EBITDA margin. The company attributed profitability improvement to operational efficiencies from automation and AI…
• Capital Return ProgramImportance 58 · Surprise 42
  Paycom repurchased 2,570,072 shares for approximately $345.9 million during the second quarter of 2026. The company also paid $17.9 million in cash dividends during the quarter. Separately, Paycom declared a quarterly…
• Guidance and OutlookImportance 51 · Surprise 60
  Paycom raised its fiscal 2026 revenue outlook to $2.197 billion-$2.212 billion, above the approximately $2.19 billion FactSet consensus. Management also projected adjusted EBITDA of $1.007 billion-$1.022 billion and an…
• Products and TechnologyImportance 31 · Surprise 42
  Paycom is expanding its automation-focused HCM platform with AI investments and new products. The company launched Asset Management, broadening its offering beyond its core payroll product and supporting compliance and…
• AI Automation StrategyImportance 31 · Surprise 42
  Paycom is using automation and artificial intelligence to improve client value and internal operating efficiency. Management highlighted savings from AI infrastructure investments and linked the technology to demand…
• Revenue Performance and MixImportance 25 · Surprise 32
  Paycom reported second-quarter 2026 revenue of $531.2 million for the quarter ended June 30, up 9.8% year over year. Growth was driven by broad-based demand, increased recurring revenue, and new client acquisition…
• Market Demand TrendsImportance 25 · Surprise 32
  Paycom reported broad-based demand for its cloud-based human capital management platform in the second quarter of 2026. Reuters attributed the stronger outlook to steady demand for Paycom’s AI-driven…

News · 2026-08-04

• Market Demand TrendsImportance 25 · Surprise 32
  Paycom reported broad-based demand for its cloud-based human capital management platform in the second quarter of 2026. Reuters attributed the stronger outlook to steady demand for Paycom’s AI-driven…
• Litigation and Legal RiskImportance 18 · Surprise 24
  Faruqi & Faruqi reminded Paycom investors about a federal securities class action alleging false or misleading statements concerning revenue growth, Beti’s effect on fees, and declining gross profit margins. The…
• Quarterly Dividend DeclarationImportance 13 · Surprise 6
  Paycom declared a quarterly cash dividend of $0.375 per share on August 4, 2026. The dividend is payable on September 8, 2026, to shareholders of record as of August 24, 2026. The declaration was submitted through a…