PAYC · 8-K · 20260805PR335105
Gross Margin Drivers
Paycom Software, Inc. · 2026-08-05 · Importance 43 · Surprise 40 · No source text
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 83.6% from 83.2%. Total cost of revenues rose only $1.6 million to $89.1 million, despite revenue growth of $47.6 million.
Key facts
- Total gross profit for the three months ended June 30, 2026: $442.1 million and gross margin 83.2%. source
- Adjusted gross profit for the three months ended June 30, 2026: $444.1 million and adjusted gross margin 83.6%. source
- Total cost of revenues for the three months ended June 30, 2026: $89.1 million (with operating expenses $64.6 million and depreciation & amortization $24.5 million). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +83.2% | Total gross profit for the three months ended June 30, 2026: $442.1 million and gross margin 83.2%. |
| operating_income | negative | realized | -16.8% | Total cost of revenues for the three months ended June 30, 2026: $89.1 million (with operating expenses $64.6 million and depreciation &… |