PAYC · 8-K · 20261104PR447248
Operating Income and Margins
Paycom Software, Inc. · 2026-11-04 · Importance 69 · Surprise 64 · No source text
Third-quarter operating income rose to $195.8 million from $112.6 million year over year, an increase of approximately 74%. GAAP operating margin increased to approximately 36.0% from 22.8%, calculated using reported operating income and revenue. Gross margin increased to 84.0% from 82.7%, while adjusted EBITDA rose to $268.1 million from $194.3 million and its margin increased to 49.3% from 39.4%.
Key facts
- Q3 2026 operating income was $195.8 million, compared with $112.6 million in Q3 2025. source
- For the nine months ended September 30, 2026, operating income was $574.5 million, compared with $410.1 million in the same 2025 period. source
- Q3 2026 adjusted EBITDA was $268.1 million, compared with $194.3 million in Q3 2025. source
- For the nine months ended September 30, 2026, adjusted EBITDA was $778.5 million, compared with $645.9 million in the same 2025 period. source
- Q3 2026 adjusted EBITDA margin was 49.3%, compared with 39.4% in Q3 2025. source
- For the nine months ended September 30, 2026, adjusted EBITDA margin was 47.3%, compared with 42.8% in the same 2025 period. source
- Q3 2026 operating income margin was approximately 36.0% of revenue, calculated from operating income of $195.8 million and total revenue of $543.8 million. source
- Q3 2026 adjusted gross margin was 84.4%, compared with 83.4% in Q3 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +30.9% | For the nine months ended September 30, 2026, operating income was $574.5 million, compared with $410.1 million in the same 2025 period. |
| operating_income | positive | realized | +25.0% | For the nine months ended September 30, 2026, adjusted EBITDA was $778.5 million, compared with $645.9 million in the same 2025 period. |
| operating_income | positive | realized | +15.7% | Q3 2026 operating income was $195.8 million, compared with $112.6 million in Q3 2025. |
| operating_income | positive | realized | +13.9% | Q3 2026 adjusted EBITDA was $268.1 million, compared with $194.3 million in Q3 2025. |
| margin | positive | realized | +9.9% | Q3 2026 adjusted EBITDA margin was 49.3%, compared with 39.4% in Q3 2025. |