PAYC · 10-Q · 2026Q2 · Full report

Liquidity and Debt Position

Paycom Software, Inc. · 2026-08-06 · Importance 64 · Surprise 42 · From source text

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 total revolving commitments to $2.125 billion and extended maturity to April 23, 2031. The facility permits an incremental $750.0 million of commitments and contains maximum leverage and minimum interest-coverage requirements of 3.5-to-1.0 and 3.0-to-1.0, respectively. Paycom was in compliance with all credit covenants at June 30, 2026 and stated that cash, operating cash flow and available liquidity should fund operations, capital expenditures, debt service, dividends and opportunistic repurchases for at least 12 months.

Key facts

• On April 23, 2026, the Credit Agreement was amended and restated and the aggregate commitments under the Revolving Credit Facility were increased to $2.125 billion. source
• Company maintains a $2.125 billion Revolving Credit Facility as of June 30, 2026. source
• The Credit Agreement permits the Borrower to request an incremental facility of up to an additional $750.0 million, subject to conditions and lender commitments. source
• Certain Restricted Payments up to $50.0 million in any fiscal year are permitted under the Credit Agreement. source
• Company believes existing cash and cash equivalents, cash generated from operations and available liquidity will be sufficient to maintain operations, make necessary capital expenditures, service debt, pay dividends and opportunistically repurchase shares for at least the next 12 months. source
• Average daily balance of funds held for clients: $3.0 billion for the six months ended June 30, 2026 and $2.8 billion for the six months ended June 30, 2025. source
• The Credit Agreement includes a $25.0 million sublimit for swingline loans and a $6.5 million sublimit for letters of credit. source
• All loans under the Credit Agreement will mature on April 23, 2031. source

Impact estimates