PAYC · 10-Q · 2026Q2 · Full report
Capital Return Program
Paycom Software, Inc. · 2026-08-06 · Importance 64 · Surprise 42 · In source text
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 obligations. The May 4, 2026 repurchase authorization permits up to $2.0 billion of purchases, replaced the prior authorization and had $1.6555 billion remaining at June 30, 2026. Paycom borrowed $900.0 million under its Revolving Credit Facility to support the repurchase program, and financing cash outflows increased partly because common-stock repurchases rose $1.3897 billion year over year. The company’s basic weighted-average shares fell to 48.4 million from 56.0 million for the first six months, while basic earnings per share rose to $5.43 from $4.08.
Key facts
- Board authorized repurchase of up to $1.5 billion in July 2024, an additional $200.0 million on March 5, 2026, replenished on March 12, 2026 to an aggregate $750.0 million, and approved a new $2.0 billion repurchase plan on May 4, 2026 replacing prior authorization with no expiration date. source
- During the six months ended June 30, 2026, the company repurchased 10,945,515 shares at an average cost of $128.48 per share, including 125,148 shares withheld for tax withholding obligations. source
- As of June 30, 2026, $1,655.5 million was available for repurchases under the stock repurchase plan. source
- Company may fund future stock repurchases from a combination of available cash and additional borrowings under the Revolving Credit Facility and used $900.0 million borrowings in six months ended June 30, 2026 to support stock repurchase program. source
- Increase in cash used in financing activities for six months ended June 30, 2026 versus prior year was due to a $1,389.7 million increase in repurchases of common stock, an $82.4 million change related to client funds obligation, and an $8.1 million increase in payment of debt issuance costs; partially offset by $900.0 million borrowings under Revolving Credit Facility and other items. source
- Weighted average basic shares outstanding: 45.8 million for three months ended June 30, 2026 and 48.4 million for six months ended June 30, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | committed | -32.7% | Board authorized repurchase of up to $1.5 billion in July 2024, an additional $200.0 million on March 5, 2026, replenished on March 12,… |
| cash | negative | realized | -27.0% | During the six months ended June 30, 2026, the company repurchased 10,945,515 shares at an average cost of $128.48 per share, including… |