PAYC · 10-Q · 2026Q2 · Full report

Operating Cash Flow Trends

Paycom Software, Inc. · 2026-08-06 · Importance 64 · Surprise 56 · Matches filing data

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 client funds and favorable changes in operating assets and liabilities. Investing cash outflows declined 90% to $54.5 million, reflecting a $299.2 million decrease in purchases of client-fund investments, a $167.0 million increase in investment proceeds and a $44.6 million reduction in property and equipment purchases. Financing cash outflows increased to $2.677 billion, driven by a $1.390 billion increase in share repurchases, partly offset by $900.0 million of revolving-credit borrowings.

Key facts

• For the six months ended June 30, 2026, net cash provided by operating activities was $427.6 million, a 40% increase versus $305.0 million in prior year six months. source
• For the six months ended June 30, 2026, cash used in investing activities was $(54.5) million, a 90% decrease versus $(565.2) million in prior year six months. source
• For the six months ended June 30, 2026, cash used in financing activities was $(2,676.7) million, a 26% increase versus $(2,129.5) million in prior year six months. source
• Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents for six months ended June 30, 2026: $(2,303.6) million versus $(2,389.7) million prior year, a 4% change. source
• Payment of withholding taxes on behalf of individuals resulted in an aggregate cash expenditure of $16.6 million during the six months ended June 30, 2026. source
• As a result of the July 2025 amendment to the naming rights agreement, the Company recognized a $35.6 million gain during the quarter ended September 30, 2025. source
• Cash used in investing activities decreased due to a $299.2 million decrease in purchases of investments from funds held for clients, a $167.0 million increase in proceeds from such investments, and a $44.6 million decrease in purchases of property and equipment for the six months ended June 30, 2026 versus prior year. source
• Company recognized a $9.0 million gain during the three months ended March 31, 2026 as a result of the July 2025 amendment to the naming rights agreement. source

Impact estimates