PAYC · 10-Q · 2026Q2 · Full report

Market Demand Trends

Paycom Software, Inc. · 2026-08-06 · Importance 54 · Surprise 40

Recurring and other revenue increased 11.0% year over year in the second quarter and 9.8% in the first six months, driven by new clients, additional application and service sales to existing clients, increased product usage, and pricing strategies. Client attrition, particularly among smaller clients, partially offset these demand drivers. Paycom targets organizations with 50 to 10,000 or more employees and identifies employers with more than 1,000 employees as a substantial opportunity for higher revenue per client. The company expects demand for outsourced HCM services to continue as businesses manage increasingly complex payroll and human resources requirements.