PAYC · 10-Q · 2026Q2 · Full report
Products and Technology
Paycom Software, Inc. · 2026-08-06 · Importance 31 · Surprise 42 · No source text
Paycom provides a cloud-based, Software-as-a-Service HCM solution spanning payroll, talent acquisition, talent management, human resources management, and time and labor management. The company is incorporating AI and automation across its full solution as a differentiator, including IWant™, its command-driven AI engine for querying employee data without navigating the software. Paycom reported a 40% year-over-year decline in total research and development costs to $67.6 million in the second quarter, including a 58% decline in capitalized development costs, while continuing development of automation and AI initiatives. The company also expects client adoption of new applications and improved existing applications to support recurring revenue growth.
Key facts
- Research and development total costs for the three months ended June 30, 2026: $67.6 million (capitalized $15.6 million and expensed $51.9 million), a 40% decrease versus prior year total R&D. source
- Research and development total costs for the six months ended June 30, 2026: $153.6 million (capitalized $41.0 million and expensed $112.6 million), a 26% decrease versus prior year total R&D. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | +1.0% | Research and development total costs for the six months ended June 30, 2026: $153.6 million (capitalized $41.0 million and expensed $112.6… |
| cash | positive | realized | +0.9% | Research and development total costs for the three months ended June 30, 2026: $67.6 million (capitalized $15.6 million and expensed $51.9… |
| assets | positive | realized | +0.8% | Research and development total costs for the six months ended June 30, 2026: $153.6 million (capitalized $41.0 million and expensed $112.6… |
| assets | positive | realized | +0.3% | Research and development total costs for the three months ended June 30, 2026: $67.6 million (capitalized $15.6 million and expensed $51.9… |
| operating_income | positive | realized | — | Research and development total costs for the three months ended June 30, 2026: $67.6 million (capitalized $15.6 million and expensed $51.9… |
| operating_income | positive | realized | — | Research and development total costs for the six months ended June 30, 2026: $153.6 million (capitalized $41.0 million and expensed $112.6… |