PAYC · 10-Q · 2026Q2

Paycom Software, Inc.

Filed 2026-08-06 · Technology · View original filing on EDGAR

Ranked Events

• Outstanding IndebtednessImportance 64 · Surprise 42
  On April 23, 2026, Paycom amended and restated its Credit Agreement, increasing its Revolving Credit Facility to $2.125 billion and extending maturity to April 23, 2031. The company had $900.0 million outstanding at…
• Operating Cash Flow TrendsImportance 64 · Surprise 56
  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…
• Income Tax Rate ChangesImportance 64 · Surprise 56
  Paycom’s effective income tax rate increased to 29.3% for the six months ended June 30, 2026 from 25.6% in the comparable 2025 period. The higher rate was primarily caused by lower excess tax benefits from stock-based…
• Capital Return ProgramImportance 64 · Surprise 42
  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…
• Liquidity and Debt PositionImportance 64 · Surprise 42
  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…
• Operating Margin DriversImportance 64 · Surprise 56
  Operating income increased 50.0% year over year to $168.5 million in the second quarter of 2026 and 27.3% to $378.7 million for the first six months. Operating margin expanded from 23.2% to 31.7% in the quarter and…
• Operating Expense TrendsImportance 58 · Surprise 56
  Research and development expense fell 30.6% to $51.9 million in the second quarter and 17.8% to $112.6 million for the six months, primarily because of lower employee-related expense and reduced headcount. Total…
• Market Demand TrendsImportance 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…
• Interest Rate EnvironmentImportance 49 · Surprise 32
  Lower interest rates reduced interest earned on funds held for clients to $53.9 million for the six months ended June 30, 2026, down 8.7% from $59.0 million in the prior-year period. The decline was partially offset by…
• Revenue Performance and MixImportance 49 · Surprise 32
  Total revenue increased 9.8% year over year to $531.2 million in the second quarter of 2026 and 8.8% to $1.103 billion for the six months ended June 30, 2026. Recurring and other revenue grew 11.0% to $505.2 million in…
• US Tax Law ChangesImportance 40 · Surprise 42
  The One Big Beautiful Bill Act, H.R. 1, was signed into U.S. law on July 4, 2025 and amended the federal tax code. The law permits immediate deductions for domestic research and development expenditures and reinstates…
• AI Automation StrategyImportance 34 · Surprise 42
  Paycom is incorporating AI and automation across its full HCM solution as a strategic differentiator for client acquisition and retention. Its IWant™ command-driven AI engine enables users to obtain employee-data…
• Global HCM ExpansionImportance 31 · Surprise 42
  Paycom launched its Global HCM solution and is expanding payroll services into certain international markets. Management expects the ability to serve organizations with international employees to improve the solution’s…
• Geographic Market CommentaryImportance 31 · Surprise 42
  Paycom launched its Global HCM solution and is expanding payroll services into certain international markets. The international capabilities are intended to make Paycom’s platform more attractive to larger companies…
• Products and TechnologyImportance 31 · Surprise 42
  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…
• DividendsImportance 31 · Surprise 6
  Paycom paid quarterly cash dividends of $0.375 per share in March and June 2026, totaling $17.5 million and $17.1 million, respectively. On August 3, 2026, the Board declared another $0.375-per-share dividend payable…
• Macroeconomic Factors ImpactImportance 10 · Surprise 6
  Paycom states that inflation and changes in interest rates affect clients’ hiring practices, which in turn can affect revenue because certain offerings are priced per employee. The company also identifies labor-market…
• Distribution ChannelsImportance 10 · Surprise 6
  Paycom generates most revenue through its direct sales force, which solicits new clients, and client relations representatives, who sell additional applications to existing clients. Marketing and lead-generation…
• Customer DynamicsImportance 10 · Surprise 6
  Paycom serves a diversified client base across company sizes and industries, with its average client size increasing as the company expands its operations and application portfolio. The company seeks to increase…
• Competition and Pricing PressureImportance 10 · Surprise 6
  Paycom characterizes the HCM software market as highly competitive, rapidly evolving, and fragmented. The company expects intense competition from new market entrants and disruptive technologies, alongside aggressive…

Revenue by Product (in millions)