PAYC · 10-Q · 2026Q3

Paycom Software, Inc.

Filed 2026-11-05 · Technology · View original filing on EDGAR

Everything PAYC's SEC filings said, ranked

Ranked Events

• Interest Expense IncreaseImportance 69 · Surprise 64
  Third-quarter 2026 interest expense increased to $11.7 million from $1.1 million a year earlier, while nine-month interest expense rose to $26.2 million from $2.7 million. The increases were primarily due to the timing…
• Operating Income and MarginsImportance 69 · Surprise 64
  Third-quarter 2026 operating income increased 74.0% year over year to $195.8 million, and operating margin expanded to 36.0% from 22.8%. For the first nine months of 2026, operating income grew 40.1% to $574.5 million…
• Capital Return ProgramImportance 64 · Surprise 42
  The May 4, 2026 stock repurchase plan authorized up to $2.0 billion and replaced the prior authorization; $1,652.7 million remained available at September 30, 2026. During the first nine months of 2026, Paycom…
• Liquidity and Debt PositionImportance 64 · Surprise 42
  Paycom maintained a $2.125 billion revolving credit facility, with $750.0 million outstanding at September 30, 2026 after $900.0 million of borrowings and $150.0 million of repayments during the first nine months. The…
• Operating Cash Flow and CapexImportance 59 · Surprise 48
  Cash provided by operating activities rose 27% to $613.9 million for the first nine months of 2026, from $482.8 million in 2025, benefiting from favorable working-capital changes. Cash used in investing activities…
• Net Income and EPS PerformanceImportance 59 · Surprise 48
  Third-quarter 2026 net income increased 20.3% year over year to $133.2 million, and diluted earnings per share rose to $2.99 from $1.96. For the first nine months, net income increased 16.7% to $396.3 million and…
• Other Income (Expense), NetImportance 57 · Surprise 64
  Other income, net fell 97.2% to $1.2 million in the third quarter of 2026 and 82.8% to $9.1 million for the first nine months. The decrease primarily reflected the timing of gains on the naming-rights agreement: Paycom…
• Revenue Performance and MixImportance 54 · Surprise 40
  Third-quarter 2026 total revenue increased 10.2% year over year to $543.8 million, while nine-month revenue rose 9.3% to $1,646.8 million. Recurring and other revenue grew 11.3% to $519.3 million in the quarter and…
• Headcount / RestructuringImportance 52 · Surprise 42
  Paycom attributed lower employee-related costs during the three and nine months ended September 30, 2026 to reduced headcount associated with automation of core business systems. Cost-of-revenue employee-related…
• Income Tax Rate ChangesImportance 52 · Surprise 56
  Paycom's effective income tax rate for the first nine months of 2026 increased to 28.9% from 26.2% in 2025. The higher rate primarily reflected lower excess tax benefits from stock-based compensation and reduced…
• Gross Margin DriversImportance 49 · Surprise 32
  Third-quarter 2026 total cost of revenues increased 2.1% to $87.2 million, while revenue rose 10.2% to $543.8 million. Nine-month cost of revenues increased 2.4% to $263.6 million against 9.3% revenue growth.…
• Market Demand TrendsImportance 48 · Surprise 40
  Recurring and other revenues increased 10.3% year over year to $1,568.5 million in the nine months ended September 30, 2026. Growth reflected new clients, additional applications and services sold to existing clients,…
• U.S. Tax Law ChangesImportance 47 · Surprise 60
  On July 4, 2025, H.R. 1, the One Big Beautiful Bill Act (OBBBA), was signed into law, amending the U.S. tax code. Its immediate deduction for domestic research and development expenditures and reinstatement of 100%…
• Interest Income TrendsImportance 37 · Surprise 32
  Interest earned on funds held for clients fell 8.6% year over year to $24.5 million in the third quarter of 2026 and 8.7% to $78.3 million for the first nine months. Lower interest rates drove the decline, partly…
• Operating Expense TrendsImportance 36 · Surprise 40
  Third-quarter 2026 sales and marketing expense decreased 14.1% year over year to $108.0 million, primarily reflecting $15.6 million less marketing and advertising expense and $3.4 million less employee-related expense.…
• Products and TechnologyImportance 31 · Surprise 42
  Paycom’s cloud-based HCM solution uses a single database for payroll, talent acquisition, talent management, human resources, and time and labor applications. The company describes IWant™ as an industry-first,…
• Global HCM ExpansionImportance 26 · Surprise 30
  Paycom says its Global HCM solution and payroll services in certain international markets enable it to serve organizations with international employees. The company views this capability as making its offering more…
• Customer DynamicsImportance 23 · Surprise 24
  Paycom targets organizations with 50 to 10,000 or more employees and serves clients ranging from small businesses to organizations with many thousands of employees. It says its average client size has grown…
• Quarterly Dividend DeclarationImportance 13 · Surprise 6
  On November 2, 2026, Paycom's board declared a quarterly cash dividend of $0.375 per common share. The dividend is payable December 7, 2026, to stockholders of record at the close of business on November 23, 2026. The…
• Competition and Market ShareImportance 10 · Surprise 6
  Paycom characterizes the HCM software market as highly competitive, rapidly evolving, and fragmented. It expects competition from new market entrants and disruptive technologies to remain intense, alongside aggressive…

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