Paycom Software Inc Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Paycom Software Inc has an operating margin of 33.7%, meaning the company retains $34 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is up from 26.7% the prior year.
Paycom Software Inc's revenue grew 11.2% year-over-year to $1.9B, a solid pace of expansion. This earns a growth score of 61/100.
Paycom Software Inc has elevated debt relative to equity (D/E of 2.72), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 10/100, reflecting increased financial risk.
Paycom Software Inc's current ratio of 1.10 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 24/100, which could limit financial flexibility.
Paycom Software Inc converts 18.1% of revenue into free cash flow ($341.0M). This strong cash generation earns a score of 91/100.
Paycom Software Inc earns a strong 31.9% return on equity (ROE), meaning it generates $32 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is up from 26.2% the prior year.
Paycom Software Inc scores 2.17, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Paycom Software Inc passes 5 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Paycom Software Inc generates $1.06 in operating cash flow ($533.9M OCF vs $502.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Paycom Software Inc earns $186.6 in operating income for every $1 of interest expense ($634.3M vs $3.4M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
This page shows Paycom Software Inc (PAYC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Paycom Software Inc generated $1.9B in revenue in fiscal year 2024. This represents an increase of 11.2% from the prior year.
Paycom Software Inc's EBITDA was $780.2M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 38.0% from the prior year.
Paycom Software Inc generated $341.0M in free cash flow in fiscal year 2024, representing cash available after capex. This represents an increase of 16.6% from the prior year.
Paycom Software Inc reported $502.0M in net income in fiscal year 2024. This represents an increase of 47.3% from the prior year.
Paycom Software Inc earned $8.92 per diluted share (EPS) in fiscal year 2024. This represents an increase of 51.7% from the prior year.
Paycom Software Inc held $402.0M in cash against $0 in long-term debt as of fiscal year 2024.
Paycom Software Inc paid $0.38 per share in dividends in fiscal year 2024. This represents an increase of 0.0% from the prior year.
Paycom Software Inc had 57M shares outstanding in fiscal year 2024. This represents a decrease of 0.5% from the prior year.
Paycom Software Inc's gross margin was 82.2% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is down 1.5 percentage points from the prior year.
Paycom Software Inc's operating margin was 33.7% in fiscal year 2024, reflecting core business profitability. This is up 7.0 percentage points from the prior year.
Paycom Software Inc's net profit margin was 26.7% in fiscal year 2024, showing the share of revenue converted to profit. This is up 6.5 percentage points from the prior year.
Paycom Software Inc's ROE was 31.9% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is up 5.7 percentage points from the prior year.
Paycom Software Inc invested $242.6M in research and development in fiscal year 2024. This represents an increase of 21.9% from the prior year.
Paycom Software Inc spent $122.8M on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 57.2% from the prior year.
Paycom Software Inc invested $192.9M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 0.2% from the prior year.
PAYC Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $493.3M+2.0% | $483.6M-8.8% | $530.5M+7.4% | $493.9M+12.9% | $437.5M-12.5% | $499.9M+15.0% | $434.6M+7.0% | $406.3M |
| Cost of Revenue | $85.4M-2.4% | $87.5M+3.4% | $84.6M+1.2% | $83.6M-0.4% | $83.9M+6.6% | $78.7M+5.4% | $74.7M+8.4% | $68.9M |
| Gross Profit | $407.9M+3.0% | $396.1M-11.2% | $445.9M+8.7% | $410.2M+16.0% | $353.6M-16.0% | $421.2M+17.0% | $359.9M+6.7% | $337.4M |
| R&D Expenses | $74.1M-0.9% | $74.8M+20.1% | $62.3M-6.6% | $66.7M+6.9% | $62.4M+23.6% | $50.5M-8.8% | $55.3M+6.7% | $51.9M |
| SG&A Expenses | $295.3M+4.1% | $283.8M+8.8% | $260.8M-0.3% | $261.7M+1.2% | $258.5M+90.9% | $135.4M-46.5% | $253.2M+5.3% | $240.5M |
| Operating Income | $112.6M+0.3% | $112.3M-39.3% | $185.1M+24.6% | $148.5M+56.2% | $95.1M-66.7% | $285.8M+167.9% | $106.7M+10.1% | $96.9M |
| Interest Expense | $1.1M+37.5% | $800K0.0% | $800K-20.0% | $1.0M+25.0% | $800K0.0% | $800K+234.7% | $239K+7.7% | $222K |
| Income Tax | $42.1M+52.0% | $27.7M-45.6% | $50.9M+33.9% | $38.0M+21.8% | $31.2M-27.1% | $42.8M+42.0% | $30.1M+12.4% | $26.8M |
| Net Income | $110.7M+23.7% | $89.5M-35.8% | $139.4M+22.8% | $113.5M+66.9% | $68.0M-72.5% | $247.2M+202.3% | $81.8M+8.7% | $75.2M |
| EPS (Diluted) | $1.96+24.1% | $1.58-36.3% | $2.48+21.6% | $2.04+70.0% | $1.20-72.5% | $4.37+209.9% | $1.41+8.5% | $1.30 |
PAYC Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $4.2B+5.3% | $4.0B-11.8% | $4.6B-22.0% | $5.9B+35.9% | $4.3B-8.9% | $4.7B+12.8% | $4.2B+8.9% | $3.9B |
| Current Assets | $2.5B+5.8% | $2.4B-19.6% | $3.0B-30.6% | $4.3B+51.2% | $2.8B-13.7% | $3.3B+17.2% | $2.8B+9.8% | $2.6B |
| Cash & Equivalents | $375.0M-29.5% | $532.2M+2.2% | $520.8M+29.6% | $402.0M+16.0% | $346.5M-6.7% | $371.3M+26.3% | $294.0M-39.3% | $484.0M |
| Inventory | $1.8M+12.5% | $1.6M+14.3% | $1.4M0.0% | $1.4M-1.1% | $1.4M-21.7% | $1.8M+29.1% | $1.4M+67.5% | $836K |
| Accounts Receivable | $50.4M+26.3% | $39.9M+27.5% | $31.3M-20.2% | $39.2M+95.7% | $20.0M+0.2% | $20.0M+21.9% | $16.4M+5.5% | $15.5M |
| Goodwill | $51.9M0.0% | $51.9M0.0% | $51.9M0.0% | $51.9M0.0% | $51.9M0.0% | $51.9M0.0% | $51.9M0.0% | $51.9M |
| Total Liabilities | $2.5B+13.7% | $2.2B-21.9% | $2.9B-33.3% | $4.3B+48.4% | $2.9B-12.4% | $3.3B+13.8% | $2.9B+18.9% | $2.4B |
| Current Liabilities | $2.1B+12.4% | $1.8B-25.5% | $2.5B-36.5% | $3.9B+54.6% | $2.5B-14.1% | $2.9B+16.1% | $2.5B+22.4% | $2.1B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $29.0M |
| Total Equity | $1.7B-5.1% | $1.8B+4.9% | $1.7B+9.0% | $1.6B+10.5% | $1.4B-0.8% | $1.4B+10.4% | $1.3B-8.3% | $1.4B |
| Retained Earnings | $2.2B+4.3% | $2.1B+3.4% | $2.0B+6.3% | $1.9B+8.3% | $1.7B+2.7% | $1.7B+15.5% | $1.5B+4.2% | $1.4B |
PAYC Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $177.8M+45.1% | $122.5M-32.9% | $182.5M+13.8% | $160.4M+21.4% | $132.1M-11.1% | $148.6M+10.5% | $134.4M+36.4% | $98.6M |
| Capital Expenditures | $98.0M+58.8% | $61.7M+63.7% | $37.7M-26.7% | $51.4M+12.7% | $45.6M-4.4% | $47.7M-16.2% | $56.9M+8.8% | $52.3M |
| Free Cash Flow | $79.8M+31.3% | $60.8M-58.0% | $144.8M+32.8% | $109.0M+26.0% | $86.5M-14.3% | $100.9M+30.1% | $77.5M+67.5% | $46.3M |
| Investing Cash Flow | -$94.0M+49.3% | -$185.3M+51.2% | -$379.9M-582.0% | -$55.7M-289.5% | $29.4M-30.5% | $42.3M+169.3% | -$61.1M-16.8% | -$52.3M |
| Financing Cash Flow | -$38.7M+94.3% | -$677.2M+53.4% | -$1.5B-166.1% | $2.2B+509.6% | -$536.5M-242.6% | $376.1M+130.6% | $163.1M+180.2% | -$203.3M |
| Dividends Paid | $21.2M-2.8% | $21.8M+3.3% | $21.1M0.0% | $21.1M-0.5% | $21.2M0.0% | $21.2M-1.1% | $21.4M-0.9% | $21.6M |
| Share Buybacks | N/A | N/A | N/A | $0 | N/A | N/A | $211.6M | N/A |
PAYC Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 82.7%+0.8pp | 81.9%-2.1pp | 84.0%+1.0pp | 83.0%+2.2pp | 80.8%-3.4pp | 84.3%+1.5pp | 82.8%-0.2pp | 83.0% |
| Operating Margin | 22.8%-0.4pp | 23.2%-11.7pp | 34.9%+4.8pp | 30.1%+8.3pp | 21.7%-35.4pp | 57.2%+32.6pp | 24.6%+0.7pp | 23.8% |
| Net Margin | 22.4%+3.9pp | 18.5%-7.8pp | 26.3%+3.3pp | 23.0%+7.4pp | 15.5%-33.9pp | 49.5%+30.6pp | 18.8%+0.3pp | 18.5% |
| Return on Equity | 6.5%+1.5pp | 5.0%-3.1pp | 8.1%+0.9pp | 7.2%+2.4pp | 4.8%-12.4pp | 17.2%+10.9pp | 6.3%+1.0pp | 5.3% |
| Return on Assets | 2.6%+0.4pp | 2.2%-0.8pp | 3.0%+1.1pp | 1.9%+0.4pp | 1.6%-3.6pp | 5.2%+3.3pp | 1.9%0.0pp | 1.9% |
| Current Ratio | 1.22-0.1 | 1.30+0.1 | 1.20+0.1 | 1.10-0.0 | 1.130.0 | 1.12+0.0 | 1.11-0.1 | 1.24 |
| Debt-to-Equity | 1.48+0.2 | 1.24-0.4 | 1.66-1.1 | 2.72+0.7 | 2.02-0.3 | 2.29+0.1 | 2.22+2.2 | 0.02 |
| FCF Margin | 16.2%+3.6pp | 12.6%-14.7pp | 27.3%+5.2pp | 22.1%+2.3pp | 19.8%-0.4pp | 20.2%+2.3pp | 17.8%+6.5pp | 11.4% |
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Frequently Asked Questions
What is Paycom Software Inc's annual revenue?
Paycom Software Inc (PAYC) reported $1.9B in total revenue for fiscal year 2024. This represents a 11.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Paycom Software Inc's revenue growing?
Paycom Software Inc (PAYC) revenue grew by 11.2% year-over-year, from $1.7B to $1.9B in fiscal year 2024.
Is Paycom Software Inc profitable?
Yes, Paycom Software Inc (PAYC) reported a net income of $502.0M in fiscal year 2024, with a net profit margin of 26.7%.
What is Paycom Software Inc's earnings per share (EPS)?
Paycom Software Inc (PAYC) reported diluted earnings per share of $8.92 for fiscal year 2024. This represents a 51.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Paycom Software Inc's EBITDA?
Paycom Software Inc (PAYC) had EBITDA of $780.2M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
What is Paycom Software Inc's gross margin?
Paycom Software Inc (PAYC) had a gross margin of 82.2% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Paycom Software Inc's operating margin?
Paycom Software Inc (PAYC) had an operating margin of 33.7% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Paycom Software Inc's net profit margin?
Paycom Software Inc (PAYC) had a net profit margin of 26.7% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
Does Paycom Software Inc pay dividends?
Yes, Paycom Software Inc (PAYC) paid $0.38 per share in dividends during fiscal year 2024.
What is Paycom Software Inc's return on equity (ROE)?
Paycom Software Inc (PAYC) has a return on equity of 31.9% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.
What is Paycom Software Inc's free cash flow?
Paycom Software Inc (PAYC) generated $341.0M in free cash flow during fiscal year 2024. This represents a 16.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Paycom Software Inc's operating cash flow?
Paycom Software Inc (PAYC) generated $533.9M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Paycom Software Inc's total assets?
Paycom Software Inc (PAYC) had $5.9B in total assets as of fiscal year 2024, including both current and long-term assets.
What are Paycom Software Inc's capital expenditures?
Paycom Software Inc (PAYC) invested $192.9M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Paycom Software Inc spend on research and development?
Paycom Software Inc (PAYC) invested $242.6M in research and development during fiscal year 2024.
Does Paycom Software Inc buy back shares?
Yes, Paycom Software Inc (PAYC) spent $122.8M on share buybacks during fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
How many shares does Paycom Software Inc have outstanding?
Paycom Software Inc (PAYC) had 57M shares outstanding as of fiscal year 2024.
What is Paycom Software Inc's current ratio?
Paycom Software Inc (PAYC) had a current ratio of 1.10 as of fiscal year 2024, which is considered adequate.
What is Paycom Software Inc's debt-to-equity ratio?
Paycom Software Inc (PAYC) had a debt-to-equity ratio of 2.72 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Paycom Software Inc's return on assets (ROA)?
Paycom Software Inc (PAYC) had a return on assets of 8.6% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Paycom Software Inc's Altman Z-Score?
Paycom Software Inc (PAYC) has an Altman Z-Score of 2.17, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Paycom Software Inc's Piotroski F-Score?
Paycom Software Inc (PAYC) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Paycom Software Inc's earnings high quality?
Paycom Software Inc (PAYC) has an earnings quality ratio of 1.06x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Paycom Software Inc cover its interest payments?
Paycom Software Inc (PAYC) has an interest coverage ratio of 186.6x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Paycom Software Inc?
Paycom Software Inc (PAYC) scores 64 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.