What is Paycom Software Inc's earnings per share (EPS)?

Paycom Software Inc (PAYC) reported diluted earnings per share of $8.08 for fiscal year 2025. This represents a -9.4% 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.

Paycom Software Inc Financials

PAYC

FY2025 annual

Revenue $2.1B +8.9% YoY

Net Income $453.4M -9.7% YoY

EPS (Diluted) $8.08 -9.4% YoY

Free Cash Flow $408.0M +19.6% YoY

Source SEC Filings (10-K/10-Q) Data as of Jun 30, 2026 Currency USD FYE December

Paycom Software Inc (PAYC) reported $2.1B in revenue for fiscal year 2025, up 8.9% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 14 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).

Rhea AI PAYC FY2025 2026-05-07

High-margin software economics are being layered onto a liability-funded balance sheet, making cash output look sturdier than headline profit.

Most recently, operating cash flow climbed to $679M even as operating margin compressed to 27.7%. With only $3.4M of interest expense despite a 3.4x debt-to-equity ratio, the balance sheet seems driven more by non-debt operating obligations than by classic borrowing, which helps cash stay firmer than reported earnings.

Gross margin stayed near 83% for three straight years, so the core service-delivery economics barely moved while the company kept scaling. Because operating margin later retreated from its 33.7% high, the recent profit slowdown appears to come from heavier spending below gross profit, especially in functions that support growth rather than from a weaker core engine.

Free cash flow still reached $408M after capital spending rose to $271M, so reinvestment is taking a larger bite without overwhelming the model. The result is a business that remains cash-generative after upkeep, even as the balance sheet carries only a modest day-to-day liquidity cushion.

Financial Health Signals

Financial Health Score 63/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Paycom Software Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Paycom Software Inc has an operating margin of 27.7%, meaning the company retains $28 of operating profit per $100 of revenue. This strong profitability earns a score of 92/100, reflecting efficient cost management and pricing power. This is down from 33.7% the prior year.

Growth

Paycom Software Inc's revenue grew 8.9% year-over-year to $2.1B, a solid pace of expansion. This earns a growth score of 65/100.

Leverage

Paycom Software Inc has elevated debt relative to equity (D/E of 3.39), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 18/100, reflecting increased financial risk.

Liquidity

Paycom Software Inc's current ratio of 1.09 is below the typical benchmark, resulting in a score of 23/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow

Paycom Software Inc converts 19.9% of revenue into free cash flow ($408.0M). This strong cash generation earns a score of 85/100.

Returns

Paycom Software Inc earns a strong 26.2% return on equity (ROE), meaning it generates $26 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 93/100. This is down from 31.9% the prior year.

Altman Z-Score Grey Zone

2.06

Paycom Software Inc scores 2.06, placing it in the grey zone between 1.81 and 2.99. The score is driven primarily by a large market capitalization ($10.3B) relative to total liabilities ($5.9B). This signals moderate financial risk that warrants monitoring.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial

5/8

Paycom Software Inc passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed

1.50x

For every $1 of reported earnings, Paycom Software Inc generates $1.50 in operating cash flow ($678.9M OCF vs $453.4M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

166.82x

Paycom Software Inc earns $166.82 in operating income for every $1 of interest expense ($567.2M vs $3.4M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue

$2.1B

YoY+8.9%

5Y CAGR+19.5%

10Y CAGR+24.8%

Paycom Software Inc generated $2.1B in revenue in fiscal year 2025. This represents an increase of 8.9% from the prior year.

EBITDA

$743.5M

YoY-4.7%

5Y CAGR+25.4%

10Y CAGR+32.7%

Paycom Software Inc's EBITDA was $743.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 4.7% from the prior year.

Net Income

$453.4M

YoY-9.7%

5Y CAGR+25.9%

10Y CAGR+36.0%

Paycom Software Inc reported $453.4M in net income in fiscal year 2025. This represents a decrease of 9.7% from the prior year.

EPS (Diluted)

$8.08

YoY-9.4%

5Y CAGR+26.9%

10Y CAGR+36.5%

Paycom Software Inc earned $8.08 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 9.4% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$408.0M

YoY+19.6%

5Y CAGR+25.1%

10Y CAGR+31.5%

Paycom Software Inc generated $408.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 19.6% from the prior year.

Cash & Debt

$370.0M

YoY-8.0%

5Y CAGR+19.5%

10Y CAGR+22.0%

Paycom Software Inc held $370.0M in cash as of fiscal year 2025; long-term debt is not reported for that period.

Dividends Per Share

$0.38

YoY0.0%

Paycom Software Inc paid $0.38 per share in dividends in fiscal year 2025. That is unchanged from the prior year.

Shares Outstanding

54M

YoY-5.2%

5Y CAGR-2.0%

10Y CAGR-0.8%

Paycom Software Inc had 54M shares outstanding in fiscal year 2025. This represents a decrease of 5.2% from the prior year.

Margins & Returns

Gross Margin

83.2%

YoY+0.9pp

5Y CAGR-2.1pp

10Y CAGR-1.0pp

Paycom Software Inc's gross margin was 83.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.9 percentage points from the prior year.

Operating Margin

27.7%

YoY-6.0pp

5Y CAGR+5.5pp

10Y CAGR+12.3pp

Paycom Software Inc's operating margin was 27.7% in fiscal year 2025, reflecting core business profitability. This is down 6.0 percentage points from the prior year.

Net Margin

22.1%

YoY-4.6pp

5Y CAGR+5.0pp

10Y CAGR+12.8pp

Paycom Software Inc's net profit margin was 22.1% in fiscal year 2025, showing the share of revenue converted to profit. This is down 4.6 percentage points from the prior year.

Return on Equity

26.2%

YoY-5.7pp

5Y CAGR+4.3pp

10Y CAGR+4.9pp

Paycom Software Inc's ROE was 26.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 5.7 percentage points from the prior year.

Capital Allocation

R&D Spending

$283.4M

YoY+16.8%

5Y CAGR+25.7%

10Y CAGR+41.8%

Paycom Software Inc invested $283.4M in research and development in fiscal year 2025. This represents an increase of 16.8% from the prior year.

Share Buybacks

$325.5M

YoY+165.1%

Paycom Software Inc spent $325.5M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 165.1% from the prior year.

Capital Expenditures

$270.9M

YoY+40.4%

5Y CAGR+23.5%

10Y CAGR+32.3%

Paycom Software Inc invested $270.9M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 40.4% from the prior year.

PAYC Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

PAYC annual income statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12
Revenue	$2.1B	$2.1B+8.9%	$1.9B+11.2%	$1.7B+23.2%	$1.4B+30.3%	$1.1B+25.4%	$841.4M+14.1%	$737.7M+30.3%	$566.3M+30.8%	$433.0M+31.6%	$329.1M+46.5%	$224.7M+48.8%	$150.9M+40.3%	$107.6M+40.1%	$76.8M
Cost of Revenue	$349.7M	$345.4M+3.2%	$334.6M+21.1%	$276.3M+29.9%	$212.7M+31.4%	$161.9M+31.0%	$123.5M+12.6%	$109.7M+20.9%	$90.8M+26.0%	$72.0M+33.2%	$54.1M+52.4%	$35.5M+29.9%	$27.3M+30.8%	$20.9M+28.0%	$16.3M
Gross Profit	$1.8B	$1.7B+10.2%	$1.5B+9.3%	$1.4B+21.9%	$1.2B+30.1%	$893.6M+24.5%	$717.9M+14.3%	$627.9M+32.0%	$475.6M+31.7%	$361.0M+31.2%	$275.1M+45.4%	$189.2M+53.0%	$123.6M+42.6%	$86.7M+43.4%	$60.5M
R&D Expenses	$258.9M	$283.4M+16.8%	$242.6M+21.9%	$199.0M+34.2%	$148.3M+25.2%	$118.4M+31.2%	$90.2M+23.5%	$73.1M+58.0%	$46.2M+52.0%	$30.4M+45.1%	$21.0M+143.0%	$8.6M+99.5%	$4.3M+101.5%	$2.1M+31.5%	$1.6M
SG&A Expenses	$1.1B	$1.1B+24.6%	$914.3M-5.4%	$966.1M+23.3%	$783.8M+22.5%	$640.1M+20.4%	$531.8M+32.4%	$401.7M+33.1%	$301.9M+30.5%	$231.3M+33.4%	$173.3M+12.0%	$154.7M+43.4%	$107.9M+39.7%	$77.2M+42.1%	$54.4M
Operating Income	$648.5M	$567.2M-10.6%	$634.3M+40.5%	$451.3M+19.2%	$378.7M+49.3%	$253.6M+36.2%	$186.1M-17.7%	$226.2M+30.2%	$173.7M+33.9%	$129.7M+27.5%	$101.7M+195.5%	$34.4M+119.3%	$15.7M+65.8%	$9.5M	N/A
Interest Expense	$16.3M	$3.4M0.0%	$3.4M+78.9%	$1.9M-24.0%	$2.5M+78.6%	$1.4M+7268.4%	$19K-98.0%	$940K+22.7%	$766K-15.9%	$911K-12.1%	$1.0M-27.4%	$1.4M-58.3%	$3.4M-63.1%	$9.3M+32.9%	$7.0M
Income Tax	$196.4M	$166.0M+12.9%	$147.0M+11.7%	$131.6M+21.6%	$108.2M+80.3%	$60.0M+41.2%	$42.5M-6.7%	$45.5M+20.9%	$37.6M+786.6%	$4.2M-86.1%	$30.6M+143.2%	$12.6M+215.1%	$4.0M+404.2%	$792K+1042.9%	-$84K
Net Income	$487.6M	$453.4M-9.7%	$502.0M+47.3%	$340.8M+21.1%	$281.4M+43.6%	$196.0M+36.6%	$143.5M-20.6%	$180.6M+31.7%	$137.1M+11.0%	$123.5M+75.4%	$70.4M+236.2%	$20.9M+269.9%	$5.7M+842.3%	$601K+249.1%	-$403K
EPS (Diluted)	—	$8.08-9.4%	$8.92+51.7%	$5.88+21.5%	$4.84+43.6%	$3.37+37.0%	$2.46-20.4%	$3.09+32.1%	$2.34+11.4%	$2.10+76.5%	$1.19+230.6%	$0.36+227.3%	$0.11+1000.0%	$0.01+200.0%	-$0.01

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$531.2M-7.1%	$571.9M+5.1%	$544.3M+10.3%	$493.3M+2.0%	$483.6M-8.8%	$530.5M+7.4%	$493.9M+9.3%	$451.9M
Cost of Revenue	$89.1M+2.1%	$87.3M-0.7%	$87.9M+2.9%	$85.4M-2.4%	$87.5M+3.4%	$84.6M+1.2%	$83.6M-5.4%	$88.4M
Gross Profit	$442.1M-8.8%	$484.5M+6.2%	$456.4M+11.9%	$407.9M+3.0%	$396.1M-11.2%	$445.9M+8.7%	$410.2M+12.8%	$363.6M
R&D Expenses	$51.9M-14.5%	$60.7M-15.9%	$72.2M-2.6%	$74.1M-0.9%	$74.8M+20.1%	$62.3M-6.6%	$66.7M+5.9%	$63.0M
SG&A Expenses	$273.6M-0.3%	$274.3M-8.3%	$299.2M+1.3%	$295.3M+4.1%	$283.8M+8.8%	$260.8M-0.3%	$261.7M+1.2%	$258.7M
Operating Income	$168.5M-19.8%	$210.2M+33.7%	$157.2M+39.6%	$112.6M+0.3%	$112.3M-39.3%	$185.1M+24.6%	$148.5M+41.6%	$104.9M
Interest Expense	$10.5M+162.5%	$4.0M+471.4%	$700K-36.4%	$1.1M+37.5%	$800K0.0%	$800K-20.0%	$1.0M+25.0%	$800K
Income Tax	$49.5M-16.8%	$59.5M+31.3%	$45.3M+7.6%	$42.1M+52.0%	$27.7M-45.6%	$50.9M+33.9%	$38.0M+8.6%	$35.0M
Net Income	$107.4M-31.0%	$155.7M+36.8%	$113.8M+2.8%	$110.7M+23.7%	$89.5M-35.8%	$139.4M+22.8%	$113.5M+54.8%	$73.3M
EPS (Diluted)	$2.34-23.0%	$3.04	N/A	$1.96+24.1%	$1.58-36.3%	$2.48	N/A	$1.31

TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.

PAYC Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

PAYC annual balance sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12
Total Assets	$7.6B+29.7%	$5.9B+39.6%	$4.2B+7.6%	$3.9B+21.4%	$3.2B+23.3%	$2.6B+4.9%	$2.5B+63.4%	$1.5B-1.8%	$1.6B+43.7%	$1.1B+23.0%	$876.7M+9.9%	$797.5M+38.6%	$575.5M	N/A
Current Assets	$5.8B+35.6%	$4.3B+53.0%	$2.8B+1.8%	$2.8B+22.7%	$2.3B+20.8%	$1.9B-0.3%	$1.9B+75.8%	$1.1B-9.5%	$1.2B+27.1%	$925.6M+21.6%	$761.1M+10.0%	$691.9M+44.8%	$477.7M	N/A
Cash & Equivalents	$370.0M-8.0%	$402.0M+36.7%	$294.0M-26.6%	$400.7M+44.1%	$278.0M+83.2%	$151.7M+13.5%	$133.7M+192.4%	$45.7M-0.8%	$46.1M-23.4%	$60.2M+18.6%	$50.7M+101.7%	$25.1M+88.2%	$13.4M-0.5%	$13.4M
Inventory	$1.7M+21.4%	$1.4M0.0%	$1.4M-12.9%	$1.6M+42.1%	$1.1M-1.7%	$1.2M-0.6%	$1.2M+45.3%	$797K-18.6%	$979K+45.0%	$675K-38.2%	$1.1M+460.5%	$195K-66.3%	$578K	N/A
Accounts Receivable	$44.9M+14.5%	$39.2M+139.0%	$16.4M-28.2%	$22.8M+140.7%	$9.5M+3.9%	$9.1M-1.8%	$9.3M+172.3%	$3.4M+116.6%	$1.6M+17.7%	$1.3M-43.1%	$2.4M-15.7%	$2.8M+63.9%	$1.7M	N/A
Goodwill	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M0.0%	$51.9M	N/A
Total Liabilities	$5.9B+37.0%	$4.3B+48.0%	$2.9B+6.4%	$2.7B+17.2%	$2.3B+18.9%	$2.0B-0.4%	$2.0B+65.1%	$1.2B-6.4%	$1.3B+45.4%	$872.9M+12.2%	$778.3M+7.6%	$723.4M+26.8%	$570.4M	N/A
Current Liabilities	$5.4B+37.4%	$3.9B+54.1%	$2.5B+6.6%	$2.4B+19.4%	$2.0B+15.9%	$1.7B-2.0%	$1.8B+70.5%	$1.0B-9.8%	$1.1B+26.8%	$898.9M+23.6%	$727.5M+7.2%	$678.8M+40.5%	$483.0M	N/A
Long-Term Debt	N/A	N/A	N/A	$29.0M+5.9%	$27.4M-6.0%	$29.1M-5.6%	$30.9M-5.4%	$32.6M-5.2%	$34.4M+19.9%	$28.7M+15.5%	$24.9M-4.9%	$26.1M+126.3%	$11.5M	N/A
Total Equity	$1.7B+9.9%	$1.6B+20.9%	$1.3B+10.2%	$1.2B+32.3%	$893.7M+36.3%	$655.6M+24.5%	$526.6M+57.3%	$334.8M+19.0%	$281.2M+36.7%	$205.7M+109.2%	$98.3M+32.6%	$74.1M+1357.7%	$5.1M-48.0%	$9.8M
Retained Earnings	$2.3B+19.5%	$1.9B+28.4%	$1.5B+22.8%	$1.2B+30.7%	$915.6M+27.2%	$719.6M+24.9%	$576.2M+45.6%	$395.6M+53.0%	$258.5M+267.0%	$70.4M+164.8%	$26.6M+369.9%	$5.7M+119.3%	-$29.3M	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$5.2B+7.9%	$4.8B-36.5%	$7.6B+79.0%	$4.2B+5.3%	$4.0B-11.8%	$4.6B-22.0%	$5.9B+67.8%	$3.5B
Current Assets	$3.5B+13.3%	$3.1B-47.4%	$5.8B+129.7%	$2.5B+5.8%	$2.4B-19.6%	$3.0B-30.6%	$4.3B+117.6%	$2.0B
Cash & Equivalents	$198.0M+28.7%	$153.9M-58.4%	$370.0M-1.3%	$375.0M-29.5%	$532.2M+2.2%	$520.8M+29.6%	$402.0M+23.4%	$325.8M
Inventory	$1.7M+13.3%	$1.5M-11.8%	$1.7M-5.6%	$1.8M+12.5%	$1.6M+14.3%	$1.4M0.0%	$1.4M+5.2%	$1.3M
Accounts Receivable	$53.5M+4.3%	$51.3M+14.3%	$44.9M-10.9%	$50.4M+26.3%	$39.9M+27.5%	$31.3M-20.2%	$39.2M+90.5%	$20.6M
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	$4.6B+15.5%	$4.0B-31.7%	$5.9B+131.4%	$2.5B+13.7%	$2.2B-21.9%	$2.9B-33.3%	$4.3B+111.3%	$2.0B
Current Liabilities	$3.2B+14.2%	$2.8B-47.1%	$5.4B+158.3%	$2.1B+12.4%	$1.8B-25.5%	$2.5B-36.5%	$3.9B+135.4%	$1.7B
Long-Term Debt	$900.0M+33.3%	$675.0M	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$571.5M-29.6%	$811.7M-53.1%	$1.7B+1.3%	$1.7B-5.1%	$1.8B+4.9%	$1.7B+9.0%	$1.6B+7.6%	$1.5B
Retained Earnings	$2.5B+3.8%	$2.4B+6.1%	$2.3B+4.3%	$2.2B+4.3%	$2.1B+3.4%	$2.0B+6.3%	$1.9B+5.1%	$1.8B

PAYC Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

PAYC annual cash flow statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12
Operating Cash Flow	$801.5M	$678.9M+27.2%	$533.9M+10.1%	$485.0M+32.8%	$365.1M+14.3%	$319.4M+40.6%	$227.2M+1.3%	$224.3M+21.3%	$184.8M+42.0%	$130.1M+31.7%	$98.8M+130.0%	$43.0M+92.4%	$22.3M+31.5%	$17.0M+54.8%	$11.0M
Capital Expenditures	$226.4M	$270.9M+40.4%	$192.9M+0.2%	$192.6M+45.1%	$132.7M+9.9%	$120.7M+28.3%	$94.1M+1.3%	$92.9M+55.1%	$59.9M+0.9%	$59.4M+35.6%	$43.8M+164.7%	$16.5M+16.0%	$14.3M-16.9%	$17.2M+187.7%	$6.0M
Free Cash Flow	$575.1M	$408.0M+19.6%	$341.0M+16.6%	$292.4M+25.8%	$232.4M+17.0%	$198.7M+49.3%	$133.1M+1.4%	$131.3M+5.1%	$124.9M+76.5%	$70.8M+28.6%	$55.0M+108.2%	$26.4M+227.5%	$8.1M+4301.6%	-$192K-103.8%	$5.0M
Investing Cash Flow	-$100.5M	-$611.2M-2653.2%	-$22.2M+88.7%	-$196.7M-744.2%	-$23.3M+91.0%	-$257.7M-118.6%	-$117.9M+46.3%	-$219.5M-344.3%	-$49.4M-417.2%	$15.6M+107.6%	-$204.9M	N/A	N/A	N/A	N/A
Financing Cash Flow	$474.8M	$1.0B-7.8%	$1.1B+503.6%	-$274.6M-207.9%	$254.6M+53.6%	$165.7M+199.9%	-$165.9M-125.5%	$650.7M+362.6%	-$247.8M-270.1%	$145.7M+26.1%	$115.5M	N/A	N/A	N/A	N/A
Dividends Paid	$77.4M	$84.8M0.0%	$84.8M+30.9%	$64.8M	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$5.4M+3323.4%	$158K
Share Buybacks	N/A	$325.5M+165.1%	$122.8M-57.2%	$286.6M+202.6%	$94.7M	N/A	$52.0M	N/A	$105.2M+84.9%	$56.9M+60.0%	$35.6M	N/A	N/A	N/A	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	$213.8M0.0%	$213.8M+9.0%	$196.1M+10.3%	$177.8M+45.1%	$122.5M-32.9%	$182.5M+13.8%	$160.4M+72.8%	$92.8M
Capital Expenditures	$23.7M-24.0%	$31.2M-57.6%	$73.5M-25.0%	$98.0M+58.8%	$61.7M+63.7%	$37.7M-26.7%	$51.4M+6.6%	$48.2M
Free Cash Flow	$190.1M+4.1%	$182.6M+48.9%	$122.6M+53.6%	$79.8M+31.3%	$60.8M-58.0%	$144.8M+32.8%	$109.0M+144.4%	$44.6M
Investing Cash Flow	-$23.7M+23.1%	-$30.8M-164.2%	$48.0M+151.1%	-$94.0M+49.3%	-$185.3M+51.2%	-$379.9M-582.0%	-$55.7M-45.8%	-$38.2M
Financing Cash Flow	$235.1M+108.1%	-$2.9B-191.3%	$3.2B+8343.4%	-$38.7M+94.3%	-$677.2M+53.4%	-$1.5B-166.1%	$2.2B+336.6%	-$928.9M
Dividends Paid	$17.8M+0.6%	$17.7M-14.5%	$20.7M-2.4%	$21.2M-2.8%	$21.8M+3.3%	$21.1M0.0%	$21.1M-0.9%	$21.3M
Share Buybacks	$335.4M-68.2%	$1.1B+889.0%	$106.6M	N/A	N/A	N/A	$0-100.0%	$42.0M

PAYC Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples.

PAYC annual financial ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12
Gross Margin	83.2%+0.9pp	82.2%-1.5pp	83.7%-0.8pp	84.5%-0.1pp	84.7%-0.7pp	85.3%+0.2pp	85.1%+1.1pp	84.0%+0.6pp	83.4%-0.2pp	83.6%-0.6pp	84.2%+2.3pp	81.9%+1.3pp	80.6%+1.8pp	78.7%
Operating Margin	27.7%-6.0pp	33.7%+7.0pp	26.7%-0.9pp	27.5%+3.5pp	24.0%+1.9pp	22.1%-8.5pp	30.7%0.0pp	30.7%+0.7pp	29.9%-1.0pp	30.9%+15.6pp	15.3%+4.9pp	10.4%+1.6pp	8.8%	N/A
Net Margin	22.1%-4.6pp	26.7%+6.5pp	20.1%-0.3pp	20.5%+1.9pp	18.6%+1.5pp	17.1%-7.4pp	24.5%+0.3pp	24.2%-4.3pp	28.5%+7.1pp	21.4%+12.1pp	9.3%+5.6pp	3.8%+3.2pp	0.6%+1.1pp	-0.5%
Return on Equity	26.2%-5.7pp	31.9%+5.7pp	26.2%+2.4pp	23.8%+1.9pp	21.9%+0.1pp	21.9%-12.4pp	34.3%-6.7pp	40.9%-3.0pp	43.9%+9.7pp	34.2%+12.9pp	21.3%+13.7pp	7.6%-4.2pp	11.8%+15.9pp	-4.1%
Return on Assets	6.0%-2.6pp	8.6%+0.5pp	8.1%+0.9pp	7.2%+1.1pp	6.1%+0.6pp	5.5%-1.8pp	7.3%-1.8pp	9.0%+1.0pp	8.0%+1.4pp	6.5%+4.1pp	2.4%+1.7pp	0.7%+0.6pp	0.1%	N/A
Current Ratio	1.090.0x	1.100.0x	1.11-0.1x	1.160.0x	1.130.0x	1.090.0x	1.070.0x	1.030.0x	1.030.0x	1.030.0x	1.050.0x	1.020.0x	0.99	N/A
Debt-to-Equity	3.39+0.7x	2.72+0.5x	2.22+2.2x	0.020.0x	0.030.0x	0.040.0x	0.060.0x	0.100.0x	0.120.0x	0.14-0.1x	0.25-0.1x	0.35-1.9x	2.27	N/A
FCF Margin	19.9%+1.8pp	18.1%+0.9pp	17.3%+0.4pp	16.9%-1.9pp	18.8%+3.0pp	15.8%-2.0pp	17.8%-4.3pp	22.1%+5.7pp	16.3%-0.4pp	16.7%+5.0pp	11.8%+6.4pp	5.3%+5.5pp	-0.2%-6.7pp	6.5%

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Gross Margin	83.2%-1.5pp	84.7%+0.9pp	83.9%+1.2pp	82.7%+0.8pp	81.9%-2.1pp	84.0%+1.0pp	83.0%+2.6pp	80.5%
Operating Margin	31.7%-5.0pp	36.8%+7.9pp	28.9%+6.0pp	22.8%-0.4pp	23.2%-11.7pp	34.9%+4.8pp	30.1%+6.9pp	23.2%
Net Margin	20.2%-7.0pp	27.2%+6.3pp	20.9%-1.5pp	22.4%+3.9pp	18.5%-7.8pp	26.3%+3.3pp	23.0%+6.8pp	16.2%
Return on Equity	18.8%-0.4pp	19.2%+12.6pp	6.6%+0.1pp	6.5%+1.5pp	5.0%-3.1pp	8.1%+0.9pp	7.2%+2.2pp	5.0%
Return on Assets	2.1%-1.2pp	3.2%+1.7pp	1.5%-1.1pp	2.6%+0.4pp	2.2%-0.8pp	3.0%+1.1pp	1.9%-0.2pp	2.1%
Current Ratio	1.070.0x	1.080.0x	1.09-0.1x	1.22-0.1x	1.30+0.1x	1.20+0.1x	1.10-0.1x	1.19
Debt-to-Equity	1.57+0.7x	0.83-2.6x	3.39+1.9x	1.48+0.2x	1.24-0.4x	1.66-1.1x	2.72+1.3x	1.38
FCF Margin	35.8%+3.9pp	31.9%+9.4pp	22.5%+6.3pp	16.2%+3.6pp	12.6%-14.7pp	27.3%+5.2pp	22.1%+12.2pp	9.9%

Similar Companies

Manhattan Associates Inc MANH

$12.5B

Dayforce DAY

$11.2B

Dynatrace Inc DT

$14.2B

Full Truck Alliance Co Ltd YMM

$9.1B

Servicetitan TTAN

$9.1B

Where Paycom Software Inc Ranks

Frequently Asked Questions

What is Paycom Software Inc's annual revenue?

Paycom Software Inc (PAYC) reported $2.1B in total revenue for fiscal year 2025. This represents a 8.9% 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 8.9% year-over-year, from $1.9B to $2.1B in fiscal year 2025.

Is Paycom Software Inc profitable?

Yes, Paycom Software Inc (PAYC) reported a net income of $453.4M in fiscal year 2025, with a net profit margin of 22.1%.

What is Paycom Software Inc's EBITDA?

Paycom Software Inc (PAYC) had EBITDA of $743.5M in fiscal year 2025, 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 83.2% in fiscal year 2025, 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 27.7% in fiscal year 2025, 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 22.1% in fiscal year 2025, 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 2025.

What is Paycom Software Inc's return on equity (ROE)?

Paycom Software Inc (PAYC) has a return on equity of 26.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Paycom Software Inc's free cash flow?

Paycom Software Inc (PAYC) generated $408.0M in free cash flow during fiscal year 2025. This represents a 19.6% 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 $678.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Paycom Software Inc's total assets?

Paycom Software Inc (PAYC) had $7.6B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Paycom Software Inc's capital expenditures?

Paycom Software Inc (PAYC) invested $270.9M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Paycom Software Inc spend on research and development?

Paycom Software Inc (PAYC) invested $283.4M in research and development during fiscal year 2025.

Does Paycom Software Inc buy back shares?

Yes, Paycom Software Inc (PAYC) spent $325.5M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Paycom Software Inc have outstanding?

Paycom Software Inc (PAYC) had 54M shares outstanding as of fiscal year 2025.

What is Paycom Software Inc's current ratio?

Paycom Software Inc (PAYC) had a current ratio of 1.09 as of fiscal year 2025, 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 3.39 as of fiscal year 2025, 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 6.0% for fiscal year 2025, 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 2.06, 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 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 1.50x, 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 166.82x, 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 63 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.