Paycom

PAYC · NYSE · Industrials · Financials, fiscal 2016 to 2025

PAYC · Last close · November 6, 2026

$237.32

Paycom's revenue rose 8.9% to $2.1 billion in fiscal 2025. Its operating margin was 27.6%, down from 33.7% a year earlier. Free cash flow was $408 million, up 19.6%. It paid out $410 million in dividends and buybacks, 101% of free cash flow. The diluted share count fell 0.3%.

Paycom Software, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 19, 2026 · 0001193125-26-059372 Updated November 6, 2026

Revenue

$2.1B

8.9%

Operating margin

27.6%

6.0 pts

Net income

$453M

9.7%

Free cash flow

$408M

19.6%

Return on equity

27.4%

7.4 pts

Market cap

$10.6B

Nov 6 close

P/E

22.8x

On $10.43 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Paycom does

Paycom sells human capital management (HCM) software over the internet. Employers use it to run payroll, find and hire people, manage talent, handle human resources and track time and labor, all in one system that keeps its data in a single database. Paycom says this removes the need for clients to link several systems together. It was founded in 1998 and went public in 2014.

It sells directly through its own sales force, based in offices across the United States, and assigns a specialist on a dedicated team to each client. Its revenue is mainly recurring fees clients pay to use the software. A large part of that recurring revenue comes from annual payroll tax forms, such as Form W-2 and Form 1099, and from forms under the Affordable Care Act, which are mostly processed in the first quarter. That makes first-quarter revenue higher.

Paycom names competitors that include Automatic Data Processing, Dayforce, Intuit and Oracle. At the end of 2025 it had 5,770 employees, nearly all full-time, and it runs from a campus it owns in Oklahoma City.

Its biggest risks, as it describes them

Security breaches that could harm its reputation and cause clients to leave.
Network outages that interrupt clients' access to the software and lose their data.
Needing to keep adding features and keep up with technologies such as artificial intelligence.
Strong competition from payroll and HR software companies, including larger ones.
Heavy investments in automation and AI that may not pay off.

From Paycom's annual report on Form 10-K, filed February 19, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share grew 23.7% a year and net income 23.0% a year, as buybacks cut the share count by 5%.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	278	401	294	402	370
Debt incl. finance leases	29	29	—	—	—
Net debt (negative means net cash)	−249	−372	—	—	—
Net debt to EBITDA	−0.8x	−0.8x	—	—	—
Debt to equity	0.0x	0.0x	—	—	—
Interest coverage	181.1x	151.5x	237.5x	186.6x	166.8x
Current ratio	1.1x	1.2x	1.1x	1.1x	1.1x
Quick ratio	1.1x	1.2x	1.1x	1.1x	1.1x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Paycom's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Paycom's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought Paycom shares on the open market, and 3 insiders sold $1.6 million.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 28, 2026	Terrell Shane HadlockPresident/Chief Client Officer	Sold	241	$240.07	$57,857	Form 4
Aug 27, 2026	Terrell Shane HadlockPresident/Chief Client Officer	Sold	2,577	$237.60	$612,306	Form 4
May 18, 2026	Randall PeckChief Operating Officer	Sold	2,500	$140.50	$351,250	Form 4
Dec 10, 2025	Robert D. FosterChief Financial Officer	Sold	1,300	$162.66	$211,458	Form 4
Dec 5, 2025	Randall PeckChief Operating Officer	Sold	2,192	$165.85	$363,541	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	—
Rule of 40	40.4%	29.3%	28.8%
Altman Z''	2.77	2.61	2.19
Accruals ratio	−3.6%	−0.6%	−3.4%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	—	—	—
Current ratio rose	Fail	Fail	Fail
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Fail	Fail	Pass
Revenue rose relative to assets	Pass	Pass	Fail
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put Paycom side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Paycom	FY25	8.9%	27.6%	19.9%	—	—	—
Paylocity	FY26	11.0%	21.8%	28.1%	26.5%	−0.4x	8	Compare
First Advantage	FY25	83.0%	8.4%	12.0%	3.2%	7.7x	5	Compare
Korn Ferry	FY26	6.4%	12.8%	11.0%	21.9%	−1.5x	8	Compare
Upwork	FY25	2.4%	16.4%	30.8%	31.0%	−2.0x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	329	433	566	738	841	1,056	1,375	1,694	1,883	2,052
Revenue growth	46.5%	31.6%	30.8%	30.2%	14.1%	25.4%	30.3%	23.2%	11.2%	8.9%
Gross profit	275	361	476	628	718	894	1,162	1,417	1,549	1,706
Research and development	21	30	46	73	90	118	148	199	243	283
Operating income	102	130	174	226	186	254	379	451	634	567
Net income	70	124	137	181	144	196	281	341	502	453
Diluted EPS (US$)	1.19	2.10	2.34	3.09	2.46	3.37	4.84	5.88	8.92	8.08
Diluted shares (millions)	59	59	59	58	58	58	58	58	56	56
Cash flow
Cash from operations	99	130	185	224	227	319	365	485	534	679
Capital expenditure	44	59	60	93	94	121	133	193	193	271
Free cash flow	55	71	125	131	133	199	232	292	341	408
Dividends paid	0	0	0	0	0	0	0	65	85	85
Share buybacks	36	57	105	0	52	0	95	287	123	326
Acquisitions	0	0	0	0	0	0	0	0	0	0
Stock-based compensation	21	36	37	47	90	98	95	130	−23	119
Balance sheet at fiscal year end
Cash and short-term investments	60	46	46	134	152	278	401	294	402	370
Debt incl. finance leases	30	35	34	33	31	29	29	—	—	—
Total assets	1,079	1,550	1,522	2,487	2,608	3,215	3,902	4,198	5,860	7,599
Total liabilities	962	1,269	1,187	1,960	1,952	2,321	2,720	2,894	4,284	5,867
Shareholders' equity	206	281	335	527	656	894	1,183	1,303	1,576	1,732
Margins and ratios
Gross margin	83.6%	83.4%	84.0%	85.1%	85.3%	84.7%	84.5%	83.7%	82.2%	83.2%
Operating margin	30.9%	29.9%	30.7%	30.7%	22.1%	24.0%	27.5%	26.6%	33.7%	27.6%
Net margin	21.4%	28.5%	24.2%	24.5%	17.1%	18.6%	20.5%	20.1%	26.7%	22.1%
Free cash flow margin	16.7%	16.3%	22.1%	17.8%	15.8%	18.8%	16.9%	17.3%	18.1%	19.9%
Rule of 40 (growth + FCF margin)	63.2%	47.9%	52.8%	48.1%	29.9%	44.3%	47.2%	40.4%	29.3%	28.8%
Return on capital	—	70.3%	45.9%	48.2%	29.9%	32.9%	37.6%	—	—	—
Return on equity	46.3%	50.7%	44.5%	41.9%	24.3%	25.3%	27.1%	27.4%	34.9%	27.4%
Return on assets	7.2%	9.4%	8.9%	9.0%	5.6%	6.7%	7.9%	8.4%	10.0%	6.7%
Net debt to EBITDA	−0.3x	−0.1x	−0.1x	−0.4x	−0.5x	−0.8x	−0.8x	—	—	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Paycom's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Paycom.