Paycom Software
PAYC · NYSEServices-Prepackaged Software · Fiscal year ends Dec 31
Paycom Software reported revenue of $2.1B in the fiscal year ended Dec 2025, up 8.9% from the year before. Operating income was $567M, an operating margin of 27.6%, and net income was $453M. Operating cash flow of $679M less capital expenditure of $271M left free cash flow of $408M.
Last 5 fiscal years
Revenue and net income
Income statement
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | $1.1B | $1.4B | $1.7B | $1.9B | $2.1B |
| Cost of revenue | $162M | $213M | $276M | $335M | $345M |
| Gross profit | $894M | $1.2B | $1.4B | $1.5B | $1.7B |
| Research & development | $118M | $148M | $199M | $243M | $283M |
| Selling, general & admin | $640M | $784M | $966M | $914M | $1.1B |
| Operating income | $254M | $379M | $451M | $634M | $567M |
| Interest expense | – | $3M | $2M | $3M | $3M |
| Pre-tax income | $256M | $390M | $472M | $649M | $619M |
| Income tax | $60M | $108M | $132M | $147M | $166M |
| Net income | $196M | $281M | $341M | $502M | $453M |
| Diluted EPS | 3.37 | 4.84 | 5.88 | 8.92 | 8.08 |
| Diluted shares | 58M | 58M | 58M | 56M | 56M |
Balance sheet
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | $278M | $401M | $294M | $402M | $370M |
| Receivables | $9M | $23M | $16M | $39M | $45M |
| Inventory | $1M | $2M | $1M | $1M | $2M |
| Current assets | $2.3B | $2.8B | $2.8B | $4.3B | $5.8B |
| Net PP&E | $349M | $402M | $498M | – | – |
| Goodwill | $52M | $52M | $52M | $52M | $52M |
| Total assets | $3.2B | $3.9B | $4.2B | $5.9B | $7.6B |
| Payables | $6M | $16M | $14M | $24M | $7M |
| Deferred revenue | $101M | $117M | $131M | $145M | $150M |
| Current liabilities | $2B | $2.4B | $2.5B | $3.9B | $5.4B |
| Short-term debt | $2M | $0 | – | – | – |
| Long-term debt | $27M | $29M | – | – | – |
| Total liabilities | $2.3B | $2.7B | $2.9B | $4.3B | $5.9B |
| Shareholders' equity | $894M | $1.2B | $1.3B | $1.6B | $1.7B |
Cash flow
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | $319M | $365M | $485M | $534M | $679M |
| Capital expenditure | $121M | $133M | $193M | $193M | $271M |
| Free cash flow | $199M | $232M | $292M | $341M | $408M |
| Depreciation & amortisation | $67M | $93M | $114M | $146M | $176M |
| Stock-based compensation | $98M | $95M | $130M | −$23M | $119M |
| Share buybacks | – | $95M | $287M | $123M | $326M |
| Dividends paid | – | – | $65M | $85M | $85M |
| Dividend per share | – | – | 0.38 | 0.38 | 0.38 |
Key ratios
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 30.3% | 23.2% | 11.2% | 8.9% |
| Operating income growth (YoY) | – | 49.3% | 19.2% | 40.5% | −10.6% |
| EPS growth (YoY) | – | 43.6% | 21.5% | 51.7% | −9.4% |
| Gross margin | 84.7% | 84.5% | 83.7% | 82.2% | 83.2% |
| Operating margin | 24.0% | 27.5% | 26.6% | 33.7% | 27.6% |
| Net margin | 18.6% | 20.5% | 20.1% | 26.7% | 22.1% |
| Return on equityBlank when equity is negative | 21.9% | 23.8% | 26.2% | 31.9% | 26.2% |
| ROCEEBIT ÷ (assets − current liabilities) | 20.7% | 24.8% | 27.1% | 32.5% | 25.4% |
| Free cash flow margin | 18.8% | 16.9% | 17.3% | 18.1% | 19.9% |
| Cash conversion (CFO ÷ net income) | 1.63x | 1.30x | 1.42x | 1.06x | 1.50x |
| Receivable days | 3 | 6 | 4 | 8 | 8 |
| Inventory days | 3 | 3 | 2 | 2 | 2 |
| Payable days | 13 | 28 | 18 | 26 | 7 |
| Interest cover | – | 151x | 238x | 187x | 167x |
| Debt ÷ equity | 0.03x | 0.02x | – | – | – |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | −$249M | −$372M | – | – | – |
| Current ratio | 1.13x | 1.16x | 1.11x | 1.10x | 1.09x |
Recent filings
More in Services-Prepackaged Software
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.