Paycom Software, Inc.
paycom.comWhat Do They Do?
Provides cloud-based human resources and payroll software for businesses, with tools for hiring, employee management, benefits and time tracking.
10-K for FY2025, filed Feb 19, 2026We are a leading provider of a comprehensive, cloud-based HCM solution delivered as Software-as-a-Service (“SaaS”). We provide…View ↗
Our solution offers functionality that manages the entire employment lifecycle for employers and employees, from recruitment to retirement.…View ↗
Our HCM solution offers a full suite of applications and tools that generally fall within the following categories: payroll, talent…View ↗
How Do They Make Money?
Businesses pay recurring fees for payroll and other human resources software and services, billed during their payroll period based partly on employee or transaction activity. Paycom also earns interest on client funds held before payroll tax payments or employee payments.
10-K for FY2025, filed Feb 19, 2026Substantially all of our revenues are generated from (i) fixed amounts charged per billing period plus a fee per employee or transaction…View ↗
Recurring revenues are derived primarily from our payroll, talent acquisition, talent management, HR management and time and labor…View ↗
We consider our commitment in our customer contracts to be a series of distinct services that together constitute a single performance…View ↗
Interest income on funds held for clients is earned on funds that are collected from clients in advance of either the applicable due date…View ↗
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10-K for FY2025, filed Feb 19, 2026
FY2025 revenue by product or service ↗
$2.1B
-
10-K for FY2025, filed Feb 19, 2026
$2.1B ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Recurring
Recurring
10-K for FY2025, filed Feb 19, 2026 |
93%
FY2022: 96%
|
Recurring, FY2025
$1.9B Sources
|
Recurring |
|
Implementation and Other
|
1.3%
FY2022: 1.4%
|
Implementation and Other, FY2025
$26M Sources
|
|
|
Interest on Funds Held for Clients
Usage-based
10-K for FY2025, filed Feb 19, 2026 |
5.5%
FY2022: 2.4%
|
Interest on Funds Held for Clients, FY2025
$113M Sources
|
Usage-based |
Who Are Their Customers?
Businesses of different sizes and industries buy Paycom’s human resources and payroll software directly through its sales force. The company also sells additional applications to existing clients through its client relations representatives.
10-K for FY2025, filed Feb 19, 2026We sell our solution directly through our internally trained, client-focused and highly skilled sales force based in offices across the…View ↗
We serve a diverse payroll and HCM client base in terms of size and industry. We have approximately 39,200 clients, or approximately 20,300…View ↗
We sell our solution exclusively through our captive sales force, substantially all of whom have a four-year college degree. We typically…View ↗
In addition to managing client relationships, our CRRs are focused on expanding the number of applications our clients purchase from us by…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 22 cents of every revenue dollar as net income in FY2025 and turned 20 cents into free cash flow.
10-K for FY2025, filed Feb 19, 2026
$567.2MView ↗
10-K for FY2025, filed Feb 19, 2026
$453.4MView ↗
10-K for FY2025, filed Feb 19, 2026
$408MView ↗
How Are They Changing?
- Net income
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Sources
10-Q for Q2 FY2026, filed Aug 6, 2026
$107.4MView ↗
- ▲ +20%
- vs $89.5M in Q2 FY2025
10-Q for Q2 FY2026, filed Aug 6, 2026
Open tableView ↗
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Aug 5, 2026
Paycom raised its full-year revenue outlook
It forecast revenue of $2.197 billion to $2.212 billion, representing year-over-year growth of 7% to 8%.
Sources
8-K, filed Aug 5, 2026
Total revenue in the range of $2.197 billion to $2.212 billion, representing year-over-year growth between 7% and 8%.View ↗
Growing. Revenue grew 94% in 4 years, from $1.1B in FY2021 to $2.1B in FY2025, about 18% a year.
Who Do They Compete With?
Competes with Automatic Data Processing, Dayforce, Intuit, Oracle, Paychex, Paylocity, SAP, ServiceNow, Ultimate Kronos Group, and Workday
10-K for FY2025, filed Feb 19, 2026Our competitors offer HCM solutions that may overlap with one, several or all categories of the applications we offer. We compete with…View ↗
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