Paycom Software (PAYC) Company Report

Paycom posted 10% recurring revenue growth and 43% adjusted EBITDA growth in 2025, highlighting a go-to-market recommitment to expand sales and capture its 5% share of addressable market through full-solution automation.
The firm introduced its I-Want interface—14 months in development—to simplify employee interactions, automate routine decisions, and drive higher client satisfaction and retention.
Paycom operates proprietary data centers with GPUs for selective AI applications, ensuring optimal performance by deploying AI where it adds clear value and avoids slowing user workflows.
Internally, Paycom leverages AI to analyze client communications, predict at-risk accounts, and enhance product and service offerings, with the CFO noting ongoing adoption to improve efficiency.
While prioritizing growth in 2026, Paycom expects higher revenue to positively impact margins and plans to maintain its current strong margin profile.

Dec 10, 2025, 10:30 PM

Transcript

Paycom outlines 2025 performance and 2026 growth strategy

PAYC

Paycom delivered 10% recurring revenue growth and 43% Adjusted EBITDA growth in 2025, with no material macro headwinds affecting its operations.
The company advanced full-solution automation, including the I-Want user interface and decision-logic features to automate routine tasks like time-off approvals, improving client efficiency and satisfaction.
With only 5% market penetration of its total addressable market, Paycom plans to expand sales capacity, open new offices, and enhance rep productivity in 2026 to drive further adoption.
It operates self-managed data centers with GPUs for AI, selectively deploying AI to augment product functionality and internal processes such as development, support, and client health analytics.

Dec 10, 2025, 10:30 PM

Transcript

Paycom outlines 2026 growth strategy at Barclays technology conference

PAYC

Guidance Update

Product Launch

Revenue Acceleration/Inflection

Paycom delivered 10% recurring revenue growth and 43% Adjusted EBITDA growth in 2025, driven by enhancements to its world-class service model and full-solution automation.
Management plans to intensify sales efforts in 2026, noting it currently holds 5% of its total addressable market, with a strategy to expand sales capacity and open new offices in key territories.
The IWant interface, developed over 14 months, has seen rapid adoption, simplifying user interaction, increasing client satisfaction, and expected to boost retention and new logo acquisition.
Paycom selectively integrates AI where it enhances efficiency—operating its own GPU-equipped data centers—and uses AI internally to improve product development, client support and maintain protective margins amid planned growth.

Dec 10, 2025, 10:30 PM

Transcript

Paycom reports Q3 2025 results and launches AI-driven products

PAYC

Earnings

Product Launch

Share Buyback

Paycom delivered Q3 revenues of $493 million (+9.1% YoY) with non-GAAP net income of $110 million ($1.94 per share) and adjusted EBITDA of $194 million (39% margin, +150 bps).
Launched Iwant, the industry-first command-driven AI product, deploying it across the full client base, supported by $100 million of front-loaded AI-focused CapEx in owned data centers.
Updated FY 2025 guidance: total revenues of $2.45–$2.55 billion (+9% YoY at midpoint) and adjusted EBITDA of $872–$882 million (~43% margin).
Returned capital with $319 million in open-market buybacks (1.5 million shares) over two months, declared a $0.37 per share quarterly dividend, and retains $1.1 billion buyback authorization.

Nov 5, 2025, 10:00 PM

Transcript

Paycom reports Q3 2025 results

PAYC

Earnings

Product Launch

New Projects/Investments

Third-quarter 2025 total revenues of $493 million (+9.1% YoY); recurring and other revenues of $467 million (+10.6%); non-GAAP net income of $110 million (+17%); adjusted EBITDA of $194 million (+13%) with a 39% margin, up 150 bps YoY.
Launched IWant, an industry-first command-driven AI product now enabled across the entire client base with strong C-suite engagement; expanded Beti payroll automation, cutting payroll processing labor by up to 90% and error-correction time by up to 85%.
Invested $100 million in AI-focused CapEx to expand Phoenix and Oklahoma City data center capacity, front-loading spend to support the IWant rollout and secure a multi-year runway.
Repurchased $319 million of common stock (1.5 million shares) in Q3—over $1 billion returned to shareholders since 2023—and declared a $0.37 quarterly dividend.
Ended Q3 with $375 million in cash and equivalents, no debt, and $2.5 billion in average funds held; reaffirmed FY2025 guidance for $2.45–$2.55 billion in revenue (+9% YoY) and $872–$882 million in adjusted EBITDA (~43% margin).

Nov 5, 2025, 10:00 PM

Transcript

Paycom reports Q3 2025 results

PAYC

Earnings

Product Launch

Share Buyback

Q3 2025 revenues of $493 M (+9.1% YoY) and recurring revenues of $467 M (+10.6% YoY); GAAP net income of $111 M ($1.96/share) and non-GAAP net income of $110 M ($1.94/share); adjusted EBITDA of $194 M (39% margin, +150 bps).
Launched Iwant, an AI-driven command interface now enabled for all clients, and expanded Betty payroll automation to reduce labor by up to 90% and errors by up to 85%, driving higher engagement and efficiency.
Invested $100 M of AI-focused CapEx in owned data centers, repurchased $319 M of shares in Q3, and declared a $0.37/share quarterly dividend.
Reaffirmed 2025 guidance: total revenues of $2.45–$2.55 B (+9% midpoint) and adjusted EBITDA of $872–$882 M (~43% margin).

Nov 5, 2025, 10:00 PM

Transcript

Paycom Software reports Q3 2025 results

PAYC

Earnings

Guidance Update

Share Buyback

Total revenue was $493.3 million, up 9.1% year-over-year, with recurring and other revenue of $466.5 million, representing 94.6% of total revenues.
GAAP net income was $110.7 million ($1.96 per diluted share), and non-GAAP net income was $109.6 million ($1.94 per diluted share).
Adjusted EBITDA totaled $194.3 million, representing a 39% margin on revenues.
Cash and cash equivalents were $375.0 million as of September 30, 2025; the company had no debt, paid $21.1 million in dividends and repurchased 1,023,790 shares for $223.4 million during the quarter.
2025 guidance calls for total revenue of $2.045–$2.055 billion (≈9% growth) and recurring revenue growth of approximately 10%.

Nov 5, 2025, 9:10 PM

8-K

Paycom reports Q3 2025 results

PAYC

Earnings

Guidance Update

Share Buyback

Total revenues of $493.3 million, up 9.1% year-over-year.
GAAP net income of $110.7 million (22% margin) or $1.96 diluted EPS; non-GAAP net income of $109.6 million or $1.94 diluted EPS.
Adjusted EBITDA of $194.3 million, representing 39% of total revenues.
Cash and cash equivalents of $375.0 million as of September 30, 2025; repurchased 1,023,790 shares for $223.4 million during the quarter.
2025 guidance: total revenue of $2.045 billion–$2.055 billion and adjusted EBITDA of $872 million–$882 million (≈43% margin).

Nov 5, 2025, 9:05 PM

Press Release

Paycom highlights rising costs of manual HR tasks in EY study

PAYC

Product Launch

EY reports that the average cost of manual HR data entry rose to $4.86 per instance in 2025, up from $4.78 in 2023.
The cost of manual payroll creation increased by $5.73 to $20.83 per instance, driving the overall average cost per data entry to $5.68, compared to $5.35 in 2023.
Paycom’s Direct Data Exchange now factors in savings from its new command-driven AI engine, IWant™, offsetting estimated labor costs of $11.75 per search for employee information.
The industry-first Beti® payroll tool automates payroll processing, reducing labor costs by 90% and saving HR teams over 2,600 hours annually.

Oct 15, 2025, 1:15 PM

Press Release

Paycom emphasizes AI automation with iOne launch and strong sales at Citi TMT Conference

PAYC

Product Launch

Revenue Acceleration/Inflection

New Projects/Investments

Launched iOne AI assistant across its single-database HCM platform, achieving 50% adoption within two weeks and 100% rollout by mid-September, enabling command-driven navigation or execution of HR tasks.
Front-loaded a $125–130M AI CapEx to expand on-premise GPU infrastructure, raising 2025 CapEx to ~15% of revenue (versus 9% baseline) with expected sub-10% ongoing CapEx from 2026.
Reported strong Q2 sales, driven by record first-quarter momentum and robust pipeline independent of AI launch, supporting an accelerated second-half revenue ramp.
Opened three new offices (Providence hit $1M ARR fastest), and plans to leverage AI-driven insights to fuel new logo acquisition, upsells, and retention through deeper automation analysis.
Elevated long-time executives to CTO and CAO roles to reinforce IT and product functions amid an aggressive roadmap toward a fully autonomous HR “brain” for clients.

Sep 3, 2025, 8:04 PM

Earnings Transcripts

Quarterly earnings call transcripts for Paycom Software.

Q3 2025

Nov 5, 2025

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Q2 2025

Aug 6, 2025

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Q1 2025

May 7, 2025

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View All Transcripts

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Paycom Software (PAYC)

Analyst Earnings Quarterly Reports

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Executives

Chad Richison

Amy Vickroy Walker

Rachael Gannon

Randy Peck

Robert Foster

Shane Hadlock

Board Members

Archana Vemulapalli

Frederick C. Peters II

Henry C. Duques

J.C. Watts, Jr.

Joseph L. Binz

Sharen J. Turney

Analyst Coverage

Bhavin Shah

Mark Marcon

Raimo Lenschow

Daniel Jester

Jared Levine

Joshua Reilly

Jason Celino

Kevin McVeigh

Phillip Leytes

Steven Enders

Brian Schwartz

George Kurosawa

Jacob Smith

Jason John

Madeline Brooks

Samad Samana

Siti Panigrahi

Zane Meehan

Alex Zukin

Arvind Ramnani

Devin Au

Jacob Roberge

Jake Roberge

Joshua Riley

Kyle Everest

Mason Marion

Michael Funk

Steve Enders

Zachary Gunn

Latest news

Earnings Transcripts

Q3 2025

Q2 2025

Q1 2025

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