Paycom Software (PAYC) Company Report

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

Paycom reports Q2 2025 results and raises guidance

PAYC

Earnings

Guidance Update

Product Launch

Paycom delivered 11% revenue growth to $484 M and 27% non-GAAP net income growth to $117 M ($2.60 EPS) in Q2 2025, with adjusted EBITDA up 24% to $198 M (41% margin).
Full-year 2025 guidance raised: revenue now expected at $2.045–2.055 B (9% YoY growth midpoint) and adjusted EBITDA at $872–882 M (~43% margin).
Company launched iWant, a command-driven AI product leveraging its single database; early client feedback calls it a “game changer” for engagement, expected to boost sales and retention.
Strong balance sheet with $532 M cash, no debt, $22 M in dividends paid YTD and $1.44 B remaining in share repurchase authorization.

Aug 7, 2025, 1:15 AM

Paycom launches command-driven AI engine IWant

PAYC

Product Launch

Paycom unveiled IWant, the industry’s first command-driven AI engine that enables users to navigate and access HR and payroll data within a single database using voice or text prompts.
The engine delivers accurate, rapid results by pulling exclusively from Paycom’s unified database—eliminating errors from duplicate or disparate sources—and is available via mobile apps (Employee Self-Service®, Manager on-the-Go®) and desktop.
Founder and CEO Chad Richison called IWant the company’s “biggest release since our founding in 1998,” designed to make traditional navigation and information gathering obsolete.
HR Technology Conference co-chair Steve Boese highlighted IWant’s Executive Mode, stating it will transform how leaders interact with and lead using company data.

Jul 30, 2025, 1:15 PM

Press Release

Paycom Focuses on Automation and Growth at 2025 Conference Call

PAYC

Product Launch

Revenue Acceleration/Inflection

New Projects/Investments

Product Innovation: Paycom detailed enhancements to its integrated payroll and HCM system, highlighting the evolution of Betty and the shift toward command-driven features expected to roll out within the next two to three months with demos anticipated in October.
Client Satisfaction and Retention: The company is prioritizing client value by improving product usability, which is supporting elevated client satisfaction scores and retention rates in the high 90s.
Sales and Growth Strategy: Strategic initiatives include streamlining sales training and expanding sales teams—with long-term potential to exceed 100 teams—to capture a larger share of the market.
Cost Management and Investment: Despite continued investments in AI, product development, and infrastructure (e.g., the new Arizona data center), Paycom is carefully managing its capital expenditures while specifics on free cash flow conversion remain to be clarified.

Jun 4, 2025, 2:31 AM

Earnings Transcripts

Quarterly earnings call transcripts for Paycom Software.

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