📈 Price History

Ratio Health

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By Category

📊 Sector Averages

About

Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company’s HCM solution offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, Paycom learning, certification management. The company also offers time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. Its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.

Key Ratios Snapshot

📈 Growth Pattern

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🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

Management used definitive language like 'very strong', 'record sales', 'most significant product in company's history', and 'total game changer'. They provided specific numbers (11% revenue growth, 12% recurring revenue growth, 41% adjusted EBITDA margin) and raised guidance with exact ranges.

Q3 2025

Confident Specific

Management uses phrases like 'strong results', 'double-digit organic recurring revenue growth', 'continued margin expansion', and provides specific figures (e.g., $100M CapEx, $319M buyback, 150 bps margin expansion). CEO cites concrete examples of client wins and product adoption, indicating a clear and positive view of performance and outlook.

Q4 2025

Mixed

The tone is confident regarding product and retention achievements ("strong results", "record number of clients returning") but guarded when addressing growth deceleration ("I feel good but not satisfied", guide shows slower growth). Executives are defensive about the guidance methodology, comparing it to last year's initial guide rather than addressing the implied slowdown directly.

Q1 2026 latest

Confident Specific

Chad Richison stated 'First quarter results were solid' and 'our 2026 plan remains well on track.' He described Paycom as 'the most automated solution in the market' and expressed that internally 'everything's going really well.' He also noted 'it's not until we come on these calls that we find out that we're not doing that great,' indicating defensive confidence despite external narrative.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger after this call. Paycom delivered a solid Q1 with 9% recurring revenue growth, 48.2% adjusted EBITDA margin (50 bps expansion), and an aggressive $2 billion buyback that signals deep confidence. The CEO provided direct color on internal momentum, contradicting the negative external narrative around AI disruption. However, the maintained full-year guidance suggests management expects moderation in the back half, and key questions on bookings inflection and CapEx were deflected. The value proposition around automation and AI (IWant, Beti, GONE) is becoming more tangible, with usage metrics improving. Watch for evidence of accelerating new bookings from the retrained sales force and continued retention gains to validate the optimistic tone. Overall, the call reinforced Paycom's operational leverage and capital return story, but macro and competitive risks remain unaddressed.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Paycom Q1 2026: Revenue $572M, recurring up 9%, adjusted EBITDA margin 48.2%

Revenue & Profitability

Q1 2026 total revenues of $572 million (up 8% YoY); recurring and other revenue of $544 million (up 9% YoY). GAAP net income was $156 million or $3.04 per diluted share; non-GAAP net income was $161 million or $3.15 per diluted share. Adjusted EBITDA was $275 million (48.2% margin, up 50 bps YoY). Full-year 2026 guidance: total revenue $2.175-$2.195 billion (~6.5% YoY growth at midpoint), recurring revenue growth 7-8%, adjusted EBITDA $950-$970 million (44% margin at midpoint).

Outlook

Management believes AI and automation are the future of the industry and that Paycom is uniquely positioned as the most automated solution in the market. They see a large opportunity because they serve only about 5% of the addressable market. No specific macro headwinds were cited; internally the company is executing well despite some perceived external narratives.

Growth Drivers

Key growth levers include increased adoption of automation tools (Beti, GONE, IWant), expanding sales capacity with better-trained reps, and a strong focus on client ROI and retention. IWant usage rose 33% since Q4 2025 and is becoming a predominant interface for clients and employees. The company also benefits from forms filing revenue in Q1. Retention improved in 2025 and Net Promoter Score continues to increase.

Balance Sheet & CapEx

CapEx was approximately 6% of revenue in Q1. Management noted potential for increased CapEx due to data center expansion (power and purchase items) but did not provide specific guidance. The company continues to invest in automation and AI, including the IWant AI tool.

Margins

Adjusted EBITDA margin expanded 50 bps YoY to 48.2% in Q1. Full-year 2026 adjusted EBITDA margin is expected to be about 44% at the midpoint of guidance. Operational efficiencies from automation and process improvements are driving margin expansion without compromising sales, service, or innovation.

Key Risks

Management sees a disconnect between internal performance and external narratives, noting that the stock price is influenced by an 'AI prophecy of the day' rather than company results. No other specific risks were raised in the call. The company's full-year guidance implies a slowdown in recurring growth from Q1's 9% to the guided 7-8% for the full year.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-08-05

Q2 2026 results exceeded expectations with 10% revenue growth and 20% higher net income, driven by broad-based demand, automation, and new product launches. Guidance for full-year revenue and EBITDA was raised, supported by strong free cash flow and aggressive share repurchases.

Q1 2026 Q1 2026 2026-05-06

Revenue grew 8% year-over-year to $572M, with recurring revenue up 9% and adjusted EBITDA margin expanding to 48.2%. Automation and AI solutions drove operational efficiencies and strong client ROI, while a $2B buyback and new credit facility supported capital allocation.

Q4 2025 Q4 2025 2026-02-11

Delivered strong 2025 results with 10% recurring revenue growth, 43% adjusted EBITDA margin, and improved 91% retention. 2026 guidance projects 6%-7% revenue growth and continued margin expansion, supported by automation, AI, and expanded sales capacity.

Q3 2025 Q3 2025 2025-11-05

Q3 2025 saw strong double-digit organic recurring revenue growth, margin expansion, and the successful rollout of the IWant AI platform, driving efficiency and client satisfaction. Major AI/data center investments are complete, supporting robust guidance for 2025 and setting up for improved free cash flow and continued growth.

Q2 2025 Q2 2025 2025-08-06

Q2 2025 saw double-digit revenue and profit growth, driven by recurring revenue and margin expansion. The launch of IWant, a command-driven AI product, is expected to boost client engagement, retention, and full-solution adoption. Full-year guidance was raised for both revenue and adjusted EBITDA.

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