Paycom Software Inc.

PAYC
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$571.8M
Q1 FY2026 · +7.8% YoY · Beat consensus by 6.3%
TTM ROIC
26.2%
FY2025 · Net Income / Total Equity · WACC ~9.5% · Moat spread +6.7pp

Financial Snapshot

ticker: PAYC step: 04 generated: 2026-05-13 source: quick-research

Paycom Software Inc. (PAYC) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$1.38B $1.69B $1.88B +11.2%
Gross Margin ~82% ~83% ~83%
Operating Margin ~22% ~25% ~26%
Net Income ~$282M ~$340M ~$420M +23.5%
EPS (diluted) ~$4.80 $5.91 $8.93 +51.1%

FY2022 EPS boosted by share buybacks. Revenue growth has decelerated from 25-30% in 2021-2022 to ~11% in FY2024 and ~9% in FY2025 ($2.05B), reflecting Beti-related pricing and mid-market saturation pressures.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Free Cash Flow $341M
Operating Cash Flow ~$530M
Capital Expenditures ~$190M
Cash & Equivalents ~$350M
Total Debt $0 (debt-free)

Key Ratios (approximate)

  • P/E: ~13x (at ~$116 price) | EV/EBITDA: ~8x | FCF Yield: ~5%
  • Gross Margin: ~83% | Adjusted EBITDA Margin: ~44% (FY2026 guided)
  • Net Cash: Positive; no debt; initiated dividend in 2026

Growth Profile

Paycom's growth story has evolved from a hyper-growth HCM disruptor (~25-30% revenue CAGR 2015-2022) to a maturing mid-market SaaS compounder. The Beti rollout caused a one-time revenue headwind (clients needed fewer HR staff → smaller client footprint) but improved retention and margins. FY2025 revenue grew 10% to $2.05B. Management guided FY2026 to $2.175-$2.195B (+6-7%) — below consensus — causing a sharp stock selloff near 52-week lows. Adjusted EBITDA margins are expanding toward 44% in 2026, showing operating leverage even as revenue growth slows.

Forward Estimates

  • FY2026 Guidance: Revenue $2.175-$2.195B (+6-7%); adj. EBITDA $950-$970M (~44% margin)
  • First dividend initiated: 2026 — signals cash generation confidence and mature capital allocation
  • Price target raised to $130 (May 2026) by at least one analyst; consensus ~$171 (Buy)
  • Stock near 52-week lows (~$116) post-guidance cut — significant value argument at ~8x EBITDA

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $PAYC.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/payc/financials/md · → thesis · → memo