# Paycom Software Inc. (PAYC) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/PAYC/thesis · /stocks/PAYC/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/PAYC/fundamental

## Navigation

- Overview: /stocks/PAYC
- Financials (this page): /stocks/PAYC/financials
- Thesis: /stocks/PAYC/thesis
- Investment Memo: /stocks/PAYC/memo
- Coverage universe: /stocks