Companies · PAYC
Paycom
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Latest analysis
Updated Nov 5, 2026
Paycom Q3 2026: Operating income surges 74% YoY as R&D headcount cuts and sales efficiency gains drive margin expansion to 36%
Paycom's Q3 2026 results mark a decisive inflection in operating leverage: operating income reached $195.8 million on $543.8 million in total revenue, with the operating margin expanding to 36.0% from 22.8% in Q3 2025. The margin expansion was powered by a 48% reduction in R&D expense and a 14% decline in sales and marketing, both driven by deliberate headcount reductions tied to automation of core business systems. Float income declined as lower interest rates more than offset growth in average client funds balances, introducing a structural headwind to the interest-on-funds revenue line.
Tone: bullishRevenue
$2.1B
PAYC 10-K · FY 2025
Employees
5,770
Revenue FY2024
$1.9B
Founded
1998
Profile
PAYC 10-K Item 1 · Feb 19, 2026Paycom Software is a cloud-based human capital management (HCM) SaaS provider that delivers an end-to-end solution — from recruitment to retirement — on a single database platform requiring virtually no customization. The company sells exclusively through an internally trained direct sales force and serves approximately 39,200 clients, primarily organizations with 50 to 10,000 or more employees. Founded in 1998 and publicly traded since 2014, Paycom differentiates on its single-platform architecture, employee self-service tools, and embedded AI capabilities.
Read filing description ↓ Collapse description ↑
We are a leading provider of a comprehensive, cloud-based HCM solution delivered as Software-as-a-Service. We provide functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Our solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including payroll, talent acquisition, talent management, human resources management and time and labor management applications. Our user-friendly software allows for easy adoption of our solution by employees, enabling self-management of their HCM activities in the cloud, which reduces the administrative burden on employers and increases employee productivity. We were founded in 1998 and became a publicly traded company through our initial public offering in 2014. Because our solution was developed in-house and is based on a single platform, there is no need for our clients to integrate, update or access multiple databases, which are common issues with competitor offerings that use multiple third-party systems in order to link together their HCM offerings. Our solution allows clients to automate decisions and time-consuming HR and payroll tasks, freeing them up to focus on strategic items such as employee engagement and workforce planning. We sell our solution directly through our internally trained, client-focused and highly skilled sales force based in offices across the United States. We have approximately 39,200 clients. We believe that as a result of our focus on client experience, we enjoy high client satisfaction as evidenced by an annual revenue retention rate of 91% and 90% for the years ended December 31, 2025 and 2024, respectively.
Primary products
- Beti (Better Employee Transaction Interface)
- Payroll and Payroll Tax Management
- Vault Visa Payroll Card
- Everyday (daily payroll service)
- Paycom Pay
- Client Action Center
Business segments
End markets
Geographies
Named competitors
“We compete with companies such as Automatic Data Processing, Inc., Dayforce, Inc., Intuit, Inc., Oracle Corporation, Paychex, Inc., Paylocity Holding Corporation, SAP SE, ServiceNow, Inc., Ultimate Kronos Group, Workday, Inc., and other international, national, regional, and local providers.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Total revenues grew from $1,883.2 million in fiscal 2024 to $2,051.7 million in fiscal 2025, driven by growth in recurring revenues and partially offset by a decline in interest on funds held for clients.
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