Paycom Software (PAYC) investor relations material

Executive summary

• Achieved double-digit recurring revenue growth and near-record adjusted EBITDA margins in 2025, driven by automation and client ROI focus.

• Full year 2025 revenues reached $2.052 billion, up 9% year-over-year, with GAAP net income of $453 million and non-GAAP net income of $519 million.

• Adjusted EBITDA for 2025 was $882 million, representing a 43% margin.

• Client retention improved to 91% in 2025, with client count growing to approximately 39,200 and parent company groupings up 5% to 20,300.

• Launched new automated decisioning tools, including AI-driven IWant, Beti, and GONE, enhancing client productivity and satisfaction.

Financial highlights

• Q4 2025 total revenue was $544.3 million, up 10.2% year-over-year; recurring and other revenue reached $517 million, up 11%.

• Full year recurring and other revenues were $1.94 billion, up 10.3% year-over-year.

• Adjusted EBITDA margin in Q4 was 43.4% ($236 million); full year adjusted EBITDA grew 14% to $882 million, with a 43% margin.

• Full year GAAP net income was $453 million ($8.08 per diluted share); non-GAAP net income was $519 million ($9.24 per share).

• Operating cash flow rose 27% to $679 million (33% margin); free cash flow was $404 million, up 20% year-over-year.

Outlook and guidance

• Fiscal 2026 revenue expected between $2.175 billion and $2.195 billion, representing 6%-7% growth.

• Recurring and other revenues projected to grow 7%-8% year-over-year in 2026.

• Adjusted EBITDA for 2026 forecasted at $950-$970 million, with a margin of approximately 44%.

• Guidance includes $103 million in interest on client funds, assuming two rate cuts in 2026.