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Jun 30
Paycom Q2 2025 Earnings Report
Paycom reported strong financial results for the second quarter of 2025, with significant increases in total revenues, GAAP net income, and Adjusted EBITDA compared to the prior year.
Key Takeaways
Paycom delivered very strong results in the second quarter of 2025, with total revenues increasing by 10.5% year-over-year to $483.6 million. GAAP net income rose to $89.5 million, and non-GAAP net income reached $116.6 million. Adjusted EBITDA also saw a substantial increase to $198.3 million, reflecting strong operational performance and improved margins.
Total revenues for Q2 2025 were $483.6 million, an 10.5% increase from $437.5 million in Q2 2024.
GAAP net income for Q2 2025 was $89.5 million, or $1.58 per diluted share, up from $68.0 million in Q2 2024.
Non-GAAP net income for Q2 2025 was $116.6 million, or $2.06 per diluted share, compared to $91.8 million in Q2 2024.
Adjusted EBITDA for Q2 2025 reached $198.3 million, representing 41.0% of total revenues, a significant improvement from $159.7 million in Q2 2024.
Paycom
Paycom
Paycom Revenue by Segment
Revenue by Segment
Recurring and Other Revenues Revenue
CapyFin.comInterest on Funds Held for Clients Revenue
CapyFin.com Forward Guidance
Paycom provided an optimistic financial outlook for the full year ending December 31, 2025, raising its growth and margin targets.
Positive Outlook
- Total revenue is projected to be in the range of $2.045 billion to $2.055 billion, indicating approximately 9% year-over-year growth at the midpoint.
- Recurring and other revenue growth is expected to be approximately 10% year over year.
- Adjusted EBITDA is forecasted to be between $872.0 million and $882.0 million.
- Adjusted EBITDA margin is anticipated to be approximately 43% at the midpoint.
- The company expects to extend its product lead with new innovations like IWant, the industry’s first command-driven AI engine.
Challenges Ahead
- The company did not reconcile forward-looking adjusted EBITDA ranges to net income due to uncertainty regarding future period information.
- Reconciliation of forward-looking non-GAAP effective income tax rate to comparable GAAP measures is not readily available.
- Potential variability in depreciation and amortization, interest expense, taxes, and non-cash stock-based compensation expense could impact actual results.
- No specific negative forward-looking statements were explicitly mentioned in the provided text.
- No specific negative forward-looking statements were explicitly mentioned in the provided text.
Revenue & Expenses
Visualization of income flow from segment revenue to net income