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Sep 30
Paycom Q3 2025 Earnings Report
Paycom reported strong third-quarter 2025 results with significant revenue growth and increased profitability, driven by double-digit organic recurring revenue growth and expanding margins.
Key Takeaways
Paycom delivered a strong third quarter in 2025, with total revenues reaching $493.3 million, a 9.1% increase year-over-year. The company reported GAAP net income of $110.7 million, or $1.96 per diluted share, and non-GAAP net income of $109.6 million, or $1.94 per diluted share. Adjusted EBITDA also saw a healthy increase to $194.3 million, representing 39.4% of total revenues.
Total revenues for Q3 2025 were $493.3 million, marking a 9.1% increase compared to the same period last year.
GAAP net income for the quarter was $110.7 million, or $1.96 per diluted share, including a tax-adjusted gain of $26.3 million from a naming rights agreement modification.
Non-GAAP net income reached $109.6 million, or $1.94 per diluted share, demonstrating strong underlying profitability.
Adjusted EBITDA for Q3 2025 was $194.3 million, representing an adjusted EBITDA margin of 39.4%.
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, projecting continued revenue growth and strong Adjusted EBITDA margins.
Positive Outlook
- Total revenue is expected to be in the range of $2.045 billion to $2.055 billion, representing approximately 9% year-over-year growth at the midpoint.
- Recurring and other revenue growth is anticipated to be approximately 10% year-over-year.
- Interest on funds held for clients is projected to be approximately $113 million.
- Adjusted EBITDA is expected to be in the range of $872 million to $882 million.
- Adjusted EBITDA margin is projected to be approximately 43% at the midpoint.
Challenges Ahead
- The company has not reconciled forward-looking adjusted EBITDA ranges and adjusted EBITDA margin to net income due to uncertainty regarding future depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, and other items.
- Reconciliations of forward-looking non-GAAP effective income tax rate to comparable GAAP measures are not available at this time without unreasonable effort.
- The forward guidance is subject to various uncertainties and potential variabilities in financial metrics.
- No specific negative guidance was provided beyond the standard disclaimers about forward-looking statements and non-GAAP reconciliation limitations.
- The report does not explicitly mention any specific negative trends or challenges anticipated in the forward guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income