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Sep 30, 2025
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%.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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