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Dec 31, 2025
Paycom Q4 2025 Earnings Report
Paycom reported fourth quarter 2025 results with double-digit revenue growth and stable profitability.
Key Takeaways
Paycom generated $544.3 million in Q4 2025 revenue, up 10.2% year-over-year, with GAAP net income of $113.8 million and diluted EPS of $2.07. Adjusted EBITDA reached $236.3 million, reflecting a 43.4% margin, while recurring revenues represented 95% of total revenue.
Total revenues increased 10.2% year-over-year to $544.3 million.
GAAP net income was $113.8 million with diluted EPS of $2.07.
Adjusted EBITDA rose to $236.3 million, representing a 43.4% margin.
Recurring and other revenues grew 11.2% and accounted for 95% of total revenues.
Revenue by Segment
Forward Guidance
For full year 2026, Paycom expects total revenue between $2.175 billion and $2.195 billion and adjusted EBITDA between $950 million and $970 million.
Positive Outlook
- Expected total revenue growth of 6% to 7% year-over-year.
- Recurring and other revenue growth projected between 7% and 8%.
- Interest on funds held for clients expected to be approximately $103 million.
- Adjusted EBITDA margin projected at approximately 44% at the midpoint.
- Continued focus on automation and AI-driven product innovation.
Challenges Ahead
- Revenue growth expected to moderate compared to 2025 growth rates.
- Guidance does not include reconciliation to GAAP net income due to variability.
- Interest income subject to fluctuations in rate environment.
- Macroeconomic factors may impact client hiring and payroll volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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