The earnings call highlighted strong financial performance, innovative product launches, and strategic investments, contributing to positive market reception and client satisfaction. However, there were challenges such as a decline in interest income and workforce reductions. Overall, the company is well-positioned for future growth, but some concerns remain about maintaining historical performance benchmarks.

Company Guidance

During Paycom's third quarter 2025 earnings call, the company provided guidance reflecting strong financial performance and strategic investments. Paycom anticipates total revenue for 2025 to be between $2.045 billion and $2.055 billion, marking a 9% increase year-over-year at the midpoint. The company expects organic full-year recurring and other revenue to grow by 10%, while interest on funds held for clients is projected to decrease by 10% to $113 million. Adjusted EBITDA for the year is forecasted to range from $872 million to $882 million, with an adjusted EBITDA margin expansion of 160 basis points, reaching approximately 43% at the midpoint. Paycom highlighted a robust business model with a 13% year-over-year increase in adjusted EBITDA to $194 million for the third quarter, achieving a 39% adjusted EBITDA margin. The company has also completed a significant $100 million AI-focused capital expenditure to enhance its data center capabilities, supporting its innovative AI solutions like IWant and Beti, which are driving client engagement and operational efficiencies.

Strong Financial Performance

Third quarter total revenues reached $493 million, a 9.1% increase from the previous year, with recurring revenues up 10.6% year-over-year. Adjusted EBITDA increased 13% to $194 million, with a margin expansion of 150 basis points to 39%.

Innovative Product Launches

Launched the command-driven AI product 'IWant' and the payroll solution 'Beti', both of which are driving engagement and sales. Beti is noted for reducing payroll processing labor by up to 90% and cutting payroll error correction time by 85%.

Client and Market Reception

Strong client satisfaction trends with a 20-30% decline in internal tickets and inbound call volume. The intuitive nature of 'IWant' has led to increased engagement, particularly among C-suite executives.

Data Center Investment

Invested approximately $100 million in AI-focused CapEx for data centers, providing a sustainable competitive advantage and supporting future AI initiatives.

Shareholder Returns

Repurchased $319 million of common stock and paid $213 million in dividends, with $1.1 billion remaining under buyback authorization.

Paycom (PAYC) Earnings, Revenues Date & History

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PAYC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 11, 2026	2025 (Q4)	2.45 / -	2.32	―	―	―
Nov 05, 2025	2025 (Q3)	1.95 / 1.94	1.67	16.17% (+0.27)	―
Aug 06, 2025	2025 (Q2)	1.78 / 2.06	1.62	27.16% (+0.44)	―
May 07, 2025	2025 (Q1)	2.57 / 2.80	2.59	8.11% (+0.21)	―
Feb 12, 2025	2024 (Q4)	1.97 / 2.32	1.93	20.21% (+0.39)	―
Oct 30, 2024	2024 (Q3)	1.60 / 1.67	1.77	-5.65% (-0.10)	―
Jul 31, 2024	2024 (Q2)	1.62 / 1.62	1.62	0.00% (0.00)	―
May 01, 2024	2024 (Q1)	2.45 / 2.59	2.46	5.28% (+0.13)	―
Feb 07, 2024	2023 (Q4)	1.78 / 1.93	1.73	11.56% (+0.20)	―
Oct 31, 2023	2023 (Q3)	1.63 / 1.77	1.27	39.37% (+0.50)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

PAYC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 05, 2025	$183.71	$164.01	-10.72%
Aug 06, 2025	$222.90	$233.00	+4.53%
May 07, 2025	$227.97	$248.59	+9.05%
Feb 12, 2025	$206.05	$210.96	+2.38%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.