The earnings call was largely positive with significant revenue growth, the successful launch of a groundbreaking AI product, and improved profitability. While there were concerns over declining interest revenue and increased spending, the overall outlook remains strong.

Company Guidance -

Q3 2025

During the Paycom Second Quarter 2025 Financial Results Conference Call, the company provided substantial guidance metrics reflecting strong performance and future outlook. Total revenue for the second quarter reached $484 million, marking an 11% increase year-over-year. Recurring and other revenue grew by 12% to $455 million. The GAAP net income was reported at $89 million, or $1.58 per diluted share, while non-GAAP net income increased by 27% year-over-year to $117 million, or $2.06 per diluted share. Adjusted EBITDA rose 24% to $198 million, with an adjusted EBITDA margin of 41%, a 450 basis point increase from the previous year. Paycom ended the quarter with $532 million in cash and no debt, and the average daily balance on funds held for clients was $2.6 billion, up 10% year-over-year. Looking ahead, Paycom raised its full-year 2025 revenue guidance to between $2.45 billion and $2.55 billion, anticipating a 9% year-over-year increase at the midpoint. Recurring and other revenue is expected to grow by 10% year-over-year. The company projects adjusted EBITDA for the full year to be between $872 million and $882 million, with a margin of approximately 43% at the midpoint.

Strong Revenue Growth

Total revenue reached $484 million, representing an 11% increase over the prior year period. Recurring and other revenue grew even faster at 12% year-over-year, reaching $455 million.

Introduction of IWant

Paycom launched IWant, a command-driven AI tool that revolutionizes user access and navigation of the system, increasing user engagement and client satisfaction. Early feedback from clients has been overwhelmingly positive, calling it a 'game changer.'

Increased Profitability

Non-GAAP net income for the second quarter increased 27% year-over-year to $117 million. Adjusted EBITDA was $198 million, reflecting a 24% increase over the prior year, with an adjusted EBITDA margin of 41%, up 450 basis points.

Strong Financial Position

Paycom ended the quarter with $532 million in cash and no debt. The average daily balance on funds held for clients was approximately $2.6 billion, up 10% over the prior year period.

Recognition and Awards

Paycom's sales teams were recognized by Selling Power magazine, and the company was listed by Time Magazine and Newsweek for various accolades such as best companies and best online platforms.

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
Nov 04, 2025	2025 (Q3)	1.97 / -	1.67	―	―	―
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)	―
Aug 01, 2023	2023 (Q2)	1.60 / 1.62	1.26	28.57% (+0.36)	―

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
Aug 06, 2025	$223.26	$233.38	+4.53%
May 07, 2025	$228.34	$248.99	+9.04%
Feb 12, 2025	$206.38	$211.30	+2.38%
Oct 30, 2024	$171.42	$208.02	+21.35%

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.