10-Q · May 7, 2026
Paycom Software, Inc. reported impressive Q1 2026 results with revenues reaching $571.9 million and EPS at $3.15, exceeding consensus estimates. The company reaffirmed its full-year outlook, bolstered by continued…
Earnings analysis · 10-Q
PAYC earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
The supplied 10-Q extract is concentrated on market risk and other information and does not include the income statement, segment results, balance sheet, cash-flow statement, or MD&A needed to assess quarterly operating…
Read full summary
The supplied 10-Q extract is concentrated on market risk and other information and does not include the income statement, segment results, balance sheet, cash-flow statement, or MD&A needed to assess quarterly operating trends. Liquidity remains substantial, with $193.9 million of corporate cash and $3.5 billion of client funds, but the company had $750.0 million of floating-rate debt and meaningful sensitivity to interest rates. Risk factors were reported as having no material changes from the February 19, 2026 Form 10-K, while the disclosed market-risk exposures warrant monitoring.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Large client-fund liquidity pool
Corporate cash and cash equivalents were $193.9 million as of September 30, 2026, while funds held for clients totaled $3.5 billion, providing substantial client-fund liquidity.
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Conservative investment portfolio
The company held $374.6 million of available-for-sale securities, consisting of U.S. Treasury securities with original maturities of two years or less and certificates of deposit.
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Controls remained effective
Disclosure controls and procedures were deemed effective as of September 30, 2026, and management reported no material changes in internal control over financial reporting during the quarter.
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Significant repurchase capacity
The company retained $1,652.7 million of remaining share-repurchase authorization at September 30, 2026, following 14,765 shares repurchased during the quarter.
What to watch
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Floating-rate debt exposure
The company had $750.0 million outstanding under its floating-rate Revolving Credit Facility. A hypothetical 100-basis-point change in reference rates would change interest expense by approximately $7.0 million over the ensuing 12 months.
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Client-fund interest sensitivity
A hypothetical 100-basis-point change in interest rates would change interest earned on funds held for clients by approximately $22.4 million over the ensuing 12 months, creating sensitivity to rate declines as well as increases.
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Securities and insider-sale risk
An immediate 100-basis-point rate increase or decrease would decrease or increase the aggregate market value of available-for-sale securities by approximately $2.2 million. The filing also states that insider-affiliated entities adopted a Rule 10b5-1 plan covering up to 1,090,000 shares.
Management's outlook
The provided 10-Q extract does not include MD&A or a quantitative outlook. Prior earnings materials reported FY2026 revenue guidance of $2.213 billion-$2.218 billion, but that guidance is not repeated in the supplied filing text.
Earlier filings 4
10-Q · November 6, 2025
Paycom reported a solid Q3 with total revenue of $493.3M (up from $451.9M in Q3 2024) and diluted EPS of $1.96 (up from $1.31). Gross margin remained high at ~82.7% while operating income improved modestly to $112.6M;…
10-Q · May 8, 2025
Paycom reported total revenue of $530.5 million for the quarter ended March 31, 2025, up $30.6 million (+6.1%) versus the prior-year quarter (Q1 2024: $499.9 million). Gross margin was essentially flat at ~84.1% (cost…
10-K · February 20, 2025
Paycom positions itself as a single-database, end-to-end SaaS HCM provider with a strong client experience focus (approximately 37,500 clients) and high retention (annual revenue retention rate of 90% for the years…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.