Paycom (PAYC) Research | Aerarium Research

Forward Estimates

EPS Estimates

Current Qtr

$2.38

$2.17$2.65

vs $2.06+15.6%

19 analysts

Next Qtr

$2.39

$2.22$2.53

vs $1.94+23.3%

19 analysts

Current Yr

$10.92

$10.36$11.33

vs $9.24+18.2%

20 analysts

Next Yr

$12.30

$11.03$14.73

vs $10.92+12.6%

20 analysts

Revenue Estimates

Current Qtr

$513.45M

$508.14M$520.00M

vs $483.60M+6.2%

19 analysts

Next Qtr

$530.20M

$522.60M$563.30M

vs $493.30M+7.5%

19 analysts

Current Yr

$2.19B

$2.18B$2.21B

vs $2.05B+6.7%

19 analysts

Next Yr

$2.35B

$2.32B$2.45B

vs $2.19B+7.1%

19 analysts

SEC filings →

View all 10-K, 10-Q, and 8-K filings for PAYC on EDGAR.

PAYC filing events and research context
Filed	Item	Context
Feb 19, 2026	business	Paycom provides a comprehensive, cloud-based Human Capital Management (HCM) SaaS solution centered on a single core system of record, eliminating the need for third-party integrations. While payroll remains the primary revenue driver, the company differentiates itself through employee self-service technologies, including Beti for employee-led payroll and the IWant AI engine. The Direct Data Exchange (DDX) tool provides real-time analytics on the ROI of employee usage. Serving approximately 39,200 clients, Paycom targets organizations with 50 to 10,000+ employees, with a strategic focus on moving upmarket to larger clients and expanding into international markets via Global HCM. The company competes with major providers such as ADP, Workday, and Dayforce. Key operational risks include evolving data privacy laws (CCPA, GDPR) and emerging AI regulations, such as the EU AI Act. Financials are characterized by a 90-91% revenue retention rate and seasonality, with revenue peaks in the first and fourth quarters due to tax filings and year-end bonuses. To manage money movement, the company operates the Paycom National Trust Bank, which is subject to OCC oversight and Bank Secrecy Act regulations.
Feb 19, 2026	mda	Paycom provides a cloud-based human capital management (HCM) SaaS solution centered on a core payroll application, supplemented by talent acquisition, HR, and time and labor management tools. The company is prioritizing AI-driven automation, specifically through its IWant engine, and expanding into international markets and larger organizations with over 1,000 employees. For the fiscal year ended December 31, 2025, total revenues grew 9.0% to $2.05 billion, driven by a 10.3% increase in recurring and other revenues, though interest income on client funds declined 9.6% due to lower interest rates. Net income decreased 9.7% to $453.4 million, while Adjusted EBITDA rose to $882.3 million. Key performance indicators include 39,199 clients and a 91% annual revenue retention rate. Operating expenses increased in sales, marketing, and R&D, while general and administrative costs were skewed by a $117.5 million stock-based compensation reversal. Management expects lower employee-related expenses in 2026 following recent headcount reductions. Financial risks include sensitivity to labor market fluctuations and intense HCM competition. Liquidity remains robust with an undrawn $1.0 billion revolving credit facility and $1.11 billion remaining in its stock repurchase plan.
Feb 19, 2026	risk_factors	Paycom’s business is primarily exposed to cybersecurity threats and data breaches involving sensitive HCM data, risks exacerbated by AI-driven attacks and third-party vulnerabilities. Operational stability depends on redundant data centers in Oklahoma, Texas, and Arizona. The company faces intense competition from providers such as ADP, Workday, and Dayforce, alongside emerging threats from white-label embedded payroll solutions. Because Paycom utilizes per-employee pricing, revenue is highly sensitive to labor market fluctuations and potential AI-driven headcount reductions. Regulatory compliance is complex, particularly regarding the EU AI Act, GDPR, and FCRA requirements for its Enhanced Background Checks product. Financial performance is subject to Q1 seasonality driven by W-2 and 1099 processing, and interest income is tied to the management of client funds. Key person risk is concentrated in founder and CEO Chad Richison, while an office-centric operational model may impede the recruitment of technical talent compared to remote-friendly competitors. International expansion introduces further regulatory, currency, and geopolitical risks. Additionally, the company must manage strict financial covenants within its Revolving Credit Facility and navigate the inherent risks of integrating future acquisitions.

Filed

Item

Context

Feb 19, 2026

business

Paycom provides a comprehensive, cloud-based Human Capital Management (HCM) SaaS solution centered on a single core system of record, eliminating the need for third-party integrations. While payroll remains the primary revenue driver, the company differentiates itself through employee self-service technologies, including Beti for employee-led payroll and the IWant AI engine. The Direct Data Exchange (DDX) tool provides real-time analytics on the ROI of employee usage. Serving approximately 39,200 clients, Paycom targets organizations with 50 to 10,000+ employees, with a strategic focus on moving upmarket to larger clients and expanding into international markets via Global HCM. The company competes with major providers such as ADP, Workday, and Dayforce. Key operational risks include evolving data privacy laws (CCPA, GDPR) and emerging AI regulations, such as the EU AI Act. Financials are characterized by a 90-91% revenue retention rate and seasonality, with revenue peaks in the first and fourth quarters due to tax filings and year-end bonuses. To manage money movement, the company operates the Paycom National Trust Bank, which is subject to OCC oversight and Bank Secrecy Act regulations.

Feb 19, 2026

mda

Paycom provides a cloud-based human capital management (HCM) SaaS solution centered on a core payroll application, supplemented by talent acquisition, HR, and time and labor management tools. The company is prioritizing AI-driven automation, specifically through its IWant engine, and expanding into international markets and larger organizations with over 1,000 employees. For the fiscal year ended December 31, 2025, total revenues grew 9.0% to $2.05 billion, driven by a 10.3% increase in recurring and other revenues, though interest income on client funds declined 9.6% due to lower interest rates. Net income decreased 9.7% to $453.4 million, while Adjusted EBITDA rose to $882.3 million. Key performance indicators include 39,199 clients and a 91% annual revenue retention rate. Operating expenses increased in sales, marketing, and R&D, while general and administrative costs were skewed by a $117.5 million stock-based compensation reversal. Management expects lower employee-related expenses in 2026 following recent headcount reductions. Financial risks include sensitivity to labor market fluctuations and intense HCM competition. Liquidity remains robust with an undrawn $1.0 billion revolving credit facility and $1.11 billion remaining in its stock repurchase plan.

Feb 19, 2026

risk_factors

Paycom’s business is primarily exposed to cybersecurity threats and data breaches involving sensitive HCM data, risks exacerbated by AI-driven attacks and third-party vulnerabilities. Operational stability depends on redundant data centers in Oklahoma, Texas, and Arizona. The company faces intense competition from providers such as ADP, Workday, and Dayforce, alongside emerging threats from white-label embedded payroll solutions. Because Paycom utilizes per-employee pricing, revenue is highly sensitive to labor market fluctuations and potential AI-driven headcount reductions. Regulatory compliance is complex, particularly regarding the EU AI Act, GDPR, and FCRA requirements for its Enhanced Background Checks product. Financial performance is subject to Q1 seasonality driven by W-2 and 1099 processing, and interest income is tied to the management of client funds. Key person risk is concentrated in founder and CEO Chad Richison, while an office-centric operational model may impede the recruitment of technical talent compared to remote-friendly competitors. International expansion introduces further regulatory, currency, and geopolitical risks. Additionally, the company must manage strict financial covenants within its Revolving Credit Facility and navigate the inherent risks of integrating future acquisitions.

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PAYC filing events and research context

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