Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, Paycom learning, certification management. The company also offers time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. Its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.
Paycom Software, Inc. (PAYC) reported trailing twelve months revenue of $2.09B as of March 2026, a 9.4% increase year-over-year. Quarterly revenue reached $571.90M, reflecting continued top-line momentum.
Paycom Software, Inc. generated $469.70M in TTM net income, with quarterly EBITDA of $261.40M. The operating margin expanded from 34.9% to 36.8%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (36.8%) and net margin (27.2%) indicates moderate non-operating costs. Net margin has improved from 26.3% a year ago, signaling stronger bottom-line efficiency.
PAYC trades at a P/E of 13.2x (below the broader market average) and a P/S of 3.0x. The price-to-book ratio of 7.6x indicates a significant premium over book value.
The company generated $181.30M in free cash flow over the trailing twelve months, a 25.2% increase year-over-year, indicating cash generation ability. The balance sheet shows $4.82B in total assets with $675.00M in long-term debt against $811.70M in stockholders equity for a debt-to-equity ratio of 0.8. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are stable at ~27.7%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 31.7% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~17.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~27.9% — no sign of cost or pricing stress.
FCF covers net income by 0.9x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 9.8% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation