Paycom (PAYC) Q3 2025 10-Q Quarterly Report

Filed: Nov 6, 2025Period ending Sep 30, 2025
Information Technology
Services-Prepackaged SoftwareSEC EDGAR

Paycom (PAYC) 10-Q quarterly report for Q3 2025, filed with SEC EDGAR on Nov 6, 2025 for the fiscal period ending Sep 30, 2025. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.

Paycom Q3 2025 10-Q Analysis

Management Discussion & Analysis

  • Revenue $493.3M, up 9.1% YoY from $451.9M in Q3 2024
  • Operating margin 22.8% vs 23.2% YoY; net income margin 22.4% vs 16.2% YoY, net income $110.7M up 51.1%
  • Best performing segment: recurring and other revenues $466.5M (+10.6% YoY); worst: interest on funds held for clients $26.8M (-11.0% YoY)
  • Operating cash flow $482.8M, up 29% YoY; capital expenditures increased with $100M spent on AI-focused data center expansion (May-Oct 2025)
  • Management highlights near-term focus on AI automation, expects increased R&D expenses, plans to continue dividends and opportunistic share repurchases; notes ongoing macroeconomic and competitive headwinds impacting client hiring and growth

Risk Factors

  • Newly added risk: Geopolitical conflicts in Ukraine and the Middle East exacerbating economic and market uncertainties
  • Most materially updated risk: Interest rate fluctuations impacting investment income on client and corporate funds during market volatility
  • Regulatory/legal risk: Potential U.S. federal government shutdown affecting clients funded by government resources and delaying payments
  • Operational risk: Longer sales cycles and slower technology adoption due to adverse economic conditions and increased price competition
  • Financial risk: Liquidity risk from market, credit, and interest rate exposure on client funds invested before remittance to taxing authorities

Paycom Q3 2025 Quarterly Financials
XBRL

Revenue

$493M

+9.2% YoY +2.0% QoQ

Net Income

$111M

+51.1% YoY +23.7% QoQ

Net Margin

22.4%

+623bp YoY +393bp QoQ

Source: XBRL data from Paycom Q3 2025 10-Q filing on SEC EDGAR. All figures in USD.

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