Paycom Recognized as a USA Today Most Trusted Brand for 2026 Mar 18, 2026 9:15 AM Eastern Daylight Time Paycom Recognized as a USA Today Most Trusted Brand for 2026 Share Paycom recognized as a USA Today Most Trusted Brand for 2026. OKLAHOMA CITY--(BUSINESS WIRE)-- Paycom Software, Inc. (NYSE: PAYC)("Paycom†), a The USA Today Most Trusted Brands recognition is based on a nationwide consumer sentiment study conducted in partnership with research firm Plant-A Insights Group. More than 23,000 U.S. consumers ...

Core Insights - Paycom Software, Inc. has been awarded the H3 HR Advisors HCM Technology Signal Award for its innovations in workforce change management [2][3][5] Group 1: Award Recognition - The HCM Technology Signal Award recognizes Paycom's impact through innovations like decisioning logic and automation in HR and payroll software [2][3] - The award is based on H3 HR Advisors' research and identifies HCM providers demonstrating measurable impact in critical areas for organizations in 2026 [5] Group 2: Technology and Innovation - Paycom's software utilizes command-driven AI and full-solution automation to streamline HR and payroll processes, enhancing clarity and confidence in managing workforce changes [4] - The company claims to have the most automated software in the industry, enabling organizations to manage workforce changes effectively [5] Group 3: Leadership and Strategy - Shane Hadlock has been promoted to president and chief client officer, overseeing strategic operations and the execution of Paycom's automation strategy [9] - The company emphasizes the importance of reducing decision-making burdens on HR and leaders through its technology [4]

Core Viewpoint - Paycom Software reported strong Q4 2025 earnings, surpassing expectations with both revenue and earnings growth, driven by increased sales momentum and AI integration in products [3][4]. Financial Performance - Paycom's Q4 2025 non-GAAP earnings were $2.45 per share, exceeding the Zacks Consensus Estimate of $2.44, marking a 5.6% year-over-year increase [3]. - Revenues reached $544.3 million, beating the consensus mark of $542.7 million, and reflecting a 10.2% year-over-year growth [4]. - Recurring revenues, which constitute 95% of total revenues, improved by 11.2% to $517.1 million [5]. - Adjusted gross profits increased by 11.3% to $459.4 million, with an adjusted gross margin of 84.4%, up 80 basis points year-over-year [6]. Cash Flow and Shareholder Returns - Paycom generated operating cash flow of approximately $196.1 million in Q4 2025, with total operating cash flow for the year at $678.9 million [8]. - The company paid out $20.6 million in dividends and repurchased $108.8 million of its common stock in Q4 2025 [8]. - As of December 31, 2025, Paycom had $1.1 billion remaining under its buyback authorization [9]. 2026 Guidance - Paycom initiated its revenue guidance for 2026, forecasting revenues between $2.175 billion and $2.195 billion, with recurring revenues expected to grow by 7% year-over-year [10]. - The company projects adjusted EBITDA for 2026 to be between $950 million and $970 million, indicating an EBITDA margin of approximately 44% at the midpoint [10]. Market Position and Comparisons - Paycom's stock has gained about 5.7% over the past month, outperforming the S&P 500 [1]. - In comparison, Reddit Inc., another player in the internet-software industry, reported a significant revenue increase of 69.6% year-over-year, with Q4 revenues of $725.61 million [14].

Fund Performance - Spheria Global Opportunities Fund returned -3.0% in Q4 2025, underperforming the MSCI World Small Cap Accumulation Index (Net Return) AUD, which returned 2.2% [1] - In December 2025, the fund returned -1.5%, lagging the index by -0.7% [1] - The Healthcare and Materials sectors showed recovery, while Consumer Staples and Consumer Discretionary sectors were weak [1] Regional Performance - The UK lagged by approximately 2% compared to other regions, which performed similarly [1] Small Cap Performance - Small caps have not closed the value gap that emerged before the interest rate cycle began in early 2022 [1] Company Highlight: Paycom Software, Inc. - Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider for small to mid-sized companies [2] - As of March 10, 2026, Paycom's stock closed at $131.88 per share, with a one-month return of 11.12% and a 52-week loss of 36.14% [2] - Paycom has a market capitalization of $7.16 billion [2] Performance Detractors - The largest detractors from the fund's performance included an overweight position in Hemnet (-26%), Paycom Software, Inc. (-24%), and Rightmove (-27%) [3]

Core Viewpoint - Nvidia-related AI stocks Vertiv (VRT), Lumentum (LITE), and Coherent (COHR) will be added to the S&P 500 index on March 23, alongside Echostar (SATS), as part of the quarterly rebalancing [1] Group 1: Stock Performance - Vertiv stock increased by 5.2% in after-hours trading, despite a 5.1% decline during the week to $241.78, maintaining above its 21-day moving average [1] - Lumentum stock rose by 1.7%, while Coherent stock saw a slight increase of 0.5% [1] - Echostar stock climbed 3.2% after hours, recovering from an 8% drop to $106.24 last week [1] Group 2: Nvidia Investments - Nvidia invested $2 billion each in optical companies Lumentum and Coherent, which are partners in AI infrastructure [1] Group 3: Index Changes - The new additions to the S&P 500 will replace Match Group (MTCH), Molina Healthcare (MOH), Lamb Weston (LW), and Paycom Software (PAYC) [1] - Micron Technology (MU), Lam Research (LRCX), Applied Materials (AMAT), and GE Vernova (GEV) will join the S&P 100 index, replacing Target (TGT), Metlife (MET), PayPal (PYPL), and American International Group (AIG) [1]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities likely to outperform the market in the short term [2] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] Growth Score - The Growth Style Score assesses a company's financial health and future potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes, emphasizing the importance of market trends [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that reflects a stock's value, growth potential, and momentum, serving as a key indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [7][8] Stock Example: Paycom Software - Paycom Software, Inc. is a cloud-based human capital management software provider, currently rated 3 (Hold) with a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 3.3% over the past four weeks, and upward revisions in earnings estimates for fiscal 2026 [12]

Core Insights - The article discusses potential investment opportunities in PAYC and PAYX, indicating a possible initiation of a long position in these stocks within the next 72 hours [1]. Group 1 - The analyst has no current stock or derivative positions in the mentioned companies but may consider purchasing stocks or options soon [1]. - The article expresses the author's personal opinions and is not influenced by any compensation from the companies mentioned [1]. Group 2 - The content is intended for informational purposes and does not constitute a solicitation or recommendation for any investment actions [2]. - The information provided is without warranty and should be used at the reader's own risk, emphasizing the importance of evaluating investments based on individual circumstances [2].

Core Insights - The article discusses potential investment opportunities in PAYC and PAYX, indicating a possible initiation of a long position in these stocks within the next 72 hours [1]. Group 1 - The analyst has no current stock or derivative positions in the mentioned companies but may consider purchasing stocks or options soon [1]. - The article expresses the author's personal opinions and is not influenced by any compensation from the companies mentioned [1]. Group 2 - The content is intended for informational purposes and does not constitute a solicitation or recommendation for any investment actions [2]. - The information provided is without warranty and should be used at the reader's own risk, emphasizing the importance of evaluating investments based on individual circumstances [2].

Cybersecurity Risks - The company has experienced significant cybersecurity risks, including breaches that could lead to unauthorized access to sensitive client data, potentially harming client relationships and incurring liabilities [117]. - The company relies on third-party relationships for data management, which poses additional cybersecurity risks, as past incidents have shown unauthorized access to client data through these vendors [118]. - The company has invested significantly in enhancing its cybersecurity measures, but ongoing threats from increasingly sophisticated cyber-attacks necessitate continuous investment in security controls [119]. Operational Risks - The company’s network infrastructure is critical for service delivery, and any damage or disruption could impair operations and harm its reputation, potentially leading to revenue loss [121]. - The company faces risks from potential defects in its applications, which could lead to significant costs and reputational damage if clients experience service interruptions [132]. - The company relies on in-house deployment personnel to implement and configure solutions, emphasizing the importance of client satisfaction to avoid additional costs and negative impacts on profitability [134]. - Third-party relationships are crucial for delivering services, and failures in these partnerships could negatively affect the company's reputation and operational capabilities [144]. Market Competition - The company must continuously innovate and enhance its applications to remain competitive, as failure to do so could adversely affect its market position and financial performance [123]. - The competitive landscape for HCM software is intense, with pressure from competitors offering lower prices and more integrated solutions, which could impact client retention and sales [126]. - Challenges in attracting larger clients include demand for customized features and longer sales cycles, which may limit market opportunities if not addressed [135]. Client Retention and Satisfaction - The company’s annual revenue retention rate is sensitive to client satisfaction and market conditions, with potential declines if clients reduce their use of applications or do not purchase additional services [130]. - The company’s ability to attract and retain clients is contingent on maintaining high service quality and addressing any performance issues promptly to avoid negative publicity [132]. Leadership and Talent Management - The company is dependent on key executives for leadership, and their loss could adversely affect operations and client relationships [136]. - Attracting and retaining qualified personnel, particularly in software development and IT, is critical for the company's growth and ability to enhance existing products [138]. - The company faces increased competition for talent due to new immigration laws, which could raise costs and hinder recruitment efforts [139]. Financial and Regulatory Risks - Significant growth in operations has created demands on management and resources, necessitating improvements in operational and financial controls [140]. - The company is expanding internationally, which involves regulatory, economic, and political risks that could impact business performance [143]. - The company may incur additional compliance costs due to increasing regulatory scrutiny on its automation initiatives, particularly AI-powered tools [152]. - Changes in laws and regulations could materially affect the company's business and operational costs, particularly regarding compliance with government regulations [160]. - The company is subject to various privacy and data protection laws, with non-compliance potentially leading to significant fines and reputational harm [164]. Financial Performance and Reporting - Financial results may fluctuate significantly due to various factors, including client acquisition, seasonal revenue patterns, and economic conditions [187]. - The company has historically experienced seasonality in revenues, particularly related to payroll tax filings, which positively impact first and fourth quarter revenues [188]. - The company must maintain effective internal control over financial reporting, as material weaknesses could lead to misstatements and loss of investor confidence [194]. - The company's actual operating results may differ significantly from guidance provided, which is based on projections subject to uncertainties beyond its control [195]. Investment and Cash Management - As of December 31, 2025, the company had corporate cash and cash equivalents totaling $370.0 million and funds held for clients amounting to $4.8 billion [338]. - The company had available-for-sale securities totaling $374.5 million, primarily consisting of U.S. treasury securities with original maturities of two years or less [338]. - A hypothetical increase or decrease in interest rates of 100 basis points would result in an approximately $22.1 million increase or decrease in interest earned on funds held for clients over the ensuing 12-month period [341]. - An immediate increase in interest rates of 100 basis points would have resulted in a $1.7 million reduction in the aggregate market value of available-for-sale securities as of December 31, 2025 [342]. - The company’s investments are subject to market risk due to changes in interest rates, which may affect future investment income [339]. - The company does not enter into investments for trading or speculative purposes, focusing instead on capital preservation and liquidity needs [338]. Strategic Acquisitions and Corporate Governance - The company intends to evaluate strategic acquisitions in the future, which may involve issuing additional equity securities [201]. - Anti-takeover provisions in the company’s charter may delay or prevent changes in control or management, potentially affecting stockholder opportunities [203].

Core Viewpoint - Paycom Software, Inc. has announced the promotion of Shane Hadlock to president, effective immediately, highlighting the company's commitment to strategic operations and automation strategy [1] Company Summary - Shane Hadlock will also serve as chief client officer, overseeing the company's strategic operations and cross-functional alignment [1] - Hadlock has been instrumental in driving meaningful initiatives within the company [1]