Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $544 million, representing a 10% increase year-over-year, while full-year revenue reached $2.05 billion, exceeding initial expectations with a 10% growth in recurring and other revenue to $1.94 billion [9][10] - Adjusted EBITDA margin for Q4 was 43.4%, with full-year adjusted EBITDA growing 14% year-over-year to $882 million, reflecting a 180 basis point margin expansion to 43% [10][11] - GAAP net income for Q4 was $114 million, or $2.07 per diluted share, while full-year GAAP net income was $453 million, or $8.08 per diluted share [10][11] - Operating cash flow increased by 27% year-over-year to $679 million, with a free cash flow of $404 million, up 20% year-over-year [11][12] Business Line Data and Key Metrics Changes - The company achieved a record revenue retention rate of 91% in 2025, up from 90% in 2024, attributed to investments in automation and service quality [16] - The client count grew to approximately 39,200, a 4% increase compared to 2024, with significant success in acquiring larger clients [15][16] Market Data and Key Metrics Changes - The average daily balance on funds held for clients was approximately $2.8 billion in Q4 2025, up 11% year-over-year [14] - The company continues to capture opportunities in the market, holding less than 5% of the total addressable market, indicating substantial growth potential [5][17] Company Strategy and Development Direction - The company is focused on full solution automation, enhancing client ROI, and providing world-class service, which has led to strong revenue retention and client satisfaction [4][5] - Future strategies include extending technological leadership and targeting the remaining 95% of the addressable market, with a commitment to innovation and automation [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite a conservative revenue guidance for 2026, expecting total revenue growth of 6% to 7% [16][17] - The company is not seeing any reluctance from clients to purchase products, indicating a stable demand environment [34] Other Important Information - The company repurchased over 1.7 million shares in 2025, totaling $370 million, and has approximately $1.1 billion remaining under its buyback authorization [12][13] - The board approved a quarterly dividend of $0.375 per share, payable in mid-March [13] Q&A Session Summary Question: How to reconcile positive product developments with guidance suggesting a slowdown? - Management acknowledged the positive client retention and product automation but noted that sales opportunities remain a focus for improvement [19][20] Question: Will changes in sales leadership lead to significant go-to-market changes? - Management indicated that the focus is on enhancing the value proposition and training sales staff on new product enhancements [22][24] Question: What are the expectations for recurring revenue growth and guidance methodology? - Management clarified that the guidance reflects current visibility and is consistent with previous years, with a focus on new client acquisitions [26][28] Question: Are there any changes in client behavior or decision-making processes? - Management reported no changes in client willingness to buy, emphasizing ongoing training and product automation [34] Question: How is AI impacting internal productivity and efficiencies? - Management highlighted that AI is enhancing processing speed and overall productivity, allowing for rapid development and integration of new features [48][50] Question: What is the strategy for improving retention rates? - Management emphasized the importance of delivering world-class service and ensuring clients achieve full value from the product [44][45] Question: How is the competitive landscape affecting win rates and pricing? - Management remains optimistic about win rates, citing product differentiation and improved sales processes [86][87]

Exhibit 99.1 Paycom Software, Inc. Reports Fourth Quarter and Year-End 2025 Results Full Year Revenues of $2,052 million, up 9% year-over-year Full Year GAAP Net Income of $453 million, representing 22% of total revenues, or $8.08 per diluted share Full Year Non-GAAP Net Income of $519 million, or $9.24 per diluted share Full Year Adjusted EBITDA of $882 million, representing 43% of total revenues OKLAHOMA CITY – February 11, 2026 – (BUSINESS WIRE) – Paycom Software, Inc. ("Paycom," "we" and "our") (NYSE: " ...

Core Viewpoint - Paycom Software, Inc. is a leading provider of cloud-based human capital management solutions, focusing on small to mid-sized companies in the U.S. [1] Group 1: Stock Performance and Analyst Sentiment - The consensus price target for Paycom's stock has decreased from $216.54 last year to $183 last month, indicating a more conservative outlook from analysts [2] - Analyst Daniel Jester from BMO Capital has set a higher price target of $368, suggesting a positive outlook for the company's future [2] - Paycom's stock recently saw a 4.4% increase in price, with trading volume exceeding the average, yet it is considered undervalued with a forward P/E ratio of 19 compared to competitors [4][6] Group 2: Earnings Expectations - Paycom is preparing to announce its Q4 earnings, with expectations of steady growth in both earnings per share (EPS) and revenue, driven by AI-powered products and strong recurring revenue streams [3][6] - Despite the anticipated growth, the current trend in earnings estimate revisions suggests limited potential for further price increases in the near term [3] Group 3: Challenges and Future Outlook - Recent underperformance is attributed to negative sentiment surrounding artificial intelligence, a decelerating U.S. labor market, and revenue challenges linked to its BETI rollout [5] - There is potential for revenue growth to pick up again in 2026, with Q4 2025 results and new guidance possibly acting as a catalyst for a positive reevaluation of the stock [5]

Paycom Software, Inc. (NYSE:PAYC) is included in our list of the 14 oversold value stocks to invest in right now. Guggenheim Bullish on Paycom Software (PAYC) Despite Weak Share Price Performance On February 3, 2026, Paycom Software, Inc. (NYSE:PAYC) traded at its 52-week low of $124.08, down significantly from its 52-week high of $267.76. Currently trading at $131.41, the stock is just 7% above its 52-week low. Amid weak investor momentum, Paycom Software, Inc. (NYSE:PAYC) received Guggenheim’s attenti ...

Key Takeaways The Zacks Consensus Estimate for PAYC's Q4 EPS is pegged at $2.44, up 5.2% Y/Y.PAYC's Q4 results may reflect gains from Beti, GONE, IWant and rising recurring revenues tied to AI adoption.Paycom's growth could be tempered by macro uncertainty, layoffs, and slower hiring, affecting payroll demand.Paycom Software, Inc. (PAYC) is set to report fourth-quarter 2025 results on Feb. 11, after market close.The Zacks Consensus Estimate for fourth-quarter earnings is pinned at $2.44 per share, indicatin ...

Company Overview - Paycom Software (PAYC) shares increased by 4.4% to $129.84 in the last trading session, following a period of 20.6% loss over the past four weeks, indicating a significant rebound in stock performance [1] - The company specializes in human-resources and payroll software, with a focus on AI-led products that enhance customer experience and operational efficiency [2] Financial Performance - Paycom is expected to report quarterly earnings of $2.44 per share, reflecting a year-over-year increase of 5.2%, with revenues projected at $542.71 million, a 9.9% rise from the previous year [3] - The consensus EPS estimate has been revised down by 0.9% over the last 30 days, which may indicate potential challenges in maintaining stock price appreciation [4] Market Position - Paycom's recent stock performance is contrasted with other companies in the same industry, such as Pinterest (PINS), which saw a 4.3% decline in its stock price and a 23.3% loss over the past month [4] - Both Paycom and Pinterest currently hold a Zacks Rank of 3 (Hold), suggesting a neutral outlook in the market [4][5]

We came across a bullish thesis on Paycom Software, Inc. on The Wealth Dynasty Report’s Substack. In this article, we will summarize the bulls’ thesis on PAYC. Paycom Software, Inc.'s share was trading at $134.75 as of January 30th. PAYC’s trailing and forward P/E were 16.69  and 13.16 respectively according to Yahoo Finance. Applied Digital (APLD) Targets Hyperscaler Deal; Craig-Hallum Maintains Buy Photo by Christopher Gower on Unsplash Paycom Software, Inc. provides a cloud-based human capital manage ...

Core Insights - Paycom Software, Inc. announced findings from a Nucleus Research study that emphasizes the significant value organizations gain from using Paycom's full-solution automation [1] Group 1: Benefits of Paycom's Automation - Organizations reported primary benefits including avoided costs and increased productivity due to enhanced data visibility [1] - The retirement of outdated systems was highlighted as a key factor contributing to these benefits [1]

Company Overview - Paycom Software is a leading provider of cloud-based human capital management (HCM) solutions, employing 7,306 people and serving small to mid-sized enterprises in the U.S. [6] - The company offers a unified SaaS platform that streamlines HR, payroll, and compliance processes, enhancing efficiency and data accuracy for clients [6][8] - As of January 23, 2026, Paycom's market capitalization is approximately $8.57 billion, with a revenue of $2.00 billion and a net income of $453.20 million [4] Recent Developments - Sather Financial Group Inc disclosed an additional purchase of 18,035 shares of Paycom Software valued at approximately $3.20 million during the fourth quarter of 2025 [2] - Despite the additional investment, Sather's total position in Paycom decreased in value by $9.32 million due to share price changes [2] - Paycom's stock is currently trading near a five-year low, down 25.3% over the past year and underperforming the S&P 500 by 38.3 percentage points [7] Financial Metrics - As of January 23, 2026, Paycom shares are priced at $152.29, with a P/E ratio of about 19, making its valuation more attractive compared to previous years when it exceeded 150 [10] - The company's revenue growth has decelerated significantly, with a growth rate of around 10% in the first nine months of 2025, compared to over 25% in prior years [9] - The stock has declined more than 60% over the last five years, reflecting challenges in maintaining growth [9]

Paycom Software, Inc. (NYSE:PAYC) is one of the Best Long-Term Tech Stocks to Buy According to Analysts. On January 15, BMO Capital reduced its price objective on the company’s stock to $175.00 from $190.00, while maintaining a “Market Perform” rating. The research firm highlighted the contraction in broader software multiples as the main reason for the reduction in price target. BMO Capital Reduces PT on Paycom Software (PAYC) Stock The firm opines that the likelihood of further multiple compression is ...