Paycom Software(PAYC) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 were $493 million, a 9% increase year-over-year from $451.9 million[3] - GAAP net income for Q3 2025 was $111 million, or $1.96 per diluted share, compared to $73.3 million, or $1.31 per diluted share in the same period last year[4] - Non-GAAP net income for Q3 2025 was $110 million, or $1.94 per diluted share, up from $93.4 million, or $1.67 per diluted share in the prior year[4] - Adjusted EBITDA for Q3 2025 was $194 million, representing 39% of total revenues, compared to $171 million in the same period last year[5] - Recurring and other revenues for Q3 2025 were $466.5 million, a 10.6% increase year-over-year, constituting 94.6% of total revenues[3] - Total revenues for Q3 2025 reached $493.3 million, a 9.0% increase from $451.9 million in Q3 2024[20] - Net income for Q3 2025 was $110.7 million, a 50.9% increase from $73.3 million in Q3 2024[26] - Adjusted EBITDA for Q3 2025 reached $194.3 million, compared to $171.3 million in Q3 2024, reflecting a 13.5% growth[26] - Total revenues for Q3 2025 were $493.3 million, up 9.2% from $451.9 million in Q3 2024[27] - Earnings per share (diluted) for Q3 2025 was $1.96, up from $1.31 in Q3 2024, representing a 49.6% increase[20] Revenue Projections - Paycom expects total revenue for the year ending December 31, 2025, to be in the range of $2.045 billion to $2.055 billion, representing approximately 9% year-over-year growth[7] - Recurring and other revenue growth is anticipated to be approximately 10% year-over-year for 2025[7] - Adjusted EBITDA for 2025 is expected to be in the range of $872 million to $882 million, with a margin of approximately 43% at the midpoint[7] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $375 million, down from $402 million as of December 31, 2024[5] - Total current assets decreased to $2,542.0 million as of September 30, 2025, down from $4,304.8 million at the end of 2024, a decline of 41.0%[18] - Cash and cash equivalents at the end of Q3 2025 were $375.0 million, compared to $402.0 million at the end of 2024, a decrease of 6.7%[18] Expenses and Liabilities - Research and development expenses increased to $74.1 million in Q3 2025, up from $63.0 million in Q3 2024, a rise of 28.0%[20] - Total liabilities decreased to $2,535.8 million as of September 30, 2025, from $4,284.0 million at the end of 2024, a reduction of 40.8%[18] - Sales and marketing expenses for Q3 2025 were $125.7 million, a 20.3% increase from $104.5 million in Q3 2024[27] - Adjusted total administrative expenses for Q3 2025 were $267.6 million, compared to $238.4 million in Q3 2024[27] Shareholder Returns - Paycom has no total debt as of September 30, 2025, and paid $21.1 million in cash dividends during the quarter[5] - The company repurchased $218.9 million of common stock during the nine months ended September 30, 2025, compared to $122.8 million in the same period of 2024[22] - Total stockholders' equity increased to $1,709.4 million as of September 30, 2025, from $1,575.9 million at the end of 2024, an increase of 8.5%[18] Research and Development - Research and development expenses for the nine months ended September 30, 2025, totaled $211.2 million, up from $175.9 million in 2024, reflecting a year-over-year increase of 20.1%[28] - Total research and development costs for the three months ended September 30, 2025, were $117.6 million, up from $96.4 million in 2024, marking a 22.1% increase[28] - Non-cash stock-based compensation expense for the three months ended September 30, 2025, was $31.1 million, compared to $24.2 million in 2024, indicating a rise of 28.5%[30] - Capitalized research and development costs for the three months ended September 30, 2025, were $43.5 million, an increase from $33.4 million in 2024, reflecting a growth of 30.3%[28] - Research and development expenses as a percentage of revenues for the three months ended September 30, 2025, were 15.0%, compared to 14.0% in 2024[28] Cash Flow - Free cash flow for the nine months ended September 30, 2025, was $285.4 million, an increase from $232.0 million in 2024, representing a growth of 23.0%[28] - Operating cash flow margin improved to 32.0% for the nine months ended September 30, 2025, compared to 26.9% in 2024[28]