Paycom Software(US:PAYC)2026-02-11 21:10Financial Performance - Full Year Revenues reached $2,052 million, a 9% increase year-over-year[1] - Full Year GAAP Net Income was $453 million, representing 22% of total revenues, or $8.08 per diluted share[1] - Full Year Non-GAAP Net Income was $519 million, or $9.24 per diluted share, up from $462 million the previous year[7] - Fourth Quarter Total Revenues were $544.3 million, a 10.2% increase from $493.8 million in the same period last year[3] - Recurring and other revenues for the full year were $1,938.7 million, a 10.3% increase year-over-year, constituting 94.5% of total revenues[6] - Total revenues for the year ended December 31, 2025, increased to $2,051.7 million, up 8.9% from $1,883.2 million in 2024[24] - Net income for the year ended December 31, 2025, was $453.4 million, a decrease of 9.7% compared to $502.0 million in 2024[24] - Total revenues for 2025 were $2,051.7 million, reflecting a growth of 8.9% from $1,883.2 million in 2024[31] Cash Flow and Assets - Cash flows from operating activities for the year ended December 31, 2025, were $678.9 million, an increase from $533.9 million in 2024[26] - Total current assets rose to $5,838.8 million as of December 31, 2025, compared to $4,304.8 million in 2024, reflecting a growth of 35.6%[22] - Total assets increased to $7,598.7 million as of December 31, 2025, up from $5,859.9 million in 2024, representing a growth of 29.6%[22] - Total liabilities increased to $5,867.2 million as of December 31, 2025, compared to $4,284.0 million in 2024, marking a rise of 37.1%[22] - The company’s cash, cash equivalents, and restricted cash at the end of the period were $5,132.5 million, up from $4,042.8 million in 2024, reflecting an increase of 27%[26] - Total cash, cash equivalents, and restricted cash at the end of 2025 reached $5,132.5 million, up from $4,042.8 million in 2024, representing a 27% increase[28] Expenses and Profitability - Adjusted EBITDA for the full year was $882 million, up from $775 million the previous year[7] - Adjusted EBITDA for 2025 was $882.3 million, an increase of 13.8% from $775.4 million in 2024, with an adjusted EBITDA margin of 43.0%[30] - Gross margin for 2025 was 83.2%, compared to 82.2% in 2024, indicating a slight improvement in profitability[31] - Sales and marketing expenses for 2025 totaled $482.8 million, an increase of 11.1% from $434.4 million in 2024[31] - Adjusted total administrative expenses for 2025 were $1,036.0 million, up from $950.7 million in 2024, indicating a rise of 9%[31] - Research and development expenses for the year ended December 31, 2025, were $283.4 million, an increase from $242.6 million in 2024, indicating a growth of 16.8%[24] - Research and development expenses for the year ended December 31, 2025, were $283.4 million, up 17% from $242.6 million in 2024[32] - Total research and development costs for the year ended December 31, 2025, amounted to $436.3 million, a 18.5% increase from $368.3 million in 2024[32] - Non-cash stock-based compensation expense for the year ended December 31, 2025, totaled $118.7 million, compared to a negative $22.9 million in 2024[34] Earnings Per Share - Earnings per share (diluted) for the year ended December 31, 2025, were $8.08, down from $8.92 in 2024[24] - Basic earnings per share for 2025 was $8.13, down from $8.93 in 2024, reflecting a decrease of 9%[30] Future Projections - Financial guidance for 2026 projects total revenue between $2.175 billion and $2.195 billion, indicating a growth of 6% to 7%[11] - Annual revenue retention rate improved to 91% in 2025, compared to 90% in 2024[9] - Client count increased to approximately 20,300, representing a 5% growth year-over-year[9] Innovations - Paycom launched its AI solution, IWant™, enhancing user experience and accessibility[10]