Core Insights - Paycom Software, Inc. (PAYC) shares increased by 9.7% after reporting better-than-expected Q2 2025 results, with non-GAAP earnings of $2.06 per share, surpassing the Zacks Consensus Estimate of $1.78 [1][9] Financial Performance - The company's bottom line rose by 27.2% year over year, driven by higher revenues, improved operating efficiency, and lower income taxes [2] - Paycom's revenues reached $483.6 million, exceeding the consensus estimate of $472 million, marking a 10.5% year-over-year increase, attributed to sales momentum, international expansion, and AI integration [3][9] - Recurring revenues, which constitute 94% of total revenues, grew by 12.2% to $455.1 million, surpassing the estimate of $445.5 million [4] - Adjusted gross profits increased by 12.4% to $402.3 million, with the adjusted gross margin expanding by 140 basis points to 83.2% [5] - Adjusted EBITDA rose by 24.2% year over year to $198.3 million, with the adjusted EBITDA margin improving from 36.5% to 41% [5] Cash Flow and Balance Sheet - As of June 30, 2025, Paycom had cash and cash equivalents of $532.2 million and no debt [6] - The company generated operating cash flow of approximately $122.5 million in Q2 and $305 million in the first half of 2025, while returning $21.8 million in dividends and repurchasing $32.6 million in stock [6][7] Guidance Update - Following the strong Q2 performance, Paycom raised its 2025 revenue guidance to a range of $2.045-$2.055 billion, up from the previous range of $2.023-$2.038 billion [8] - The company expects recurring revenues to grow by 9% year over year and increased its forecast for revenues from interest on client-held funds to $113 million [8] - Adjusted EBITDA guidance for 2025 was raised to between $872 million and $882 million, indicating an EBITDA margin of approximately 43% at the midpoint [10]

Paycom Software, Inc.'s (PAYC) shares gained 2.1% during Wednesday’s extended trading session after the company reported better-than-expected first-quarter 2025 results. The online payroll and human resource technology provider reported non-GAAP earnings of $2.80 per share, which beat the Zacks Consensus Estimate of $2.60.Moreover, the bottom line increased 8% year over year, mainly driven by higher revenues, operating efficiency and lower share counts. Paycom has an impressive earnings surprise history. It ...