Paycom Software, Inc. (PAYC)

In the past six months, Paycom's stock has experienced some fluctuations, falling by 3.11%. Paycom reported better-than-expected results for Q1 2025, with actual EPS of $2.80 and revenue of $530.5 million. The company beat earnings expectations in Q2 2025, with EPS of $2.06 and revenue of $483.60 million, but revenue growth was slowing, leading to a downgrade of the stock rating. Paycom announced the layoff of over 500 employees due to AI-driven automation, causing the stock to drop by 6.3%, while simultaneously boosting its revenue and profit forecasts for 2025. Paycom is estimated to announce its Q3 2025 earnings between October 29 and October 31, 2025.

Paycom experiences some demand seasonality, with higher demand in the first and fourth quarters due to payroll tax and ACA form filing in Q1, and unscheduled payroll runs in Q4. Despite these seasonal peaks, Paycom's recurring revenue remains a primary growth driver, indicating sustained demand and high client retention throughout the year.

Paycom Software, Inc. is a leading provider of cloud-based human capital management (HCM) software solutions, delivered through a SaaS model. Its integrated platform manages the entire employment lifecycle, offering functionalities such as talent acquisition, time and labor management, payroll services, talent management, and human resources management applications. Beti® is an employee-guided payroll experience that helps employees find and fix paycheck errors before submission. Global HCM™ is human capital management software available in over 190 countries and 15 languages and dialects. GONE® facilitates automated decisions for time-off requests. IWant™ is a command-driven AI engine launched in July 2025, allowing users to seek information about employee data without navigating through the software. Other applications cover areas such as applicant tracking, background checks, onboarding, E-Verify, tax credit services, scheduling, labor allocation, payroll and payroll tax management, expense management, garnishment administration, GL concierge, employee self-service, compensation budgeting, performance management, position management, and Paycom learning.

Paycom is headquartered in Oklahoma City, Oklahoma, with corporate offices housing its primary processing and production facilities, as well as research and development. The company also has an operations center in Grapevine, Texas. Paycom has a significant presence throughout the United States with numerous sales offices. Globally, its Global HCM™ software is available for employees and contractors in over 190 countries and territories, supporting nearly 20 languages.

Paycom was named to TIME's World's Best Companies for the second consecutive year and was included on TIME's America's Best Mid-Size Companies. It was recognized by Fast Company for its time-off request software, GONE®, and was on the list in 2022 for its payroll system Beti®. Paycom was also recognized as one of Newsweek's America's Best Online Platforms. Paycom ranked No. 1 among large companies for Best Company Culture and Best Compensation by Comparably Awards in December 2024, and its CEO, Chad Richison, ranked No. 9 among Best CEOs. Paycom's IWant™ AI engine was recognized as HR Executive's Top HR Product of 2025. However, Paycom's reputation has also been impacted by the layoff of over 500 employees due to AI-driven automation, raising concerns about job displacement.

Paycom is primarily owned by institutional shareholders, who hold approximately 86.86% of the company's stock, including Vanguard Group Inc and BlackRock, Inc.. Chad R. Richison, the founder, CEO, President, and Chairman of the Board, is the largest individual shareholder, owning 9.60 million shares, representing 16.60% of the company. Other notable individual insiders include Paul B. Queally, Anthony J. Denicola, Patrick J. Welsh, Bruce K. Anderson, Russell L. Carson, Michael Donovan, Anthony F. Ecock, Brian Thomas Regan, and Christopher Solomon.