Paycom Software, Inc. (PAYC)

Paycom's stock experienced a significant drop in October 2023 due to revelations about its Beti product, leading to a class-action lawsuit. Despite this, the stock has shown resilience, with a 23.55% increase over the past year as of October 9, 2025, and a 23.9% total shareholder return over the past twelve months as of October 23, 2025. More recently, the stock was down 8.1% over the past month and almost 15% on a three-month basis as of October 23, 2025. Paycom reported strong Q2 2025 earnings, exceeding analysts' estimates, and declared a quarterly dividend of $0.375 per share.

Demand for Paycom's products and services exhibits seasonality, with higher activity in the first and fourth quarters. The first quarter is stronger due to annual payroll tax and ACA form filings, while the fourth quarter experiences increased demand due to unscheduled payroll runs. Demand is also influenced by the overall labor market, decreasing when unemployment rises and increasing when it falls.

Paycom Software, Inc. is a technology company specializing in cloud-based human capital management (HCM) solutions, operating in the software application and HR technology industries, focusing on SaaS and HCM. The company develops and commercializes cloud-based human resources management software, offering products that cover the entire employment lifecycle, including payroll processing, time and labor management, talent acquisition, talent management, and HR management solutions. Paycom also offers advanced tools like IWant™ and Global HCM™.

Paycom Software, Inc. is headquartered in Oklahoma City, Oklahoma, with offices throughout the United States. Its Global HCM™ software is available internationally in over 190 countries and 15 languages and dialects.

Paycom has received positive recognition for its brand and workplace culture, including being named one of the World's Best Companies by TIME for the second consecutive year and one of the Most Trustworthy Companies in America by Newsweek for the fourth consecutive year. In 2024, Paycom received multiple Comparably awards, including top rankings for Best Company Culture, Best Compensation, and Best CEO. However, the company has faced challenges, including a class-action lawsuit alleging misleading statements about the Beti product, discussions regarding potential layoffs due to automation and AI, a data breach in May 2023, and some customer complaints regarding implementation, billing, and customer support.

Paycom Software, Inc. is primarily owned by institutional shareholders, who hold 86.86% of the company. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., Polen Capital Management Llc, Fmr Llc, State Street Corp, Harris Associates L P, First Trust Advisors Lp, Geode Capital Management, Llc, and Baillie Gifford & Co. The largest individual shareholder is Chad R. Richison, the company's founder and CEO, who owns 9.60 million shares, representing 16.60% of the company.