Second Quarter 2026
Filed Aug 5, 2026Second Quarter Total Revenues of $531 million, up 10% year-over-year
Total revenues, recurring and other revenues, GAAP net income, non-GAAP net income and adjusted EBITDA all increased year over year, while management raised its full-year outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenuesGAAP | $531.2 million | – | 9.8% |
| Recurring and other revenuesGAAP | $505.2 million | – | 11.0% |
| Recurring and other revenues as a percentage of total revenuesGAAP | 95.1% | – | – |
| GAAP Net IncomeGAAP | $107.4 million | – | – |
| GAAP Net Income as a percentage of total revenuesGAAP | 20% | – | – |
| GAAP Net Income per diluted shareGAAP | $2.34 per diluted share | – | – |
| Non-GAAP Net Incomenon-GAAP | $127.7 million | – | – |
| Non-GAAP Net Income per diluted sharenon-GAAP | $2.78 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $235.0 million | – | – |
| Adjusted EBITDA as a percentage of total revenuesnon-GAAP | 44% | – | – |
year ending December 31, 2026 outlook
- RevenueTotal revenue in the range of $2.197 billion to $2.212 billion, representing year-over-year growth between 7% and 8%.
- NoteRecurring and other revenue growth between 8% and 9% year over year.
- NoteInterest on funds held for clients of approximately $105 million.
- NoteAdjusted EBITDA in the range of $1.007 billion to $1.022 billion, representing a margin of approximately 46% at the midpoint.
Capital returns
- During the quarter ended June 30, 2026, Paycom paid $17.9 million in cash dividends.
- During the quarter ended June 30, 2026, Paycom repurchased 2,570,072 shares of common stock for $345.9 million, in the aggregate.
What drove it
- Recurring and other revenues increased 11.0% from the comparable prior year period and constituted 95.1% of total revenues.
- Management attributed results to the strength of its automation strategy and disciplined execution.
- Management cited new product innovation and continued automation across the platform as sources of momentum.
Concerns
- Cash and Cash Equivalents were $198.0 million as of June 30, 2026, compared to $370.0 million as of December 31, 2025.
- The provided filing text does not report GAAP gross margin, operating income, operating cash flow, free cash flow, debt, operating expenses, or tax rate.
What to watch
- Delivery against total revenue guidance of $2.197 billion to $2.212 billion for the year ending December 31, 2026.
- Delivery against recurring and other revenue growth guidance of between 8% and 9% year over year.
- Delivery against adjusted EBITDA guidance of $1.007 billion to $1.022 billion and an adjusted EBITDA margin of approximately 46% at the midpoint.
- Interest on funds held for clients of approximately $105 million.
Balance sheet and cash flow
- Cash and Cash Equivalents were $198.0 million as of June 30, 2026, compared to $370.0 million as of December 31, 2025.
Analysis
Paycom reported second-quarter total revenues of $531.2 million, up 9.8% from $483.6 million in the same period last year. Recurring and other revenues were $505.2 million, increased 11.0%, and constituted 95.1% of total revenues. The recurring revenue mix and its growth rate were both stronger than the total revenue growth rate reported for the quarter, underscoring the importance of the company’s recurring and other revenue base.
Management, verbatim
Our strong second-quarter results came in ahead of expectations, reflecting the strength of our automation strategy and disciplined execution.
Chad Richison, founder and CEO
We are building strong momentum through new product innovation and continued automation across our platform. With these strong results we are raising our full year outlook.
Chad Richison, founder and CEO
Not in the filing
stated, not guessed- GAAP gross profit
- GAAP gross margin
- non-GAAP adjusted gross profit
- non-GAAP adjusted gross margin
- GAAP operating income
- GAAP operating margin
- operating expenses
- sales and marketing expenses
- research and development expenses
- administrative expenses
- income tax provision
- GAAP effective income tax rate
- non-GAAP effective income tax rate
- net cash provided by operating activities
- free cash flow
- free cash flow margin
- capital expenditures
- debt
- segment revenue disclosures
- prior-quarter comparisons for reported metrics
- previous outlook for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.