Paycom Software Reports Strong Q1 2025 Results

Paycom Software ( (PAYC) ) has released its Q1 earnings. Here is a breakdown of the information Paycom Software presented to its investors.

Paycom Software, Inc. is a leading provider of cloud-based human capital management software, offering comprehensive HR and payroll solutions to businesses across various sectors. The company is known for its innovative approach to automation and employee-first technology, serving clients both in the U.S. and internationally.

In its first quarter of 2025, Paycom Software reported a revenue increase to $531 million, marking a 6% year-over-year growth. The company also achieved a GAAP net income of $139 million, which constitutes 26% of total revenues, and a non-GAAP net income of $158 million. The adjusted EBITDA for the quarter stood at $253 million, representing 48% of total revenues.

Key financial highlights include a 7.3% growth in recurring and other revenues, amounting to $500 million, which made up 94.2% of total revenues. Despite a decrease in GAAP net income compared to the previous year, the non-GAAP net income showed improvement, and the company maintained a strong cash position with $520.8 million in cash and cash equivalents. Paycom also reported no total debt as of March 31, 2025, and continued its shareholder-friendly activities by paying dividends and repurchasing shares.

Looking ahead, Paycom has raised its financial outlook for 2025, expecting total revenue to range between $2.023 billion and $2.038 billion, with a projected growth of around 8% at the midpoint. The company anticipates a recurring revenue growth of approximately 9% year-over-year and an adjusted EBITDA margin of about 42% at the midpoint. This optimistic forecast reflects Paycom’s confidence in its strategic initiatives and operational efficiencies.