On this page of StockholderLetter.com we present the latest annual shareholder letter from Paycom Software, Inc. — ticker symbol PAYC. Reading current and past PAYC letters to shareholders can bring important insights into the investment thesis.

 •  4/2/2026 Letter Continued (Full PDF)
 •  3/28/2023 PAYC Stockholder Letter
 •  3/28/2024 PAYC Stockholder Letter
 •  4/3/2025 PAYC Stockholder Letter
 •  More "Application Software" Category Stockholder Letters
 •  PAYC Benford's Law Stock Score = 79

PAYC Shareholder/Stockholder Letter Transcript:

AS THE LEADER IN HR AND PAYROLL
AUTOMATION, PAYCOM CONTINUES TO
REVOLUTIONIZE THE INDUSTRY.
Our employee-   rst, single-database software with full-solution
automation is the future of HCM.
When Paycom started in 1998, the HCM industry
was mired in complexity. Existing technology shut
out the true source of all payroll and HCM data:
the employee. By offering payroll online from the
outset, we took the    rst transformative step
toward an employee-   rst model.
From there, we built all our tools in-house on the
   rmest of foundations: a truly single database.
This makes it easy for employees to enter and
manage their own data and allows that data
to    ow seamlessly across all tools to increase
accuracy and achieve full-solution automation.
Our unique architecture also makes it easy to
access employee data instantly. With IWant   ,
the industry   s    rst command-driven AI engine in a
single database, users don   t have to navigate our
software to    nd employee data they need. They
simply ask IWant using a typed or voice command,
and it returns accurate results instantly. IWant
even directs users to the right location to make
updates as needed. No navigation or training
required.
Through full-solution automation, clients are able
to unlock automated decision logic across our
HCM tools. This allows them to automate routine
decisions for processes like:
   payroll
   shift swaps
   expense reimbursement    bene   ts enrollment
   leave requests
   and more
   onboarding
Automated decision logic reduces decision
fatigue and allows for immediate, fair and
consistent decisions that adhere to their
organization   s policies.
When companies empower their workforce and
automate their work   ows with an easy-to-use,
scalable and comprehensive single-database
software, HR professionals can shift focus from
menial tasks to more meaningful duties that
move the needle. Organizations also experience
more ef   ciency, greater data accuracy and
maximized ROI.
Our unwavering support for client success
has always been a competitive advantage for
Paycom. A critical part of that advantage is our
focus on protecting the security and privacy of
client data. We operate our own data centers and
are the only HR tech company in the U.S. to hold
two Tier IV certi   cations     the highest award
given by the Uptime Institute.
Throughout our history, we   ve always stayed true
to our values. This has helped us maintain our
culture of innovation and world-class service.
With client success as our goal, we   ll continue
to drive the industry forward with the most
automated software on the market.
Learn more at paycom.com.

Annual Revenue
2025
$2.052 B
2024
$1.883 B
2023
$1.694 B

2025 HIGHLIGHTS
CLIENT BASE
approximately
39,200 CLIENTS
approximately
20,300 CLIENTS
based on parent company grouping
[as of Dec. 31, 2025)

ADJUSTED EBITDA
$882 MILLION
In 2025, net income was $453.4 million, and net income margin was
22%. For a reconciliation of net income to adjusted EBITDA, see Item
7    Management   s Discussion and Analysis of Financial Condition
and Results of Operations     Non-GAAP Financial Measures    in the
accompanying Form 10-K.
ADJUSTED EBITDA MARGIN
43%
A N N U A L R E V E N U E R E T E N T I O N R AT E
91%
RETURNS TO STOCKHOLDERS
FREE CASH FLOW
$404 MILLION
In 2025, net cash provided by operating activities was $679
million. For a reconciliation of net cash provided by operating
activities to free cash    ow, see the last page of this report.
$455
MILLION
(through dividends and stock repurchases)

4/2/2026 Letter Continued (Full PDF)

 

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