How does Paycom Software (PAYC) make money?

Paycom Software (PAYC) generates revenue primarily from Recurring, which accounted for 98.7% of total revenue in TTM through Q1 2026. The company reported $2.09B in revenue and converted 22.4% of it into net profit, equivalent to roughly $470M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Paycom Software (PAYC)?

Paycom Software (PAYC) reported a gross profit margin of 79.7% in TTM through Q1 2026, equivalent to $1.67B in gross profit on $2.09B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Paycom Software (PAYC)?

Paycom Software (PAYC) reported an operating profit margin of 28.3% in TTM through Q1 2026, equivalent to $592M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Paycom Software (PAYC)?

Paycom Software (PAYC) reported a net profit margin of 22.4% in TTM through Q1 2026, equivalent to $470M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Paycom Software (PAYC) profitable?

Yes. Paycom Software (PAYC) reported $470M in net income for TTM through Q1 2026, with a net profit margin of 22.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Paycom Software (PAYC) invest in research and development?

Paycom Software (PAYC) invested $282M in research and development during TTM through Q1 2026, roughly 13.5% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Paycom Software (PAYC) spend on capital expenditures?

Paycom Software (PAYC) spent $264M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 12.6% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Paycom Software (PAYC) generate?

Paycom Software (PAYC) generated $443M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 21.1%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Paycom Software (PAYC)?

Paycom Software (PAYC) had an effective tax rate of 27.1% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Paycom Software (PAYC)?

Paycom Software (PAYC) reports revenue across 2 reportable product segments, led by Recurring at 98.7% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Paycom Software Makes Money: 2026 Visual Revenue Map

Paycom Software (PAYC) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 7, 2026).

Paycom Software discloses geographic revenue only in annual filings. to view the full breakdown.

Paycom Software (PAYC) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Paycom Software (PAYC), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Recurring	$2.07B	98.7%
Implementation And Other	$27.6M	1.3%
Total	$2.09B	100%

Recurring$2.07B
Implementation And Other$27.6M
Total$2.09B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Paycom Software (PAYC) reports revenue across 2 reportable product segments; the largest segment was Recurring at 98.7%, followed by Implementation And Other (1.3%).

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