How does Paycom Software (PAYC) make money?

Paycom Software (PAYC) primarily makes money through Recurring, which accounts for 98.7% of total revenue. For TTM through Q4 2025, Paycom Software generated $2.05B in total revenue with a net profit margin of 22.1%.

What is Paycom Software (PAYC) gross profit margin?

Paycom Software (PAYC) reported a gross profit margin of 80.8% for TTM through Q4 2025, equivalent to $1.66B in gross profit. This means Paycom Software retains 80.8% of each revenue unit after direct costs of production.

What is Paycom Software (PAYC) operating profit margin?

Paycom Software (PAYC) reported an operating profit margin of 27.6% for TTM through Q4 2025, equivalent to $567.20M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Paycom Software (PAYC) net profit margin?

Paycom Software (PAYC) reported a net profit margin of 22.1% for TTM through Q4 2025, equivalent to $453.40M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Paycom Software (PAYC) invest in R&D?

Paycom Software (PAYC) invested $283.40M in research and development in TTM through Q4 2025 (13.8% of total revenue). R&D spending reflects investment in future products, services, and technologies.

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

Paycom Software (PAYC) spent $270.90M on capital expenditures in TTM through Q4 2025 (13.2% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Paycom Software (PAYC) free cash flow?

Paycom Software (PAYC) generated $406.10M in free cash flow for TTM through Q4 2025 (19.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Paycom Software (PAYC) effective tax rate?

Paycom Software (PAYC) had an effective tax rate of 26.8% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

How Paycom Software (PAYC) Makes Money: A Visual Guide

Paycom Software (PAYC) generated $2.05B in revenue, earning $453.40M in net profit (22.1% margin). Its largest revenue source is Recurring (98.7% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Paycom Software (PAYC) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 31, 2025 (reported February 19, 2026).

Frequently asked questions

How does Paycom Software (PAYC) make money?: Paycom Software (PAYC) primarily makes money through Recurring, which accounts for 98.7% of total revenue. For TTM through Q4 2025, Paycom Software generated $2.05B in total revenue with a net profit margin of 22.1%.
What is Paycom Software (PAYC) gross profit margin?: Paycom Software (PAYC) reported a gross profit margin of 80.8% for TTM through Q4 2025, equivalent to $1.66B in gross profit. This means Paycom Software retains 80.8% of each revenue unit after direct costs of production.
What is Paycom Software (PAYC) operating profit margin?: Paycom Software (PAYC) reported an operating profit margin of 27.6% for TTM through Q4 2025, equivalent to $567.20M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Paycom Software (PAYC) net profit margin?: Paycom Software (PAYC) reported a net profit margin of 22.1% for TTM through Q4 2025, equivalent to $453.40M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Paycom Software (PAYC) invest in R&D?: Paycom Software (PAYC) invested $283.40M in research and development in TTM through Q4 2025 (13.8% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Paycom Software (PAYC) spend on capital expenditures?: Paycom Software (PAYC) spent $270.90M on capital expenditures in TTM through Q4 2025 (13.2% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Paycom Software (PAYC) free cash flow?: Paycom Software (PAYC) generated $406.10M in free cash flow for TTM through Q4 2025 (19.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Paycom Software (PAYC) effective tax rate?: Paycom Software (PAYC) had an effective tax rate of 26.8% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q4 2025.