How Paychex (PAYX) Makes Money: A Visual Guide
Paychex (PAYX) generated $6.03B in revenue (TTM through Q4 2025), earning $1.60B in net profit (26.4% margin). Its largest revenue source is Management Solutions (76.5% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Paychex (PAYX) Income Statement Flow
Frequently asked questions
How does Paychex (PAYX) make money?
- Paychex (PAYX) primarily makes money through Management Solutions, which accounts for 76.5% of total revenue. For TTM through Q4 2025, Paychex generated $6.03B in total revenue with a net profit margin of 26.4%.
What is Paychex (PAYX) gross profit margin?
- Paychex (PAYX) reported a gross profit margin of 73.4% for TTM through Q4 2025, equivalent to $4.43B in gross profit. This means Paychex retains 73.4% of each revenue unit after direct costs of production.
What is Paychex (PAYX) operating profit margin?
- Paychex (PAYX) reported an operating profit margin of 37.1% for TTM through Q4 2025, equivalent to $2.24B 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 Paychex (PAYX) net profit margin?
- Paychex (PAYX) reported a net profit margin of 26.4% for TTM through Q4 2025, equivalent to $1.60B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Paychex (PAYX) spend on capital expenditures?
- Paychex (PAYX) spent $227.20M on capital expenditures in TTM through Q4 2025 (3.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Paychex (PAYX) free cash flow?
- Paychex (PAYX) generated $2.06B in free cash flow for TTM through Q4 2025 (34.1% 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 Paychex (PAYX) effective tax rate?
- Paychex (PAYX) had an effective tax rate of 23.8% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- 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 sum the last four quarters. 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.