Filing Flows › Paycom Software (PAYC) › Q1 2025
Paycom Software (PAYC) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Paycom Software (PAYC) reported revenue of $530M for the first quarter 2025 (Q1 2025), +6% from a year earlier and +7% from the quarter before. Operating margin was 34.9%, net earnings $139M (26.3% of revenue).
Paycom Software, Q1 2025: revenue $530M (+6% year over year), operating margin 34.9%, net earnings $139M, operating cash flow $182M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $530M | +7% | +6% |
| Gross profit | $446M | +9% | +6% |
| Operating profit | $185M | +25% | -35% |
| Net earnings | $139M | +23% | -44% |
| Operating cash flow | $182M | +14% | +23% |
| Free cash flow | $145M | — | +44% |
What changed
Revenue was $530.5M in Q1 2025, up 6% year over year and up 7% from the previous quarter. Recurring was the largest line at 93% of revenue. Recurring added $33.4M year over year (up 7%), 109% of the total change. Interest on Funds Held for Clients declined 10%.
Gross margin was 84.1%, down 0.2 points from a year earlier. Operating profit was $185.1M, a 34.9% margin (down 22.3 points year over year). Operating profit fell $100.7M even though revenue rose $30.6M versus a year earlier, so costs grew faster than sales. Operating expenses grew 93% against revenue growth of 6%. Net earnings were $139.4M, down 44% year over year. The effective tax rate was 26.7%.
Operating cash flow was $182.5M (up 23% year over year), 131% of net earnings. Non-cash charges added back $39.9M of depreciation and amortization and $22.2M of share-based compensation. Working capital and other items used $19.0M. After purchases of property and equipment ($37.7M), free cash flow as the company reports it was $144.8M.
Questions
What was Paycom Software's revenue in the first quarter 2025?
Paycom Software (PAYC) reported revenue of $530M for the first quarter 2025 (Q1 2025), +6% from a year earlier and +7% from the quarter before.
Was Paycom Software profitable in the first quarter 2025?
Operating profit was $185M (34.9% of revenue) and net earnings $139M.
Source: Paycom Software 10-Q on SEC EDGAR.