Filing Flows › Paycom Software (PAYC) › Q1 2026
Paycom Software (PAYC) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 7, 2026
Paycom Software (PAYC) reported revenue of $572M for the first quarter 2026 (Q1 2026), +8% from a year earlier and +5% from the quarter before. Operating margin was 36.8%, net earnings $156M (27.2% of revenue).
Paycom Software, Q1 2026: revenue $572M (+8% year over year), operating margin 36.8%, net earnings $156M, operating cash flow $214M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $572M | +5% | +8% |
| Gross profit | $484M | +6% | +9% |
| Operating profit | $210M | +34% | +14% |
| Net earnings | $156M | +37% | +12% |
| Operating cash flow | $214M | +9% | +17% |
| Free cash flow | $183M | — | +26% |
What changed
Revenue was $571.9M in Q1 2026, up 8% year over year and up 5% from the previous quarter. Recurring was the largest line at 94% of revenue. Recurring added $43.9M year over year (up 9%), 106% of the total change. Interest on Funds Held for Clients declined 9%.
Gross margin was 84.7%, up 0.7 points from Q1 2025. Operating profit was $210.2M, a 36.8% margin (up 1.9 points year over year). Of the extra revenue versus Q1 2025, 61% reached operating profit, above the 35% margin then. Operating expenses grew 5% against revenue growth of 8%. Net earnings were $155.7M, up 12% year over year. The effective tax rate was 27.6%.
Operating cash flow was $213.8M (up 17% year over year), 137% of net earnings. Non-cash charges added back $51.1M of depreciation and amortization and $14.1M of share-based compensation. After purchases of property and equipment ($31.2M), free cash flow as the company reports it was $182.6M.
Questions
What was Paycom Software's revenue in the first quarter 2026?
Paycom Software (PAYC) reported revenue of $572M for the first quarter 2026 (Q1 2026), +8% from a year earlier and +5% from the quarter before.
Was Paycom Software profitable in the first quarter 2026?
Operating profit was $210M (36.8% of revenue) and net earnings $156M.
Source: Paycom Software 10-Q on SEC EDGAR.