Filing Flows › Paycom Software (PAYC) › Q2 2025
Paycom Software (PAYC) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 7, 2025
Paycom Software (PAYC) reported revenue of $484M for the second quarter 2025 (Q2 2025), +11% from a year earlier and -9% from the quarter before. Operating margin was 23.2%, net earnings $89.5M (18.5% of revenue).
Paycom Software, Q2 2025: revenue $484M (+10% year over year), operating margin 23.2%, net earnings $89.5M, operating cash flow $122M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $484M | -9% | +11% |
| Gross profit | $396M | -11% | +12% |
| Operating profit | $112M | -39% | +18% |
| Net earnings | $89.5M | -36% | +32% |
| Operating cash flow | $122M | -33% | -7% |
| Free cash flow | $60.8M | -58% | -30% |
What changed
Revenue was $483.6M in Q2 2025, up 11% year over year and down 9% from the previous quarter. Recurring was the largest line at 93% of revenue. Recurring added $49.5M year over year (up 12%), 107% of the total change. Interest on Funds Held for Clients declined 11%.
Gross margin was 81.9%, up 1.1 points from a year earlier. Operating profit was $112.3M, a 23.2% margin (up 1.5 points year over year). Of the extra revenue versus a year earlier, 37% reached operating profit, above the 22% margin then. Operating expenses grew 10% against revenue growth of 11%. Net earnings were $89.5M, up 32% year over year. The effective tax rate was 23.6%.
Operating cash flow was $122.5M (down 7% year over year), 137% of net earnings. Non-cash charges added back $42.0M of depreciation and amortization and $38.4M of share-based compensation. Working capital and other items used $47.4M. Capital expenditures of $61.7M left free cash flow of $60.8M.
Questions
What was Paycom Software's revenue in the second quarter 2025?
Paycom Software (PAYC) reported revenue of $484M for the second quarter 2025 (Q2 2025), +11% from a year earlier and -9% from the quarter before.
Was Paycom Software profitable in the second quarter 2025?
Operating profit was $112M (23.2% of revenue) and net earnings $89.5M.
Source: Paycom Software 10-Q on SEC EDGAR.