Filing Flows › Paycom Software (PAYC) › Q2 2026 › vs Q1 2026
Paycom Software (PAYC) Q2 2026 vs Q1 2026 (quarter over quarter)
Paycom Software's revenue fell $40.7M (-7%) from $572M in Q1 2026 to $531M in Q2 2026. The biggest changes: Recurring and Other −$38.8M (-7%); Interest on Funds Held for Clients −$1.8M (-6%). Gross margin 83.2% against 84.7% (-1.5 pts).
Paycom Software, Q2 2026: revenue $531M (+10% year over year), operating margin 31.7%, net earnings $107M, operating cash flow $214M. The chart draws each line against Q1 2026, the increases inside each band.
Margins
| Q2 2026 | Q1 2026 | Change | |
|---|---|---|---|
| Gross margin | 83.2% | 84.7% | -1.5 pts |
| Operating margin | 31.7% | 36.8% | -5.0 pts |
| Net margin | 20.2% | 27.2% | -7.0 pts |
| Free cash flow margin | 35.8% | 31.9% | +3.9 pts |
Every line
| Line | Q2 2026 | Q1 2026 | Change | % |
|---|---|---|---|---|
| Recurring | $498M | $537M | −$39.4M | -7% |
| Implementation and Other | $7.3M | $6.7M | $600K | +9% |
| Recurring and Other | $505M | $544M | −$38.8M | -7% |
| Interest on Funds Held for Clients | $26.0M | $27.8M | −$1.8M | -6% |
| Revenue | $531M | $572M | −$40.7M | -7% |
| Gross profit | $442M | $484M | −$42.4M | -9% |
| Cost of revenue | $89.1M | $87.4M | $1.7M | +2% |
| Operating profit | $168M | $210M | −$41.7M | -20% |
| Operating expenses | $274M | $274M | −$700K | -0.3% |
| Pre-tax earnings | $157M | $215M | −$58.4M | -27% |
| Other expense, net | $11.6M | −$5.1M | $16.7M | — |
| Net earnings | $107M | $156M | −$48.3M | -31% |
| Income tax | $49.5M | $59.5M | −$10.0M | -17% |
| Depreciation & amortization | $50.1M | $51.1M | −$1.0M | -2% |
| Share-based compensation | $17.5M | $14.1M | $3.4M | +24% |
| Working capital & other | $38.8M | −$7.1M | $45.9M | — |
| Operating cash flow | $214M | $214M | $0 | 0% |
| Free cash flow (OCF − capex) | $190M | $183M | $7.5M | +4% |
| Capital expenditures | $23.7M | $31.2M | −$7.5M | -24% |
Questions
How much did Paycom Software's revenue grow quarter over quarter in Q2 2026?
Paycom Software's revenue fell $40.7M (-7%) from $572M in Q1 2026 to $531M in Q2 2026.
What drove Paycom Software's revenue change in Q2 2026?
Recurring and Other −$38.8M (-7%); Interest on Funds Held for Clients −$1.8M (-6%).