Filing Flows › Paycom Software (PAYC) › Q2 2026 › vs Q2 2025
Paycom Software (PAYC) Q2 2026 vs Q2 2025 (year over year)
Paycom Software's revenue rose $47.6M (+10%) from $484M in Q2 2025 to $531M in Q2 2026. The biggest changes: Recurring and Other +$50.1M (+11%); Interest on Funds Held for Clients −$2.5M (-9%). Gross margin 83.2% against 81.9% (+1.3 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 Q2 2025, the increases inside each band.
Margins
| Q2 2026 | Q2 2025 | Change | |
|---|---|---|---|
| Gross margin | 83.2% | 81.9% | +1.3 pts |
| Operating margin | 31.7% | 23.2% | +8.5 pts |
| Net margin | 20.2% | 18.5% | +1.7 pts |
| Free cash flow margin | 35.8% | 12.6% | +23.2 pts |
Every line
| Line | Q2 2026 | Q2 2025 | Change | % |
|---|---|---|---|---|
| Recurring | $498M | $449M | $48.8M | +11% |
| Implementation and Other | $7.3M | $6.0M | $1.3M | +22% |
| Recurring and Other | $505M | $455M | $50.1M | +11% |
| Interest on Funds Held for Clients | $26.0M | $28.5M | −$2.5M | -9% |
| Revenue | $531M | $484M | $47.6M | +10% |
| Gross profit | $442M | $396M | $46.0M | +12% |
| Cost of revenue | $89.1M | $87.5M | $1.6M | +2% |
| Operating profit | $168M | $112M | $56.2M | +50% |
| Operating expenses | $274M | $284M | −$10.2M | -4% |
| Pre-tax earnings | $157M | $117M | $39.7M | +34% |
| Other expense, net | $11.6M | −$4.9M | $16.5M | — |
| Net earnings | $107M | $89.5M | $17.9M | +20% |
| Income tax | $49.5M | $27.7M | $21.8M | +79% |
| Depreciation & amortization | $50.1M | $42.0M | $8.1M | +19% |
| Share-based compensation | $17.5M | $38.4M | −$20.9M | -54% |
| Working capital & other | $38.8M | −$47.4M | $86.2M | — |
| Operating cash flow | $214M | $122M | $91.3M | +75% |
| Free cash flow (OCF − capex) | $190M | $60.8M | $129M | +213% |
| Capital expenditures | $23.7M | $61.7M | −$38.0M | -62% |
Questions
How much did Paycom Software's revenue grow year over year in Q2 2026?
Paycom Software's revenue rose $47.6M (+10%) from $484M in Q2 2025 to $531M in Q2 2026.
What drove Paycom Software's revenue change in Q2 2026?
Recurring and Other +$50.1M (+11%); Interest on Funds Held for Clients −$2.5M (-9%).