Filing Flows › Paycom Software (PAYC) › Q2 2026
Paycom Software (PAYC) Q2 2026 earnings results (second quarter 2026)
10-Q filed Aug 6, 2026
Paycom Software (PAYC) reported revenue of $531M for the second quarter 2026 (Q2 2026), +10% from a year earlier and -7% from the quarter before. Operating margin was 31.7%, net earnings $107M (20.2% of revenue).
Paycom Software, Q2 2026: revenue $531M (+10% year over year), operating margin 31.7%, net earnings $107M, operating cash flow $214M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $531M | -7% | +10% |
| Gross profit | $442M | -9% | +12% |
| Operating profit | $168M | -20% | +50% |
| Net earnings | $107M | -31% | +20% |
| Operating cash flow | $214M | 0% | +75% |
| Free cash flow | $190M | +4% | +213% |
What changed
Revenue was $531.2M in Q2 2026, up 10% year over year and down 7% from the previous quarter. Recurring was the largest line at 94% of revenue. Recurring added $48.8M year over year (up 11%), 103% of the total change. Interest on Funds Held for Clients declined 9%.
Gross margin was 83.2%, up 1.3 points from Q2 2025. Operating profit was $168.5M, a 31.7% margin (up 8.5 points year over year). Of the extra revenue versus Q2 2025, 118% reached operating profit, above the 23% margin then. Operating expenses fell 4% while revenue rose 10%. Net earnings were $107.4M, up 20% year over year. The effective tax rate was 31.5%.
Operating cash flow was $213.8M (up 75% year over year), 199% of net earnings. Non-cash charges added back $50.1M of depreciation and amortization and $17.5M of share-based compensation. Working capital and other items added $38.8M. Capital expenditures of $23.7M left free cash flow of $190.1M.
Questions
What was Paycom Software's revenue in the second quarter 2026?
Paycom Software (PAYC) reported revenue of $531M for the second quarter 2026 (Q2 2026), +10% from a year earlier and -7% from the quarter before.
Was Paycom Software profitable in the second quarter 2026?
Operating profit was $168M (31.7% of revenue) and net earnings $107M.
Source: Paycom Software 10-Q on SEC EDGAR.