Filing Flows › Paycom Software (PAYC) › Q3 2025
Paycom Software (PAYC) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 6, 2025
Paycom Software (PAYC) reported revenue of $493M for the third quarter 2025 (Q3 2025), +9% from a year earlier and +2% from the quarter before. Operating margin was 22.8%, net earnings $111M (22.4% of revenue).
Paycom Software, Q3 2025: revenue $493M (+9% year over year), operating margin 22.8%, net earnings $111M, operating cash flow $178M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $493M | +2% | +9% |
| Gross profit | $408M | +3% | +12% |
| Operating profit | $113M | +0.3% | +7% |
| Net earnings | $111M | +24% | +51% |
| Operating cash flow | $178M | +45% | +92% |
| Free cash flow | $79.8M | +31% | +79% |
What changed
Revenue was $493.3M in Q3 2025, up 9% year over year and up 2% from the previous quarter. Recurring was the largest line at 93% of revenue. Recurring added $44.2M year over year (up 11%), 107% of the total change. Interest on Funds Held for Clients declined 11%.
Gross margin was 82.7%, up 2.2 points from a year earlier. Operating profit was $112.6M, a 22.8% margin (down 0.4 points year over year). Of the extra revenue versus a year earlier, 19% reached operating profit, below the 23% margin then. Operating expenses grew 14% against revenue growth of 9%. Net earnings were $110.7M, up 51% year over year. The effective tax rate was 27.6%. Non-operating items added $40.2M, 26% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $177.8M (up 92% year over year), 161% of net earnings. Non-cash charges added back $45.0M of depreciation and amortization and $31.2M of share-based compensation. Working capital and other items used $9.1M. Capital expenditures of $98.0M left free cash flow of $79.8M.
Questions
What was Paycom Software's revenue in the third quarter 2025?
Paycom Software (PAYC) reported revenue of $493M for the third quarter 2025 (Q3 2025), +9% from a year earlier and +2% from the quarter before.
Was Paycom Software profitable in the third quarter 2025?
Operating profit was $113M (22.8% of revenue) and net earnings $111M.
Source: Paycom Software 10-Q on SEC EDGAR.