Filing Flows › Paycom Software (PAYC) › Q4 2025
Paycom Software (PAYC) Q4 2025 earnings results (fourth quarter 2025)
10-K filed Feb 19, 2026
Paycom Software (PAYC) reported revenue of $544M for the fourth quarter 2025 (Q4 2025), +10% from a year earlier and +10% from the quarter before. Operating margin was 28.9%, net earnings $114M (20.9% of revenue).
Paycom Software, Q4 2025: revenue $544M (+10% year over year), operating margin 28.9%, net earnings $114M, operating cash flow $196M. The chart follows the revenue to costs, profit and cash.
| Q4 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $544M | +10% | +10% |
| Gross profit | $456M | +12% | +11% |
| Operating profit | $157M | +40% | +6% |
| Net earnings | $114M | +3% | +0.2% |
| Operating cash flow | $196M | +10% | +22% |
| Free cash flow | $123M | +54% | +12% |
What changed
Revenue was $544.3M in Q4 2025, up 10% year over year and up 10% from the previous quarter. Recurring was the largest line at 94% of revenue.
Gross margin was 83.9%, up 0.8 points from a year earlier. Operating profit was $157.1M, a 28.9% margin (down 1.2 points year over year). Of the extra revenue versus a year earlier, 17% reached operating profit, below the 30% margin then. Operating expenses grew 14% against revenue growth of 10%. Net earnings were $113.8M, roughly flat year over year. The effective tax rate was 28.5%.
Operating cash flow was $196.1M (up 22% year over year), 172% of net earnings. Non-cash charges added back $49.4M of depreciation and amortization and $26.9M of share-based compensation. Capital expenditures of $73.5M left free cash flow of $122.6M.
Questions
What was Paycom Software's revenue in the fourth quarter 2025?
Paycom Software (PAYC) reported revenue of $544M for the fourth quarter 2025 (Q4 2025), +10% from a year earlier and +10% from the quarter before.
Was Paycom Software profitable in the fourth quarter 2025?
Operating profit was $157M (28.9% of revenue) and net earnings $114M.
Source: Paycom Software 10-K on SEC EDGAR.