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Paycom Software, Inc., a leading provider of cloud-based human capital management (HCM) software, reported robust financial results for Q2 2025, highlighting strong revenue growth and advancements in AI-driven automation.
Total revenue reached $483.6 million, up 10.5% year-over-year.
GAAP net income was $89.5 million, or $1.58 per diluted share.
Non-GAAP net income rose to $116.6 million, or $2.06 per diluted share.
Adjusted EBITDA hit $198.3 million, with a 41% margin.
IWant, an AI command-driven engine, enhances automation for clients.
2025 revenue guidance raised to $2.045-$2.055 billion, up 9%.
Paycom reported total revenues of $483.6 million in Q2 2025, a 10.5% increase from $437.5 million in Q2 2024. Recurring and other revenues, comprising 94.1% of total revenues, grew 12.2% to $455.1 million. This growth reflects Paycom’s strong market position in the HCM software sector. “We delivered very strong results this quarter, and we are raising our growth and margin targets for 2025,” said Chad Richison, Paycom founder, CEO, and chairman.
GAAP net income for the quarter was $89.5 million, or $1.58 per diluted share, compared to $68.0 million, or $1.20 per diluted share, in Q2 2024. Non-GAAP net income reached $116.6 million, or $2.06 per diluted share, up from $91.8 million, or $1.62 per diluted share, in the prior year. Adjusted EBITDA was $198.3 million, representing a 41% margin, compared to $159.7 million in Q2 2024, showcasing Paycom’s operational efficiency.
Paycom’s introduction of IWant, the industry’s first command-driven AI engine, strengthens its leadership in HCM automation. The platform enables clients to streamline HR processes, enhancing efficiency and user experience. “Now with IWant, the industry’s first command-driven AI engine, we are well positioned to extend our product lead and eclipse the industry with even greater AI and automation,” Richison stated. This innovation underscores Paycom’s commitment to delivering cutting-edge solutions for HR management.
As of June 30, 2025, Paycom’s cash and cash equivalents stood at $532.2 million, up from $402.0 million at the end of 2024. The company remains debt-free, with total debt at $0. During Q2, Paycom paid $21.8 million in dividends and repurchased 127,717 shares for $32.6 million, reflecting confidence in its financial stability and long-term growth prospects.
For the full year 2025, Paycom raised its revenue guidance to $2.045 billion to $2.055 billion, representing approximately 9% year-over-year growth at the midpoint. Recurring and other revenue is expected to grow by 10%. Adjusted EBITDA is projected to be between $872.0 million and $882.0 million, with a 43% margin. These targets highlight Paycom’s focus on sustainable growth and profitability in the competitive HCM market.
Paycom’s Q2 2025 results demonstrate its ability to drive revenue growth and profitability while advancing AI-driven automation. With a strong balance sheet and innovative solutions like IWant, Paycom is well-positioned to maintain its leadership in the HCM software industry.
Paycom Software, Inc. simplifies business and employees’ lives through automated, command-driven HR and payroll technology that revolutionizes data access. From hire to retire, Paycom’s employee-first technology leverages AI and full-solution automation to streamline processes and drive efficiencies in a truly single database, providing a seamless experience for Paycom’s clients and their employees. With its industry-first AI engine, IWant, Paycom provides instant and accurate access to employee data without having to navigate or learn the software. For over 25 years, Paycom has been recognized for its innovative technology and workplace culture while serving businesses of all sizes in the U.S. and internationally.
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