Paycom’s Q2 Earnings Beat but Stock Ranks 318th in Trading Volume as AI Expansion Drives Growth

On August 6, 2025, Paycom Software (PAYC) closed at a 0.00% change with a trading volume of $0.37 billion, ranking 318th in market activity. The stock’s muted performance contrasted with strong Q2 financial results, including $483.6 million in revenue (up 10.5% year-over-year) and $198.3 million in adjusted EBITDA (41% of revenue). CEO Chad Richison highlighted robust client growth and AI-driven innovations like IWant, positioning the company to expand margins and market share.

Recurring revenue rose 12.2% to $455.1 million, constituting 94.1% of total sales, while non-GAAP net income hit $2.06 per share, exceeding prior-year figures. Paycom also repurchased $32.6 million worth of shares and maintained a debt-free balance sheet, with $532.2 million in cash equivalents. The firm raised 2025 revenue guidance to $2.045–$2.055 billion, reflecting confidence in sustained demand for its automated HCM solutions.

Despite the earnings beat, market reaction remained muted, with shares flat in regular trading. However, the company’s focus on AI integration and recurring revenue streams signals long-term growth potential. Investors will monitor the adoption of IWant and the sustainability of margin expansion as key drivers for future performance.

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