Paycom Q2 Earnings Exceed Expectations: Revenue Up 10.5%, EPS Beats Estimates by 15.6%

Paycom (PAYC) reported Q2 CY2025 results with revenue up 10.5% YoY to $483.6 million, beating analyst estimates. Non-GAAP profit was $2.06 per share, a 15.6% beat. The company slightly lifted its full-year revenue guidance to $2.05 billion and EBITDA guidance to $877 million. CEO Chad Richison attributed outperformance to strong recurring revenue growth and expanded operating margins, driven by the release of AI-powered product IWant and automation efficiency gains.

Paycom (PAYC), a leading provider of online payroll and human resource software, reported its Q2 CY2025 results, showcasing robust performance and exceeding market expectations. The company's revenue surged 10.5% year-over-year (YoY) to $483.6 million, surpassing analyst estimates of $472 million. This growth was driven by a 12.2% increase in recurring revenues, which accounted for 94% of total sales [2].

Non-GAAP profit per share stood at $2.06, a 15.6% beat over analyst consensus estimates of $1.78. The company's adjusted EBITDA also exceeded expectations, rising 41% to $198.3 million. Paycom's operating margin improved to 23.2%, up from 21.7% in the previous quarter [1].

CEO Chad Richison attributed the strong performance to the release of AI-powered product IWant and the increasing adoption of automation tools such as Beti and GONE. These tools have significantly enhanced operational efficiency and client satisfaction, contributing to the company's robust recurring revenue growth [2].

Paycom's full-year revenue guidance was slightly lifted to $2.05 billion, up from the previous estimate of $2.03 billion, and EBITDA guidance was raised to $877 million. The company also generated operating cash flow of approximately $122.5 million in the second quarter, with no debt on its balance sheet [3].

The stock traded up 10.4% to $246 immediately following the results, reflecting investor confidence in Paycom's performance and future prospects. The company's impressive earnings surprise history, with an average surprise of 10.8% over the trailing four quarters, further underscores its strong financial health [3].

References:

[1] https://finance.yahoo.com/news/paycom-nyse-payc-q2-sales-224814080.html
[2] https://finance.yahoo.com/news/automation-tools-power-paycom-softwares-112900964.html
[3] https://www.tradingview.com/news/zacks:af6b2507d094b:0-paycom-stock-jumps-10-as-q2-earnings-and-revenues-crush-estimates/