Paycom Surges 4.53% on Earnings Beat and Revenue Growth Hits $350M Volume as 332nd Most-Traded Stock

Paycom Software (PAYC) rose 4.53% on August 7, 2025, with a trading volume of $350 million, ranking 332nd in the market. The stock’s gains followed the company’s second-quarter earnings and revenue results that exceeded expectations, driven by strong recurring revenue growth and improved operating efficiency. Non-GAAP earnings reached $2.06 per share, surpassing the $1.78 consensus estimate, while total revenue hit $483.6 million, a 10.5% year-over-year increase. Recurring revenue, which accounts for 94% of total sales, grew 12.2% to $455.1 million, supported by international expansion and AI integration.

The company raised its 2025 revenue guidance to $2.045–$2.055 billion, up from $2.023–$2.038 billion, and projected adjusted EBITDA of $872–$882 million, reflecting a 43% margin at the midpoint. Paycom’s financial position remains robust, with $532.2 million in cash and no debt. In Q2, it generated $122.5 million in operating cash flow, repurchased $32.6 million of stock, and maintained a $1.15 billion buyback authorization. The firm also announced a 37.5-cent-per-share dividend, payable in September.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets.