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PAYC · NYSE · United States · Services-Prepackaged Software
In shortPaycom Software, Inc. is profitable.
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 27.6% | 100/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 22.1% | 100/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 27.4% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | – | n/a |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.09× | 24/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | – | n/a |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | – | n/a |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 166.82× | 100/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 2.19 | 28/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 19.9% | 100/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 0.90× | 75/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 9.3% | 77/100 |
| Operating margin volatility | 3.5% | 77/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 14.3% | 96/100 |
|---|---|---|
| EPS growth, 3-year average | 18.6% | 100/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 1,056 | 1,375 | 1,694 | 1,883 | 2,052 |
| Cost of revenue | 162 | 213 | 276 | 335 | 345 |
| Gross profit | 894 | 1,163 | 1,417 | 1,549 | 1,706 |
| Research & development | 118 | 148 | 199 | 243 | 283 |
| Selling, general & admin | 640 | 784 | 966 | 914 | 1,139 |
| Operating income | 254 | 379 | 451 | 634 | 567 |
| Interest expense | 1.4 | 2.5 | 1.9 | 3.4 | 3.4 |
| Pre-tax income | 256 | 390 | 472 | 649 | 619 |
| Income tax | 60 | 108 | 132 | 147 | 166 |
| Net income | 196 | 281 | 341 | 502 | 453 |
| Diluted EPS | $3.37 | $4.84 | $5.88 | $8.92 | $8.08 |
| Diluted shares (millions) | 58 | 58 | 58 | 56 | 56 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
2.19 Grey zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
6/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jun 30, 2026 · Data updated Aug 6, 2026