$PAYC · Paycom Software, Inc.
Paycom reported Q3 FY2026 results: total revenues of $543.8M, up 10.2% from $493.3M a year earlier. GAAP net income was $133.2M ($2.99 diluted EPS) versus $110.7M ($1.96) last year; non-GAAP net income was $150.0M ($3.37 diluted EPS). Adjusted EBITDA was $268.1M (49% of revenues), up from $194.3M. The company raised full-year 2026 guidance to $2.213B–$2.218B revenue and $1.069B–$1.079B adjusted EBITDA.
- Recurring and other revenue rose 11.3% to $519.3M, 95.5% of total revenues.
- Operating income jumped to $195.8M from $112.6M a year earlier.
- Adjusted EBITDA reached $268.1M, a 49% margin, versus $194.3M last year.
- Cash and equivalents fell to $193.9M from $370.0M at year-end 2025.
- Long-term debt of $750.0M appeared on the balance sheet, up from zero at year-end.
Extended-hours trading shows PAYC at $250.65, down 6.53% from the $268.16 regular close, despite the beat and raised guidance — suggesting the market may have expected more or is reacting to other factors.
A double-digit revenue beat with raised full-year guidance is notable, but the sharp after-hours decline signals investor disappointment relative to expectations.
Paycom's 10% revenue growth and 49% adjusted EBITDA margin reflect continued strength in cloud HCM/payroll software, though the after-hours selloff hints at elevated expectations for the sector.
Interest on funds held for clients declined to $24.5M from $26.8M, and cash balances dropped sharply while $750M in new long-term debt was added.