What are Paycom Software's profit margins?

Gross margin is 83.4% and operating margin is 28.3%, with a 22.4% net margin.

Where does Paycom Software's income statement data come from?

Every line is extracted from Paycom Software's SEC filings (10-K and 10-Q) and tagged in XBRL. Switch between quarterly, annual, and trailing-twelve-month views, or open any line for its full history and peer comparisons.

Paycom Software PAYC Income Statement

Income Statement Balance Sheet Cash Flow Ratios Segments

Quarterly Annual TTM

YoY

Simplified Detailed

	FY'25	FY'24	FY'23	FY'22
Total revenue	$2.05B+8.9%	$1.88B+11.2%	$1.69B+23.2%	$1.38B+30.3%
Total cost of revenue	$345.3M+3.2%	$334.7M+21.1%	$276.3M+29.9%	$212.7M+31.4%
Gross profit	$1.71B+10.2%	$1.55B+9.2%	$1.42B+21.9%	$1.16B+30.1%
Gross margin	83.2%+0.9pp	82.2%-1.5pp	83.7%-0.8pp	84.5%-0.1pp
Research and development	$283.4M+16.8%	$242.6M+21.9%	$199M+34.2%	$148.3M+25.2%
Selling, general and administrative	$1.14B+24.6%	$914.3M-5.4%	$966.1M+23.3%	$783.8M+22.5%
Selling and marketing	$482.8M+11.1%	$434.4M+4.0%	$417.6M+20.5%	$346.6M+25.6%
Compensation and benefits	$118.7M—	——	$129.8M+36.8%	$94.9M-2.7%
Advertising	$125.5M+45.4%	$86.3M-19.2%	$106.8M+17.9%	$90.6M+26.5%
Depreciation and amortization	$135.7M+21.3%	$111.9M+27.5%	$87.75M+23.1%	$71.29M+38.0%
Goodwill impairment	$0—	$0—	$0—	——
Impairment charges	$0—	$0—	$0—	$0—
Other operating expenses	——	——	——	——
Total costs & expenses	$1.48B+18.9%	$1.25B+0.5%	$1.24B+24.7%	$996.5M+24.3%
Operating income	$567.1M-10.6%	$634.3M+40.5%	$451.3M+19.2%	$378.7M+49.3%
Operating margin	27.6%-6.0pp	33.7%+7.0pp	26.6%-0.9pp	27.5%+3.5pp
Interest expense	$3.4M0.0%	$3.4M+78.9%	$1.9M-24.0%	$2.5M—
Other income (expense), net	$55.7M+208%	$18.1M-21.3%	$23M+71.6%	$13.4M+459%
Gain (loss) on disposal of assets	$100K—	——	-$23K-112%	$200K—
Net investment gains (losses)	$0—	$0—	$0—	$0—
Income before income taxes	$619.4M-4.5%	$648.9M+37.4%	$472.4M+21.3%	$389.6M+52.2%
Income tax expense	$166M+13.0%	$146.9M+11.6%	$131.6M+21.6%	$108.2M+80.3%
Net income	$453.4M-9.7%	$502.1M+47.3%	$340.8M+21.1%	$281.4M+43.6%
Net margin	22.1%-4.6pp	26.7%+6.5pp	20.1%-0.3pp	20.5%+1.9pp
Diluted earnings per share	$8.08-9.3%	$8.91+51.3%	$5.89+21.4%	$4.85+43.9%
Basic earnings per share	$8.12-8.9%	$8.91+51.0%	$5.90+21.6%	$4.85+43.5%
Weighted-average shares, diluted	225.3M-0.1%	225.6M-2.8%	232M-0.2%	232.5M-0.2%
Weighted-average shares, basic	224M-0.5%	225.1M-2.7%	231.3M-0.2%	231.8M+0.2%
Production and delivery	$263M-1.7%	$267.5M+19.6%	$223.7M+31.7%	$169.8M+30.1%
Depreciation and amortization	$82.3M+22.5%	$67.2M+27.8%	$52.6M+22.6%	$42.9M+36.6%
Accretion (Amortization) of Discounts and Premiums, Investments	$13M—	——	$500K-50.0%	$1M+121%
Advertising costs	$125.5M+45.4%	$86.3M-19.2%	$106.8M+17.9%	$90.6M+26.5%
Pre-tax stock-based compensation cost	$118.7M—	——	——	$94.9M-2.7%
Amortization Of Financing Costs	$1.4M+27.3%	$1.1M-8.3%	$1.2M+50.0%	$800K+2,122%
Amortization of capitalized software and acquired intangible assets	$8.8M+120%	$4M-20.0%	$5M+2.0%	$4.9M+88.5%
Capital investments accrued but not yet paid	——	——	——	——
Capitalized Computer Software, Additions	$152.8M+21.6%	$125.7M+29.9%	$96.8M+45.8%	$66.4M+25.5%
Software amortization expense	$109M+31.2%	$83.1M+34.2%	$61.9M+30.9%	$47.3M+29.6%
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect	$1.09B—	——	$13.7M—	——
Dividends declared (in dollars per share)	——	——	——	——
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$454.2M-9.6%	$502.4M+46.3%	$343.5M+23.7%	$277.7M+41.7%
Contract Balance Net Of Revenue Recognized During Period	$44M+12.0%	$39.3M+22.0%	$32.2M+0.8%	$31.94M+14.5%
Revenue recognized that was included in deferred income at the beginning of the period	$38.4M—	——	$19.1M+19.8%	$15.95M—
Federal	$800K-99.2%	$103.8M+10.3%	$94.1M+15.7%	$81.3M+363%
Current State And Local Tax Expense Benefit	$11.1M-70.3%	$37.4M+17.2%	$31.9M+6.0%	$30.1M+216%
Total net securities (losses)	$0—	$0—	$0—	$0—
Federal	$118.5M+2,938%	$3.9M-27.8%	$5.4M+293%	-$2.8M-111%
Deferred taxes	$154.1M+2,557%	$5.8M+3.6%	$5.6M+275%	-$3.2M-110%
Deferred and other income taxes	$154.4M—	——	——	——
State	$35.6M+1,774%	$1.9M+850%	$200K+150%	-$400K-106%
Defined Contribution Plan Cost Recognized	$20.7M+8.4%	$19.1M+20.1%	$15.9M+25.2%	$12.7M+9.5%
Effective tax rates	$0.28+23.3%	$0.23—	——	$0.3—
Income taxes at U.S. statutory rate of 21%	——	——	——	——
Effective Income Tax Rate Reconciliation Change In Unrecognized Tax Benefits	——	——	——	——
Other	$00.0%	$00.0%	$0—	——
Share-based compensation	——	——	——	——
State income taxes – net of federal income tax benefit	——	——	——	——
Effective Income Tax Rate Reconciliation Tax Credits Research	——	——	——	——
Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount	$25.2M+44.0%	$17.5M+19.0%	$14.7M+63.3%	$9M+26.0%
Gain Loss On Sale Of Property Plant Equipment	$100K—	——	-$23K-112%	$200K—
Gain On Modification Of Naming Rights Agreement	$35.6M—	——	——	——
General And Administrative Expense Benefit	$279.3M+76.1%	$158.6M-44.9%	$288.1M+20.5%	$239.1M—
Goodwill impairment losses	$0—	$0—	$0—	——
Impairment of intangible assets	$0—	$0—	$0—	$0—
Impairment Of Long Lived Assets Held For Use	$0—	$0—	$0—	$0—
State taxes	$78.1M-42.1%	$134.8M-2.9%	$138.8M—	——
Income Tax Reconciliation Change In Unrecognized Tax Benefits	-$300K—	$0-100%	$3.8M—	——
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$130.1M-4.5%	$136.3M+37.4%	$99.2M—	——
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount	$2.4M-4.0%	$2.5M+19.0%	$2.1M—	——
Share-based compensation	$5.3M+124%	-$22.1M-263%	$13.6M—	——
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	$1.3M+44.4%	$900K+143%	-$2.1M—	——
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	$36.5M-2.1%	$37.3M+36.1%	$27.4M—	——
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount	$9.2M+16.5%	$7.9M-36.3%	$12.4M—	——
Income Taxes Paid, Net	$78.1M-42.1%	$134.8M-2.9%	$138.8M+38.0%	$100.6M+204%
Accounts payable	——	——	——	——
Increase (Decrease) in Accounts Receivable	——	$22.8M—	——	——
Increase Decrease In Accrued Commission And Bonuses	——	——	$2.1M—	——
Increase in accrued expenses and other liabilities	——	——	——	——
Increase Decrease In Accrued Payroll And Vacation	$1.1M-62.1%	$2.9M-73.9%	$11.1M—	——
Increase Decrease In Client Funds Obligation	-$1.47B-10.0%	-$1.34B-1,011%	-$120.4M—	——
Increase (decrease) in contract liabilities and current deferred income	——	$14.2M+8.4%	$13.1M-18.1%	$16M+9.6%
Increase (Decrease) in Deferred Charges	$89.5M-25.4%	$120M-6.0%	$127.7M+4.3%	$122.4M+18.4%
Increase Decrease In Income Taxes Payable Net Of Income Taxes Receivable	-$66.3M—	——	-$12.8M—	——
Increase (Decrease) in Inventories	——	$0—	——	$200K+142%
Increase Decrease In Operating Right Of Use Assets And Operating Lease Liabilities	-$2M-386%	$700K—	——	$200K—
Increase (Decrease) in Other Operating Assets	$6.5M+141%	$2.7M-74.0%	$10.4M—	——
Increase (Decrease) in Prepaid Expense	-$1.7M—	——	——	——
Interest and Debt Expense	$3.4M0.0%	$3.4M-35.8%	$5.3M+55.9%	$3.4M+143%
Interest capitalized	$0—	$0-100%	$3.4M+278%	$900K-35.7%
Interest Paid, Excluding Capitalized Interest, Operating Activity	$2.1M+5.0%	$2M+100%	$1M+100%	$500K+24,900%
Investment Credit Impairment Losses	$0—	$0—	——	——
Marketing	$482.8M+11.1%	$434.4M+4.0%	$417.6M+20.5%	$346.6M+25.6%
Cash Provided by (Used in) Financing Activity, Including Discontinued Operation	$1.02B-7.8%	$1.11B—	——	——
Cash Provided by (Used in) Investing Activity, Including Discontinued Operation	-$659.2M-2,869%	-$22.2M+88.7%	-$196.7M—	——
Cash Provided by (Used in) Operating Activity, Including Discontinued Operation	$678.9M+27.2%	$533.9M+10.1%	$485M+32.8%	$365.1M+14.3%
Number of operating segments	——	10.0%	10.0%	1—
Number of reportable segments	——	1—	——	——
Number of reporting units	——	1—	——	——
Occupancy and Related Charges	$25.2M+16.1%	$21.7M+19.9%	$18.1M+47.2%	$12.3M+3.4%
Other comprehensive income (loss)	$900K—	——	$2.7M+171%	-$3.81M—
Tax expense (benefit)	$200K-65.3%	$576K-28.0%	$800K+173%	-$1.1M—
Net unrealized gains (losses) on securities still held	$1M—	——	$3.5M+172%	-$4.88M—
Other Noncash Expense	$1M-37.5%	$1.6M-5.9%	$1.7M0.0%	$1.7M—
Other Noncash Income Expenses	-$800K—	——	——	——
Other income, net (Note 6)	$55.7M+208%	$18.1M-21.3%	$23M+71.6%	$13.4M+459%
Payments for Repurchase of Common Stock	——	——	——	——
Payments of Dividends	$84.8M0.0%	$84.8M—	——	——
Payment, Tax Withholding, Share-Based Payment Arrangement	$44.5M+105%	$21.7M+56.1%	$13.9M+167%	$5.2M-92.1%
Payments to Acquire Investments	$835.9M—	——	——	$268.72M-32.6%
Payments to Acquire Property, Plant, and Equipment	$270.9M+40.4%	$192.9M+0.2%	$192.6M+45.1%	$132.7M+9.9%
Debt issued (Note 13)	——	——	——	——
Proceeds from sales and redemptions of investments in debt securities classified as available for sale	——	$200M—	——	$382.2M+43.0%
Proceeds from issuance of common stock relating to employee stock plans	——	——	——	——
Revenue From Contract With Customer Excluding Assessed Tax	$2.05B+8.9%	$1.88B+11.2%	$1.69B+23.2%	$1.38B+30.3%
Sales Taxes Collected And Remitted	$21.3M+10.4%	$19.3M+9.7%	$17.6M+13.5%	$15.5M+30.3%
Stock-based compensation	$118.7M—	——	$129.8M+36.8%	$94.9M-2.7%
Stock Issued During Period Shares Treasury Stock Reissued	——	——	——	——
Unrecognized Tax Benefits Decreases Resulting From Current Period Tax Positions	$1M+25.0%	$800K—	——	——
Interest expense and penalties, net (benefit)/charge recognized	$0-100%	$300K-62.5%	$800K—	$0—
Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions	$700K-12.5%	$800K-78.9%	$3.8M—	——
Unrecognized Tax Positions Resulting From Current Period	$3.8M0.0%	$3.8M—	——	——
Vesting Percentage Of Employee Deferrals And Rollover Contributions	——	——	——	——
EBIT	$567.1M-10.6%	$634.3M+40.5%	$451.3M+19.2%	$378.7M+49.3%
EBITDA	$743.4M-4.7%	$780.2M+38.0%	$565.2M+19.9%	$471.4M+47.0%
EBITDA	$743.4M-4.7%	$780.2M+38.0%	$565.2M+19.9%	$471.4M+47.0%
EBITDA margin	36.2%-5.2pp	41.4%+8.1pp	33.4%-0.9pp	34.3%+3.9pp
EBIT	$567.1M-10.6%	$634.3M+40.5%	$451.3M+19.2%	$378.7M+49.3%

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Questions, answered.

What are Paycom Software's profit margins?: Gross margin is 83.4% and operating margin is 28.3%, with a 22.4% net margin.
Where does Paycom Software's income statement data come from?: Every line is extracted from Paycom Software's SEC filings (10-K and 10-Q) and tagged in XBRL. Switch between quarterly, annual, and trailing-twelve-month views, or open any line for its full history and peer comparisons.