Discontinued — last reported Q4 '25

Operating

Provision for Credit Losses

Paychex Provision for Credit Losses increased by 275.6% to $16.90M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 225.0%, from $5.20M to $16.90M. Over 3 years (FY 2022 to FY 2025), Provision for Credit Losses shows an upward trend with a 32.1% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementCash Flow Statement
SectionOperating
CategoryRisk
SignalLower is better
VolatilityModerate
First reportedQ1 2016
Last reportedQ4 2025

How to read this metric

An increase suggests management expects higher default rates or a deteriorating credit environment, while a decrease suggests improved borrower quality.

Detailed definition

This represents the non-cash expense set aside by a financial institution to cover potential losses from loans or credit...

Peer comparison

Common in banking and credit card issuers; peers adjust this based on macroeconomic forecasts and portfolio seasoning.

Metric ID: provision_for_credit_losses_cf

Historical Data

19 periods
 Q2 '21Q3 '21Q4 '21Q1 '22Q2 '22Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25
Value-$3.60M$4.60M$200.00K$9.30M$4.50M$3.60M$5.00M$4.60M$4.30M$5.70M$4.90M$4.90M$7.50M$4.90M$5.20M$6.60M$7.70M$4.50M$16.90M
QoQ Change+227.8%-95.7%>999%-51.6%-20.0%+38.9%-8.0%-6.5%+32.6%-14.0%+0.0%+53.1%-34.7%+6.1%+26.9%+16.7%-41.6%+275.6%
YoY Change+225.0%-21.7%>999%-50.5%-4.4%+58.3%-2.0%+6.5%+74.4%-14.0%+6.1%+34.7%+2.7%-8.2%+225.0%
Range-$3.60M$16.90M
CAGR+41.0%
Avg YoY Growth+195.5%
Median YoY Growth+6.1%

Frequently Asked Questions

What is Paychex's provision for credit losses?
Paychex (PAYX) reported provision for credit losses of $16.90M in Q4 2025.
How has Paychex's provision for credit losses changed year-over-year?
Paychex's provision for credit losses increased by 225.0% year-over-year, from $5.20M to $16.90M.
What is the long-term trend for Paychex's provision for credit losses?
Over 3 years (2022 to 2025), Paychex's provision for credit losses has grown at a 32.1% compound annual growth rate (CAGR), from $10.50M to $24.20M.
What does provision for credit losses mean?
The amount of money a lender sets aside to cover expected losses from unpaid debts.