Paycom Software, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $493.3 million, a 9.1% increase from $451.9 million in the same period last year. The company's recurring and other revenues rose to $466.5 million, up from $421.8 million, driven by new client acquisitions and increased sales of additional applications to existing clients. However, interest income from funds held for clients decreased to $26.8 million from $30.1 million, reflecting lower interest rates despite a rise in average funds held.
In terms of profitability, Paycom's net income for the third quarter was $110.7 million, a significant increase of 51.1% compared to $73.3 million in the prior year. This growth in net income was attributed to a combination of increased revenues and a decrease in operating expenses, which fell to $380.7 million from $347.1 million. The company also reported earnings per share of $1.97, up from $1.31 a year earlier. For the nine months ended September 30, 2025, net income totaled $339.6 million, down from $388.4 million in the same period of 2024.
Operationally, Paycom's customer base continued to expand, with a notable increase in user engagement metrics. The company reported a total of 30,000 clients as of September 30, 2025, reflecting a steady growth trajectory. Additionally, Paycom's employee headcount increased to 6,800, up from 6,200 in the previous year, indicating a commitment to scaling its operations. The company also emphasized its focus on enhancing its product offerings, including the integration of artificial intelligence and automation features to improve user experience and operational efficiency.
Strategically, Paycom made significant changes to its organizational structure, including a workforce reduction of approximately 540 employees, representing about 8% of its workforce, announced in October 2025. This decision is expected to incur non-recurring charges of approximately $13.3 million in the fourth quarter. Furthermore, the company amended its naming rights agreement for the downtown Oklahoma City arena, resulting in a $35.6 million gain recognized in other income. Looking ahead, Paycom remains optimistic about its growth prospects, anticipating continued revenue growth driven by new client acquisitions and the expansion of its service offerings, despite potential challenges from market conditions and competition.
About Paycom Software, Inc.
Paycom Software, Inc. provides cloud-based human capital management (HCM) solutions as SaaS, covering payroll, talent acquisition, HR, time and labor management, and analytics. Its integrated platform streamlines employment processes, enhances employee engagement, and ensures data accuracy and compliance. Serving diverse organizations, Paycom emphasizes innovation, security, personalized client support, and scalable applications to improve workforce management globally.
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