PAYCMEDIUM SIGNALOPPORTUNITY10-K

Paycom demonstrated strong operational momentum with 65% increase in market value ($7.2B to $11.9B), improved revenue retention rates, and enhanced AI capabilities while significantly scaling operations.

The company is successfully executing its growth strategy as evidenced by improved client retention (91% vs 90%) and substantial increases in cash generation and share buybacks. The emphasis on AI technology (IWant engine) and self-service capabilities (Beti) positions Paycom well for competitive differentiation in the HCM market.

Comparing 2026-02-19 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

Paycom scaled operations significantly with total assets growing 29.7% to $7.6B while maintaining strong cash generation (operating cash flow up 27.2% to $678.9M). The company returned substantially more cash to shareholders through buybacks ($325.5M vs $122.8M) and increased investments in growth with capex rising 40.4% to $270.9M. The proportional growth in assets, liabilities, and expenses suggests healthy scaling rather than deteriorating efficiency, supported by improved operational metrics.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+165.1%
$122.8M→$325.5M

Share repurchases increased 165.1% — management returning capital, signals confidence in intrinsic value.

Capital Expenditure
Cash Flow
+40.4%
$192.9M→$270.9M

Capital expenditure jumped 40.4% — major investment cycle underway; assess returns on deployment.

Current Liabilities
Balance Sheet
+37.4%
$3.9B→$5.4B

Current liabilities surged 37.4% — significant near-term obligations; verify ability to meet short-term debt.

Total Liabilities
Balance Sheet
+37%
$4.3B→$5.9B

Liabilities grew 37% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Assets
Balance Sheet
+35.6%
$4.3B→$5.8B

Current assets grew 35.6% — improving short-term liquidity or inventory/receivables build.

Total Assets
Balance Sheet
+29.7%
$5.9B→$7.6B

Asset base grew 29.7% — expansion through organic growth, acquisitions, or capital deployment.

Operating Cash Flow
Cash Flow
+27.2%
$533.9M→$678.9M

Operating cash flow grew 27.2% — strong conversion of earnings to cash, healthy business fundamentals.

SG&A Expense
P&L
+24.6%
$914.3M→$1.1B

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Inventory
Balance Sheet
+21.4%
$1.4M→$1.7M

Inventory built 21.4% — monitor whether demand supports this build or if write-downs may follow.

R&D Expense
P&L
+16.8%
$242.6M→$283.4M

R&D investment increased 16.8% — signals commitment to future product development, though near-term margin impact.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-20
ADDED
As of June 30, 2025 , the aggregate market value of voting stock held by non-affiliates of the registrant was approximately $ 11.9 billion (based on the closing price for shares of the registrant s common stock as reported by the New York Stock Exchange on that date).
We believe that as a result of our focus on client experience, we enjoy high client satisfaction as evidenced by an annual revenue retention rate of 91% and 90% for the years ended December 31, 2025 and 2024, respectively.
We believe our revenue retention rate understates our client loyalty because this rate is negatively impacted when former clients are acquired or otherwise cease operations.
Our industry-first AI engine, IWant , provides instant and accurate access to employee data without requiring the user to navigate or learn our software.
Employees can even do their own payroll with our first-of-its-kind Beti technology.
+7 more — sign up free →
REMOVED
As of June 28, 2024 , the aggregate market value of voting stock held by non-affiliates of the registrant was approximately $ 7.2 billion (based on the closing price for shares of the registrant s common stock as reported by the New York Stock Exchange on that date).
We believe that as a result of our focus on client experience, we enjoy high client satisfaction as evidenced by an annual revenue retention rate of 90% for the years ended December 31, 2024 and 2023.
We believe our revenue retention rate understates our client loyalty because this rate is decreased by former clients that were acquired or otherwise ceased operations.
Employees can even do their own payroll with our industry-first Beti technology.
This relationship is directly correlated with our single-database that is key to increasing usage.
+7 more — sign up free →
MORE OPPORTUNITY SIGNALS
IRIXHIGHIRIX demonstrated a dramatic operational turnaround with revenue surging 283% wh...
2026-04-02
CSAIHIGHCSAI underwent a dramatic financial transformation with revenue growing 271% to ...
2026-03-31
PLMKWHIGHPLMKW has entered into a definitive business combination agreement with Controll...
2026-03-31
LXEOHIGHLXEO achieved significant clinical milestones with positive interim data and reg...
2026-03-30
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →