Paycom Software, Inc. (PAYC) SEC Filings & Earnings Calls

Insider selling via 10b5-1 plan

“Ernest Group entered into a Sales Plan ... authorized to sell up to 1,090,000 shares of Common Stock.” · word for word

Insider selling via 10b5-1 plan

“Ernest Group entered into a Sales Plan ... authorized to sell up to 1,090,000 shares of Common Stock.” · word for word

Interest rate risk on client funds

“A hypothetical 100 basis point increase or decrease in interest rates would have resulted in an approximately $25.7 million increase or decrease, respectively, in interest earned on funds held for clients over the ensuing 12-month period.” · word for word

Interest rate risk on debt

“A hypothetical 100 basis point change in applicable reference rates would have resulted in a $5.9 million change in interest expense over the ensuing 12-month period.” · word for word

Client attrition risk

“Client attrition, particularly among smaller clients, partially offset the favorable impact of these revenue drivers.” · word for word

Competitive pressure

“The market for HCM software is highly competitive, rapidly evolving and fragmented. We expect competition to remain intense as new market entrants and disruptive technologies emerge and aggressive pricing and client retention strategies persist.” · word for word

Macroeconomic sensitivity

“A multitude of macroeconomic pressures, such as inflation and changes in interest rates, impact our clients’ hiring practices to varying degrees and, in turn, impact our revenues.” · word for word

Cash balance declined significantly due to buyback and dividends

“Cash and Cash Equivalents were $198.0 million as of June 30, 2026, compared to $370.0 million as of December 31, 2025.” · word for word

Interest Rate Sensitivity

“Interest on funds held for clients decreased 8.9% YoY due to lower interest rates, partially offset by higher average balances.”

Client Attrition

“Client attrition, particularly among smaller clients, partially offset the favorable impact of these revenue drivers.” · word for word

Increased Leverage from Stock Repurchases

“As of March 31, 2026, we had $675.0 million of outstanding borrowings under the Revolving Credit Facility, and we used these borrowings to fund stock repurchases.” · word for word

Cash burn from aggressive share repurchase; cash dropped from $370M to $153.9M.

“Cash and Cash Equivalents were $153.9 million as of March 31, 2026, compared to $370.0 million as of December 31, 2025. repurchased 8,375,443 shares of common stock for $1.060 billion.” · word for word

Increased leverage from amended credit agreement; specific terms not disclosed.

“Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.” · word for word

Macroeconomic and SaaS valuation volatility

“Throughout the year, SaaS and other high-growth technology companies experienced continued volatility driven by macroeconomic uncertainty and evolving investor sentiment regarding the perceived threat of emerging AI technologies on the software industry and broader market pressures affecting our clients.” · word for word

Cybersecurity and AI governance risk

“The Board’s current priorities include maintaining rigorous oversight of enterprise risk management, particularly in areas such as cybersecurity and AI, to promote disciplined and responsible execution as we advance our digital capabilities and solutions.” · word for word

Board member departure; low materiality as no disagreement and board size reduced.

“resignation was due to her decision to pursue other professional opportunities and not in connection with any disagreement” · word for word

Increased debt could lead to higher interest expense and leverage

“Company has borrowed approximately $675.0 million under the Revolving Facility” · word for word

AI Investment Cost Risk

“Continuing to develop, test, deploy and support resource-intensive AI-powered tools will require additional investment and may increase our costs.” · word for word

Cybersecurity Breach Risk

“Globally, cybersecurity attacks are increasing in number and the threat actors are increasingly organized and well financed, or at times supported by state actors.” · word for word

Pricing Pressure Risk

“some of our principal competitors offer their products or services at a lower price, which has resulted in pricing pressures.” · word for word

Revenue growth deceleration to 6-7% in FY2026 from 9% in FY2025

“FY2026 revenue guidance $2.175-2.195B (+6-7% YoY) vs FY2025 actual +9% YoY”

Competition from other HCM providers; less than 5% TAM penetration suggests long runway but also competitive intensity

“With less than 5% of our total addressable market, we still have a long runway ahead of us” · word for word

Client attrition

“Client attrition, particularly among smaller clients, partially offset the favorable impact of these revenue drivers.” · word for word

Interest rate sensitivity

“The impact of lower interest rates during the three and nine months ended September 30, 2025 compared to the same periods in 2024 was partially offset by an increase in average funds held for client balances, but nonetheless resulted in decreased interest earned on funds held for clients” · word for word

Dependence on recurring revenue model; competitive pressure in HCM software market

“Recurring and other revenues constitute 94.6% of total revenues”