For the year ending 2025-12-31, PAYC had $1,089,700K increase in cash & cash equivalents over the period. $408,000K in free cash flow.
| Cash Flow | 2025-12-31 | 2024-12-31 | 2023-12-31 | 2022-12-31 |
|---|---|---|---|---|
| Recurring | - | - | 1,664,976 | - |
| Implementation And Other | - | - | 28,698 | - |
| Total revenues | - | 1,883,200 | 1,693,674 | - |
| Operating expenses | - | 267,400 | 223,699 | - |
| Depreciation and amortization | - | 67,200 | 52,591 | - |
| Total cost of revenues | - | 334,600 | 276,290 | - |
| Sales and marketing | - | 434,400 | 417,617 | - |
| Research and development | - | 242,600 | 198,951 | - |
| General and administrative | - | 158,600 | 288,137 | - |
| Depreciation and amortization | - | 78,700 | 61,357 | - |
| Total administrative expenses | - | 914,300 | 966,062 | - |
| Total operating expenses | - | 1,248,900 | 1,242,352 | - |
| Operating income | - | 634,300 | 451,322 | - |
| Interest expense | - | 3,400 | 1,927 | - |
| Other income (expense), net | - | 18,100 | 23,004 | - |
| Income before income taxes | - | 649,000 | 472,399 | - |
| Provision for income taxes | - | 147,000 | 131,611 | - |
| Net income | 453,400 | 502,000 | 340,788 | 281,389 |
| Depreciation and amortization | 176,300 | 145,900 | 113,948 | 92,699 |
| Stock-based compensation expense | 118,700 | -22,900 | 129,806 | 94,898 |
| Amortization of debt issuance costs | 1,400 | 1,100 | 1,225 | 847 |
| Gain on disposition of property and equipment | 100 | - | -23 | 150 |
| Cash paid for derivative settlement | - | - | - | -205 |
| Accretion of discount on available-for-sale securities | 13,000 | 100 | 520 | 1,020 |
| (gain)/loss on derivative | - | - | - | 1,559 |
| Loss on extinguishment of debt | - | - | -1,222 | - |
| Non-cash marketing expense | 1,000 | 1,600 | 1,658 | 1,734 |
| Deferred income taxes, net | 154,400 | 5,800 | 2,557 | -3,210 |
| Gain on modification of naming rights agreement | 35,600 | - | - | - |
| Other | -800 | 500 | -122 | 206 |
| Accounts receivable | 5,700 | 22,800 | -6,401 | 13,353 |
| Prepaid expenses | -1,700 | 6,700 | 6,617 | 6,497 |
| Inventory | 300 | 0 | -224 | 224 |
| Other assets | 6,500 | 2,700 | 43,431 | 13,907 |
| Deferred contract costs | 89,500 | 120,000 | 127,657 | 122,440 |
| Income taxes, net | -66,300 | 6,500 | -12,808 | 10,830 |
| Accounts payable | -16,200 | 9,100 | -5,155 | 11,676 |
| Accrued commissions and bonuses | -4,800 | 2,500 | 2,053 | 6,082 |
| Accrued payroll and vacation | 1,100 | 2,900 | 11,063 | 10,764 |
| Deferred revenue | 5,600 | 14,100 | 13,053 | 15,990 |
| Accrued expenses and other current liabilities | 4,500 | 17,400 | 57,082 | 555 |
| Net change in operating right-of-use assets and operating lease liabilities | -2,000 | 700 | - | - |
| Net cash provided by operating activities | 678,900 | 533,900 | 485,037 | 365,103 |
| Purchases of investments from funds held for clients | 835,900 | 24,900 | 25,000 | 268,718 |
| Proceeds from investments from funds held for clients | 500,000 | 200,000 | 25,000 | 382,230 |
| Purchases of intangible assets | 4,500 | 4,400 | 4,244 | 4,120 |
| Purchases of property and equipment | 270,900 | 192,900 | 192,587 | 132,678 |
| Proceeds from sale of property and equipment | 100 | - | 119 | - |
| Net cash used in investing activities | -611,200 | -22,200 | -196,712 | -23,286 |
| Proceeds from the issuance of debt | - | - | - | 29,000 |
| Repurchases of common stock | 325,500 | 122,800 | 286,618 | 94,652 |
| Withholding taxes paid related to net share settlements | 44,500 | 21,700 | 13,927 | 5,171 |
| Payments on long-term debt | - | - | 29,000 | 29,287 |
| Dividends paid | 84,800 | 84,800 | 64,838 | - |
| Proceeds from employee stock purchase plan | 5,500 | - | - | - |
| Net change in client funds obligation | -1,471,300 | -1,337,600 | -120,370 | -361,133 |
| Payment of debt issuance costs | - | - | 647 | 6,436 |
| Net cash provided by (used in) financing activities | 1,022,000 | 1,108,300 | -274,660 | 254,587 |
| Increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 1,089,700 | 1,620,000 | 13,665 | 596,404 |
Paycom Software, Inc. (PAYC)
Paycom Software, Inc. (PAYC)