Earnings release
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■ paycom® NEWS RELEASE Paycom Software , Inc. Reports Second Quarter 2026 Results 2026-08-05 Second Quarter Total Revenues of $ 531 million , up 10 % year - over - year Second Quarter GAAP Net Income of $ 107 million , representing 20 % of total revenues , or $ 2.34 per diluted share Second Quarter Non - GAAP Net Income of $ 128 million , or $ 2.78 per diluted share Second Quarter Adjusted EBITDA of $ 235 million , representing 44 % of total revenues OKLAHOMA CITY -- ( BUSINESS WIRE ) -- Paycom Software , Inc. ( " Paycom , " " we " and " our " ) ( NYSE : PAYC ) , a leading provider of comprehensive , cloud - based human capital management software , today announced its financial results for the quarter ended June 30 , 2026 . " Our strong second - quarter results came in ahead of expectations , reflecting the strength of our automation strategy and disciplined execution , " said Paycom's founder and CEO , Chad Richison . " We are building strong momentum through new product innovation and continued automation across our platform . With these strong results we are raising our full year outlook . " Financial Highlights for the Second Quarter of 2026 Total Revenues of $ 531.2 million represented a 9.8 % increase compared to total revenues of $ 483.6 million in the same period last year . Recurring and other revenues of $ 505.2 million increased 11.0 % from the comparable prior year period and constituted 95.1 % of total revenues . 1
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GAAP Net Income was $107.4 million, or $2.34 per diluted share, compared to GAAP net income of $89.5 million, or $1.58 per diluted share, in the same period last year. Non-GAAP Net Income1 was $127.7 million, or $2.78 per diluted share, compared to $116.6 million, or $2.06 per diluted share, in the same period last year. Adjusted EBITDA1 was $235.0 million, compared to $198.3 million in the same period last year. Cash and Cash Equivalents were $198.0 million as of June 30, 2026, compared to $370.0 million as of December 31, 2025. During the quarter ended June 30, 2026, Paycom paid $17.9 million in cash dividends and repurchased 2,570,072 shares of common stock for $345.9 million, in the aggregate. 1Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share are non-GAAP nancial measures. Please see the discussionbelow under the heading “Use of Non-GAAP Financial Information” and the reconciliations at the end of this release for additional informationconcerning these and other non-GAAP nancial measures. Financial Outlook Paycom provides the following expected nancial guidance for the year ending December 31, 2026. Total revenue in the range of $2.197 billion to $2.212 billion, representing year-over-year growth between 7% and 8%. Recurring and other revenue growth between 8% and 9% year over year. Interest on funds held for clients of approximately $105 million. Adjusted EBITDA in the range of $1.007 billion to $1.022 billion, representing a margin of approximately 46% at the midpoint. We have not reconciled the forward-looking adjusted EBITDA ranges and adjusted EBITDA margin presented above and discussed on the teleconference call to net income, and have not reconciled any other forward-looking non- GAAP metrics that may be discussed on the teleconference call, including free cash ow margin and non-GAAP e ective income tax rate, to comparable GAAP measures, because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, capital expenditures, changes in working capital and other items. Accordingly, reconciliations of the forward-looking 2
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adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margin to net income margin, the forward-looking non-GAAP e ective income tax rate to the GAAP e ective income tax rate, and the forward-looking free cash ow margin to operating cash ow margin are not available at this time without unreasonable e ort. Use of Non-GAAP Financial Information To supplement our nancial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP nancial measures in this press release and on the related teleconference call, including adjusted EBITDA, non-GAAP net income, adjusted gross pro t, adjusted gross margin, adjusted sales and marketing expenses, adjusted total administrative expenses, adjusted research and development expenses, adjusted total research and development costs, adjusted EBITDA margin, non-GAAP e ective income tax rate, free cash ow and free cash ow margin. Management uses these non-GAAP nancial measures as supplemental measures to review and assess the performance of our core business operations and for planning purposes. We de ne (i) adjusted EBITDA as net income plus interest expense, taxes, depreciation and amortization, non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any) and any loss on the extinguishment of debt, less any gain on modi cation of the naming rights agreement, (ii) non-GAAP net income as net income plus non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any) and any loss on the extinguishment of debt, less any gain on modi cation of the naming rights agreement, all of which are adjusted for the e ect of income taxes, (iii) adjusted gross pro t as gross pro t plus applicable non-cash stock-based compensation expense, (iv) adjusted gross margin as gross pro t plus applicable non-cash stock-based compensation expense, divided by total revenues, (v) each adjusted expense item as the GAAP expense amount less applicable non-cash stock-based compensation expense, (vi) adjusted total research and development costs as total research and development costs (including the capitalized portion) less applicable non-cash stock-based compensation (including the capitalized portion), (vii) adjusted EBITDA margin as adjusted EBITDA (calculated as described in clause (i)) divided by total revenues, (viii) non-GAAP e ective income tax rate as the provision for income taxes plus the income tax e ect on non-GAAP adjustments divided by non-GAAP net income (calculated as described in clause (ii)) plus the provision for income taxes and the income tax e ect on non-GAAP adjustments, (ix) free cash ow as net cash provided by operating activities, less purchases of property and equipment and purchases of intangible assets (if any), and (x) free cash ow margin as free cash ow (calculated as described in clause (ix)) divided by total revenues. The terms “capital expenditures” and “cap ex” refer to the aggregate amount of purchases of property and equipment and purchases of intangible assets, if any, during the applicable period. The non-GAAP nancial measures presented in this press release and discussed on the related teleconference call provide investors with greater transparency to the information used by management in its nancial and operational decision-making. We believe these metrics are useful to investors because they facilitate comparisons of our core business operations across periods on a consistent basis, as well as comparisons with the results of peer companies, many of which use 3
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similar non-GAAP nancial measures to supplement results under GAAP. In addition, adjusted EBITDA is a measure that provides useful information to management about the amount of cash available for reinvestment in our business, paying dividends, repurchasing common stock and other purposes. Management believes that the non- GAAP measures presented in this press release and discussed on the related teleconference call, when viewed in combination with our results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends a ecting our business and performance. The non-GAAP nancial measures presented in this press release and discussed on the related teleconference call are not measures of nancial performance under GAAP and should not be considered a substitute for net income, gross pro t, gross margin, research and development expenses, sales and marketing expenses, administrative expenses, total research and development costs, GAAP e ective income tax rate and net cash provided by operating activities. Non-GAAP nancial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP nancial measures in isolation, or as a substitute for the consolidated statements of income data prepared in accordance with GAAP. The non-GAAP nancial measures that we present may not be comparable to similarly titled measures of other companies, and other companies may not calculate such measures in the same manner as we do. Conference Call Details In conjunction with this announcement, Paycom will host a conference call today, August 5, 2026, at 5:00 p.m. Eastern time to discuss its nancial results. To access this call, dial (833) 461-5787 and provide 911359368 as the access code. A live webcast as well as the replay of the conference call will be available on the Investor Relations page of Paycom’s website at investors.paycom.com. About Paycom Paycom Software, Inc. (NYSE: PAYC) is a cloud-based human capital management software provider that allows organizations of all sizes across the U.S. and internationally to set numerous HR and payroll tasks to “automatic” through employee- rst technology. Built on a truly single database, Paycom’s full-solution automation manages the entire employment life cycle, helping organizations streamline processes and improve data accuracy. With its industry- rst AI engine, IWant™, Paycom provides instant access to accurate employee data without requiring users to navigate or learn the software. For over 25 years, Paycom has been repeatedly recognized by third ‑ party reviewers as a leading payroll and HCM solution. Financial Presentation Dollar amounts are presented in millions, except amounts per share. As a result, some amounts may not sum or 4
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recalculate exactly due to rounding. All percentages have been calculated using unrounded amounts. Forward-Looking Statements Certain statements in this press release are, and certain statements on the related teleconference call may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are any statements that refer to our estimated or anticipated results, other non-historical facts or future events and include, but are not limited to, statements regarding our business strategy; anticipated future operating results and operating expenses, cash ows, capital resources, dividends and liquidity; competition; trends, opportunities and risks a ecting our business, industry and nancial results, including macroeconomic factors; future expansion or growth plans and potential for future growth, including internationally; our ability to attract new clients to purchase our solution; our ability to retain clients and induce them to purchase additional applications; our ability to accurately forecast future revenues and appropriately plan our expenses; market acceptance of our solution and applications; our expectations regarding future revenues generated by certain applications; the return on investment for users of our solution, as well as how certain applications may impact client employee usage and client satisfaction; our ability to attract and retain quali ed employees and key personnel; future regulatory, judicial and legislative changes; how the performance of certain of our o erings is sensitive to changes in the labor market; our plan to expand our sales capacity and our ability to e ectively execute such plan; the su ciency of our existing cash and cash equivalents to meet our working capital and capital expenditure needs over the next 12 months; our plans regarding our capital expenditures and investment activity as our business grows, including with respect to research and development and the expansion of our facilities; our plans to pay cash dividends; our plans to repurchase shares of our common stock through a stock repurchase plan using cash and/or borrowings under our senior secured revolving credit facility; and our expected income tax rate for future periods. In addition, forward-looking statements also consist of statements involving trend analyses and statements including such words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “should,” “will,” “would,” and similar expressions or the negative of such terms or other comparable terminology. These forward-looking statements are based only on information currently available to us, speak only as of the date hereof and are subject to business and economic risks. As such, our actual results could di er materially from those set forth in the forward-looking statements as a result of the factors discussed in our lings with the Securities and Exchange Commission, including but not limited to those discussed in our most recent Annual Report on Form 10-K. We do not undertake any obligation to update or revise the forward-looking statements to re ect events that occur or circumstances that exist after the date on which such statements were made, except to the extent required by law. 5
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Paycom Software, Inc.Unaudited Consolidated Balance Sheets (in millions, except per share amounts) June 30, 2026December 31,2025Assets Current assets:Cash and cash equivalents $ 198.0$ 370.0Accounts receivable 53.5 44.9Prepaid expenses 53.6 47.5Inventory 1.7 1.7Income tax receivable 3.4 78.2Deferred contract costs 166.8 159.5 Current assets before funds held for clients476.8 701.8Funds held for clients 3,006.1 5,137.0 Total current assets 3,482.9 5,838.8Property and equipment, net 644.7 687.3Intangible assets, net 30.6 37.4Goodwill 51.9 51.9Long-term deferred contract costs 871.3 857.4Operating lease right-of-use assets 79.4 89.4Other assets 41.5 36.5 Total assets $ 5,202.4$ 7,598.7 Liabilities and Stockholders’ Equity Current liabilities:Accounts payable $ 7.6$ 6.6Accrued commissions and bonuses 24.9 28.2Accrued payroll and vacation 46.6 60.1Deferred revenue 30.8 28.3Operating lease liabilities 28.8 28.4Accrued expenses and other current liabilities98.6 79.8 Current liabilities before client funds obligation237.2 231.4Client funds obligation 3,005.8 5,137.0 Total current liabilities 3,243.1 5,368.4Deferred income tax liabilities, net 305.1 304.4Long-term deferred revenue 122.1 121.9Long-term debt 900.0 —Long-term operating lease liabilities 54.0 61.9Other long-term liabilities 6.6 10.6 Total long-term liabilities 1,387.9 498.8 Total liabilities 4,630.9 5,867.2 Commitments and contingenciesStockholders’ equity:Common stock, $0.01 par value (100.0 shares authorized, 64.0 and 63.6 shares issued at June30, 2026 and December 31, 2025, respectively; 44.3 and 54.8 shares outstanding at June 30,2026 and December 31, 2025, respectively)0.6 0.6Additional paid-in capital 904.7 878.4Retained earnings 2,484.0 2,255.6Accumulated other comprehensive earnings (loss)(0.5) 0.3Treasury stock, at cost (19.7 and 8.8 shares at June 30, 2026 and December 31, 2025,respectively) (2,817.4) (1,403.4) Total stockholders’ equity 571.5 1,731.5 Total liabilities and stockholders’ equity$ 5,202.4$ 7,598.7 Paycom Software, Inc.Unaudited Consolidated Statements of Comprehensive Income (in millions, except per share amounts) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Revenues Recurring and other $ 505.2$ 455.1$ 1,049.2$ 955.1Interest on funds held for clients26.0 28.5 53.9 59.0 Total revenues 531.2 483.6 1,103.1 1,014.1 Cost of revenues Operating expenses 64.6 68.4 127.5 134.8Depreciation and amortization24.5 19.1 48.9 37.4 Total cost of revenues 89.1 87.5 176.4 172.2 6
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Administrative expenses Sales and marketing 118.8 116.0 236.4 226.9Research and development51.9 74.8 112.6 137.1General and administrative77.3 70.2 146.6 135.9Depreciation and amortization25.6 22.8 52.3 44.5 Total administrative expenses273.6 283.8 547.9 544.4 Total operating expenses362.7 371.3 724.4 716.6 Operating income 168.5 112.3 378.7 297.5Interest expense (10.5) (0.8) (14.5) (1.6)Other income (expense), net(1.1) 5.7 8.0 11.6 Income before income taxes156.9 117.2 372.1 307.5Provision for income taxes49.5 27.7 109.0 78.6 Net income $ 107.4$ 89.5$ 263.1$ 228.9 Earnings per share, basic$ 2.34$ 1.59$ 5.43$ 4.08Earnings per share, diluted$ 2.34$ 1.58$ 5.43$ 4.06 Weighted average shares outstanding: Basic 45.8 56.1 48.4 56.0Diluted 45.9 56.5 48.5 56.3 Comprehensive earnings: Net income $ 107.4$ 89.5$ 263.1$ 228.9Unrealized net gains (losses) on available-for-salesecurities (0.2) (0.1) (0.8) 0.6Tax e ect 0.3 0.3 0.1 0.1 Other comprehensive income (loss), net of tax0.1 0.2 (0.7) 0.7 Comprehensive earnings$ 107.5$ 89.7$ 262.4$ 229.6 Paycom Software, Inc.Unaudited Consolidated Statements of Cash Flows (in millions) Six Months Ended June 30, 2026 2025 Cash ows from operating activities Net income $ 263.1$ 228.9Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 101.2 81.9Stock-based compensation expense 31.6 60.6Amortization of debt issuance costs 0.6 0.5Loss on disposition of property and equipment5.8 —Accretion of discount on available-for-sale securities(1.8) (4.9)Non-cash marketing expense 0.1 0.8Deferred income taxes, net 0.9 0.7Gain on modi cation of naming rights agreement(9.0) —Other (0.2) 0.5Changes in operating assets and liabilities:Accounts receivable (6.7) (0.7)Prepaid expenses (11.0) (11.5)Inventory — (0.2)Other assets 2.3 (0.2)Deferred contract costs (21.8) (45.4)Income taxes, net 74.8 5.6Accounts payable 0.7 (3.6)Accrued commissions and bonuses (3.3) (6.7)Accrued payroll and vacation (13.5) —Deferred revenue 2.7 5.1Accrued expenses and other liabilities 8.6 (8.0)Net change in operating right-of-use assets and operating lease liabilities2.6 1.6 Net cash provided by operating activities427.6 305.0 Cash ows from investing activities Purchases of investments from funds held for clients(166.6) (465.8)Proceeds from investments from funds held for clients167.0 —Purchases of property and equipment (54.9) (99.4) Net cash used in investing activities (54.5) (565.2) Cash ows from nancing activities Proceeds from borrowings under credit facility900.0 —Payment of debt issuance costs (8.1) —Repurchases of common stock (1,389.7) —Withholding taxes paid related to net share settlements(16.6) (37.8)Dividends paid (35.5) (42.9)P df l k h l 44 7
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Proceeds from employee stock purchase plan4.4 —Net change in client funds obligation (2,131.2) (2,048.8) Net cash used in nancing activities (2,676.7) (2,129.5) Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents(2,303.6) (2,389.7) Cash, cash equivalents, restricted cash and restricted cash equivalents Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period5,132.5 4,042.8 Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period$ 2,828.9$ 1,653.1 Paycom Software, Inc.Unaudited Consolidated Statements of Cash Flows, continued (in millions) Six Months Ended June 30, 2026 2025 Reconciliation of cash, cash equivalents, restricted cash and restricted cashequivalents Cash and cash equivalents $ 198.0$ 532.2Restricted cash included in funds held for clients2,631.0 1,120.9 Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period$ 2,828.9$ 1,653.1 Supplemental disclosures of cash ow information: Non-cash investing and nancing activities:Purchases of property and equipment, accrued but not paid$ 2.9$ 11.4Stock-based compensation for capitalized software$ 1.1$ 13.7Right-of-use assets obtained in exchange for operating lease liabilities$ 1.6$ 5.3 Paycom Software, Inc.Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures (in millions, except per share amounts) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Net income to adjusted EBITDA: Net income $ 107.4$ 89.5$ 263.1$ 228.9Interest expense 10.5 0.8 14.5 1.6Provision for income taxes49.5 27.7 109.0 78.6Depreciation and amortization50.1 41.9 101.2 81.9 EBITDA 217.5 159.9 487.8 390.9Non-cash stock-based compensation expense17.6 38.4 31.6 60.6Gain on modi cation of naming rights agreement— — (9.0) — Adjusted EBITDA $ 235.0$ 198.3$ 510.4$ 451.6 Net income margin 20.2% 18.5% 23.9% 22.6%Adjusted EBITDA margin 44.2% 41.0% 46.3% 44.5% Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Net income to non-GAAP net income: Net income $ 107.4$ 89.5$ 263.1$ 228.9Non-cash stock-based compensation expense17.6 38.4 31.6 60.6Gain on modi cation of naming rights agreement— — (9.0) —Income tax e ect on non-GAAP adjustments2.8 (11.3) 3.3 (15.2) Non-GAAP net income$ 127.7$ 116.6$ 289.0$ 274.3 Weighted average shares outstanding:Basic 45.8 56.1 48.4 56.0Diluted 45.9 56.5 48.5 56.3E i h bi $ 234$ 159$ 543$ 408 8
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Earnings per share, basic$ 2.34$ 1.59$ 5.43$ 4.08Earnings per share, diluted$ 2.34$ 1.58$ 5.43$ 4.06Non-GAAP net income per share, basic$ 2.79$ 2.08$ 5.97$ 4.89Non-GAAP net income per share, diluted$ 2.78$ 2.06$ 5.96$ 4.87 Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Earnings per share to non-GAAP netincome per share, basic: Earnings per share, basic$ 2.34$ 1.59$ 5.43$ 4.08Non-cash stock-based compensation expense0.38 0.68 0.65 1.08Gain on modi cation of naming rights agreement— — (0.19) —Income tax e ect on non-GAAP adjustments0.06 (0.20) 0.07 (0.27) Non-GAAP net income per share, basic$ 2.79$ 2.08$ 5.97$ 4.89 Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Earnings per share to non-GAAP netincome per share, diluted: Earnings per share, diluted$ 2.34$ 1.58$ 5.43$ 4.06Non-cash stock-based compensation expense0.38 0.68 0.65 1.08Gain on modi cation of naming rights agreement— — (0.19) —Income tax e ect on non-GAAP adjustments0.06 (0.20) 0.07 (0.27) Non-GAAP net income per share, diluted$ 2.78$ 2.06$ 5.96$ 4.87 Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Adjusted gross pro t: Total revenues $ 531.2$ 483.6$ 1,103.1$ 1,014.1Less: Total cost of revenues(89.1) (87.5) (176.4) (172.2) Total gross pro t 442.1 396.1 926.6 841.9Plus: Non-cash stock-based compensation expense2.0 6.2 4.2 9.4 Total adjusted gross pro t$ 444.1$ 402.3$ 930.8$ 851.3 Gross margin 83.2% 81.9% 84.0% 83.0%Adjusted gross margin 83.6% 83.2% 84.4% 83.9% Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Adjusted sales and marketing expenses: Sales and marketing expenses$ 118.8$ 116.0$ 236.4$ 226.9Less: Non-cash stock-based compensation expense(3.8) (6.6) (7.9) (12.5) Adjusted sales and marketing expenses$ 115.0$ 109.4$ 228.5$ 214.4 Total revenues $ 531.2$ 483.6$ 1,103.1$ 1,014.1Sales and marketing expenses as a % of revenues22.4% 24.0% 21.4% 22.4%Adjusted sales and marketing expenses as a % ofrevenues 21.6% 22.6% 20.7% 21.1% 9
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Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Adjusted total administrative expenses: Total administrative expenses$ 273.6$ 283.8$ 547.9$ 544.4Less: Non-cash stock-based compensation expense(15.6) (32.2) (27.5) (51.2) Adjusted total administrative expenses$ 258.0$ 251.6$ 520.5$ 493.2 Total revenues $ 531.2$ 483.6$ 1,103.1$ 1,014.1Total administrative expenses as a % of revenues51.5% 58.7% 49.7% 53.7%Adjusted total administrative expenses as a % ofrevenues 48.6% 52.0% 47.2% 48.6% Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Adjusted research and developmentexpenses: Research and development expenses$ 51.9$ 74.8$ 112.6$ 137.1Less: Non-cash stock-based compensation expense(0.9) (12.6) (0.9) (19.5) Adjusted research and development expenses$ 51.0$ 62.2$ 111.8$ 117.6 Total revenues $ 531.2$ 483.6$ 1,103.1$ 1,014.1Research and development expenses as a % ofrevenues 9.8% 15.5% 10.2% 13.5%Adjusted research and development expenses as a %of revenues 9.6% 12.9% 10.1% 11.6% Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Total research and development costs: Capitalized research and development costs$ 15.6$ 36.9$ 41.0$ 70.7Research and development expenses51.9 74.8 112.6 137.1 Total research and development costs$ 67.6$ 111.7$ 153.6$ 207.8 Total revenues $ 531.2$ 483.6$ 1,103.1$ 1,014.1Total research and development costs as a % ofrevenues 12.7% 23.1% 13.9% 20.5% Adjusted total research and developmentcosts: Total research and development costs$ 67.6$ 111.7$ 153.6$ 207.8Less: Capitalized non-cash stock-based compensation(0.8) (8.5) (1.1) (13.7)Less: Non-cash stock-based compensation expense(0.9) (12.6) (0.9) (19.5) Adjusted total research and development costs$ 65.9$ 90.7$ 151.6$ 174.5 Total revenues $ 531.2$ 483.6$ 1,103.1$ 1,014.1Adjusted total research and development costs as a %of revenues 12.4% 18.8% 13.7% 17.2% Six Months Ended June 30, 2026 2025 10
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Free cash ow and free cash ow margin: Net cash provided by operating activities$ 427.6$ 305.0Purchases of property and equipment (54.9) (99.4) Free cash ow $ 372.7$ 205.6 Operating cash ow margin 38.8% 30.1%Free cash ow margin 33.8% 20.3% Paycom Software, Inc.Unaudited Components of Non-Cash Stock-Based Compensation Expense (in millions) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Non-cash stock-based compensationexpense: Operating expenses $ 2.0$ 6.2$ 4.2$ 9.4Sales and marketing 3.8 6.6 7.9 12.5Research and development0.9 12.6 0.9 19.5General and administrative10.8 13.0 18.7 19.2 Total non-cash stock-based compensation expense$ 17.6$ 38.4$ 31.6$ 60.6 Paycom Software, Inc. Investor Relations Contact: James Samford, 800-580-4505 investors@paycom.com Source: Paycom Software, Inc. 11