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Paycom Software PAYC

Paycom Software scores excellent on business quality (8.0 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$232.22Oct 10, 2026
Business qualityExcellent
Next earningsNov 3, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Paycom Software does

    Paycom Software provides cloud-based human capital management and payroll software to businesses, charging recurring subscription fees to automate HR workflows. The company is driving adoption of its automated payroll product, Beti, pushing clients to handle their own payroll processing.

  2. What it does best

    Paycom excels in gross margin efficiency, delivering an 83.7% gross margin that beats ADP's 46.5% and outpaces most peers through its unified, single-database software architecture that eliminates integration overhead.

  3. The main risk

    Cooling labor market conditions and broader economic cooling threaten customer headcount growth, which directly impacts transaction-based fee volumes and top-line expansion.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margins sit at a strong 30.3% driven by software scalability, ensuring higher profitability as each new dollar of subscription revenue scales.

MoatStrong

A top-decile gross margin ranking at the 91st sector percentile anchors its switching costs, locking employers into a sticky HR ecosystem.

GrowthSteady

Revenue grows at an 8.9% rate, representing a slower pace compared to historical double-digit expansions as the core market matures.

Financial healthStrong

Debt-free balance sheet with zero total debt and $370M in cash, backed by $571M in free cash flow, making its financial position pristine.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $670K outside pre-planned sales.

Our sealed record on PAYC

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is PAYC a good business?

Paycom Software scores excellent on the Cluenex quality check (8.0 of 10), measured against its own industry. Profitability is strong, moat strong, growth steady and financial health strong.

Are insiders buying PAYC?

In the last 90 days of SEC Form 4 filings: 1 sold $670K outside pre-planned sales.

When does PAYC report earnings?

Nov 3, 2026, after the close.

For members

See PAYC today

  • Today's verdict on PAYC, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Paycom Software (PAYC)”, https://cluenex.com/stocks/payc/, data as of Oct 10, 2026.