PAYCOM SOFTWARE, INC., 10-Q filed on 8/7/2025
Quarterly Report
v3.25.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2025
Jul. 29, 2025
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2025  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Trading Symbol PAYC  
Entity Registrant Name Paycom Software, Inc.  
Entity Central Index Key 0001590955  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   57,876,797
Title of 12(b) Security Common Stock, $0.01 par value  
Security Exchange Name NYSE  
Entity File Number 001-36393  
Entity Tax Identification Number 80-0957485  
Entity Address, Address Line One 7501 W. Memorial Road  
Entity Address, City or Town Oklahoma City  
Entity Address, State or Province OK  
Entity Incorporation, State or Country Code DE  
Entity Address, Postal Zip Code 73142  
City Area Code 405  
Local Phone Number 722-6900  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Document Quarterly Report true  
Document Transition Report false  
v3.25.2
Unaudited Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 532.2 $ 402.0
Accounts receivable 39.9 39.2
Prepaid expenses 55.7 44.4
Inventory 1.6 1.4
Income tax receivable 6.3 11.9
Deferred contract costs 150.1 140.4
Current assets before funds held for clients 785.8 639.3
Funds held for clients 1,616.9 3,665.5
Total current assets 2,402.7 4,304.8
Property and equipment, net 602.1 561.4
Intangible assets, net 44.3 46.2
Goodwill 51.9 51.9
Long-term deferred contract costs 822.3 783.6
Operating lease right-of-use assets 76.8 80.6
Other assets 31.1 31.4
Total assets 4,031.2 5,859.9
Current liabilities:    
Accounts payable 19.7 23.9
Accrued commissions and bonuses 26.3 33.0
Accrued payroll and vacation 59.0 59.0
Deferred revenue 30.3 30.0
Operating lease liabilities 21.9 20.4
Accrued expenses and other current liabilities 75.1 74.8
Current liabilities before client funds obligation 232.3 241.1
Client funds obligation 1,616.9 3,665.7
Total current liabilities 1,849.2 3,906.8
Deferred income tax liabilities, net 150.2 149.7
Long-term deferred revenue 119.4 114.6
Long-term operating lease liabilities 59.3 63.0
Other long-term liabilities 51.2 49.9
Total long-term liabilities 380.1 377.2
Total liabilities 2,229.3 4,284.0
Commitments and contingencies (Note 12 "Commitments and Contingencies")
Stockholders' equity:    
Common stock, $0.01 par value (100.0 shares authorized, 63.5 and 63.0 shares issued at June 30, 2025 and December 31, 2024, respectively; 56.2 and 55.9 shares outstanding at June 30, 2025 and December 31, 2024, respectively) 0.6 0.6
Additional paid-in capital 801.9 724.8
Retained earnings 2,073.3 1,887.5
Accumulated other comprehensive earnings (loss) 0.2 (0.6)
Treasury stock, at cost (7.2 and 7.1 shares at June 30, 2025 and December 31, 2024, respectively) (1,074.1) (1,036.4)
Total stockholders’ equity 1,801.9 1,575.9
Total liabilities and stockholders’ equity $ 4,031.2 $ 5,859.9
v3.25.2
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 63,500,000 63,000,000
Common stock, shares outstanding 56,200,000 55,900,000
Treasury stock, shares 7,200,000 7,100,000
v3.25.2
Unaudited Consolidated Statements of Comprehensive Income - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Revenues        
Total revenues $ 483.6 $ 437.5 $ 1,014.1 $ 937.4
Cost of revenues        
Operating expenses 68.4 67.5 134.8 131.1
Depreciation and amortization 19.1 16.4 37.4 31.4
Total cost of revenues 87.5 83.9 172.2 162.5
Administrative expenses        
Sales and marketing 116.0 106.9 226.9 222.4
Research and development 74.8 62.4 137.1 112.9
General and administrative 70.2 70.1 135.9 22.0
Depreciation and amortization 22.8 19.2 44.5 36.7
Total administrative expenses 283.8 258.5 544.4 393.9
Total operating expenses 371.3 342.4 716.6 556.4
Operating income 112.3 95.1 297.5 381.0
Interest expense (0.8) (0.8) (1.6) (1.6)
Other income (expense), net 5.7 4.8 11.6 9.8
Income before income taxes 117.2 99.1 307.5 389.2
Provision for income taxes 27.7 31.2 78.6 74.0
Net income $ 89.5 $ 68.0 $ 228.9 $ 315.2
Earnings per share, basic $ 1.59 $ 1.2 $ 4.08 $ 5.58
Earnings per share, diluted $ 1.58 $ 1.2 $ 4.06 $ 5.57
Weighted average shares outstanding:        
Basic 56,117 56,451 56,045 56,499
Diluted 56,500 56,771 56,324 56,548
Comprehensive earnings:        
Net income $ 89.5 $ 68.0 $ 228.9 $ 315.2
Unrealized net (losses) gains on available-for-sale securities (0.1) 0.3 0.6 1.2
Tax effect 0.3 (0.1) 0.1 (0.4)
Other comprehensive income, net of tax 0.2 0.2 0.7 0.7
Comprehensive earnings: 89.7 68.2 229.6 315.9
Recurring and Other [Member]        
Revenues        
Total revenues 455.1 405.5 955.1 871.6
Interest on Funds Held for Clients [Member]        
Revenues        
Total revenues $ 28.5 $ 32.0 $ 59.0 $ 65.8
v3.25.2
Unaudited Consolidated Statements of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Additional Paid in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Treasury Stock [Member]
Beginning balance, value at Dec. 31, 2023 $ 1,303.0 $ 0.6 $ 724.4 $ 1,470.0 $ (1.0) $ (891.0)
Beginning balance, shares at Dec. 31, 2023   62.7        
Treasury Stock, beginning balance, shares at Dec. 31, 2023           6.1
Stock-based compensation (89.6)   (89.6)      
Dividends declared (20.0)     (20.0)    
Repurchases of common stock (3.1)         $ (3.1)
Repurchases of common stock, shares           0.1
Net income 247.2     247.2    
Other comprehensive earnings (loss), net of tax 0.5       0.5  
Treasury Stock, ending balance, shares at Mar. 31, 2024           6.2
Ending balance, value at Mar. 31, 2024 1,438.1 $ 0.6 634.8 1,697.2 (0.5) $ (894.1)
Ending balance, shares at Mar. 31, 2024   62.7        
Beginning balance, value at Dec. 31, 2023 1,303.0 $ 0.6 724.4 1,470.0 (1.0) $ (891.0)
Beginning balance, shares at Dec. 31, 2023   62.7        
Treasury Stock, beginning balance, shares at Dec. 31, 2023           6.1
Net income 315.2          
Treasury Stock, ending balance, shares at Jun. 30, 2024           6.7
Ending balance, value at Jun. 30, 2024 1,426.5 $ 0.6 667.2 1,743.6 (0.3) $ (984.6)
Ending balance, shares at Jun. 30, 2024   62.9        
Beginning balance, value at Mar. 31, 2024 1,438.1 $ 0.6 634.8 1,697.2 (0.5) $ (894.1)
Beginning balance, shares at Mar. 31, 2024   62.7        
Treasury Stock, beginning balance, shares at Mar. 31, 2024           6.2
Vesting of restricted stock, shares   0.2        
Stock-based compensation 32.4   32.4      
Dividends declared (21.6)     (21.6)    
Repurchases of common stock (90.5)         $ (90.5)
Repurchases of common stock, shares           0.6
Net income 68.0     68.0    
Other comprehensive earnings (loss), net of tax 0.2       0.2  
Treasury Stock, ending balance, shares at Jun. 30, 2024           6.7
Ending balance, value at Jun. 30, 2024 1,426.5 $ 0.6 667.2 1,743.6 (0.3) $ (984.6)
Ending balance, shares at Jun. 30, 2024   62.9        
Beginning balance, value at Dec. 31, 2024 $ 1,575.9 $ 0.6 724.8 1,887.5 (0.6) $ (1,036.4)
Beginning balance, shares at Dec. 31, 2024   63.0        
Treasury Stock, beginning balance, shares at Dec. 31, 2024 7.1         7.1
Vesting of restricted stock, shares   0.1        
Stock-based compensation $ 28.0   28.0      
Dividends declared (21.4)     (21.4)    
Repurchases of common stock (5.2)         $ (5.2)
Net income 139.4     139.4    
Other comprehensive earnings (loss), net of tax 0.5       0.5  
Treasury Stock, ending balance, shares at Mar. 31, 2025           7.1
Ending balance, value at Mar. 31, 2025 1,717.2 $ 0.6 752.8 2,005.5 (0.1) $ (1,041.6)
Ending balance, shares at Mar. 31, 2025   63.1        
Beginning balance, value at Dec. 31, 2024 $ 1,575.9 $ 0.6 724.8 1,887.5 (0.6) $ (1,036.4)
Beginning balance, shares at Dec. 31, 2024   63.0        
Treasury Stock, beginning balance, shares at Dec. 31, 2024 7.1         7.1
Net income $ 228.9          
Treasury Stock, ending balance, shares at Jun. 30, 2025 7.2         7.2
Ending balance, value at Jun. 30, 2025 $ 1,801.9 $ 0.6 801.9 2,073.3 0.2 $ (1,074.1)
Ending balance, shares at Jun. 30, 2025   63.5        
Beginning balance, value at Mar. 31, 2025 1,717.2 $ 0.6 752.8 2,005.5 (0.1) $ (1,041.6)
Beginning balance, shares at Mar. 31, 2025   63.1        
Treasury Stock, beginning balance, shares at Mar. 31, 2025           7.1
Vesting of restricted stock, shares   0.4        
Stock-based compensation 49.1   49.1      
Dividends declared (21.6)     (21.6)    
Repurchases of common stock (32.5)         $ (32.5)
Repurchases of common stock, shares           0.1
Net income 89.5     89.5    
Other comprehensive earnings (loss), net of tax $ 0.2       0.2  
Treasury Stock, ending balance, shares at Jun. 30, 2025 7.2         7.2
Ending balance, value at Jun. 30, 2025 $ 1,801.9 $ 0.6 $ 801.9 $ 2,073.3 $ 0.2 $ (1,074.1)
Ending balance, shares at Jun. 30, 2025   63.5        
v3.25.2
Unaudited Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
 3 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Statement of Stockholders' Equity [Abstract]        
Dividends declared per share $ 0.375 $ 0.375 $ 0.375 $ 0.375
v3.25.2
Unaudited Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Cash flows from operating activities    
Net income $ 228.9 $ 315.2
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 81.9 68.1
Accretion of discount on available-for-sale securities (4.9) (0.1)
Non-cash marketing expense 0.8 0.8
Amortization of debt issuance costs 0.5 0.6
Stock-based compensation expense 60.6 (69.7)
Deferred income taxes, net 0.7 (7.8)
Other 0.5 (0.2)
Changes in operating assets and liabilities:    
Accounts receivable (0.7) (3.6)
Prepaid expenses (11.5) (8.3)
Inventory (0.2) 0.4
Other assets (0.2) (0.4)
Deferred contract costs (45.4) (55.2)
Income taxes, net 5.6 28.7
Accounts payable (3.6) 0.0
Accrued commissions and bonuses (6.7) (8.3)
Accrued payroll and vacation 0.0 4.2
Deferred revenue 5.1 11.9
Accrued expenses and other current liabilities (8.0) 3.9
Net change in operating right-of-use assets and operating lease liabilities 1.6 0.5
Net cash provided by operating activities 305.0 280.7
Cash flows from investing activities    
Purchases of investments from funds held for clients (465.8)  
Proceeds from investments from funds held for clients   165.0
Purchases of property and equipment (99.4) (93.3)
Net cash (used in) provided by investing activities (565.2) 71.7
Cash flows from financing activities    
Repurchases of common stock   (80.8)
Withholding taxes paid related to net share settlements (37.8) (12.4)
Dividends paid (42.9) (42.4)
Net change in client funds obligation (2,048.8) (24.9)
Net cash (used in) provided by financing activities (2,129.5) (160.4)
(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents (2,389.7) 192.0
Cash, cash equivalents, restricted cash and restricted cash equivalents    
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 4,042.8 2,422.8
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period 1,653.1 2,614.7
Cash and cash equivalents 532.2 346.5
Restricted cash included in funds held for clients 1,120.9 2,268.3
Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period 1,653.1 2,614.7
Non-cash investing and financing activities:    
Purchases of property and equipment, accrued but not paid 11.4 8.5
Stock-based compensation for capitalized software 13.7 8.8
Right of use assets obtained in exchange for operating lease liabilities $ 5.3 $ 11.9
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure            
Net Income (Loss) $ 89.5 $ 139.4 $ 68.0 $ 247.2 $ 228.9 $ 315.2
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Rule 10b5-1 Trading Arrangements

On June 13, 2025, an entity affiliated with Chad Richison, Chief Executive Officer, President and Chairman of the Board of Directors, adopted a Rule 10b5-1 trading arrangement (the “Richison 10b5-1 Plan”) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act. The Richison 10b5-1 Plan provides for the sale of up to 480,000 shares of common stock on behalf of the affiliated entity during the period beginning on the later of (i) September 15, 2025, and (ii) the third trading day following disclosure of the Company’s financial results on Form 10-Q for the three months ended June 30, 2025, and ending March 13, 2026, subject to earlier termination in accordance with the terms of the Richison 10b5-1 Plan and applicable laws, rules and regulations.
Affiliated With Chad Richison [Member]  
Trading Arrangements, by Individual  
Name entity affiliated with Chad Richison
Title Chief Executive Officer, President and Chairman of the Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date June 13, 2025
Arrangement Duration 179 days
Aggregate Available 480,000
v3.25.2
Organization and Description of Business
 6 Months Ended
Jun. 30, 2025
Organization And Description Of Business Abstract  
Organization and Description of Business
1.
ORGANIZATION AND DESCRIPTION OF BUSINESS

Paycom Software, Inc. (“Software”), together with its wholly owned subsidiaries (collectively, the “Company”), is a leading provider of a comprehensive, cloud-based human capital management (“HCM”) solution delivered as Software-as-a-Service. Unless we state otherwise or the context otherwise requires, the terms “we,” “our,” “us” and the “Company” refer to Software and its consolidated subsidiaries.

We provide functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Our solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including payroll, talent acquisition, talent management, human resources (“HR”) management and time and labor management applications.
v3.25.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are discussed in Note 2 “Summary of Significant Accounting Policies” in the notes to our audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”) filed with the Securities and Exchange Commission (“SEC”) on February 20, 2025.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements include the financial results of Software and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial statements that permit reduced disclosure for interim periods. Intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for the fair presentation of our results for the interim periods presented. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes presented in the Form 10-K. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results expected for the full year.

In 2024, the Office of the Comptroller of the Currency (the “OCC”) issued final approval to Paycom National Trust Bank, National Association (the “Paycom National Trust Bank”), our wholly owned subsidiary, to operate as a national trust bank pursuant to the National Bank Act and relevant OCC regulations. Paycom National Trust Bank is the primary trustee of Paycom Client Trust, our grantor trust (the “Client Trust”), which now holds substantially all client payroll and related funds and is responsible for the oversight and management of those client funds. We have determined that the Client Trust is a variable interest entity that meets the criteria established for consolidation in accordance with Accounting Standards Codification (“ASC”) 810, “Consolidation”. We are the sole beneficial owner of the Client Trust, and we have the power to direct its activities and a controlling financial interest in its economic performance.

For the year ended December 31, 2024, we changed the presentation of revenues on the consolidated statements of comprehensive income to disaggregate interest on funds held for clients and combine recurring and other revenues. Prior period amounts have been reclassified to conform to this presentation. Reclassifications for the presentation of revenue did not have a material impact on previously reported amounts or change total revenues.

In the fourth quarter of 2024, we adopted the presentation of dollar amounts in millions, except amounts per share. As a result, amounts presented for prior periods may differ immaterially from those reported in previous filings and some amounts may not sum due to rounding. All percentages have been calculated using unrounded amounts.

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands reportable segment disclosure requirements for public business entities by requiring disclosures of significant reportable segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment’s profit or loss. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted this ASU retrospectively on December 31, 2024. See Note 14 “Segment Reporting” for further information.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include income taxes, loss contingencies, the useful life of property and equipment and intangible assets, the life of our client relationships, the

fair value of our stock-based awards and the fair value of our financial instruments, intangible assets and goodwill. These estimates are based on historical experience, where applicable, and other assumptions that management believes are reasonable under the circumstances. Actual results could materially differ from these estimates.

Seasonality

Our revenues are seasonal in nature. Generally, we expect our first and fourth quarter recurring revenues to be higher than other quarters during the year because payroll tax filing forms and Affordable Care Act (“ACA”) forms are typically processed in the first quarter, and unscheduled payroll runs (such as bonuses) for our clients are typically concentrated in the fourth quarter. In addition, these seasonal fluctuations in recurring revenues impact operating income. Historical results impacted by these seasonal trends should not be considered a reliable indicator of our future results of operations.

Segment Information

We operate in a single operating segment and a single reporting segment. Operating segments are defined as components of an enterprise about which separate financial information is regularly evaluated by the chief operating decision maker function (which is fulfilled by our Chief Executive Officer) in deciding how to allocate resources and in assessing performance. Our Chief Executive Officer allocates resources and assesses performance based upon financial information at the consolidated level. See Note 14 “Segment Reporting” for additional information.

Funds Held for Clients and Client Funds Obligation

As part of our payroll and payroll tax filing services, we collect funds from our clients for employment taxes and payroll obligations, which we remit to the appropriate tax agencies and accounts designated by our clients. We typically invest these funds in money market funds, demand deposit accounts, certificates of deposit, commercial paper and U.S. treasury securities from which we earn interest income during the period between receipt and disbursement of such funds.

These investments are shown in our consolidated balance sheets as funds held for clients, and the associated liability for the tax filings is shown as client funds obligation. The liability is recorded in the accompanying consolidated balance sheets at the time we obtain the funds from clients. The client funds obligation represents liabilities that will be repaid within one year of the consolidated balance sheet date. We typically invest funds held for clients in money market funds, demand deposit accounts, certificates of deposit, commercial paper and U.S. treasury securities. Short-term investments in instruments with an original maturity of less than three months are classified as cash and cash equivalents within funds held for clients in the consolidated balance sheets. Investments in instruments with an original maturity greater than three months are classified as available-for-sale securities and are also included within funds held for clients in the consolidated balance sheets.

These available-for-sale securities are recorded at fair value, with the difference between the amortized cost and fair value of these available-for-sale securities recorded as unrealized net gains (losses) on available-for-sale securities, and are included within comprehensive earnings (loss) in the consolidated statements of comprehensive income. Funds held for clients are classified as a current asset in the consolidated balance sheets because the funds are held solely to satisfy the client funds obligation. Additionally, the funds held for clients is classified as restricted cash and restricted cash equivalents and presented within the reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents on the consolidated statements of cash flows.

We report the cash flows related to the purchases of investments from funds held for clients and related to the proceeds from the maturities of investments from funds held for clients on a gross basis in the cash flows from investing activities section of the consolidated statements of cash flows. Additionally, we report cash flows related to cash received from and paid on behalf of clients on a net basis within net change in client funds obligation in the cash flows from financing activities section of the consolidated statements of cash flows.

Stock Repurchase Plan

In May 2016, our Board of Directors authorized a stock repurchase plan allowing for the repurchase of shares of our common stock in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 programs. Since the initial authorization of the stock repurchase plan, our Board of Directors has amended and extended and authorized new stock repurchase plans from time to time. Most recently, in July 2024, our Board of Directors authorized the repurchase of up to $1.5 billion of our common stock. As of June 30, 2025, there was $1.44 billion available for repurchases under our stock repurchase plan. Our stock repurchase plan may be suspended or discontinued at any time. The actual timing, number and value of shares repurchased depends on a number of factors, including the market price of our common stock, general market and economic conditions, shares withheld for taxes associated with the vesting of equity incentive awards and other corporate considerations. The current stock repurchase plan will expire on August 15, 2026.

During the six months ended June 30, 2025, we repurchased an aggregate of 152,704 shares of our common stock at an average cost of $247.55 per share, all of which were shares withheld to satisfy tax withholding obligations for certain employees upon the vesting of equity incentive awards.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation, as well as information on income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance allows for adoption using either a prospective or retrospective transition method. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”). ASU 2024-03 requires public businesses disclose additional information about specific expense categories in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
v3.25.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3.
REVENUE RECOGNITION

Revenues are recognized when control of the promised goods or services is transferred to our clients in an amount that reflects the consideration we expect to be entitled to for those goods or services. Substantially all of our revenues are derived from contracts with clients. Sales and other applicable taxes are excluded from revenues.

Recurring and Other Revenues

Recurring revenues are derived primarily from our payroll, talent acquisition, talent management, HR management and time and labor management applications, fees charged for form filings and delivery of client payroll checks and reports, and revenues associated with background checks and income and employment verification services. Payroll includes Beti®, Payroll and Payroll Tax Management, Vault, Everyday®, Paycom Pay®, Client Action Center, Expense Management, Garnishment Administration and GL Concierge applications. Talent acquisition includes our Applicant Tracking, Enhanced Background Checks®, Onboarding, E-Verify® and Tax Credits applications. Talent management includes our Employee Self-Service®, Compensation Budgeting, Performance Management, Position Management and Paycom Learning applications. HR management includes our Manager on-the-Go®, Direct Data Exchange®, Ask Here, Documents and Checklists, Government and Compliance, Benefits Administration, COBRA Administration, Personnel Action Forms and Performance Discussion Forms, Paycom Surveys, Enhanced ACA and Clue® applications. Time and labor management includes Time and Attendance, Scheduling, Time-Off Requests featuring GONE®, and Labor Allocation applications. In addition, with Global HCM™, a number of our HCM applications and tools are available in 15 languages and dialects and are accessible to users in more than 190 countries.

We consider our commitment in our customer contracts to be a series of distinct services that together constitute a single performance obligation that is generally satisfied over time and recognized during each client’s payroll period. The agreed-upon fee is variable consideration that is determined by client usage, billed and collected as part of our processing of the client’s payroll. The client’s use of our applications routinely fluctuates based upon factors that include the number of payrolls run and changes in the client’s employee population. These usage-based fluctuations do not change our core performance obligation to stand ready to provide the customer with services for the remainder of the contractual term. Collectability is reasonably assured as the fees are generally collected through an automated clearing house as part of the client’s payroll cycle or through direct wire transfer, which minimizes the default risk.

The contract period for the majority of contracts associated with these revenues is one month due to the fact that both we and the client typically have the unilateral right to terminate a wholly unperformed contract without compensating the other party by providing 30 days’ notice of termination. We consider the total price charged to a client in a given period to be indicative of the standalone selling price, as the total amount charged is within a reasonable range of prices typically charged for our goods and services for comparable classes of client groups, which we periodically assess for price adjustments. Because the variable consideration in our client contracts is allocated entirely to a wholly unsatisfied promise to transfer a series of distinct services forming a single performance obligation, we are not required to disclose the value of unsatisfied performance obligations.

Other revenues consist of nonrefundable implementation fees, which are charged upfront to new clients to offset the expense of new client set-up as well as revenues from the sale of time clocks as part of our time and attendance application. Although these

revenues are related to our recurring revenues, they represent distinct performance obligations. The nonrefundable upfront fee charged to our clients results in an implied performance obligation in the form of a material right to the client related to the client’s option to renew at the end of the contract period. The nonrefundable upfront fee is typically collected upon contract inception and is deferred and recognized ratably over the period that our client realizes the benefits from the material right (i.e., 10-year estimated client life). We conduct an annual analysis of client retention data to support our client life estimate. A change in our client life estimate could have a material impact on the timing and amounts recognized as revenue for nonrefundable upfront fees.

Revenues from the sale of time clocks are recognized when control is transferred to the client upon delivery of the product. We estimate the standalone selling price for the time clocks by maximizing the use of observable inputs such as our specific pricing practices for time clocks.

For additional information, see Note 14 “Segment Reporting”.

Interest on Funds Held for Clients

Interest income on funds held for clients is earned on funds that are collected from clients in advance of either the applicable due date for payroll tax submissions or the applicable disbursement date for employee payment services. The interest earned on these funds is included in revenues in the consolidated statements of comprehensive income as the collection, holding, and remittance of these funds are essential components of providing these services.

Contract Balances

The timing of revenue recognition for recurring services is consistent with the invoicing of clients as they both occur during the respective client payroll period for which the services are provided. Therefore, we generally do not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

Changes in deferred revenue for the three and six months ended June 30, 2025 and 2024 were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

148.7

 

 

$

137.0

 

 

$

144.6

 

 

$

130.5

 

Recognition of revenue included in beginning of period balance

 

 

(12.0

)

 

 

(10.3

)

 

 

(21.4

)

 

 

(16.0

)

Contract balance, net of revenue recognized during the period

 

 

13.0

 

 

 

15.6

 

 

 

26.5

 

 

 

27.9

 

Balance, end of period

 

$

149.7

 

 

$

142.4

 

 

$

149.7

 

 

$

142.4

 

 

We expect to recognize $17.6 million of deferred revenue in the remainder of 2025, $25.8 million in 2026, and $106.3 million thereafter.

Assets Recognized from the Costs to Obtain and Costs to Fulfill Revenue Contracts

We recognize an asset for the incremental costs of obtaining a contract with a client if we expect the amortization period to be longer than one year. We also recognize an asset for the costs to fulfill a contract with a client if such costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. We have determined that substantially all costs related to implementation activities are administrative in nature and also meet the capitalization criteria under ASC 340-40, “Other Assets and Deferred Costs”. These capitalized costs to fulfill principally relate to upfront direct costs that are expected to be recovered through margin and that enhance our ability to satisfy future performance obligations. The assets related to both costs to obtain, and costs to fulfill, contracts with clients are accounted for utilizing a portfolio approach and are capitalized and amortized ratably over the expected period of benefit, which we have determined to be the estimated life of the client relationship of 10 years, primarily because we incur no new costs to obtain, or costs to fulfill, a contract upon renewal. A change in our client life estimate could have a material impact on the timing and amounts recognized as amortization expense.

Additional commission costs may be incurred when an existing client purchases additional applications; however, these commission costs relate solely to the additional applications purchased and are not related to contract renewal. Furthermore, additional fulfillment costs associated with existing clients purchasing additional applications are minimized by our seamless single-database platform.

The assets related to both costs to obtain, and costs to fulfill, contracts with customers are presented as deferred contract costs in the accompanying consolidated balance sheets. Amortization expense related to costs to obtain and costs to fulfill a contract is included in sales and marketing expenses and general and administrative expenses in the accompanying consolidated statements of

comprehensive income. We regularly review our assets recognized from the costs to obtain and costs to fulfill client contracts for potential impairment and did not recognize an impairment loss during the six months ended June 30, 2025 or 2024.

The following tables present the asset balances and related amortization expense for these contract costs:

 

 

 

As of and for the Three Months Ended June 30, 2025

 

 

 

Beginning

 

 

Capitalization

 

 

 

 

 

Ending

 

 

 

Balance

 

 

of Costs

 

 

Amortization

 

 

Balance

 

 Costs to obtain a contract

 

$

441.4

 

 

$

21.4

 

 

$

(18.1

)

 

$

444.7

 

 Costs to fulfill a contract

 

$

514.6

 

 

$

32.5

 

 

$

(19.4

)

 

$

527.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended June 30, 2024

 

 

 

Beginning

 

 

Capitalization

 

 

 

 

 

Ending

 

 

 

Balance

 

 

of Costs

 

 

Amortization

 

 

Balance

 

 Costs to obtain a contract

 

$

396.9

 

 

$

15.8

 

 

$

(15.8

)

 

$

397.0

 

 Costs to fulfill a contract

 

$

440.4

 

 

$

35.3

 

 

$

(16.0

)

 

$

459.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Six Months Ended June 30, 2025

 

 

 

Beginning

 

 

Capitalization

 

 

 

 

 

Ending

 

 

 

Balance

 

 

of Costs

 

 

Amortization

 

 

Balance

 

 Costs to obtain a contract

 

$

425.7

 

 

$

54.7

 

 

$

(35.7

)

 

$

444.7

 

 Costs to fulfill a contract

 

$

498.3

 

 

$

67.3

 

 

$

(37.9

)

 

$

527.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Six Months Ended June 30, 2024

 

 

 

Beginning

 

 

Capitalization

 

 

 

 

 

Ending

 

 

 

Balance

 

 

of Costs

 

 

Amortization

 

 

Balance

 

 Costs to obtain a contract

 

$

378.5

 

 

$

49.7

 

 

$

(31.2

)

 

$

397.0

 

 Costs to fulfill a contract

 

$

420.0

 

 

$

70.9

 

 

$

(31.2

)

 

$

459.7

 
v3.25.2
Property and Equipment
 6 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment
4.
PROPERTY AND EQUIPMENT

Property and equipment and accumulated depreciation and amortization were as follows:

 

 

 

June 30, 2025

 

 

December 31, 2024

 

Property and equipment

 

 

 

 

 

 

Software and capitalized software development costs

 

$

567.5

 

 

$

497.2

 

Buildings

 

 

279.1

 

 

 

275.6

 

Computer equipment

 

 

241.1

 

 

 

203.2

 

Rental clocks

 

 

50.4

 

 

 

48.0

 

Furniture, fixtures and equipment

 

 

42.4

 

 

 

41.9

 

Other

 

 

20.6

 

 

 

20.7

 

 

 

 

1,201.1

 

 

 

1,086.6

 

Less: accumulated depreciation and amortization

 

 

(656.1

)

 

 

(576.4

)

 

 

 

545.0

 

 

 

510.2

 

Construction in progress

 

 

20.6

 

 

 

14.7

 

Land

 

 

36.5

 

 

 

36.5

 

Property and equipment, net

 

$

602.1

 

 

$

561.4

 

 

We capitalize software development costs related to software developed or obtained for internal use in accordance with ASC 350-40, “Other Assets and Deferred Costs”. For the three and six months ended June 30, 2025, we capitalized $36.9 million and $70.7 million, respectively, of software development costs related to software developed or obtained for internal use. For the three and six months ended June 30, 2024, we capitalized $31.2 million and $61.0 million, respectively, of software development costs related to software developed or obtained for internal use.

Rental clocks included in property and equipment, net in the consolidated balance sheets, represent time clocks issued to clients under month-to-month operating leases. As such, these items are transferred from inventory to property and equipment and depreciated over their estimated useful lives.

Prior to the repayment of our debt on November 21, 2023, we capitalized interest costs incurred for indebtedness related to construction in progress. For the three and six months ended June 30, 2025, we incurred interest costs of $0.8 million and $1.6 million, respectively, none of which was capitalized. For the three and six months ended June 30, 2024, we incurred interest costs of $0.8 million and $1.6 million, respectively, none of which was capitalized.

Depreciation and amortization expense for property and equipment was $41.0 million and $80.0 million for the three and six months ended June 30, 2025, respectively. Depreciation and amortization expense for property and equipment was $34.6 million and $66.1 million for the three and six months ended June 30, 2024, respectively.
v3.25.2
Goodwill and Intangible Assets, Net
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net
5.
GOODWILL AND INTANGIBLE ASSETS, NET

As of both June 30, 2025 and December 31, 2024, goodwill was $51.9 million. We have selected June 30 as our annual goodwill impairment testing date. We performed a qualitative impairment test of our goodwill and concluded that, as of June 30, 2025, it was more likely than not that the fair value exceeded the carrying value and, therefore, goodwill was not impaired. As of June 30, 2025 and December 31, 2024, there were no indicators of impairment.

In June 2021, in connection with our marketing initiatives, we purchased the naming rights to the downtown Oklahoma City arena that is currently home to the Oklahoma City Thunder National Basketball Association franchise. Under the terms of the naming rights agreement, we committed to make escalating annual sponsorship fee payments from 2021 to 2035. As described in Note 15 “Subsequent Events,” we amended certain terms of the naming rights agreement in July 2025, resulting in, among other things, a reduction in the remaining term of the agreement. The cost of the naming rights has been recorded as an intangible asset with an offsetting liability as of the date of the contract. The intangible asset is being amortized over the life of the agreement on a straight-line basis that commenced in June 2021. The difference between the present value of the offsetting liability and actual cash payments is being relieved through sales and marketing expense using the effective interest method over the life of the agreement.

All of our intangible assets other than goodwill are considered to have definite lives and, as such, are subject to amortization. The following tables present the components of intangible assets within our consolidated balance sheets:

 

 

 

June 30, 2025

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Gross

 

 

Amortization

 

 

Net

 

Intangibles:

 

 

 

 

 

 

 

 

 

Naming rights

 

$

60.2

 

 

$

(15.9

)

 

$

44.3

 

Total

 

$

60.2

 

 

$

(15.9

)

 

$

44.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Gross

 

 

Amortization

 

 

Net

 

Intangibles:

 

 

 

 

 

 

 

 

 

Naming rights

 

$

60.2

 

 

$

(14.0

)

 

$

46.2

 

Total

 

$

60.2

 

 

$

(14.0

)

 

$

46.2

 

 

Amortization of intangible assets for the three and six months ended June 30, 2025 and 2024 was $1.0 million and $2.0 million, respectively. As stated above, the Company amended its naming rights agreement in July 2025. As a result, future amortization expense and the weighted average remaining useful life as of the balance sheet date are no longer an accurate reflection of the expected pattern of recognition of expense. Please see Note 15 “Subsequent Events” for more information on the amended terms of the agreement.
v3.25.2
Long-Term Debt
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Long-Term Debt
6.
LONG-TERM DEBT

Paycom Payroll, LLC, Software, and certain other subsidiaries of Software (collectively, the “Loan Parties”) are party to a credit agreement (as amended from time to time, the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as a lender, swingline lender and issuing bank, the lenders from time to time party thereto (collectively with JPMorgan Chase Bank, N.A., the “Lenders”), and JPMorgan Chase Bank, N.A., as the administrative agent.

The Credit Agreement provides for a senior secured revolving credit facility (the “Revolving Credit Facility”) in the aggregate principal amount of up to $1.0 billion, and the ability to request an incremental facility of up to an additional $500.0 million, subject to obtaining additional lender commitments and certain approvals and satisfying certain other conditions. The Credit Agreement includes a $25.0 million sublimit for swingline loans and a $6.5 million sublimit for letters of credit. All loans under the Credit Agreement will mature on July 29, 2027 (the “Scheduled Maturity Date”). Unamortized debt issuance costs of $2.3 million as of June 30, 2025 are included in other assets on our consolidated balance sheets.

As of June 30, 2025, there was no debt outstanding under the Revolving Credit Facility.

Subject to certain conditions set forth in the Credit Agreement, we may borrow, prepay and reborrow under the Revolving Credit Facility and terminate or reduce the Lenders’ commitments at any time prior to the Scheduled Maturity Date. We are required to pay a quarterly commitment fee on the daily amount of the undrawn portion of the revolving commitments under the Revolving Credit Facility at a rate per annum of (i) 0.20% if the Company’s consolidated leverage ratio is less than 1.0 to 1.0; (ii) 0.225% if the Company’s consolidated leverage ratio is greater than or equal to 1.0 to 1.0 but less than 2.0 to 1.0; (iii) 0.25% if the Company’s consolidated leverage ratio is greater than or equal to 2.0 to 1.0 but less than 3.0 to 1.0; or (iv) 0.275% if the Company’s consolidated leverage ratio is greater than or equal to 3.0 to 1.0.

Under the Credit Agreement, we are required to maintain as of the end of each fiscal quarter a consolidated interest coverage ratio of not less than 3.0 to 1.0 and a consolidated leverage ratio of not greater than 3.25 to 1.0, stepping down to 3.0 to 1.0 as of December 31, 2025 and thereafter. Additionally, the Credit Agreement contains customary affirmative and negative covenants, including covenants limiting our ability to, among other things, grant liens, incur debt, effect certain mergers, make investments, dispose of assets, enter into certain transactions, including swap agreements and sale and leaseback transactions, pay dividends or distributions on our capital stock, and enter into transactions with affiliates, in each case subject to customary exceptions. As of June 30, 2025, we were in compliance with these covenants. Our obligations under the Credit Agreement are secured by a senior security interest in all personal property of the Loan Parties.
v3.25.2
Corporate Investments and Funds Held for Clients
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Corporate Investments and Funds Held For Clients
7.
CORPORATE INVESTMENTS AND FUNDS HELD FOR CLIENTS

The tables below present our cash and cash equivalents, the funds held for clients cash and cash equivalents as well as the investments that were included within funds held for clients on the consolidated balance sheets:

 

 

 

June 30, 2025

 

Type of issue

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

Cash and cash equivalents

 

$

532.2

 

 

$

—

 

 

$

—

 

 

$

532.2

 

Funds held for clients cash and cash equivalents

 

 

1,120.9

 

 

 

—

 

 

 

—

 

 

 

1,120.9

 

Available-for-sale securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

495.7

 

 

 

0.4

 

 

 

(0.1

)

 

 

496.0

 

Total investments

 

$

2,148.8

 

 

$

0.4

 

 

$

(0.1

)

 

$

2,149.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

Type of issue

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

Cash and cash equivalents

 

$

402.0

 

 

$

—

 

 

$

—

 

 

$

402.0

 

Funds held for clients cash and cash equivalents

 

 

3,640.8

 

 

 

—

 

 

 

—

 

 

 

3,640.8

 

Available-for-sale securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

24.9

 

 

 

—

 

 

 

(0.2

)

 

 

24.7

 

Total investments

 

$

4,067.7

 

 

$

—

 

 

$

(0.2

)

 

$

4,067.5

 
(1)
All available-for-sale securities were included within the funds held for clients.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2025, are as follows:

 

 

 

June 30, 2025

 

 

 

Securities in unrealized loss position for less than 12 months

 

 

Securities in unrealized loss position for greater than 12 months

 

 

Total

 

Type of issue

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

U.S. treasury securities

 

$

(0.1

)

 

$

396.3

 

 

$

—

 

 

$

—

 

 

$

(0.1

)

 

$

396.3

 

Total

 

$

(0.1

)

 

$

396.3

 

 

$

—

 

 

$

—

 

 

$

(0.1

)

 

$

396.3

 

 

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2024, are as follows:

 

 

 

December 31, 2024

 

 

 

Securities in unrealized loss position for less than 12 months

 

 

Securities in unrealized loss position for greater than 12 months

 

 

Total

 

Type of issue

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

U.S. treasury securities

 

$

(0.2

)

 

$

24.7

 

 

$

—

 

 

$

—

 

 

$

(0.2

)

 

$

24.7

 

Total

 

$

(0.2

)

 

$

24.7

 

 

$

—

 

 

$

—

 

 

$

(0.2

)

 

$

24.7

 

 

We did not make any reclassification adjustments out of accumulated other comprehensive income for realized gains or losses on the sale or maturity of available-for-sale securities for the six months ended June 30, 2025 or 2024. There were no realized gains or losses on the sale of available-for-sale securities for the six months ended June 30, 2025 or 2024.

We regularly review the composition of our investment portfolio and did not recognize any credit impairment losses during the six months ended June 30, 2025 or 2024. We believe it is probable that the principal and interest will be collected in accordance with contractual terms and that the unrealized losses on these securities were due to changes in interest rates and were not due to increased credit risk. As of June 30, 2025, our U.S. treasury securities held a rating of AA+.

Expected maturities of available-for-sale securities at June 30, 2025 are as follows:

 

Expected maturity

 

Amortized cost

 

 

Fair value

 

One year or less

 

$

412.5

 

 

$

412.5

 

One year to five years

 

 

83.2

 

 

 

83.5

 

Total available-for-sale securities

 

$

495.7

 

 

$

496.0

 
v3.25.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
8.
FAIR VALUE OF FINANCIAL INSTRUMENTS

Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, funds held for clients and client funds obligation. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, funds held for clients and client funds obligation approximates fair value.

Our corporate investments consist primarily of money market funds and demand deposit accounts and are classified as cash and cash equivalents on the consolidated balance sheets.

As discussed in Note 2 “Summary of Significant Accounting Policies”, we typically invest the funds held for clients in money market funds, demand deposit accounts, certificates of deposit, commercial paper and U.S. treasury securities. Short-term investments in instruments with an original maturity of less than three months are classified as cash and cash equivalents within funds held for clients in the consolidated balance sheets. Investments in instruments with an original maturity greater than three months are classified as available-for-sale securities and are also included within funds held for clients in the consolidated balance sheets. These available-for-sale securities are recognized at fair value, with the difference between the amortized cost and fair value of these available-for-sale securities recorded as unrealized net gains (losses) within comprehensive earnings (loss) in our consolidated statements of comprehensive income. See Note 7 “Corporate Investments and Funds Held for Clients” for additional information.

The accounting standard for fair value measurements establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

•
Level 1 – Observable inputs such as quoted prices in active markets
•
Level 2 – Inputs other than quoted prices in active markets for identical assets or liabilities that are observable either directly or indirectly or quoted prices that are not active
•
Level 3 – Unobservable inputs in which there is little or no market data

Included in the following tables are the Company’s major categories of assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:

 

 

 

June 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

—

 

 

$

496.0

 

 

$

—

 

 

$

496.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

—

 

 

$

24.7

 

 

$

—

 

 

$

24.7

 
v3.25.2
Employee Savings Plan and Employee Stock Purchase Plan
 6 Months Ended
Jun. 30, 2025
Compensation Related Costs [Abstract]  
Employee Savings Plan and Employee Stock Purchase Plan
9.
EMPLOYEE SAVINGS PLAN AND EMPLOYEE STOCK PURCHASE PLAN

Employees over the age of 18 who have completed 30 days of service are eligible to participate in our employee savings plan (401(k) plan). We have made a Qualified Automatic Contribution Arrangement (“QACA”) election, whereby the Company matches the contribution of our employees equal to 100% of the first 1% of salary deferrals and 50% of salary deferrals between 2% and 6%, up to a maximum matching contribution of 3.5% of an employee’s salary each plan year. We are allowed to make additional discretionary matching contributions and discretionary profit sharing contributions. Employees are 100% vested in amounts attributable to salary deferrals and rollover contributions. The QACA matching contributions as well as the discretionary matching and profit sharing contributions vest 100% after two years of employment from the date of hire. Matching contributions were $4.2 million and $10.4 million for the three and six months ended June 30, 2025, respectively. Matching contributions were $5.4 million and $10.0 million for the three and six months ended June 30, 2024, respectively.

The Paycom Software, Inc. Employee Stock Purchase Plan (the “ESPP”) has overlapping offering periods, with each offering period lasting approximately 24 months. At the beginning of each offering period, eligible employees may elect to contribute, through payroll deductions, up to 10% of their compensation, subject to an annual per-employee maximum of $25,000. Eligible employees purchase shares of the Company’s common stock at a price equal to 85% of the fair market value of the shares on the exercise date. The maximum number of shares that may be purchased by a participant during each offering period is 2,000 shares, subject to limits specified by the Internal Revenue Service. The shares reserved for purposes of the ESPP are shares we purchase in the open market. The maximum aggregate number of shares of the Company’s common stock that may be purchased by all participants under the ESPP is 2.0 million shares. During the six months ended June 30, 2025 and 2024, eligible employees purchased 35,284 and 50,325 shares, respectively, of the Company’s common stock under the ESPP. Compensation expense related to the ESPP is recognized on a straight-line basis over the requisite service period.
v3.25.2
Earnings Per Share
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Earnings Per Share
10.
EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed in a similar manner to basic earnings per share after assuming the issuance of shares of common stock for all potentially dilutive equity incentive awards using the treasury stock method.

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

89.5

 

 

$

68.0

 

 

$

228.9

 

 

$

315.2

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding (in thousands)

 

 

56,117

 

 

 

56,451

 

 

 

56,045

 

 

 

56,499

 

Dilutive effect of unvested restricted stock and restricted stock units (in thousands)

 

 

383

 

 

 

320

 

 

 

279

 

 

 

49

 

Diluted weighted average shares outstanding (in thousands)

 

 

56,500

 

 

 

56,771

 

 

 

56,324

 

 

 

56,548

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.59

 

 

$

1.20

 

 

$

4.08

 

 

$

5.58

 

Diluted

 

$

1.58

 

 

$

1.20

 

 

$

4.06

 

 

$

5.57

 
v3.25.2
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
11.
STOCK-BASED COMPENSATION

The Company recognizes stock-based compensation expense related to awards of (i) restricted stock subject to time-based or no vesting conditions (“Time-Based Restricted Stock Awards”), (ii) restricted stock subject to market-based vesting conditions (“Market-Based Restricted Stock Awards”), (iii) restricted stock units subject to time-based vesting conditions (“RSUs”) and (iv) restricted stock units subject to performance-based vesting conditions (“PSUs”). During the three and six months ended June 30, 2025, awards were granted pursuant to the Paycom Software, Inc. 2023 Long-Term Incentive Plan.

The following table summarizes restricted stock awards activity for the six months ended June 30, 2025:

 

 

 

Time-Based

 

 

Market-Based

 

 

 

Restricted Stock Awards

 

 

Restricted Stock Awards

 

 

 

Shares

 

 

Weighted Average
Grant Date Fair
Value

 

 

Shares

 

 

Weighted Average
Grant Date Fair
Value

 

 

 

(in thousands)

 

 

(in dollars)

 

 

(in thousands)

 

 

(in dollars)

 

Unvested shares of restricted stock outstanding at December 31, 2024

 

 

1,140.3

 

 

$

230.10

 

 

 

195.7

 

 

$

244.14

 

Granted

 

 

570.9

 

 

$

220.20

 

 

 

188.4

 

 

$

203.53

 

Vested

 

 

(259.3

)

 

$

247.94

 

 

 

(159.8

)

 

$

187.98

 

Forfeited

 

 

(169.0

)

 

$

234.13

 

 

 

(33.5

)

 

$

229.57

 

Unvested shares of restricted stock outstanding at June 30, 2025

 

 

1,282.9

 

 

$

221.55

 

 

 

190.8

 

 

$

253.65

 

 

The following table summarizes PSU and RSU activity for the six months ended June 30, 2025:

 

 

 

RSUs

 

 

PSUs

 

 

 

Units

 

 

Weighted Average
Grant Date Fair
Value Per Unit

 

 

Units

 

 

Weighted Average
Grant Date Fair
Value Per Unit

 

 

 

(in thousands)

 

 

(in dollars)

 

 

(in thousands)

 

 

(in dollars)

 

Unvested restricted stock units outstanding at December 31, 2024

 

 

23.6

 

 

$

198.54

 

 

 

23.7

 

 

$

181.24

 

Granted

 

 

80.1

 

 

$

213.06

 

 

 

80.1

 

 

$

213.06

 

Vested

 

 

(8.4

)

 

$

203.56

 

 

 

(23.7

)

 

$

181.24

 

Forfeited

 

 

(6.1

)

 

$

212.70

 

 

 

—

 

 

$

—

 

Unvested restricted stock units outstanding at June 30, 2025

 

 

89.2

 

 

$

210.13

 

 

 

80.1

 

 

$

213.06

 

 

For the six months ended June 30, 2025, our total non-cash stock-based compensation expense was $60.6 million. For the six months ended June 30, 2024, the Company recognized non-cash stock-based compensation expense, inclusive of forfeitures, that totaled a net benefit of $69.7 million.

The following table presents the non-cash stock-based compensation expense that is included within the specified line items in our consolidated statements of comprehensive income:

 

 

 

Six Months Ended June 30,

 

 

 

 

2025

 

 

2024

 

 

Non-cash stock-based compensation expense:

 

 

 

 

 

 

 

Operating expenses

 

$

9.4

 

 

$

7.2

 

 

Sales and marketing

 

 

12.5

 

 

 

10.3

 

 

Research and development

 

 

19.5

 

 

 

13.1

 

 

General and administrative

 

 

19.2

 

 

 

(100.3

)

(1)

Total non-cash stock-based compensation expense

 

$

60.6

 

 

$

(69.7

)

 

 

(1)
The change in Chad Richison’s position from Chief Executive Officer to Co-Chief Executive Officer, effective February 7, 2024, triggered the forfeiture of 1,610,000 shares of restricted stock granted to him on November 23, 2020, in accordance with the terms of the award. As a result, $117.5 million of previously recognized compensation costs that were recorded in reporting periods prior to 2024 were reversed to additional paid-in capital in the consolidated balance sheets and to general and administrative expenses in the consolidated statements of comprehensive income.

The following table presents the unrecognized compensation cost and the related weighted average recognition period associated with unvested restricted stock awards and unvested restricted stock unit awards (including RSUs and PSUs) as of June 30, 2025:

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

 

Awards

 

 

Units

 

Unrecognized compensation cost

 

$

241.0

 

 

$

26.4

 

Weighted average period for recognition (years)

 

 

2.7

 

 

 

1.6

 

 

We capitalized stock-based compensation costs related to software developed for internal use of $8.5 million and $13.7 million for the three and six months ended June 30, 2025, respectively. We capitalized stock-based compensation costs related to software developed for internal use of $5.2 million and $8.8 million for the three and six months ended June 30, 2024, respectively.

In May 2023, our Board of Directors adopted a dividend policy under which we intend to pay quarterly cash dividends on our common stock. All unvested shares of restricted stock, RSUs and PSUs currently outstanding are entitled to receive dividends or dividend equivalents, provided that such dividends or dividend equivalents are withheld by the Company and distributed to the applicable holder upon the release of restrictions on such shares of restricted stock, RSUs or PSUs (i.e., upon vesting).
v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
12.
COMMITMENTS AND CONTINGENCIES

We are involved in various legal proceedings in the ordinary course of business. Although we cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material adverse effect on our business, financial condition, results of operations and cash flows.
v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
13.
INCOME TAXES

The Company’s effective income tax rate was 25.6% and 19.0% for the six months ended June 30, 2025 and 2024, respectively. The higher effective tax rate for the six months ended June 30, 2025 was primarily attributable to the tax benefit related to the forfeiture of a restricted stock award upon Chad Richison’s transition to Co-Chief Executive Officer in February 2024.

On July 4, 2025, H.R. 1, the “One Big Beautiful Bill Act” was signed into law, bringing significant amendments to the U.S. tax code. This legislation extends and modifies provisions from the 2017 Tax Cuts and Jobs Act and introduces new tax measures affecting both businesses and individuals. The Company is currently evaluating the various provisions, but does not expect this to have a material impact on its effective tax rate.
v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting
14.
SEGMENT REPORTING

The Company conducts business as a single operating segment, which is based upon the Company’s current organizational and management structure, as well as information used by the CODM to allocate resources. The Company derives revenues from customers by providing a cloud-based HCM solution delivered as Software-as-a-Service. Our solution is based on a core system of record to maintain a single database for all HCM functions, and all of our clients are required to utilize our payroll application. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis. No individual client represents 10% or more of total revenues.

The accounting policies of the segment are the same as those described in Note 2 “Summary of Significant Accounting Policies”. The Company’s CODM is our Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on net income, as reported on the consolidated statements of comprehensive income. Net income is used monthly to monitor budget versus actual results. The CODM manages the business using consolidated expense information as well as regularly provided budgeted or forecasted expense information for the single operating segment. The total assets of the segment are reported on the consolidated balance sheets. Significant non-cash items including expenditures for purchases of long-lived assets and non-cash stock-based compensation expense of the segment are reported on the consolidated statements of cash flows.

The Company does not have any intra-entity sales or transfers.

The table below highlights the Company’s revenues, expenses and net income for our single reportable segment, which are consistent with amounts reported on the consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

$

449.1

 

 

$

399.6

 

 

$

942.5

 

 

$

859.6

 

Implementation and other

 

 

6.0

 

 

 

5.9

 

 

 

12.6

 

 

 

12.0

 

Interest on funds held for clients

 

 

28.5

 

 

 

32.0

 

 

 

59.0

 

 

 

65.8

 

Total revenues

 

 

483.6

 

 

 

437.5

 

 

 

1,014.1

 

 

 

937.4

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

68.4

 

 

 

67.5

 

 

 

134.8

 

 

 

131.1

 

Depreciation and amortization

 

 

19.1

 

 

 

16.4

 

 

 

37.4

 

 

 

31.4

 

Total cost of revenues

 

 

87.5

 

 

 

83.9

 

 

 

172.2

 

 

 

162.5

 

Gross profit

 

 

396.1

 

 

 

353.6

 

 

 

841.9

 

 

 

774.9

 

Administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

116.0

 

 

 

106.9

 

 

 

226.9

 

 

 

222.4

 

Research and development

 

 

74.8

 

 

 

62.4

 

 

 

137.1

 

 

 

112.9

 

General and administrative

 

 

70.2

 

 

 

70.1

 

 

 

135.9

 

 

 

22.0

 

Depreciation and amortization

 

 

22.8

 

 

 

19.2

 

 

 

44.5

 

 

 

36.7

 

Total administrative expenses

 

 

283.8

 

 

 

258.5

 

 

 

544.4

 

 

 

393.9

 

Total operating expenses

 

 

371.3

 

 

 

342.4

 

 

 

716.6

 

 

 

556.4

 

Operating income

 

 

112.3

 

 

 

95.1

 

 

 

297.5

 

 

 

381.0

 

Interest expense

 

 

(0.8

)

 

 

(0.8

)

 

 

(1.6

)

 

 

(1.6

)

Other income (expense), net

 

 

5.7

 

 

 

4.8

 

 

 

11.6

 

 

 

9.8

 

Income before income taxes

 

 

117.2

 

 

 

99.1

 

 

 

307.5

 

 

 

389.2

 

Provision for income taxes

 

 

27.7

 

 

 

31.2

 

 

 

78.6

 

 

 

74.0

 

Net income

 

$

89.5

 

 

$

68.0

 

 

$

228.9

 

 

$

315.2

 
v3.25.2
Subsequent Events
 6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
Subsequent Events
15.
SUBSEQUENT EVENTS

As discussed in Note 5 “Goodwill and Intangible Assets, Net,” in June 2021, we purchased the naming rights to the downtown Oklahoma City arena that is currently home to the Oklahoma City Thunder National Basketball Association franchise. In July 2025, the naming rights agreement was amended to provide, among other things, that the agreement and our obligation to make the previously disclosed annual sponsorship fee payments thereunder will terminate on the earlier of (i) September 30, 2028 or (ii) the date of the last event hosted or presented at the current arena (subject to earlier termination in certain limited circumstances), with a reduction in the sponsorship fee if the term of the agreement ends prior to September 30, 2028 and in certain other limited

circumstances. The amendment did not otherwise impact our obligation to make the previously disclosed annual sponsorship fee payments for the remainder of the amended agreement term. As discussed in Note 5, the cost of the naming rights was recorded as an intangible asset with an offsetting liability as of the date of the contract. As a result of the amendment to the naming rights agreement, the Company expects to recognize a gain with respect to the released portion of the liability of $35.6 million within the consolidated statements of comprehensive income for the three and nine months ended September 30, 2025. The Company expects to amortize the carrying value of the associated intangible asset over the remaining useful life of approximately three years, resulting in an increase in amortization expense of approximately $10.0 million per year.
v3.25.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying unaudited interim consolidated financial statements include the financial results of Software and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial statements that permit reduced disclosure for interim periods. Intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for the fair presentation of our results for the interim periods presented. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes presented in the Form 10-K. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results expected for the full year.

In 2024, the Office of the Comptroller of the Currency (the “OCC”) issued final approval to Paycom National Trust Bank, National Association (the “Paycom National Trust Bank”), our wholly owned subsidiary, to operate as a national trust bank pursuant to the National Bank Act and relevant OCC regulations. Paycom National Trust Bank is the primary trustee of Paycom Client Trust, our grantor trust (the “Client Trust”), which now holds substantially all client payroll and related funds and is responsible for the oversight and management of those client funds. We have determined that the Client Trust is a variable interest entity that meets the criteria established for consolidation in accordance with Accounting Standards Codification (“ASC”) 810, “Consolidation”. We are the sole beneficial owner of the Client Trust, and we have the power to direct its activities and a controlling financial interest in its economic performance.

For the year ended December 31, 2024, we changed the presentation of revenues on the consolidated statements of comprehensive income to disaggregate interest on funds held for clients and combine recurring and other revenues. Prior period amounts have been reclassified to conform to this presentation. Reclassifications for the presentation of revenue did not have a material impact on previously reported amounts or change total revenues.

In the fourth quarter of 2024, we adopted the presentation of dollar amounts in millions, except amounts per share. As a result, amounts presented for prior periods may differ immaterially from those reported in previous filings and some amounts may not sum due to rounding. All percentages have been calculated using unrounded amounts.
Recently Adopted / Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands reportable segment disclosure requirements for public business entities by requiring disclosures of significant reportable segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment’s profit or loss. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted this ASU retrospectively on December 31, 2024. See Note 14 “Segment Reporting” for further information.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation, as well as information on income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance allows for adoption using either a prospective or retrospective transition method. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”). ASU 2024-03 requires public businesses disclose additional information about specific expense categories in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include income taxes, loss contingencies, the useful life of property and equipment and intangible assets, the life of our client relationships, the

fair value of our stock-based awards and the fair value of our financial instruments, intangible assets and goodwill. These estimates are based on historical experience, where applicable, and other assumptions that management believes are reasonable under the circumstances. Actual results could materially differ from these estimates.
Seasonality

Seasonality

Our revenues are seasonal in nature. Generally, we expect our first and fourth quarter recurring revenues to be higher than other quarters during the year because payroll tax filing forms and Affordable Care Act (“ACA”) forms are typically processed in the first quarter, and unscheduled payroll runs (such as bonuses) for our clients are typically concentrated in the fourth quarter. In addition, these seasonal fluctuations in recurring revenues impact operating income. Historical results impacted by these seasonal trends should not be considered a reliable indicator of our future results of operations.
Segment Information

Segment Information

We operate in a single operating segment and a single reporting segment. Operating segments are defined as components of an enterprise about which separate financial information is regularly evaluated by the chief operating decision maker function (which is fulfilled by our Chief Executive Officer) in deciding how to allocate resources and in assessing performance. Our Chief Executive Officer allocates resources and assesses performance based upon financial information at the consolidated level. See Note 14 “Segment Reporting” for additional information.
Funds Held for Clients and Client Funds Obligation

Funds Held for Clients and Client Funds Obligation

As part of our payroll and payroll tax filing services, we collect funds from our clients for employment taxes and payroll obligations, which we remit to the appropriate tax agencies and accounts designated by our clients. We typically invest these funds in money market funds, demand deposit accounts, certificates of deposit, commercial paper and U.S. treasury securities from which we earn interest income during the period between receipt and disbursement of such funds.

These investments are shown in our consolidated balance sheets as funds held for clients, and the associated liability for the tax filings is shown as client funds obligation. The liability is recorded in the accompanying consolidated balance sheets at the time we obtain the funds from clients. The client funds obligation represents liabilities that will be repaid within one year of the consolidated balance sheet date. We typically invest funds held for clients in money market funds, demand deposit accounts, certificates of deposit, commercial paper and U.S. treasury securities. Short-term investments in instruments with an original maturity of less than three months are classified as cash and cash equivalents within funds held for clients in the consolidated balance sheets. Investments in instruments with an original maturity greater than three months are classified as available-for-sale securities and are also included within funds held for clients in the consolidated balance sheets.

These available-for-sale securities are recorded at fair value, with the difference between the amortized cost and fair value of these available-for-sale securities recorded as unrealized net gains (losses) on available-for-sale securities, and are included within comprehensive earnings (loss) in the consolidated statements of comprehensive income. Funds held for clients are classified as a current asset in the consolidated balance sheets because the funds are held solely to satisfy the client funds obligation. Additionally, the funds held for clients is classified as restricted cash and restricted cash equivalents and presented within the reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents on the consolidated statements of cash flows.

We report the cash flows related to the purchases of investments from funds held for clients and related to the proceeds from the maturities of investments from funds held for clients on a gross basis in the cash flows from investing activities section of the consolidated statements of cash flows. Additionally, we report cash flows related to cash received from and paid on behalf of clients on a net basis within net change in client funds obligation in the cash flows from financing activities section of the consolidated statements of cash flows.
Stock Repurchase Plan

Stock Repurchase Plan

In May 2016, our Board of Directors authorized a stock repurchase plan allowing for the repurchase of shares of our common stock in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 programs. Since the initial authorization of the stock repurchase plan, our Board of Directors has amended and extended and authorized new stock repurchase plans from time to time. Most recently, in July 2024, our Board of Directors authorized the repurchase of up to $1.5 billion of our common stock. As of June 30, 2025, there was $1.44 billion available for repurchases under our stock repurchase plan. Our stock repurchase plan may be suspended or discontinued at any time. The actual timing, number and value of shares repurchased depends on a number of factors, including the market price of our common stock, general market and economic conditions, shares withheld for taxes associated with the vesting of equity incentive awards and other corporate considerations. The current stock repurchase plan will expire on August 15, 2026.

During the six months ended June 30, 2025, we repurchased an aggregate of 152,704 shares of our common stock at an average cost of $247.55 per share, all of which were shares withheld to satisfy tax withholding obligations for certain employees upon the vesting of equity incentive awards.
v3.25.2
Revenue Recognition (Tables)
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Summary of Changes in Deferred Revenue

Changes in deferred revenue for the three and six months ended June 30, 2025 and 2024 were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

148.7

 

 

$

137.0

 

 

$

144.6

 

 

$

130.5

 

Recognition of revenue included in beginning of period balance

 

 

(12.0

)

 

 

(10.3

)

 

 

(21.4

)

 

 

(16.0

)

Contract balance, net of revenue recognized during the period

 

 

13.0

 

 

 

15.6

 

 

 

26.5

 

 

 

27.9

 

Balance, end of period

 

$

149.7

 

 

$

142.4

 

 

$

149.7

 

 

$

142.4

 

 
Summary of Asset Balances and Related Amortization Expense For Contract Costs

The following tables present the asset balances and related amortization expense for these contract costs:

 

 

 

As of and for the Three Months Ended June 30, 2025

 

 

 

Beginning

 

 

Capitalization

 

 

 

 

 

Ending

 

 

 

Balance

 

 

of Costs

 

 

Amortization

 

 

Balance

 

 Costs to obtain a contract

 

$

441.4

 

 

$

21.4

 

 

$

(18.1

)

 

$

444.7

 

 Costs to fulfill a contract

 

$

514.6

 

 

$

32.5

 

 

$

(19.4

)

 

$

527.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended June 30, 2024

 

 

 

Beginning

 

 

Capitalization

 

 

 

 

 

Ending

 

 

 

Balance

 

 

of Costs

 

 

Amortization

 

 

Balance

 

 Costs to obtain a contract

 

$

396.9

 

 

$

15.8

 

 

$

(15.8

)

 

$

397.0

 

 Costs to fulfill a contract

 

$

440.4

 

 

$

35.3

 

 

$

(16.0

)

 

$

459.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Six Months Ended June 30, 2025

 

 

 

Beginning

 

 

Capitalization

 

 

 

 

 

Ending

 

 

 

Balance

 

 

of Costs

 

 

Amortization

 

 

Balance

 

 Costs to obtain a contract

 

$

425.7

 

 

$

54.7

 

 

$

(35.7

)

 

$

444.7

 

 Costs to fulfill a contract

 

$

498.3

 

 

$

67.3

 

 

$

(37.9

)

 

$

527.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Six Months Ended June 30, 2024

 

 

 

Beginning

 

 

Capitalization

 

 

 

 

 

Ending

 

 

 

Balance

 

 

of Costs

 

 

Amortization

 

 

Balance

 

 Costs to obtain a contract

 

$

378.5

 

 

$

49.7

 

 

$

(31.2

)

 

$

397.0

 

 Costs to fulfill a contract

 

$

420.0

 

 

$

70.9

 

 

$

(31.2

)

 

$

459.7

 
v3.25.2
Property and Equipment (Tables)
 6 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment and Accumulated Depreciation and Amortization

Property and equipment and accumulated depreciation and amortization were as follows:

 

 

 

June 30, 2025

 

 

December 31, 2024

 

Property and equipment

 

 

 

 

 

 

Software and capitalized software development costs

 

$

567.5

 

 

$

497.2

 

Buildings

 

 

279.1

 

 

 

275.6

 

Computer equipment

 

 

241.1

 

 

 

203.2

 

Rental clocks

 

 

50.4

 

 

 

48.0

 

Furniture, fixtures and equipment

 

 

42.4

 

 

 

41.9

 

Other

 

 

20.6

 

 

 

20.7

 

 

 

 

1,201.1

 

 

 

1,086.6

 

Less: accumulated depreciation and amortization

 

 

(656.1

)

 

 

(576.4

)

 

 

 

545.0

 

 

 

510.2

 

Construction in progress

 

 

20.6

 

 

 

14.7

 

Land

 

 

36.5

 

 

 

36.5

 

Property and equipment, net

 

$

602.1

 

 

$

561.4

 

 
v3.25.2
Goodwill and Intangible Assets, Net (Tables)
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets

All of our intangible assets other than goodwill are considered to have definite lives and, as such, are subject to amortization. The following tables present the components of intangible assets within our consolidated balance sheets:

 

 

 

June 30, 2025

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Gross

 

 

Amortization

 

 

Net

 

Intangibles:

 

 

 

 

 

 

 

 

 

Naming rights

 

$

60.2

 

 

$

(15.9

)

 

$

44.3

 

Total

 

$

60.2

 

 

$

(15.9

)

 

$

44.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Gross

 

 

Amortization

 

 

Net

 

Intangibles:

 

 

 

 

 

 

 

 

 

Naming rights

 

$

60.2

 

 

$

(14.0

)

 

$

46.2

 

Total

 

$

60.2

 

 

$

(14.0

)

 

$

46.2

 

 

Amortization of intangible assets for the three and six months ended June 30, 2025 and 2024 was $1.0 million and $2.0 million, respectively. As stated above, the Company amended its naming rights agreement in July 2025. As a result, future amortization expense and the weighted average remaining useful life as of the balance sheet date are no longer an accurate reflection of the expected pattern of recognition of expense. Please see Note 15 “Subsequent Events” for more information on the amended terms of the agreement.
v3.25.2
Corporate Investments and Funds Held For Clients (Tables)
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Cash and Cash Equivalents and Investments

The tables below present our cash and cash equivalents, the funds held for clients cash and cash equivalents as well as the investments that were included within funds held for clients on the consolidated balance sheets:

 

 

 

June 30, 2025

 

Type of issue

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

Cash and cash equivalents

 

$

532.2

 

 

$

—

 

 

$

—

 

 

$

532.2

 

Funds held for clients cash and cash equivalents

 

 

1,120.9

 

 

 

—

 

 

 

—

 

 

 

1,120.9

 

Available-for-sale securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

495.7

 

 

 

0.4

 

 

 

(0.1

)

 

 

496.0

 

Total investments

 

$

2,148.8

 

 

$

0.4

 

 

$

(0.1

)

 

$

2,149.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

Type of issue

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

Cash and cash equivalents

 

$

402.0

 

 

$

—

 

 

$

—

 

 

$

402.0

 

Funds held for clients cash and cash equivalents

 

 

3,640.8

 

 

 

—

 

 

 

—

 

 

 

3,640.8

 

Available-for-sale securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

24.9

 

 

 

—

 

 

 

(0.2

)

 

 

24.7

 

Total investments

 

$

4,067.7

 

 

$

—

 

 

$

(0.2

)

 

$

4,067.5

 
(1)
All available-for-sale securities were included within the funds held for clients.
Summary of Unrealized Losses and Fair Values of Available-for-Sale Securities that have been in Unrealized Loss Position for Period of Less than and Greater than 12 Months

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of June 30, 2025, are as follows:

 

 

 

June 30, 2025

 

 

 

Securities in unrealized loss position for less than 12 months

 

 

Securities in unrealized loss position for greater than 12 months

 

 

Total

 

Type of issue

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

U.S. treasury securities

 

$

(0.1

)

 

$

396.3

 

 

$

—

 

 

$

—

 

 

$

(0.1

)

 

$

396.3

 

Total

 

$

(0.1

)

 

$

396.3

 

 

$

—

 

 

$

—

 

 

$

(0.1

)

 

$

396.3

 

 

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2024, are as follows:

 

 

 

December 31, 2024

 

 

 

Securities in unrealized loss position for less than 12 months

 

 

Securities in unrealized loss position for greater than 12 months

 

 

Total

 

Type of issue

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

 

Gross unrealized losses

 

 

Fair value

 

U.S. treasury securities

 

$

(0.2

)

 

$

24.7

 

 

$

—

 

 

$

—

 

 

$

(0.2

)

 

$

24.7

 

Total

 

$

(0.2

)

 

$

24.7

 

 

$

—

 

 

$

—

 

 

$

(0.2

)

 

$

24.7

 

 
Summary of Expected Maturities of Available for Sale Securities

Expected maturities of available-for-sale securities at June 30, 2025 are as follows:

 

Expected maturity

 

Amortized cost

 

 

Fair value

 

One year or less

 

$

412.5

 

 

$

412.5

 

One year to five years

 

 

83.2

 

 

 

83.5

 

Total available-for-sale securities

 

$

495.7

 

 

$

496.0

 
v3.25.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Major Categories of Assets and Liabilities Measured at Fair Value on Recurring Basis

Included in the following tables are the Company’s major categories of assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:

 

 

 

June 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

—

 

 

$

496.0

 

 

$

—

 

 

$

496.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

—

 

 

$

24.7

 

 

$

—

 

 

$

24.7

 
v3.25.2
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Net Earnings Per Share

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

89.5

 

 

$

68.0

 

 

$

228.9

 

 

$

315.2

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding (in thousands)

 

 

56,117

 

 

 

56,451

 

 

 

56,045

 

 

 

56,499

 

Dilutive effect of unvested restricted stock and restricted stock units (in thousands)

 

 

383

 

 

 

320

 

 

 

279

 

 

 

49

 

Diluted weighted average shares outstanding (in thousands)

 

 

56,500

 

 

 

56,771

 

 

 

56,324

 

 

 

56,548

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.59

 

 

$

1.20

 

 

$

4.08

 

 

$

5.58

 

Diluted

 

$

1.58

 

 

$

1.20

 

 

$

4.06

 

 

$

5.57

 
v3.25.2
Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2025
Summary of Restricted Stock Unit and PSU Activity

The following table summarizes restricted stock awards activity for the six months ended June 30, 2025:

 

 

 

Time-Based

 

 

Market-Based

 

 

 

Restricted Stock Awards

 

 

Restricted Stock Awards

 

 

 

Shares

 

 

Weighted Average
Grant Date Fair
Value

 

 

Shares

 

 

Weighted Average
Grant Date Fair
Value

 

 

 

(in thousands)

 

 

(in dollars)

 

 

(in thousands)

 

 

(in dollars)

 

Unvested shares of restricted stock outstanding at December 31, 2024

 

 

1,140.3

 

 

$

230.10

 

 

 

195.7

 

 

$

244.14

 

Granted

 

 

570.9

 

 

$

220.20

 

 

 

188.4

 

 

$

203.53

 

Vested

 

 

(259.3

)

 

$

247.94

 

 

 

(159.8

)

 

$

187.98

 

Forfeited

 

 

(169.0

)

 

$

234.13

 

 

 

(33.5

)

 

$

229.57

 

Unvested shares of restricted stock outstanding at June 30, 2025

 

 

1,282.9

 

 

$

221.55

 

 

 

190.8

 

 

$

253.65

 

 

The following table summarizes PSU and RSU activity for the six months ended June 30, 2025:

 

 

 

RSUs

 

 

PSUs

 

 

 

Units

 

 

Weighted Average
Grant Date Fair
Value Per Unit

 

 

Units

 

 

Weighted Average
Grant Date Fair
Value Per Unit

 

 

 

(in thousands)

 

 

(in dollars)

 

 

(in thousands)

 

 

(in dollars)

 

Unvested restricted stock units outstanding at December 31, 2024

 

 

23.6

 

 

$

198.54

 

 

 

23.7

 

 

$

181.24

 

Granted

 

 

80.1

 

 

$

213.06

 

 

 

80.1

 

 

$

213.06

 

Vested

 

 

(8.4

)

 

$

203.56

 

 

 

(23.7

)

 

$

181.24

 

Forfeited

 

 

(6.1

)

 

$

212.70

 

 

 

—

 

 

$

—

 

Unvested restricted stock units outstanding at June 30, 2025

 

 

89.2

 

 

$

210.13

 

 

 

80.1

 

 

$

213.06

 

 
Summary of Non-cash Stock-based Compensation

The following table presents the non-cash stock-based compensation expense that is included within the specified line items in our consolidated statements of comprehensive income:

 

 

 

Six Months Ended June 30,

 

 

 

 

2025

 

 

2024

 

 

Non-cash stock-based compensation expense:

 

 

 

 

 

 

 

Operating expenses

 

$

9.4

 

 

$

7.2

 

 

Sales and marketing

 

 

12.5

 

 

 

10.3

 

 

Research and development

 

 

19.5

 

 

 

13.1

 

 

General and administrative

 

 

19.2

 

 

 

(100.3

)

(1)

Total non-cash stock-based compensation expense

 

$

60.6

 

 

$

(69.7

)

 

 

(1)
The change in Chad Richison’s position from Chief Executive Officer to Co-Chief Executive Officer, effective February 7, 2024, triggered the forfeiture of 1,610,000 shares of restricted stock granted to him on November 23, 2020, in accordance with the terms of the award. As a result, $117.5 million of previously recognized compensation costs that were recorded in reporting periods prior to 2024 were reversed to additional paid-in capital in the consolidated balance sheets and to general and administrative expenses in the consolidated statements of comprehensive income.
Summary of Unrecognized Compensation Cost and Related Weighted Average Recognition Period Associated with Unvested restricted Stock Awards and Unvested Restricted Stock Units

The following table presents the unrecognized compensation cost and the related weighted average recognition period associated with unvested restricted stock awards and unvested restricted stock unit awards (including RSUs and PSUs) as of June 30, 2025:

 

 

 

Restricted Stock

 

 

Restricted Stock

 

 

 

Awards

 

 

Units

 

Unrecognized compensation cost

 

$

241.0

 

 

$

26.4

 

Weighted average period for recognition (years)

 

 

2.7

 

 

 

1.6

 

 
v3.25.2
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Schedule of Company 's Revenues Expenses and Net (Loss) for Each Reportable Segment Consistant with Net Income (Loss) As Reported On Consolidated Statements of Comprehensive Income

The table below highlights the Company’s revenues, expenses and net income for our single reportable segment, which are consistent with amounts reported on the consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

$

449.1

 

 

$

399.6

 

 

$

942.5

 

 

$

859.6

 

Implementation and other

 

 

6.0

 

 

 

5.9

 

 

 

12.6

 

 

 

12.0

 

Interest on funds held for clients

 

 

28.5

 

 

 

32.0

 

 

 

59.0

 

 

 

65.8

 

Total revenues

 

 

483.6

 

 

 

437.5

 

 

 

1,014.1

 

 

 

937.4

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

68.4

 

 

 

67.5

 

 

 

134.8

 

 

 

131.1

 

Depreciation and amortization

 

 

19.1

 

 

 

16.4

 

 

 

37.4

 

 

 

31.4

 

Total cost of revenues

 

 

87.5

 

 

 

83.9

 

 

 

172.2

 

 

 

162.5

 

Gross profit

 

 

396.1

 

 

 

353.6

 

 

 

841.9

 

 

 

774.9

 

Administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

116.0

 

 

 

106.9

 

 

 

226.9

 

 

 

222.4

 

Research and development

 

 

74.8

 

 

 

62.4

 

 

 

137.1

 

 

 

112.9

 

General and administrative

 

 

70.2

 

 

 

70.1

 

 

 

135.9

 

 

 

22.0

 

Depreciation and amortization

 

 

22.8

 

 

 

19.2

 

 

 

44.5

 

 

 

36.7

 

Total administrative expenses

 

 

283.8

 

 

 

258.5

 

 

 

544.4

 

 

 

393.9

 

Total operating expenses

 

 

371.3

 

 

 

342.4

 

 

 

716.6

 

 

 

556.4

 

Operating income

 

 

112.3

 

 

 

95.1

 

 

 

297.5

 

 

 

381.0

 

Interest expense

 

 

(0.8

)

 

 

(0.8

)

 

 

(1.6

)

 

 

(1.6

)

Other income (expense), net

 

 

5.7

 

 

 

4.8

 

 

 

11.6

 

 

 

9.8

 

Income before income taxes

 

 

117.2

 

 

 

99.1

 

 

 

307.5

 

 

 

389.2

 

Provision for income taxes

 

 

27.7

 

 

 

31.2

 

 

 

78.6

 

 

 

74.0

 

Net income

 

$

89.5

 

 

$

68.0

 

 

$

228.9

 

 

$

315.2

 
v3.25.2
Summary of Significant Accounting Policies - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2025
USD ($)
Segment
$ / shares
shares
Jul. 31, 2024
USD ($)
Summary Of Significant Accounting Policy [Line Items]    
Number of operating segments | Segment 1  
Number of reportable segments | Segment 1  
Stock Repurchase Plan [Member]    
Summary Of Significant Accounting Policy [Line Items]    
Available authorized repurchase amount | $ $ 1,440,000,000  
Stock repurchase plan expiration date Aug. 15, 2026  
Stock repurchased, average costs per share | $ / shares $ 247.55  
Stock Repurchase Plan [Member] | Certain Employees [Member]    
Summary Of Significant Accounting Policy [Line Items]    
Shares withheld to satisfy tax withholding obligations | shares 152,704  
Maximum [Member] | Stock Repurchase Plan [Member]    
Summary Of Significant Accounting Policy [Line Items]    
Stock repurchase plan, authorized amount | $   $ 1,500,000,000
v3.25.2
Revenue Recognition - Summary of Changes in Deferred Revenue (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]        
Balance, beginning of period $ 148.7 $ 137.0 $ 144.6 $ 130.5
Recognition of revenue included in beginning of period balance (12.0) (10.3) (21.4) (16.0)
Contract balance, net of revenue recognized during the period 13.0 15.6 26.5 27.9
Balance, end of period $ 149.7 $ 142.4 $ 149.7 $ 142.4
v3.25.2
Revenue Recognition - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Deferred revenue expect to recognize description We expect to recognize $17.6 million of deferred revenue in the remainder of 2025, $25.8 million in 2026, and $106.3 million thereafter.
v3.25.2
Revenue Recognition - Additional Information (Detail 1)
$ in Millions
Jun. 30, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Deferred revenue expect to recognize amount $ 17.6
Deferred revenue expect to recognize period 6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Deferred revenue expect to recognize amount $ 25.8
Deferred revenue expect to recognize period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Deferred revenue expect to recognize amount $ 106.3
Deferred revenue expect to recognize period 1 year
v3.25.2
Revenue Recognition - Summary of Asset Balances and Related Amortization Expense For Contract Costs (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Costs to Obtain a Contract [Member]        
Capitalized Contract Cost [Line Items]        
Beginning Balance $ 441.4 $ 396.9 $ 425.7 $ 378.5
Capitalization of Costs 21.4 15.8 54.7 49.7
Amortization (18.1) (15.8) (35.7) (31.2)
Ending Balance 444.7 397.0 444.7 397.0
Costs to Fulfill a Contract [Member]        
Capitalized Contract Cost [Line Items]        
Beginning Balance 514.6 440.4 498.3 420.0
Capitalization of Costs 32.5 35.3 67.3 70.9
Amortization (19.4) (16.0) (37.9) (31.2)
Ending Balance $ 527.7 $ 459.7 $ 527.7 $ 459.7
v3.25.2
Property and Equipment - Schedule of Property and Equipment and Accumulated Depreciation and Amortization (Detail) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Property and Equipment [Line Items]    
Property and equipment, gross $ 1,201.1 $ 1,086.6
Less: accumulated depreciation and amortization (656.1) (576.4)
Software And Capitalized Software Development Costs [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 567.5 497.2
Buildings [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 279.1 275.6
Computer Equipment [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 241.1 203.2
Rental Clocks [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 50.4 48.0
Furniture, Fixtures and Equipment [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 42.4 41.9
Other [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 20.6 20.7
Property and Equipment, net, Excluding Land and Construction in Progress [Member]    
Property and Equipment [Line Items]    
Property and equipment, net 545.0 510.2
Construction in Progress [Member]    
Property and Equipment [Line Items]    
Property and equipment, net 20.6 14.7
Land [Member]    
Property and Equipment [Line Items]    
Property and equipment, net 36.5 36.5
Property and Equipment, net, Including Land and Construction in Progress [Member]    
Property and Equipment [Line Items]    
Property and equipment, net $ 602.1 $ 561.4
v3.25.2
Property and Equipment - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Property and Equipment [Line Items]        
Software development costs capitalized $ 36,900,000 $ 31,200,000 $ 70,700,000 $ 61,000,000
Interest costs incurred 800,000 800,000 1,600,000 1,600,000
Interest costs capitalized 0 0 0 0
Depreciation and amortization 22,800,000 19,200,000 44,500,000 36,700,000
Property and Equipment [Member]        
Property and Equipment [Line Items]        
Depreciation and amortization $ 41,000,000 $ 34,600,000 $ 80,000,000 $ 66,100,000
v3.25.2
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Line Items]      
Goodwill $ 51,900,000 $ 51,900,000 $ 51,900,000
Goodwill impairment amount   0  
Amortization of intangible assets 1,000,000 2,000,000  
Goodwill [Member]      
Goodwill and Intangible Assets Disclosure [Line Items]      
Goodwill $ 51,900,000 $ 51,900,000 $ 51,900,000
v3.25.2
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets (Detail) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Finite Lived Intangible Assets [Line Items]    
Gross $ 60.2 $ 60.2
Accumulated Amortization (15.9) (14.0)
Net 44.3 46.2
Naming Rights [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross 60.2 60.2
Accumulated Amortization (15.9) (14.0)
Net $ 44.3 $ 46.2
v3.25.2
Long-Term Debt - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2025
USD ($)
Revolving Credit Facility [Member]  
Debt Instrument [Line Items]  
Debt outstanding $ 0
Revolving Credit Agreement [Member]  
Debt Instrument [Line Items]  
Line of credit facility, maximum borrowing capacity 1,000,000,000
Unamortized debt issuance cost $ 2,300,000
Line of credit facility, maturity date Jul. 29, 2027
Additional credit facility capacity, subject to certain conditions $ 500,000,000
Revolving Credit Agreement [Member] | Swingline Loans [Member]  
Debt Instrument [Line Items]  
Line of credit facility, maximum borrowing capacity 25,000,000
Revolving Credit Agreement [Member] | Letters of Credit [Member]  
Debt Instrument [Line Items]  
Line of credit facility, maximum borrowing capacity $ 6,500,000
Leverage Ratio Is Less Than 1.0 To 1.0 [Member] | Revolving Credit Agreement [Member]  
Debt Instrument [Line Items]  
Quarterly commitment fee 0.20%
Leverage Ratio Is Greater Than Or Equal To One Point Zero To One Point Zero But Less Than Two Point Zero To One Point Zero [Member] | Revolving Credit Agreement [Member]  
Debt Instrument [Line Items]  
Quarterly commitment fee 0.225%
Leverage Ratio Is Greater Than Or Equal To Two Pont Zero To One Point Zero But Less Than Three Point Zero To One Point Zero [Member] | Revolving Credit Agreement [Member]  
Debt Instrument [Line Items]  
Borrowings basis spread on variable rate 0.25%
Leverage Ratio Is Greater Than Or Equal To Three Point Zero To One Point Zero [Member] | Revolving Credit Agreement [Member]  
Debt Instrument [Line Items]  
Borrowings basis spread on variable rate 0.275%
v3.25.2
Corporate Investments and Funds Held For Clients - Cash and Cash Equivalents and Investments (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Corporate Investments and Funds Held for Clients [Line Items]      
Cash and cash equivalents, amortized cost $ 532.2 $ 402.0  
Funds held for clients cash and cash equivalents, amortized cost 1,120.9 3,640.8  
Total investments, amortized cost 2,148.8 4,067.7  
Gross unrealized gains 0.4    
Gross unrealized losses (0.1) (0.2)  
Cash and cash equivalents, fair value 532.2 402.0 $ 346.5
Funds held for clients cash and cash equivalents, fair value 1,120.9 3,640.8  
Total investments, fair value 2,149.1 4,067.5  
Available-for-sale Securities [Member] | U.S. Treasury Securities [Member]      
Corporate Investments and Funds Held for Clients [Line Items]      
Amortized cost [1] 495.7 24.9  
Gross unrealized gains [1] 0.4    
Gross unrealized losses [1] (0.1) (0.2)  
Fair value [1] $ 496.0 $ 24.7  
[1] All available-for-sale securities were included within the funds held for clients.
v3.25.2
Corporate Investments and Funds Held For Clients - Summary of Unrealized Losses and Fair Values of Available-for-Sale Securities that have been in Unrealized Loss Position for Period of Less than and Greater than 12 Months (Details) - Available-for-sale Securities [Member] - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Corporate Investments And Funds Held For Clients [Line Items]    
Securities in unrealized loss position for less than 12 months, Gross unrealized losses $ (0.1) $ (0.2)
Securities in unrealized loss position for less than 12 months, Fair value 396.3 24.7
Gross unrealized losses (0.1) (0.2)
Fair value 396.3 24.7
U.S. Treasury Securities [Member]    
Corporate Investments And Funds Held For Clients [Line Items]    
Securities in unrealized loss position for less than 12 months, Gross unrealized losses (0.1) (0.2)
Securities in unrealized loss position for less than 12 months, Fair value 396.3 24.7
Gross unrealized losses (0.1) (0.2)
Fair value $ 396.3 $ 24.7
v3.25.2
Corporate Investments and Funds Held For Clients - Additional Information (Details) - USD ($)
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]    
Debt securities, Available-for-sale, Realized Gain (Loss) $ 0 $ 0
Investment credit impairment losses $ 0 $ 0
v3.25.2
Corporate Investments and Funds Held For Clients - Summary of Expected Maturities of Available for Sale Securities (Details)
$ in Millions
Jun. 30, 2025
USD ($)
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract]  
Amortized cost, One year or less $ 412.5
Amortized cost, One year to five years 83.2
Amortized cost 495.7
Fair value, One year or less 412.5
Fair value, One year to five years 83.5
Fair value $ 496.0
v3.25.2
Fair Value of Financial Instruments - Schedule of Major Categories of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - U.S. Treasury Securities [Member] - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Assets:    
Assets $ 496.0 $ 24.7
Level 2 [Member]    
Assets:    
Assets $ 496.0 $ 24.7
v3.25.2
Employee Savings Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Defined Contribution Plan Disclosure [Line Items]        
401(k) minimum age of eligibility for participation     18 years  
401(k) eligibility minimum service period     30 days  
Employee vested percentage in salary deferrals and roll over contributions     100.00%  
Minimum period for vesting 100% contributions     2 years  
Minimum period for vesting of discretionary contributions     2 years  
Matching contribution $ 4,200,000 $ 5,400,000 $ 10,400,000 $ 10,000,000
Employee stock purchase plan overlapping offering period     24 months  
Compensation expense related to ESPP     $ 60,600,000 $ (69,700,000)
Employee Stock Purchase Plan [Member]        
Defined Contribution Plan Disclosure [Line Items]        
Employees Company's common stock shares purchase limit percentage 10.00%   10.00%  
Employees Company's common stock shares purchase limit amount     $ 25,000  
Purchase price of common stock expressed as a percentage of its fair market value     85.00%  
Maximum number of shares that may be purchased by a participant     2,000  
Share of common stock purchase maximum     2,000,000.0  
Purchase of shares of common stock     35,284 50,325
After Two Years Of Employment [Member]        
Defined Contribution Plan Disclosure [Line Items]        
Matching contributions, vesting percentage     100.00%  
One Hundred Percent Match For Percent Of Participants Contribution [Member]        
Defined Contribution Plan Disclosure [Line Items]        
Employer contribution percentage     100.00%  
Percentage of salary deferrals     1.00%  
50% Matching Contribution [Member]        
Defined Contribution Plan Disclosure [Line Items]        
Employer contribution percentage     50.00%  
Minimum [Member] | 50% Matching Contribution [Member]        
Defined Contribution Plan Disclosure [Line Items]        
Percentage of salary deferrals     2.00%  
Maximum [Member]        
Defined Contribution Plan Disclosure [Line Items]        
Percentage of salary deferrals     3.50%  
Maximum [Member] | 50% Matching Contribution [Member]        
Defined Contribution Plan Disclosure [Line Items]        
Percentage of salary deferrals     6.00%  
v3.25.2
Earnings Per Share - Computation of Basic and Diluted Net Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Numerator:            
Net income $ 89.5 $ 139.4 $ 68.0 $ 247.2 $ 228.9 $ 315.2
Denominator:            
Basic weighted average shares outstanding 56,117   56,451   56,045 56,499
Diluted weighted average shares outstanding 56,500   56,771   56,324 56,548
Earnings per share:            
Earnings per share, basic $ 1.59   $ 1.2   $ 4.08 $ 5.58
Earnings per share, diluted $ 1.58   $ 1.2   $ 4.06 $ 5.57
Restricted Stock Units [Member]            
Denominator:            
Dilutive effect of unvested restricted stock and restricted stock units 383   320   279 49
v3.25.2
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Non-cash stock-based compensation expense (benefit)     $ 60.6 $ (69.7)
Capitalized compensation cost     13.7 8.8
Software and Capitalized Software Costs [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Capitalized compensation cost $ 8.5 $ 5.2 13.7 8.8
Restricted Stock Awards and PSU Awards [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Non-cash stock-based compensation expense (benefit)     $ 60.6 $ 69.7
v3.25.2
Stock-Based Compensation - Summary of Restricted Stock Unit and PSU Activity (Detail) - $ / shares
 6 Months Ended
Nov. 23, 2020
Jun. 30, 2025
Time-Based Restricted Stock Awards [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Unvested shares of restricted stock and restricted stock units outstanding at beginning of period   1,140,300
Restricted Stock Awards and restricted stock units, Granted   570,900
Restricted Stock Awards and restricted stock units, Vested   (259,300)
Restricted Stock Awards and restricted stock units, Forfeited   (169,000)
Unvested shares of restricted stock and restricted stock units outstanding at end of period   1,282,900
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period   $ 230.1
Granted, Weighted Average Grant Date Fair Value Per Share   220.2
Vested, Weighted Average Grant Date Fair Value Per Share   247.94
Forfeited, Weighted Average Grant Date Fair Value Per Share   234.13
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period   $ 221.55
Market-Based Restricted Stock Awards [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Unvested shares of restricted stock and restricted stock units outstanding at beginning of period   195,700
Restricted Stock Awards and restricted stock units, Granted 1,610,000 188,400
Restricted Stock Awards and restricted stock units, Vested   (159,800)
Restricted Stock Awards and restricted stock units, Forfeited   (33,500)
Unvested shares of restricted stock and restricted stock units outstanding at end of period   190,800
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period   $ 244.14
Granted, Weighted Average Grant Date Fair Value Per Share   203.53
Vested, Weighted Average Grant Date Fair Value Per Share   187.98
Forfeited, Weighted Average Grant Date Fair Value Per Share   229.57
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period   $ 253.65
Restricted Stock Units (RSUs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Unvested shares of restricted stock and restricted stock units outstanding at beginning of period   23,600
Restricted Stock Awards and restricted stock units, Granted   80,100
Restricted Stock Awards and restricted stock units, Vested   (8,400)
Restricted Stock Awards and restricted stock units, Forfeited   (6,100)
Unvested shares of restricted stock and restricted stock units outstanding at end of period   89,200
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period   $ 198.54
Granted, Weighted Average Grant Date Fair Value Per Share   213.06
Vested, Weighted Average Grant Date Fair Value Per Share   203.56
Forfeited, Weighted Average Grant Date Fair Value Per Share   212.7
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period   $ 210.13
Performance-Based Restricted Stock Units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Unvested shares of restricted stock and restricted stock units outstanding at beginning of period   23,700
Restricted Stock Awards and restricted stock units, Granted   80,100
Restricted Stock Awards and restricted stock units, Vested   (23,700)
Unvested shares of restricted stock and restricted stock units outstanding at end of period   80,100
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period   $ 181.24
Granted, Weighted Average Grant Date Fair Value Per Share   213.06
Vested, Weighted Average Grant Date Fair Value Per Share   181.24
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period   $ 213.06
v3.25.2
Stock-based Compensation - Summary of Non-cash Stock-based Compensation Expense (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Non-cash stock-based compensation expense (benefit) $ 60.6 $ (69.7)
Operating Expenses [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Non-cash stock-based compensation expense (benefit) 9.4 7.2
Sales and Marketing Expense [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Non-cash stock-based compensation expense (benefit) 12.5 10.3
Research and Development Expense [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Non-cash stock-based compensation expense (benefit) 19.5 13.1
General and Administrative Expense [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]    
Non-cash stock-based compensation expense (benefit) $ 19.2 $ (100.3) [1]
[1] The change in Chad Richison’s position from Chief Executive Officer to Co-Chief Executive Officer, effective February 7, 2024, triggered the forfeiture of 1,610,000 shares of restricted stock granted to him on November 23, 2020, in accordance with the terms of the award. As a result, $117.5 million of previously recognized compensation costs that were recorded in reporting periods prior to 2024 were reversed to additional paid-in capital in the consolidated balance sheets and to general and administrative expenses in the consolidated statements of comprehensive income.
v3.25.2
Stock-Based Compensation - Summary of Non-cash Stock-based Compensation Expense (Parenthetical) (Detail) - USD ($)
$ in Millions
 6 Months Ended
Nov. 23, 2020
Jun. 30, 2025
Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Allocated share based compensation expense   $ 60.6 $ (69.7)
Market-Based Restricted Stock Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Restricted shares of common stock issued 1,610,000 188,400  
Allocated share based compensation expense $ 117.5    
v3.25.2
Stock-Based Compensation - Summary of Unrecognized Compensation Cost and Related Weighted Average Recognition Period Associated with Unvested restricted Stock Awards and Unvested Restricted Stock Units (Detail)
$ in Millions
 6 Months Ended
Jun. 30, 2025
USD ($)
Restricted Stock Awards [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]  
Unrecognized compensation cost $ 241.0
Weighted average period for recognition (years) 2 years 8 months 12 days
Restricted Stock Units (RSUs) [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]  
Unrecognized compensation cost $ 26.4
Weighted average period for recognition (years) 1 year 7 months 6 days
v3.25.2
Income Taxes - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Income Tax Examination [Line Items]    
Effective income tax rate 25.60% 19.00%
v3.25.2
Segment Reporting - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2025
Segment
Segment Reporting [Abstract]  
Number of operating segment 1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description The CODM assesses performance for the segment and decides how to allocate resources based on net income, as reported on the consolidated statements of comprehensive income. Net income is used monthly to monitor budget versus actual results.
Segment Reporting, Expense Information Used by CODM, Description The CODM manages the business using consolidated expense information as well as regularly provided budgeted or forecasted expense information for the single operating segment.
v3.25.2
Segment Reporting - Schedule of Company 's Revenues Expenses and Net (Loss) for Each Reportable Segment Consistant with Net Income (Loss) As Reported On Consolidated Statements of Comprehensive Income (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Revenues            
Total revenues $ 483.6   $ 437.5   $ 1,014.1 $ 937.4
Cost of revenues            
Operating expenses 68.4   67.5   134.8 131.1
Depreciation and amortization 19.1   16.4   37.4 31.4
Total cost of revenues 87.5   83.9   172.2 162.5
Gross profit 396.1   353.6   841.9 774.9
Administrative expenses            
Sales and marketing 116.0   106.9   226.9 222.4
Research and development 74.8   62.4   137.1 112.9
General and administrative 70.2   70.1   135.9 22.0
Depreciation and amortization 22.8   19.2   44.5 36.7
Total administrative expenses 283.8   258.5   544.4 393.9
Total operating expenses 371.3   342.4   716.6 556.4
Operating income 112.3   95.1   297.5 381.0
Interest expense (0.8)   (0.8)   (1.6) (1.6)
Other income (expense), net 5.7   4.8   11.6 9.8
Income before income taxes 117.2   99.1   307.5 389.2
Provision for income taxes 27.7   31.2   78.6 74.0
Net income 89.5 $ 139.4 68.0 $ 247.2 228.9 315.2
Recurring [Member]            
Revenues            
Total revenues 449.1   399.6   942.5 859.6
Implementation and Other [Member]            
Revenues            
Total revenues 6.0   5.9   12.6 12.0
Interest on Funds Held for Clients [Member]            
Revenues            
Total revenues $ 28.5   $ 32.0   $ 59.0 $ 65.8