PAYCOM SOFTWARE, INC., 10-K filed on 2/19/2026
Annual Report
v3.25.4
Document and Entity Information - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2025
Feb. 10, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2025    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Trading Symbol PAYC    
Entity Registrant Name Paycom Software, Inc.    
Entity Central Index Key 0001590955    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   54,275,097  
Entity Public Float     $ 11.9
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 Interactive Data Current Yes    
Document Annual Report true    
Document Transition Report false    
Auditor Firm ID 248    
Auditor Name GRANT THORNTON LLP    
Auditor Location Oklahoma City, Oklahoma    
Auditor Opinion [Text Block]

Basis for opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

   
Documents Incorporated by Reference

Portions of the registrant’s Definitive Proxy Statement on Schedule 14A to be furnished to stockholders in connection with its 2026 Annual Meeting of Stockholders are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K.

   
Document Financial Statement Error Correction [Flag] false    
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 370.0 $ 402.0
Accounts receivable 44.9 39.2
Prepaid expenses 47.5 44.4
Inventory 1.7 1.4
Income tax receivable 78.2 11.9
Deferred contract costs 159.5 140.4
Current assets before funds held for clients 701.8 639.3
Funds held for clients 5,137.0 3,665.5
Total current assets 5,838.8 4,304.8
Property and equipment, net 687.3 561.4
Intangible assets, net 37.4 46.2
Goodwill 51.9 51.9
Long-term deferred contract costs 857.4 783.6
Operating lease right-of-use assets 89.4 80.6
Other assets 36.5 31.4
Total assets 7,598.7 5,859.9
Current liabilities:    
Accounts payable 6.6 23.9
Accrued commissions and bonuses 28.2 33.0
Accrued payroll and vacation 60.1 59.0
Deferred revenue 28.3 30.0
Operating lease liabilities 28.4 20.4
Accrued expenses and other current liabilities 79.8 74.8
Current liabilities before client funds obligation 231.4 241.1
Client funds obligation 5,137.0 3,665.7
Total current liabilities 5,368.4 3,906.8
Deferred income tax liabilities, net 304.4 149.7
Long-term deferred revenue 121.9 114.6
Long-term operating lease liabilities 61.9 63.0
Other long-term liabilities 10.6 49.9
Total long-term liabilities 498.8 377.2
Total liabilities 5,867.2 4,284.0
Commitments and contingencies (Note 12 "Commitments and Contingencies")
Stockholders’ equity:    
Common stock, $0.01 par value (100.0 shares authorized, 63.6 and 63.0 shares issued at December 31, 2025 and December 31, 2024, respectively; 54.8 and 55.9 shares outstanding at December 31, 2025 and December 31, 2024, respectively) 0.6 0.6
Additional paid-in capital 878.4 724.8
Retained earnings 2,255.6 1,887.5
Accumulated other comprehensive earnings (loss) 0.3 (0.6)
Treasury stock, at cost (8.8 and 7.1 shares at December 31, 2025 and December 31, 2024, respectively) (1,403.4) (1,036.4)
Total stockholders’ equity 1,731.5 1,575.9
Total liabilities and stockholders’ equity $ 7,598.7 $ 5,859.9
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 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 63,600,000 63,000,000
Common stock, shares outstanding 54,800,000 55,900,000
Treasury stock, shares 8,800,000 7,100,000
Number Of Authorized Shares Not Disclosed true  
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues      
Total revenues $ 2,051.7 $ 1,883.2 $ 1,693.7
Cost of revenues      
Operating expenses 263.0 267.4 223.7
Depreciation and amortization 82.4 67.2 52.6
Total cost of revenues 345.4 334.6 276.3
Administrative expenses      
Sales and marketing 482.8 434.4 417.6
Research and development 283.4 242.6 199.0
General and administrative 279.0 158.6 288.1
Depreciation and amortization 93.9 78.7 61.4
Total administrative expenses 1,139.1 914.3 966.1
Total operating expenses 1,484.5 1,248.9 1,242.4
Operating income 567.2 634.3 451.3
Interest expense (3.4) (3.4) (1.9)
Other income, net 55.6 18.1 23.0
Income before income taxes 619.4 649.0 472.4
Provision for income taxes 166.0 147.0 [1] 131.6 [1]
Net income $ 453.4 $ 502.0 $ 340.8
Earnings per share, basic $ 8.13 $ 8.93 $ 5.91
Earnings per share, diluted $ 8.08 $ 8.92 $ 5.88
Weighted average shares outstanding:      
Basic 55,765 56,208 57,707
Diluted 56,116 56,296 57,974
Comprehensive earnings:      
Net income $ 453.4 $ 502.0 $ 340.8
Unrealized net gains on available-for-sale securities 1.0 1.0 3.5
Tax effect (0.1) (0.6) (0.8)
Other comprehensive income, net of tax 0.9 0.4 2.7
Comprehensive earnings 454.3 502.4 343.5
Recurring and Other [Member]      
Revenues      
Total revenues 1,938.7 1,758.3 1,585.7
Interest on Funds Held for Clients [Member]      
Revenues      
Total revenues $ 113.0 $ 124.9 $ 108.0
[1] Disclosures for 2024 and 2023 were adjusted for retrospective application of ASU 2023-09, as described in Note 2 “Summary of Significant Accounting Policies.”
v3.25.4
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 Earnings (Loss) [Member]
Treasury Stock [Member]
Beginning balance, value at Dec. 31, 2022   $ 0.6 $ 576.6 $ 1,197.0 $ (3.7) $ (587.9)
Beginning balance, shares at Dec. 31, 2022   62.5        
Treasury Stock, beginning balance, shares at Dec. 31, 2022           4.7
Vesting of restricted stock, shares   0.2        
Stock-based compensation     147.8      
Dividends declared       (67.8)    
Repurchases of common stock           $ (303.1)
Repurchases of common stock, shares           1.4
Net income $ 340.8     340.8    
Other comprehensive earnings, net of tax         2.7  
Ending balance, value at Dec. 31, 2023 $ 1,303.0 $ 0.6 724.4 1,470.0 (1.0) $ (891.0)
Ending balance, shares at Dec. 31, 2023 56.5 62.7        
Treasury Stock, ending balance, shares at Dec. 31, 2023           6.1
Vesting of restricted stock, shares   0.3        
Stock-based compensation     0.4      
Dividends declared       (84.5)    
Repurchases of common stock           $ (145.4)
Repurchases of common stock, shares           1.0
Net income $ 502.0     502.0    
Other comprehensive earnings, net of tax         0.4  
Ending balance, value at Dec. 31, 2024 $ 1,575.9 $ 0.6 724.8 1,887.5 (0.6) $ (1,036.4)
Ending balance, shares at Dec. 31, 2024 55.9 63.0        
Treasury Stock, ending balance, shares at Dec. 31, 2024 7.1         7.1
Vesting of restricted stock, shares   0.6        
Stock-based compensation     152.4      
Dividends declared       (85.3)    
Repurchases of common stock           $ (372.2)
Repurchases of common stock, shares           1.7
Employee stock purchase program     1.2     $ 5.2
Net income $ 453.4     453.4    
Other comprehensive earnings, net of tax         0.9  
Ending balance, value at Dec. 31, 2025 $ 1,731.5 $ 0.6 $ 878.4 $ 2,255.6 $ 0.3 $ (1,403.4)
Ending balance, shares at Dec. 31, 2025 54.8 63.6        
Treasury Stock, ending balance, shares at Dec. 31, 2025 8.8         8.8
v3.25.4
Consolidated Statements of Shareholders' Equity (Parenthetical)
shares in Millions
12 Months Ended
Dec. 31, 2025
$ / shares
shares
Statement of Stockholders' Equity [Abstract]  
Dividends declared per share | $ / shares $ 0.375
Number of common stock shares issued from treasury shares | shares 33,700
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net income $ 453.4 $ 502.0 $ 340.8
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 176.3 145.9 113.9
Stock-based compensation expense 118.7 (22.9) 129.8
Amortization of debt issuance costs 1.4 1.1 1.2
Loss on extinguishment of debt     1.2
Gain on disposition of property and equipment (0.1)    
Accretion of discount on available-for-sale securities (13.0) (0.1) (0.5)
Non-cash marketing expense 1.0 1.6 1.7
Deferred income taxes, net 154.4 5.8 2.6
Gain on modification of naming rights agreement (35.6)    
Other 0.8 (0.5) 0.1
Changes in operating assets and liabilities:      
Accounts receivable (5.7) (22.8) 6.4
Prepaid expenses 1.7 (6.7) (6.6)
Inventory (0.3)   0.2
Other assets (6.5) (2.7) (9.6)
Deferred contract costs (89.5) (120.0) (127.7)
Income taxes, net (66.3) 6.5 (12.8)
Accounts payable (16.2) 9.1 (5.2)
Accrued commissions and bonuses (4.8) 2.5 2.1
Accrued payroll and vacation 1.1 2.9 11.1
Deferred revenue 5.6 14.1 13.1
Accrued expenses and other current liabilities 4.5 17.4 22.2
Net change in operating right-of-use assets and operating lease liabilities (2.0) 0.7 1.0
Net cash provided by operating activities 678.9 533.9 485.0
Cash flows from investing activities      
Purchases of investments from funds held for clients (835.9) (24.9) (25.0)
Proceeds from investments from funds held for clients 500.0 200.0 25.0
Purchases of intangible assets (4.5) (4.4) (4.2)
Purchases of property and equipment (270.9) (192.9) (192.6)
Proceeds from sale of property and equipment 0.1   0.1
Net cash used in investing activities (611.2) (22.2) (196.7)
Cash flows from financing activities      
Repurchases of common stock (325.5) (122.8) (286.6)
Withholding taxes paid related to net share settlements (44.5) (21.7) (13.9)
Payments on long-term debt     (29.0)
Dividends paid (84.8) (84.8) (64.8)
Proceeds from employee stock purchase plan 5.5    
Net change in client funds obligation 1,471.3 1,337.6 120.4
Payment of debt issuance costs     (0.7)
Net cash provided by (used in) financing activities 1,022.0 1,108.3 (274.6)
Increase in cash, cash equivalents, restricted cash and restricted cash equivalents 1,089.7 1,620.0 13.7
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 2,409.1
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period 5,132.5 4,042.8 2,422.8
Cash and cash equivalents 370.0 402.0 294.0
Restricted cash included in funds held for clients 4,762.5 3,640.8 2,128.8
Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period 5,132.5 4,042.8 2,422.8
Supplemental disclosures of cash flow information:      
Cash paid for interest, net of amounts capitalized 2.1 2.0 1.0
Cash paid for income taxes, net of income tax refunds [1] 78.1 134.8 138.8
Non-cash investing and financing activities:      
Purchases of property and equipment, accrued but not paid 1.2 3.9 9.0
Stock-based compensation for capitalized software 25.2 17.5 14.7
Right of use assets obtained in exchange for operating lease liabilities $ 24.3 $ 25.1 $ 50.3
[1]

(1) Disclosures for cash paid for income taxes in 2024 and 2023 were reduced for net refunds received of $2.1 million and $1.1 million, respectively, due to retrospective application of ASU 2023-09, as described in Note 2 “Summary of Significant Accounting Policies.”

v3.25.4
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
ASU 2023-09 [Member]    
Cash paid for income taxes $ 2.1 $ 1.1
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 453.4 $ 502.0 $ 340.8
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Rule 10b5-1 Trading Arrangements

On December 15, 2025, an entity affiliated with Chad Richison, Chief Executive Officer 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) March 16, 2026, and (ii) the third trading day following disclosure of the Company’s financial results on Form 10-K for the year ended December 31, 2025, and ending September 16, 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 and Chairman of the Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 15, 2025
Arrangement Duration 92 days
Aggregate Available 480,000
v3.25.4
Cybersecurity Risk Management, Strategy, and Governance
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

Risk Management and Strategy

Overview

We recognize that our clients entrust us with highly sensitive data. We also recognize our attendant responsibility to safeguard the accessibility, confidentiality, and integrity of this data. Our information security program consists of policies, procedures, systems, controls and technology designed to help us prevent, identify, detect and mitigate cybersecurity risks. Our processes are informed by cybersecurity events we have observed within the Company, across our industry, and across the cybersecurity landscape. We utilize the risk management framework for risk assessments as defined by the ISO 27001 Information Security Management Standard. We have integrated cybersecurity risk management into our overall risk management framework by conducting annual enterprise risk management assessments and IT risk management assessments, implementing periodic key risk indicator tracking, and holding periodic meetings among multiple department stakeholders to address cybersecurity risks. We review our information security policies at least annually and in connection with certain process changes to ensure that they meet the needs of the organization and the goals and objectives of the information security program.

Prevention, Identification, Detection and Mitigation Activities

We routinely undertake activities to prevent, identify, detect and mitigate risks from cybersecurity threats, including but not limited to the following:

Procedures and guidelines designed to ensure that information security is a key consideration in the requirements for both new information systems and enhancements to existing systems and assets;
IT environment risk assessments conducted at regular intervals and in connection with certain events, such as implementation of a new system, service or vendor;
Tabletop and simulation exercises to discuss roles and responsibilities of team members in the event of a cybersecurity incident and to test and modify the plan as needed;
Ongoing security penetration testing and threat modeling of our network and web application;
Automated tools and manual review processes to ensure ongoing compliance with technical standards and identify configuration issues and technical vulnerabilities;
Encryption of all communications with our servers, which are configured to utilize only high-grade encryption algorithms; and
Ongoing employee training related to information security and data privacy policies and standards, including periodic phishing, vishing, and social engineering exercises.

We also have implemented and continue to maintain policies, procedures, systems, controls and technology to oversee and identify the cybersecurity risks associated with our use of third-party service providers. For example, we conduct thorough cybersecurity risk assessments of all third-party service providers prior to engagement and ongoing monitoring to ensure compliance with our robust cybersecurity requirements. The monitoring includes periodic audits of third-party systems and vendors. We engage third-party consultants and auditors in connection with assessing, identifying and managing material risks from cybersecurity threats. Our collaboration with these third parties includes independent audits, threat assessments, and consultation on security enhancements.

Infrastructure; Network and Physical Security

Our IT infrastructure is secured and monitored using a number of leading practices and tools across physical and logical security. This security is also continually monitored by our information security department. We strictly regulate and limit all access to servers and networks at each of our facilities. Local network access is restricted by domain authentication, using stringent access control lists. Remote network access is restricted by a defense-in-depth approach that includes redundant firewalls, preventing unauthorized access from external networks to systems within our local network. We also employ (i) network and endpoint intrusion detection, intrusion prevention, and data loss prevention sensors throughout our infrastructure, (ii) systems that monitor our infrastructure and alert our continuously staffed security operations center of potential cybersecurity issues, and (iii) a seasoned process for managing and installing patches for third-party applications.

Incident Response

We maintain plans to address any cybersecurity incidents, including but not limited to a Crisis Management Plan, an Incident Response Plan, an Information Security Incident Management Policy and a Business Resiliency Policy. Information security continuity is embedded in our business continuity management system to minimize the risk that continuity operations could result in a compromise to our security standards. We conduct business continuity, crisis communications and disaster recovery exercises at least annually to test and modify the plan, as needed. The activities related to the business continuity management system are routinely reported to executive management as part of our IT security team’s ongoing metrics

reporting. In addition, reports related to activities and outcomes are provided to the audit committee of the Board of Directors on a quarterly basis.

Certifications and Audits

We maintain the following ISO certifications related to our information systems:

ISO 9001:2015 (standard for the implementation of quality management processes);
ISO 22301:2019 (standard for implementing and managing an effective business continuity management system);
ISO/IEC 27001:2022 (security standard for information security management systems, covering our production, quality assurance and implementation environments);
ISO/IEC 27701:2019 (standard for establishing, implementing, maintaining and continually improving a privacy information management system); and
ISO/IEC 42001:2023 (standard for establishing, implementing, maintaining and continually improving an AIMS).

We voluntarily obtain third-party security examinations relating to our internal controls over financial reporting in accordance with SOC 1. Our SOC 1 examination is conducted every six months by an independent international auditing firm, and addresses, among other areas, our physical and environmental safeguards for production data centers, data availability and integrity procedures, change management procedures and logical security procedures. We also obtain third-party examinations relating to our internal controls over security and privacy in accordance with SOC 2. Our SOC 2 examination is conducted every year and addresses, among other areas, internal controls around security, availability, and processing integrity. We publish SOC 1 reports semiannually and SOC 2 and SOC 3 reports annually.

Impact of Risks from Cybersecurity Threats

We have experienced cybersecurity incidents in the ordinary course of business and will continue to experience risks from cybersecurity threats that could have a material adverse effect on our business strategy, results of operations, or financial condition. Although prior cybersecurity incidents have not had a material adverse effect on us, our business strategy, results of operations, or financial condition to date, any actual or perceived breach of our security could damage our reputation, cause existing clients to discontinue the use of our solution, prevent us from attracting new clients, or subject us to third-party lawsuits, regulatory investigations and fines or other actions or liabilities, any of which could materially adversely affect us, our business strategy, results of operations, or financial condition.

Governance

Both management and the Board of Directors are actively involved in the oversight of risks from cybersecurity threats. Our information security program is designed to ensure that management and the Board of Directors are adequately informed about, and provided with the tools necessary to monitor, (i) material risks from cybersecurity threats and (ii) our efforts related to the prevention, detection, mitigation, and remediation of cybersecurity incidents.

Role of the Board of Directors

The Board of Directors has delegated to the audit committee primary responsibility for overseeing enterprise risk management, including oversight of risks from cybersecurity threats. The audit committee receives quarterly reports and updates from our Senior Director of IT and Information Security with respect to cybersecurity risk management. Such reports cover the Company’s information security program, including its current status, capabilities, objectives and plans, as well as the evolving cybersecurity threat landscape.

Role of Management

The Senior Director of IT and Information Security oversees the activities of our IT and information security teams and is responsible for ensuring that both new implementations and ongoing operations comply with the policies, procedures, and guidelines of our information security program. Our Senior Director of IT and Information Security has been with Paycom for over a decade and has worked in technology development, improvement, infrastructure, and security for over 12 years. The Senior Director of IT and Information Security is supported by our Director of Information Security, who has worked in technology development, improvement, infrastructure, and security for over a decade. The Director of Information Security is responsible for the growth and implementation of the information security and data privacy programs and oversees the operations of the information security team. The Director of Information Security also provides oversight for information security and privacy policies and controls, oversees compliance activities, and provides metrics and guidance to executive management regarding the program. The aforementioned leaders and teams have a breadth of experience and manage programs related to governance, risk, and compliance; data privacy and security; vulnerability management; security operations; and application security.

The Senior Director of IT and Information Security is regularly informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques. This ongoing knowledge acquisition is crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. Our information systems are routinely reviewed for compliance with information security policies and standards. Outcomes of reviews and audits are reported to the Director of Information Security and the Senior Director of IT and Information Security. Relevant information about security nonconformities, incidents, and events are reported to the working group described below and to the Board of Directors. As discussed above, the Senior Director of IT and Information Security reports to the audit committee and the Board of Directors on cybersecurity matters at least quarterly.

In addition, we have established a working group composed of senior leaders from various departments, including operations, finance, IT, information security, internal audit, and legal. This working group’s responsibilities include (i) ensuring that information security goals and objectives are identified, meet organizational and business requirements, and are integrated into relevant processes, (ii) reviewing the effectiveness of the information security program, (iii) providing clear direction and highly visible management support for security initiatives, (iv) providing resources required for information security projects and initiatives, (v) overseeing programs to maintain information security awareness, including training and team-specific guidance, and (vi) coordinating the information security aspects of supplier relationships.

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have integrated cybersecurity risk management into our overall risk management framework by conducting annual enterprise risk management assessments and IT risk management assessments, implementing periodic key risk indicator tracking, and holding periodic meetings among multiple department stakeholders to address cybersecurity risks. We review our information security policies at least annually and in connection with certain process changes to ensure that they meet the needs of the organization and the goals and objectives of the information security program.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Governance

Both management and the Board of Directors are actively involved in the oversight of risks from cybersecurity threats. Our information security program is designed to ensure that management and the Board of Directors are adequately informed about, and provided with the tools necessary to monitor, (i) material risks from cybersecurity threats and (ii) our efforts related to the prevention, detection, mitigation, and remediation of cybersecurity incidents.

Role of the Board of Directors

The Board of Directors has delegated to the audit committee primary responsibility for overseeing enterprise risk management, including oversight of risks from cybersecurity threats. The audit committee receives quarterly reports and updates from our Senior Director of IT and Information Security with respect to cybersecurity risk management. Such reports cover the Company’s information security program, including its current status, capabilities, objectives and plans, as well as the evolving cybersecurity threat landscape.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board of Directors has delegated to the audit committee primary responsibility for overseeing enterprise risk management, including oversight of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The audit committee receives quarterly reports and updates from our Senior Director of IT and Information Security with respect to cybersecurity risk management. Such reports cover the Company’s information security program, including its current status, capabilities, objectives and plans, as well as the evolving cybersecurity threat landscape.
Cybersecurity Risk Role of Management [Text Block]

Role of Management

The Senior Director of IT and Information Security oversees the activities of our IT and information security teams and is responsible for ensuring that both new implementations and ongoing operations comply with the policies, procedures, and guidelines of our information security program. Our Senior Director of IT and Information Security has been with Paycom for over a decade and has worked in technology development, improvement, infrastructure, and security for over 12 years. The Senior Director of IT and Information Security is supported by our Director of Information Security, who has worked in technology development, improvement, infrastructure, and security for over a decade. The Director of Information Security is responsible for the growth and implementation of the information security and data privacy programs and oversees the operations of the information security team. The Director of Information Security also provides oversight for information security and privacy policies and controls, oversees compliance activities, and provides metrics and guidance to executive management regarding the program. The aforementioned leaders and teams have a breadth of experience and manage programs related to governance, risk, and compliance; data privacy and security; vulnerability management; security operations; and application security.

The Senior Director of IT and Information Security is regularly informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques. This ongoing knowledge acquisition is crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. Our information systems are routinely reviewed for compliance with information security policies and standards. Outcomes of reviews and audits are reported to the Director of Information Security and the Senior Director of IT and Information Security. Relevant information about security nonconformities, incidents, and events are reported to the working group described below and to the Board of Directors. As discussed above, the Senior Director of IT and Information Security reports to the audit committee and the Board of Directors on cybersecurity matters at least quarterly.

In addition, we have established a working group composed of senior leaders from various departments, including operations, finance, IT, information security, internal audit, and legal. This working group’s responsibilities include (i) ensuring that information security goals and objectives are identified, meet organizational and business requirements, and are integrated into relevant processes, (ii) reviewing the effectiveness of the information security program, (iii) providing clear direction and highly visible management support for security initiatives, (iv) providing resources required for information security projects and initiatives, (v) overseeing programs to maintain information security awareness, including training and team-specific guidance, and (vi) coordinating the information security aspects of supplier relationships.

Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] is responsible for ensuring that both new implementations and ongoing operations comply with the policies, procedures, and guidelines of our information security program.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] is responsible for ensuring that both new implementations and ongoing operations comply with the policies, procedures, and guidelines of our information security program. Our Senior Director of IT and Information Security has been with Paycom for over a decade and has worked in technology development, improvement, infrastructure, and security for over 12 years.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The aforementioned leaders and teams have a breadth of experience and manage programs related to governance, risk, and compliance; data privacy and security; vulnerability management; security operations; and application security.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Organization and Description of Business
12 Months Ended
Dec. 31, 2025
Organization And Description Of Business Abstract  
Organization and Description of Business
1.
ORGANIZATION AND DESCRIPTION OF BUSINESS

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 solution (“HCM”) 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.

v3.25.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Our 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 Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying consolidated financial statements include all adjustments necessary for the fair presentation of our results for the periods presented.

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. The 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 or recalculate exactly 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.

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. We adopted this ASU using a retrospective application approach on December 31, 2025. See Note 13 “Income Taxes” 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.

In the third quarter of 2025, we completed an assessment of the useful lives of our servers and network equipment. Based on this assessment, we increased the estimated useful lives of these assets from three years to six years, effective as of the beginning of the third quarter of 2025. This change in accounting estimate has been applied prospectively and resulted in an immaterial decrease to depreciation and amortization expense for the year ended December 31, 2025.

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 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 CODM 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.

Cash Equivalents

We consider all highly liquid instruments with an original maturity of three months or less and SEC-registered money market mutual funds to be cash equivalents. We maintain cash and cash equivalents in demand deposit accounts and money market funds, which may not be federally insured. The fair value of our cash and cash equivalents approximates carrying value. We have not experienced any losses in such accounts and do not believe there is exposure to any significant credit risk on such accounts.

Accounts Receivable

We generally collect revenues from our clients through an automatic deduction from the clients’ bank accounts at the time payroll processing occurs. Accounts receivable on our consolidated balance sheets generally consists of revenue-related receivables, including processing fees, interest income receivable, and revenue fees related to the last business day of the year, which are collected on the following business day. As accounts receivable are regularly collected via automatic deduction on the following business day, the Company has not recognized an allowance for doubtful accounts.

Property and Equipment

Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

Software and capitalized software development costs

 

3 years

Buildings

 

30 years

Computer equipment

 

3 to 6 years

Rental clocks

 

5 years

Furniture, fixtures and equipment

 

5 years

Land improvements

 

15 years

Leasehold improvements

 

5 years

Vehicles

 

3 years

(1)
During the third quarter of 2025, we completed an assessment of the useful lives of our servers and networking equipment. Based on this assessment, we increased the estimated useful lives of these assets from three years to six years, effective as of the beginning of the third quarter of 2025.

Costs incurred during construction of long-lived assets are recorded as construction in progress and are not depreciated until the asset is placed in service.

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 years ended December 31, 2025, 2024 and 2023, we incurred interest costs of $3.4 million, $3.4 million and $5.3 million, respectively. For the years ended December 31, 2025 and 2024, no interest costs were

capitalized. For the year ended December 31, 2023, interest costs of $3.4 million were capitalized. See Note 6 “Long-Term Debt” for discussion of repayment of our indebtedness.

Leases

Our leases primarily consist of noncancellable operating leases for office space. We recognize a right-of-use asset and operating lease liability on the lease commencement date based on the present value of the lease payments over the lease term. Operating lease liabilities are measured by discounting future lease payments at an estimated incremental borrowing rate. Right-of-use assets are amortized over the lease term and include adjustments related to prepaid rent.

Internal Use Software

Capitalized costs include costs for services associated with developing or obtaining internal use software and certain payroll and payroll-related costs for employees who are directly associated with internal use software projects. The amount of payroll costs that are capitalized with respect to these employees is limited to the time directly spent on such projects. Expenditures for software purchases and software developed or obtained for internal use are capitalized and amortized over a three-year period on a straight-line basis. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. We also expense internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities.

The total capitalized software development costs were $152.9 million, $125.7 million and $96.7 million during the years ended December 31, 2025, 2024 and 2023, respectively, and are included in property and equipment. Amortization expense of capitalized software development costs was $109.0 million, $83.1 million and $61.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Goodwill and Other Intangible Assets

Goodwill is not amortized, but we are required to test the carrying value of goodwill for impairment at least annually, or earlier if, at the reporting unit level, an indicator of impairment arises. Our business is largely homogeneous and, as a result, goodwill is associated with one reporting unit. We have selected June 30 as our annual goodwill impairment testing date. A review of goodwill may be initiated before or after conducting the annual analysis if events or changes in circumstances indicate the carrying value of goodwill may no longer be recoverable. The Company performed a qualitative assessment to determine if it is more-likely-than-not that the fair value of the reporting unit had declined below its carrying value. In the qualitative assessment, we consider macroeconomic conditions, including any deterioration of general economic conditions; industry and market conditions, including any deterioration in the environment where the reporting unit operates; changes in the products/services; regulatory and political developments; cost of doing business; overall financial performance; and other relevant reporting unit specific facts, such as changes in management or key personnel or pending litigation. Based on our assessment, there was no impairment recorded as of June 30, 2025. For the years ended December 31, 2025, 2024 and 2023, there were no indicators of impairment. Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives.

Impairment of Long-Lived Assets

Long-lived assets, including intangible assets with definite lives, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. We have determined that there was no impairment of long-lived assets including intangible assets with definite lives, for the years ended December 31, 2025, 2024 and 2023.

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, which we remit to the appropriate tax agencies and accounts designated by our clients. We typically invest these funds and 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 (including accelerated share repurchases) 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 December 31, 2025, there was $1.11 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 year ended December 31, 2025, we repurchased an aggregate of 1,730,720 shares of our common stock at an average cost of $213.81 per share, including 184,752 shares withheld to satisfy tax withholding obligations for certain individuals upon the vesting of equity incentive awards. During the year ended December 31, 2024, we repurchased an aggregate of 924,493 shares of our common stock at an average cost of $156.29 per share, including 112,288 shares withheld to satisfy tax withholding obligations for certain individuals upon the vesting of equity incentive awards.

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. For a description of our applications, refer to Part I, Item 1, “Business,” of this Form 10-K.

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 years ended December 31, 2025 and 2024 were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

144.6

 

 

$

130.5

 

Recognition of revenue included in beginning of period balance

 

 

(38.3

)

 

 

(21.9

)

Contract balance, net of revenue recognized during the period

 

 

43.9

 

 

 

36.0

 

Balance, end of period

 

$

150.2

 

 

$

144.6

 

We expect to recognize $29.2 million of deferred revenue in 2026, $26.0 million in 2027, and $95.0 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 years ended December 31, 2025 or December 31, 2024.

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

 

 

As of and for the Year Ended December 31, 2025

 

 

 

Beginning
Balance

 

 

Capitalization
of Costs

 

 

Amortization

 

 

Ending
Balance

 

Costs to obtain a contract

 

$

425.7

 

 

$

116.6

 

 

$

(73.2

)

 

$

469.1

 

Costs to fulfill a contract

 

$

498.3

 

 

$

128.3

 

 

$

(78.8

)

 

$

547.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Year Ended December 31, 2024

 

 

 

Beginning
Balance

 

 

Capitalization
of Costs

 

 

Amortization

 

 

Ending
Balance

 

Costs to obtain a contract

 

$

378.5

 

 

$

111.5

 

 

$

(64.3

)

 

$

425.7

 

Costs to fulfill a contract

 

$

420.0

 

 

$

144.0

 

 

$

(65.7

)

 

$

498.3

 

Cost of Revenues

Our costs and expenses applicable to total revenues represent operating expenses and systems support and technology costs, including labor and related expenses, bank fees, shipping fees and costs of paper stock, envelopes, etc. In addition, costs included to derive gross margins are comprised of support labor and related expenses, related hardware costs and applicable depreciation and amortization costs.

Advertising Costs

Advertising costs are expensed the first time that advertising takes place. Advertising costs for the years ended December 31, 2025, 2024 and 2023 were $125.5 million, $86.3 million and $106.8 million, respectively.

Sales Taxes

We collect and remit sales tax on sales of time clocks and on payroll and HCM services in certain states. These taxes are recognized on a net basis, and therefore, excluded from revenues. For the years ended December 31, 2025, 2024 and 2023, sales taxes collected were $21.3 million, $19.3 million and $17.6 million, respectively.

Stock-Based Compensation

Historically, our stock-based compensation programs have included restricted stock awards and RSU awards. We issue stock-based compensation awards with three different types of vesting requirements including awards that vest solely based on condition of service, awards that vest based on achieving certain performance metrics such as revenue or adjusted EBITDA targets, and awards that vest based on achieving certain market conditions such as relative total stockholder return or volume weighted average price targets.

We measure the fair value of awards that vest solely based on condition of service, such as our time-based shares of restricted stock and time-based RSUs, and the fair value of awards that vest based on achieving certain performance metrics by using the closing market price on the date of grant.

We measure the fair value of awards that vest based on achieving certain market conditions, such as relative total stockholder return or volume weighted average price targets, by using a Monte Carlo simulation model.

Stock-based compensation cost is recognized only for those awards expected to meet the requisite service and performance vesting conditions. Stock-based compensation cost is recognized as compensation costs in the consolidated statements of comprehensive income on a straight-line basis over the requisite or derived service period of the award, which is generally the vesting period of the award, with forfeitures recognized as incurred.

For additional information, see Note 11 “Stock-Based Compensation”.

Employee Stock Purchase Plan

An award issued under the Paycom Software, Inc. Employee Stock Purchase Plan (the “ESPP”) is classified as a share-based liability and recognized at the fair value of the award. Expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period.

Income Taxes

Our consolidated financial statements include a provision for income taxes incurred for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized.

We file income tax returns with the United States federal government and various state jurisdictions. We evaluate tax positions taken or expected to be taken in the course of preparing our tax returns and disallow the recognition of tax positions not deemed to meet a “more-likely-than-not” threshold of being sustained by the applicable tax authority. We believe there is one tax position taken within the consolidated financial statements that does not meet this threshold. Our policy is to recognize interest and penalties, if any, related to uncertain tax positions as a component of general and administrative expenses. With few exceptions, we are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2022.

Recently Issued Accounting Pronouncements

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 business 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.

In September 2025, the FASB issued ASU No. 2025-06, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025-06”). ASU 2025-06 removes all references to software development stages and requires capitalization of software costs when management has committed to the software project and it is probable the software will be completed and perform its intended use. This ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those years, 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.

v3.25.4
Property and Equipment
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment
3.
PROPERTY AND EQUIPMENT

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

 

 

December 31, 2025

 

 

December 31, 2024

 

Property and equipment

 

 

 

 

 

 

Software and capitalized software development costs

 

$

667.6

 

 

$

497.2

 

Buildings

 

 

304.4

 

 

 

275.6

 

Computer equipment

 

 

303.7

 

 

 

203.2

 

Rental clocks

 

 

53.1

 

 

 

48.0

 

Furniture, fixtures and equipment

 

 

43.3

 

 

 

41.9

 

Other

 

 

21.0

 

 

 

20.7

 

 

 

1,393.1

 

 

 

1,086.6

 

Less: accumulated depreciation and amortization

 

 

(743.5

)

 

 

(576.4

)

 

 

649.6

 

 

 

510.2

 

Construction in progress

 

 

1.2

 

 

 

14.7

 

Land

 

 

36.5

 

 

 

36.5

 

Property and equipment, net

 

$

687.3

 

 

$

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 years ended December 31, 2025, 2024 and 2023, we capitalized $152.9 million, $125.7 million and $96.7 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 years ended December 31, 2025, 2024 and 2023, we incurred interest costs of $3.4 million, $3.4 million and $5.3 million, respectively. For the years ended December 31, 2025 and 2024, no interest costs were capitalized. For the year ended December 31, 2023, interest costs of $3.4 million were capitalized. See Note 6 “Long-Term Debt” for discussion of repayment of our indebtedness.

Depreciation and amortization expense for property and equipment, net was $167.5 million, $142.0 million and $110.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

v3.25.4
Goodwill and Intangible Assets, Net
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net
4.
GOODWILL AND INTANGIBLE ASSETS, NET

As of both December 31, 2025 and 2024, goodwill totaled $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 December 31, 2025 and 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. 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. 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 remainder of the agreement term on a straight-line basis. 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 remainder of the agreement term.

As a result of the amendment to the naming rights agreement, the Company recognized a $35.6 million gain with respect to the released portion of the liability. The gain is included in other income, net in the consolidated statements of comprehensive income.

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:

 

 

December 31, 2025

 

 

 

Weighted Average Remaining Useful Life

 

Gross

 

 

Accumulated Amortization

 

 

Net

 

 

 

(Years)

 

 

 

 

 

 

 

 

 

Intangibles:

 

 

 

 

 

 

 

 

 

 

 

Naming rights

 

2.8

 

$

60.2

 

 

$

(22.8

)

 

$

37.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Weighted Average Remaining Useful Life

 

Gross

 

 

Accumulated Amortization

 

 

Net

 

 

 

(Years)

 

 

 

 

 

 

 

 

 

Intangibles:

 

 

 

 

 

 

 

 

 

 

 

Naming rights

 

11.8

 

$

60.2

 

 

$

(14.0

)

 

$

46.2

 

 

Amortization of intangible assets for the year ended December 31, 2025, 2024 and 2023 was $8.8 million, $3.9 million and $3.9 million, respectively. We estimate the aggregate amortization expense will be $13.6 million for each of 2026 and 2027 and $10.2 million for 2028.

v3.25.4
Leases
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
5.
LEASES

The Company’s leases primarily consist of noncancellable operating leases for facilities with contractual terms expiring from 2026 to 2032. All of our leases are operating leases. The lease term is defined as the fixed noncancellable term of the lease plus all periods, if any, for which failure to renew the lease imposes a penalty on us in an amount that appears, at the inception of the lease, to be reasonably assured. While some of our leases include an option to extend the lease up to seven years, it is not reasonably certain that any such options will be exercised. Some of our leases contain a termination option that is not reasonably certain to be exercised. If a termination option is exercised, we remeasure the lease asset in the consolidated balance sheets using the updated lease period. None of our leases contain residual value guarantees, substantial restrictions or covenants.

The table below presents the lease assets and liabilities as of December 31, 2025 and December 31, 2024.

Balance Sheet location

 

December 31, 2025

 

 

December 31, 2024

 

Operating lease right-of-use assets

 

$

89.4

 

 

$

80.6

 

Lease liabilities:

 

 

 

 

 

 

Operating lease liabilities

 

$

28.4

 

 

$

20.4

 

Long-term operating lease liabilities

 

$

61.9

 

 

$

63.0

 

Rent expense under operating leases for the years ended December 31, 2025, 2024 and 2023 was $25.2 million, $21.7 million and $18.1 million, respectively. Cash paid for amounts relating to our operating leases was $28.9 million for the year ended December 31, 2025.

Because no implicit discount rates for our leases could be readily determined, we elected to use an estimated incremental borrowing rate to determine the present value of our leases. The weighted average discount rate related to our portfolio of leases at December 31, 2025 was 5.1%. The weighted average remaining lease term for our leases was 3.6 years as of December 31, 2025.

The undiscounted cash flows for the future annual maturities of our operating lease liabilities and the reconciliation of those total undiscounted cash flows to our lease liabilities as of December 31, 2025 were as follows:

2026

 

$

29.6

 

2027

 

 

28.3

 

2028

 

 

20.7

 

2029

 

 

13.1

 

2030

 

 

5.7

 

Thereafter

 

 

3.9

 

Total undiscounted cash flows

 

$

101.3

 

Present value discount

 

 

(11.0

)

Lease liabilities

 

$

90.3

 

There were no new leases that had not yet commenced as of December 31, 2025.

v3.25.4
Long-Term Debt
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-Term Debt
6.
LONG-TERM DEBT

On July 29, 2022 (the “Facility Closing Date”), Paycom Payroll, LLC, Software, and certain other subsidiaries of Software (collectively, the “Loan Parties”) entered into 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 initially provided for a senior secured revolving credit facility (the “Revolving Credit Facility”) in the aggregate principal amount of up to $650.0 million, and the ability to request an incremental facility of up to an additional $500.0 million, subject to obtaining additional lender commitments and approvals and satisfying certain other conditions. The Credit Agreement also initially provided for a senior secured delayed draw term loan (the “Term Loan Facility”) in the aggregate amount of up to $750.0 million. All loans under the Credit Agreement will mature on July 29, 2027 (the “Scheduled

Maturity Date”). Unamortized debt issuance costs of $1.5 million as of December 31, 2025, are included in other assets on our consolidated balance sheets.

On the Facility Closing Date, we borrowed $29.0 million under the Revolving Credit Facility to repay the outstanding indebtedness under our prior credit facility, along with accrued interest, expenses and fees. The loan bore interest at the Adjusted Term SOFR Rate (as defined below) for the interest period in effect plus 1.25%.

On July 28, 2023, the Loan Parties entered into Amendment No. 2 to Credit Agreement with the Lenders, pursuant to which, among other things, (i) the aggregate revolving commitments under the Revolving Credit Facility were increased from $650.0 million to $1.0 billion, (ii) the Term Loan Facility was terminated and (iii) the Credit Agreement was amended in contemplation of the formation and future operating activities of the Client Trust and Paycom National Trust Bank. This amendment did not impact our ability to request an incremental facility of up to an additional $500.0 million as described above. We did not make any draws under the Term Loan Facility prior to its termination on July 28, 2023. At the time of termination, unamortized debt issuance costs totaling $1.2 million were written off and recognized as a loss on extinguishment of debt, which was included in other income, net in the consolidated statements of comprehensive income.

On November 21, 2023, we fully repaid the outstanding indebtedness under the Revolving Credit Facility. As of December 31, 2025, there was no debt outstanding under the Revolving Credit Facility.

Borrowings under the Credit Agreement bear interest at a rate per annum equal to (i) the Alternate Base Rate (“ABR”) plus an applicable margin (“ABR Loans”) or (ii) (x) the term Secured Overnight Financing Rate (“SOFR”) plus 0.10% (the “Adjusted Term SOFR Rate”) or (y) the daily SOFR plus 0.10%, in each case plus an applicable margin (“SOFR Rate Loans”). ABR is calculated as the highest of (i) the rate of interest last quoted by The Wall Street Journal in the United States as the prime rate in effect, (ii) the federal funds rate plus 0.5% and (iii) the Adjusted Term SOFR Rate for a one-month interest period plus 1.00%; provided that, if the ABR as determined pursuant to the foregoing would be less than 1.00%, such rate shall be deemed to be 1.00%. The applicable margin for ABR Loans is (i) 0.25% if the Company’s consolidated leverage ratio is less than 1.0 to 1.0; (ii) 0.50% 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) 0.75% 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) 1.00% if the Company’s consolidated leverage ratio is greater than or equal to 3.0 to 1.0. The applicable margin for SOFR Rate Loans is (i) 1.25% if the Company’s consolidated leverage ratio is less than 1.0 to 1.0; (ii) 1.5% 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) 1.75% 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) 2.00% if the Company’s consolidated leverage ratio is greater than or equal to 3.0 to 1.0. 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 3.0 to 1.0. 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 December 31, 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.

v3.25.4
Corporate Investments and Funds Held for Clients
12 Months Ended
Dec. 31, 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:

 

 

December 31, 2025

 

Type of issue

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

Cash and cash equivalents

 

$

370.0

 

 

$

 

 

$

 

 

$

370.0

 

Funds held for clients cash and cash equivalents

 

 

4,762.5

 

 

 

 

 

 

 

 

 

4,762.5

 

Available-for-sale securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

298.7

 

 

 

0.7

 

 

 

 

 

 

299.4

 

Certificates of deposit

 

 

75.0

 

 

 

0.1

 

 

 

 

 

 

75.1

 

Total investments

 

$

5,506.2

 

 

$

0.8

 

 

$

 

 

$

5,507.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 December 31, 2025, are as follows:

 

 

December 31, 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

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Certificates of deposit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

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 years ended December 31, 2025 or 2024. There were no realized gains or losses on the sale of available-for-sale securities for the years ended December 31, 2025 or 2024.

We regularly review the composition of our investment portfolio and did not recognize any credit impairment losses during the years ended December, 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 December 31, 2025, all of our U.S. treasury securities held a rating of AA+.

Expected maturities of available-for-sale securities at December 31, 2025 are as follows:

Expected maturity

 

Amortized cost

 

 

Fair value

 

One year or less

 

$

331.9

 

 

$

332.2

 

One year to five years

 

 

41.8

 

 

 

42.3

 

Total available-for-sale securities

 

$

373.7

 

 

$

374.5

 

v3.25.4
Fair Value of Financial Instruments
12 Months Ended
Dec. 31, 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 December 31, 2025 and 2024:

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

 

 

$

299.4

 

 

$

 

 

$

299.4

 

Certificates of deposit

 

$

 

 

$

75.1

 

 

$

 

 

$

75.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

 

 

$

24.7

 

 

$

 

 

$

24.7

 

v3.25.4
Employee Savings Plan and Employee Stock Purchase Plan
12 Months Ended
Dec. 31, 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 $20.6 million, $19.1 million and $15.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.

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 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 year ended December 31, 2025, eligible employees purchased 68,984 shares of common stock under the ESPP, consisting of 35,284 purchased in the open market and 33,700 shares issued from treasury stock. During the years ended December 31, 2024 and 2023, eligible employees purchased 87,073 and 72,942 shares, respectively, of common stock under the ESPP, all of which were purchased in the open market. Compensation expense related to the ESPP is recognized on a straight-line basis over the requisite service period.

v3.25.4
Earnings Per Share
12 Months Ended
Dec. 31, 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:

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

453.4

 

 

$

502.0

 

 

$

340.8

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding (in thousands)

 

 

55,765

 

 

 

56,208

 

 

 

57,707

 

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

 

 

351

 

 

 

88

 

 

 

267

 

Diluted weighted average shares outstanding (in thousands)

 

 

56,116

 

 

 

56,296

 

 

 

57,974

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

8.13

 

 

$

8.93

 

 

$

5.91

 

Diluted

 

$

8.08

 

 

$

8.92

 

 

$

5.88

 

v3.25.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
11.
STOCK-BASED COMPENSATION

In May 2023, the stockholders of the Company approved the Paycom Software, Inc. 2023 Long-Term Incentive Plan (the “2023 LTIP”), which provides for the granting of equity-based awards to the Company’s employees, contractors and outside directors. Subject to certain adjustments, the maximum number of shares of common stock that may be delivered pursuant to awards under the 2023 LTIP is 3.6 million.

For the year ended December 31, 2025, the Company recognized non-cash stock-based compensation expense of $118.7 million. For the year ended December 31, 2024, the Company recognized non-cash stock-based compensation expense, inclusive of forfeitures, that totaled a net benefit of $22.9 million. For the year ended December 31, 2023, our total non-cash stock-based compensation expense was $129.8 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:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Non-cash stock-based compensation expense:

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

15.7

 

 

$

13.5

 

 

$

10.6

 

Sales and marketing

 

 

28.8

 

 

 

19.0

 

 

 

23.9

 

Research and development

 

 

34.7

 

 

 

26.3

 

 

 

22.3

 

General and administrative

 

 

39.5

 

 

 

(81.7

)

 

 

73.0

 

Total non-cash stock-based compensation expense

 

$

118.7

 

 

$

(22.9

)

(1)

$

129.8

 

(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 equity incentive awards as of December 31, 2025:

 

 

Restricted Stock
Awards

 

 

Restricted Stock
Units

 

Unrecognized compensation cost

 

$

175.8

 

 

$

11.3

 

Weighted average period for recognition (years)

 

 

2.3

 

 

 

1.1

 

We capitalized stock-based compensation costs related to software developed for internal use of $25.2 million, $17.5 million and $14.7 million for the years ended December 31, 2025, 2024 and 2023, 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 equity incentive awards 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 equity incentive awards (i.e., upon vesting).

Restricted Stock Awards

We have historically issued shares of restricted stock that are subject to either market-based vesting conditions (“Market-Based Restricted Stock Awards”) or time-based or no vesting conditions (“Time-Based Restricted Stock Awards”). The market-based vesting conditions are based on the Company’s total enterprise value or volume weighted average stock price over a specific period exceeding certain specified thresholds.

During the year ended December 31, 2025, we issued an aggregate of 880,267 restricted shares of common stock under the 2023 LTIP, consisting of 188,370 shares underlying Market-Based Restricted Stock Awards and 691,897 shares underlying Time-Based Restricted Stock Awards. Generally, Market-Based Restricted Stock Awards will vest 50% on the first date, if any, that the arithmetic average of the Company’s volume weighted average price on each of the 20 consecutive trading days immediately preceding such date (the “VWAP Value”) equals or exceeds $250 per share and 50% on the first date, if any, that the Company’s VWAP Value equals or exceeds $282 per share, in each case provided that (i) such date occurs on or before the eighth anniversary of the grant date and (ii) the recipient is employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock award agreement. Generally, the Time-Based Restricted Stock Awards will vest over periods ranging from approximately one to four years, provided that the recipient is employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock award agreement.

The Time-Based Restricted Stock Awards mentioned above include an aggregate of 7,693 shares of restricted stock issued to the non-employee members of our Board of Directors in 2025 under the 2023 LTIP. Such shares of restricted stock will cliff-vest on the seventh day following the first anniversary date of the grant, provided that such director is providing services to the Company through the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock award agreement.

The following table presents a summary of the grant date fair values of restricted stock granted during the years ended December 31, 2025, 2024 and 2023 and the related assumptions:

 

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

Grant date fair value of restricted stock

 

$160.82 - $263.93

 

$144.16 - $210.65

 

$167.76 - $337.44

Risk-free interest rate

 

4.17%

 

4.27%

 

3.58%

Estimated volatility

 

40.1%

 

40.1%

 

40.9%

Expected life (in years)

 

2.1

 

2.3

 

2.3

The following table summarizes restricted stock award activity for the year ended December 31, 2025:

 

 

Time-Based
Restricted Stock Awards

 

 

Market-Based
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

 

 

691.9

 

 

$

219.06

 

 

 

188.4

 

 

$

203.34

 

Vested

 

 

(367.9

)

 

$

248.79

 

 

 

(160.0

)

 

$

187.76

 

Forfeited

 

 

(331.0

)

 

$

231.88

 

 

 

(57.7

)

 

$

240.02

 

Unvested shares of restricted stock outstanding at December 31, 2025

 

 

1,133.3

 

 

$

216.76

 

 

 

166.4

 

 

$

253.59

 

The following table presents the aggregate fair value of restricted stock awards that vested during the indicated period:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Time-Based Restricted Stock Awards

 

$

87.3

 

 

$

46.5

 

 

$

43.0

 

Market-Based Restricted Stock Awards

 

$

41.5

 

 

$

19.8

 

 

$

 

Restricted Stock Units

During the year ended December 31, 2025, we issued the following RSU awards to certain of our executive officers and employees, in each case subject to the terms and conditions of the 2023 LTIP and the applicable RSU award agreement: (i) an aggregate of 80,741 time-based RSUs and (ii) an aggregate of 80,238 performance-based RSUs (“PSUs”). Generally, the number of shares deliverable upon the vesting of such PSUs was determined based on the achievement of a pre-established revenue performance goal for the one-year performance period from January 1, 2025 to December 31, 2025. The PSUs were eligible to vest following the performance period, but no later than March 1, 2026, provided that the recipient was employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable RSU award agreement. Generally, the RSUs vest in three equal annual tranches over a period of approximately three years, provided that the recipient is employed by, or providing services to, the Company on the applicable vesting date.

During the year ended December 31, 2025, 23,715 PSUs (consisting of PSUs granted to certain executive officers in 2024) were eligible to vest based on the Company’s performance during a performance period ended December 31, 2024. On February 10, 2025, we issued 23,715 shares of common stock upon the vesting of PSUs. The number of shares delivered upon the vesting of such PSUs was determined based on the Company’s achievement of a revenue performance goal.

The following table presents a summary of the grant date fair values of RSUs and PSUs granted during the years ended December 31, 2025, 2024 and 2023 and the related assumptions:

 

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

Grant date fair value of restricted stock

 

$199.31 - $213.06

 

$158.95 - $199.03

 

$55.83 - $297.55

Risk-free interest rate

 

 

 

4.89%

Estimated volatility

 

 

 

42.5%

Expected life (in years)

 

1.5

 

1.4

 

1.0

The following table summarizes RSU and PSU activity for the year ended December 31, 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

 

 

80.7

 

 

$

212.95

 

 

 

80.2

 

 

$

213.17

 

Vested

 

 

(13.8

)

 

$

208.57

 

 

 

(23.7

)

 

$

181.24

 

Forfeited

 

 

(14.0

)

 

$

209.87

 

 

 

 

 

$

 

Unvested restricted stock units outstanding at December 31, 2025

 

 

76.5

 

 

$

209.86

 

 

 

80.2

 

 

$

213.17

 

The following table presents the aggregate fair value of RSUs and PSUs that vested during the indicated period:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

RSUs

 

$

2.6

 

 

$

0.6

 

 

$

 

PSUs

 

$

4.9

 

 

$

0.9

 

 

$

1.7

 

v3.25.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
12.
COMMITMENTS AND CONTINGENCIES

Employment Agreements

We have employment agreements with certain of our executive officers. The agreements allow for annual compensation, participation in executive benefit plans, and performance-based cash bonuses.

Legal Proceedings

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.

v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
13.
INCOME TAXES

The following table lists the components of the provision for income taxes:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Provision for current income taxes

 

 

 

 

 

 

 

 

 

Federal

 

$

0.8

 

 

$

103.8

 

 

$

94.1

 

State

 

 

11.1

 

 

 

37.4

 

 

 

31.9

 

Total provision for current income taxes

 

 

11.9

 

 

 

141.2

 

 

 

126.0

 

Provision for deferred income taxes

 

 

 

 

 

 

 

 

 

Federal

 

 

118.5

 

 

 

3.9

 

 

 

5.4

 

State

 

 

35.6

 

 

 

1.9

 

 

 

0.2

 

Total provision for deferred income taxes

 

 

154.1

 

 

 

5.8

 

 

 

5.6

 

Total provision for income taxes

 

$

166.0

 

 

$

147.0

 

 

$

131.6

 

The following schedule reconciles the statutory federal tax rate to the effective income tax rate:

 

 

Year ended December 31,

 

 

 

2025

 

 

2024
as adjusted(2)

 

 

2023
as adjusted(2)

 

U.S. federal statutory tax rate

 

$

130.1

 

 

 

21.0

%

 

$

136.3

 

 

 

21.0

%

 

$

99.2

 

 

 

21.0

%

State and local income taxes, net of federal income tax effect(1)

 

 

36.5

 

 

 

5.9

%

 

 

37.3

 

 

 

5.7

%

 

 

27.4

 

 

 

5.8

%

Tax credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research credit, federal benefit

 

 

(9.2

)

 

 

-1.5

%

 

 

(7.9

)

 

 

-1.2

%

 

 

(12.4

)

 

 

-2.6

%

Nontaxable or nondeductible items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

5.3

 

 

 

0.9

%

 

 

(22.1

)

 

 

-3.4

%

 

 

13.6

 

 

 

2.9

%

Other

 

 

2.4

 

 

 

0.4

%

 

 

2.5

 

 

 

0.4

%

 

 

2.1

 

 

 

0.4

%

Changes in unrecognized tax benefits

 

 

(0.3

)

 

 

0.0

%

 

 

 

 

 

0.0

%

 

 

3.8

 

 

 

0.8

%

Other adjustments

 

 

1.3

 

 

 

0.2

%

 

 

0.9

 

 

 

0.1

%

 

 

(2.1

)

 

 

-0.4

%

Effective tax rate

 

$

166.0

 

 

 

26.8

%

 

$

147.0

 

 

 

22.7

%

 

$

131.6

 

 

 

27.9

%

(1)
State taxes in Oklahoma, California, Illinois, and New York and local taxes in New York City made up the majority (greater than 50 percent) of the tax effect in this category.
(2)
Disclosures for 2024 and 2023 were adjusted for retrospective application of ASU 2023-09, as described in Note 2 “Summary of Significant Accounting Policies.”

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities were as follows:

 

 

December 31,

 

 

 

2025

 

 

2024

 

Deferred income tax assets (liabilities):

 

 

 

 

 

 

Mark-to-market investments - OCI

 

$

(0.1

)

 

$

0.2

 

Stock-based compensation

 

 

16.3

 

 

 

18.0

 

Investment in Paycom Payroll Holdings, LLC

 

 

(324.9

)

 

 

(167.9

)

Tax credits

 

 

3.0

 

 

 

 

Net operating losses

 

 

1.3

 

 

 

 

Noncurrent deferred income tax liabilities, net

 

$

(304.4

)

 

$

(149.7

)

At December 31, 2025, we had net operating loss carryforwards for state income tax purposes of $1.3 million, which are available to offset future state taxable income that begin expiring in 2033.

Total net income tax payments, net of refunds, were $78.1 million in 2025, $134.8 million in 2024, and $138.8 million in 2023. The following table lists the components of the payments for income taxes, net of refunds:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Federal

 

$

53.0

 

 

$

99.5

 

 

$

103.0

 

State

 

 

 

 

 

 

 

 

 

California

 

 

5.0

 

 

 

5.5

 

 

 

4.6

 

Oklahoma

 

 

3.2

 

 

 

9.3

 

 

 

5.3

 

Other

 

 

16.9

 

 

 

20.5

 

 

 

25.9

 

Total income tax payments, net of refunds

 

$

78.1

 

 

$

134.8

 

 

$

138.8

 

The following table presents a reconciliation of the total unrecognized tax benefits as of the years ended December 31, 2025, 2024 and 2023.

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Balance at January 1

 

 

 

 

 

 

 

 

 

Tax positions related to current year:

 

$

3.8

 

 

$

3.8

 

 

$

 

Additions

 

 

0.7

 

 

 

0.8

 

 

 

3.8

 

(Reductions)

 

 

(1.0

)

 

 

(0.8

)

 

 

 

Balance at December 31

 

$

3.5

 

 

$

3.8

 

 

$

3.8

 

As of December 31, 2025, 2024 and 2023, there were $3.5 million, $3.8 million and $3.8 million, respectively, of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate.

Where applicable, we classify income tax-related interest and penalties as interest expense and other expense, respectively. During the years ended December 31, 2025, 2024 and 2023, we recorded interest and penalties with regard to uncertain tax positions of $0.0 million, $0.3 million and $0.8 million, respectively.

We recognize tax benefits from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by taxing authorities based on the technical merits of the position. The tax benefits in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized on settlement.

We file income tax returns with the United States federal government and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2022.

v3.25.4
Segment Reporting
12 Months Ended
Dec. 31, 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 payroll application is the foundation of our solution and is based on a core system of record to maintain a single database for all HCM functions. 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 years ended December 31, 2025, 2024 and 2023.

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenues

 

 

 

 

 

 

 

 

 

Recurring

 

$

1,912.7

 

 

$

1,733.9

 

 

$

1,563.4

 

Implementation and other

 

 

26.0

 

 

 

24.4

 

 

 

22.3

 

Interest on funds held for clients

 

 

113.0

 

 

 

124.9

 

 

 

108.0

 

Total revenues

 

 

2,051.7

 

 

 

1,883.2

 

 

 

1,693.7

 

Cost of revenues

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

263.0

 

 

 

267.4

 

 

 

223.7

 

Depreciation and amortization

 

 

82.4

 

 

 

67.2

 

 

 

52.6

 

Total cost of revenues

 

 

345.4

 

 

 

334.6

 

 

 

276.3

 

Gross profit

 

 

1,706.3

 

 

 

1,548.6

 

 

 

1,417.4

 

Administrative expenses

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

482.8

 

 

 

434.4

 

 

 

417.6

 

Research and development

 

 

283.4

 

 

 

242.6

 

 

 

199.0

 

General and administrative

 

 

279.0

 

 

 

158.6

 

 

 

288.1

 

Depreciation and amortization

 

 

93.9

 

 

 

78.7

 

 

 

61.4

 

Total administrative expenses

 

 

1,139.1

 

 

 

914.3

 

 

 

966.1

 

Total operating expenses

 

 

1,484.5

 

 

 

1,248.9

 

 

 

1,242.4

 

Operating income

 

 

567.2

 

 

 

634.3

 

 

 

451.3

 

Interest expense

 

 

(3.4

)

 

 

(3.4

)

 

 

(1.9

)

Other income, net

 

 

55.6

 

 

 

18.1

 

 

 

23.0

 

Income before income taxes

 

 

619.4

 

 

 

649.0

 

 

 

472.4

 

Provision for income taxes

 

 

166.0

 

 

 

147.0

 

 

 

131.6

 

Net income

 

$

453.4

 

 

$

502.0

 

 

$

340.8

 

v3.25.4
Subsequent Events
12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events
15.
SUBSEQUENT EVENTS

Executive RSU and PSU Awards

Effective February 18, 2026, the Compensation Committee of the Board of Directors granted the following awards of PSUs and RSUs to the Company’s executive officers (dollars in millions):

Name

 

Target PSU Value(1)

 

RSU Value

Chad Richison

 

$9.000

 

$9.000

Shane Hadlock

 

$2.625

 

$2.625

Robert D. Foster

 

$2.250

 

$2.250

Jeff York

 

$1.750

 

$1.750

Randy Peck

 

$1.250

 

$1.250

(1)
“Target PSU Value” assumes achievement of the maximum performance level.

The number of PSUs that will vest and be converted into shares of common stock will be based on the achievement of a total revenues performance target. The RSUs will vest in three substantially equal tranches on February 5, 2027, February 5, 2028, and February 5, 2029, provided that the executive officer is employed by, or providing services to, the Company on the applicable vesting date.

v3.25.4
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

Our 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 Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying consolidated financial statements include all adjustments necessary for the fair presentation of our results for the periods presented.

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. The 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 or recalculate exactly 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.

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. We adopted this ASU using a retrospective application approach on December 31, 2025. See Note 13 “Income Taxes” for further information.

Recently Issued Accounting Pronouncements

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 business 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.

In September 2025, the FASB issued ASU No. 2025-06, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025-06”). ASU 2025-06 removes all references to software development stages and requires capitalization of software costs when management has committed to the software project and it is probable the software will be completed and perform its intended use. This ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those years, 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.

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.

In the third quarter of 2025, we completed an assessment of the useful lives of our servers and network equipment. Based on this assessment, we increased the estimated useful lives of these assets from three years to six years, effective as of the beginning of the third quarter of 2025. This change in accounting estimate has been applied prospectively and resulted in an immaterial decrease to depreciation and amortization expense for the year ended December 31, 2025.

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 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 CODM 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.

Cash Equivalents

Cash Equivalents

We consider all highly liquid instruments with an original maturity of three months or less and SEC-registered money market mutual funds to be cash equivalents. We maintain cash and cash equivalents in demand deposit accounts and money market funds, which may not be federally insured. The fair value of our cash and cash equivalents approximates carrying value. We have not experienced any losses in such accounts and do not believe there is exposure to any significant credit risk on such accounts.

Accounts Receivable

Accounts Receivable

We generally collect revenues from our clients through an automatic deduction from the clients’ bank accounts at the time payroll processing occurs. Accounts receivable on our consolidated balance sheets generally consists of revenue-related receivables, including processing fees, interest income receivable, and revenue fees related to the last business day of the year, which are collected on the following business day. As accounts receivable are regularly collected via automatic deduction on the following business day, the Company has not recognized an allowance for doubtful accounts.

Property and Equipment

Property and Equipment

Property and equipment is stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

Software and capitalized software development costs

 

3 years

Buildings

 

30 years

Computer equipment

 

3 to 6 years

Rental clocks

 

5 years

Furniture, fixtures and equipment

 

5 years

Land improvements

 

15 years

Leasehold improvements

 

5 years

Vehicles

 

3 years

(1)
During the third quarter of 2025, we completed an assessment of the useful lives of our servers and networking equipment. Based on this assessment, we increased the estimated useful lives of these assets from three years to six years, effective as of the beginning of the third quarter of 2025.

Costs incurred during construction of long-lived assets are recorded as construction in progress and are not depreciated until the asset is placed in service.

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 years ended December 31, 2025, 2024 and 2023, we incurred interest costs of $3.4 million, $3.4 million and $5.3 million, respectively. For the years ended December 31, 2025 and 2024, no interest costs were

capitalized. For the year ended December 31, 2023, interest costs of $3.4 million were capitalized. See Note 6 “Long-Term Debt” for discussion of repayment of our indebtedness.

Leases

Leases

Our leases primarily consist of noncancellable operating leases for office space. We recognize a right-of-use asset and operating lease liability on the lease commencement date based on the present value of the lease payments over the lease term. Operating lease liabilities are measured by discounting future lease payments at an estimated incremental borrowing rate. Right-of-use assets are amortized over the lease term and include adjustments related to prepaid rent.

Internal Use Software

Internal Use Software

Capitalized costs include costs for services associated with developing or obtaining internal use software and certain payroll and payroll-related costs for employees who are directly associated with internal use software projects. The amount of payroll costs that are capitalized with respect to these employees is limited to the time directly spent on such projects. Expenditures for software purchases and software developed or obtained for internal use are capitalized and amortized over a three-year period on a straight-line basis. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. We also expense internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities.

The total capitalized software development costs were $152.9 million, $125.7 million and $96.7 million during the years ended December 31, 2025, 2024 and 2023, respectively, and are included in property and equipment. Amortization expense of capitalized software development costs was $109.0 million, $83.1 million and $61.9 million for the years ended December 31, 2025, 2024 and 2023, respectively
Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill is not amortized, but we are required to test the carrying value of goodwill for impairment at least annually, or earlier if, at the reporting unit level, an indicator of impairment arises. Our business is largely homogeneous and, as a result, goodwill is associated with one reporting unit. We have selected June 30 as our annual goodwill impairment testing date. A review of goodwill may be initiated before or after conducting the annual analysis if events or changes in circumstances indicate the carrying value of goodwill may no longer be recoverable. The Company performed a qualitative assessment to determine if it is more-likely-than-not that the fair value of the reporting unit had declined below its carrying value. In the qualitative assessment, we consider macroeconomic conditions, including any deterioration of general economic conditions; industry and market conditions, including any deterioration in the environment where the reporting unit operates; changes in the products/services; regulatory and political developments; cost of doing business; overall financial performance; and other relevant reporting unit specific facts, such as changes in management or key personnel or pending litigation. Based on our assessment, there was no impairment recorded as of June 30, 2025. For the years ended December 31, 2025, 2024 and 2023, there were no indicators of impairment. Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Long-lived assets, including intangible assets with definite lives, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. We have determined that there was no impairment of long-lived assets including intangible assets with definite lives, for the years ended December 31, 2025, 2024 and 2023.

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, which we remit to the appropriate tax agencies and accounts designated by our clients. We typically invest these funds and 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 (including accelerated share repurchases) 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 December 31, 2025, there was $1.11 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 year ended December 31, 2025, we repurchased an aggregate of 1,730,720 shares of our common stock at an average cost of $213.81 per share, including 184,752 shares withheld to satisfy tax withholding obligations for certain individuals upon the vesting of equity incentive awards. During the year ended December 31, 2024, we repurchased an aggregate of 924,493 shares of our common stock at an average cost of $156.29 per share, including 112,288 shares withheld to satisfy tax withholding obligations for certain individuals upon the vesting of equity incentive awards.

Revenue Recognition

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. For a description of our applications, refer to Part I, Item 1, “Business,” of this Form 10-K.

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 years ended December 31, 2025 and 2024 were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

144.6

 

 

$

130.5

 

Recognition of revenue included in beginning of period balance

 

 

(38.3

)

 

 

(21.9

)

Contract balance, net of revenue recognized during the period

 

 

43.9

 

 

 

36.0

 

Balance, end of period

 

$

150.2

 

 

$

144.6

 

We expect to recognize $29.2 million of deferred revenue in 2026, $26.0 million in 2027, and $95.0 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 years ended December 31, 2025 or December 31, 2024.

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

 

 

As of and for the Year Ended December 31, 2025

 

 

 

Beginning
Balance

 

 

Capitalization
of Costs

 

 

Amortization

 

 

Ending
Balance

 

Costs to obtain a contract

 

$

425.7

 

 

$

116.6

 

 

$

(73.2

)

 

$

469.1

 

Costs to fulfill a contract

 

$

498.3

 

 

$

128.3

 

 

$

(78.8

)

 

$

547.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Year Ended December 31, 2024

 

 

 

Beginning
Balance

 

 

Capitalization
of Costs

 

 

Amortization

 

 

Ending
Balance

 

Costs to obtain a contract

 

$

378.5

 

 

$

111.5

 

 

$

(64.3

)

 

$

425.7

 

Costs to fulfill a contract

 

$

420.0

 

 

$

144.0

 

 

$

(65.7

)

 

$

498.3

 

Cost of Revenues

Cost of Revenues

Our costs and expenses applicable to total revenues represent operating expenses and systems support and technology costs, including labor and related expenses, bank fees, shipping fees and costs of paper stock, envelopes, etc. In addition, costs included to derive gross margins are comprised of support labor and related expenses, related hardware costs and applicable depreciation and amortization costs.

Advertising Costs

Advertising Costs

Advertising costs are expensed the first time that advertising takes place. Advertising costs for the years ended December 31, 2025, 2024 and 2023 were $125.5 million, $86.3 million and $106.8 million, respectively.

Sales Taxes

Sales Taxes

We collect and remit sales tax on sales of time clocks and on payroll and HCM services in certain states. These taxes are recognized on a net basis, and therefore, excluded from revenues. For the years ended December 31, 2025, 2024 and 2023, sales taxes collected were $21.3 million, $19.3 million and $17.6 million, respectively.

Stock-Based Compensation

Stock-Based Compensation

Historically, our stock-based compensation programs have included restricted stock awards and RSU awards. We issue stock-based compensation awards with three different types of vesting requirements including awards that vest solely based on condition of service, awards that vest based on achieving certain performance metrics such as revenue or adjusted EBITDA targets, and awards that vest based on achieving certain market conditions such as relative total stockholder return or volume weighted average price targets.

We measure the fair value of awards that vest solely based on condition of service, such as our time-based shares of restricted stock and time-based RSUs, and the fair value of awards that vest based on achieving certain performance metrics by using the closing market price on the date of grant.

We measure the fair value of awards that vest based on achieving certain market conditions, such as relative total stockholder return or volume weighted average price targets, by using a Monte Carlo simulation model.

Stock-based compensation cost is recognized only for those awards expected to meet the requisite service and performance vesting conditions. Stock-based compensation cost is recognized as compensation costs in the consolidated statements of comprehensive income on a straight-line basis over the requisite or derived service period of the award, which is generally the vesting period of the award, with forfeitures recognized as incurred.

For additional information, see Note 11 “Stock-Based Compensation”.

Employee Stock Purchase Plan

Employee Stock Purchase Plan

An award issued under the Paycom Software, Inc. Employee Stock Purchase Plan (the “ESPP”) is classified as a share-based liability and recognized at the fair value of the award. Expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period.

Income Taxes

Income Taxes

Our consolidated financial statements include a provision for income taxes incurred for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized.

We file income tax returns with the United States federal government and various state jurisdictions. We evaluate tax positions taken or expected to be taken in the course of preparing our tax returns and disallow the recognition of tax positions not deemed to meet a “more-likely-than-not” threshold of being sustained by the applicable tax authority. We believe there is one tax position taken within the consolidated financial statements that does not meet this threshold. Our policy is to recognize interest and penalties, if any, related to uncertain tax positions as a component of general and administrative expenses. With few exceptions, we are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2022.

v3.25.4
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Estimated Useful Lives Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

Software and capitalized software development costs

 

3 years

Buildings

 

30 years

Computer equipment

 

3 to 6 years

Rental clocks

 

5 years

Furniture, fixtures and equipment

 

5 years

Land improvements

 

15 years

Leasehold improvements

 

5 years

Vehicles

 

3 years

(1)
During the third quarter of 2025, we completed an assessment of the useful lives of our servers and networking equipment. Based on this assessment, we increased the estimated useful lives of these assets from three years to six years, effective as of the beginning of the third quarter of 2025.
Summary of Changes in Deferred Revenue

Changes in deferred revenue for the years ended December 31, 2025 and 2024 were as follows:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

144.6

 

 

$

130.5

 

Recognition of revenue included in beginning of period balance

 

 

(38.3

)

 

 

(21.9

)

Contract balance, net of revenue recognized during the period

 

 

43.9

 

 

 

36.0

 

Balance, end of period

 

$

150.2

 

 

$

144.6

 

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 Year Ended December 31, 2025

 

 

 

Beginning
Balance

 

 

Capitalization
of Costs

 

 

Amortization

 

 

Ending
Balance

 

Costs to obtain a contract

 

$

425.7

 

 

$

116.6

 

 

$

(73.2

)

 

$

469.1

 

Costs to fulfill a contract

 

$

498.3

 

 

$

128.3

 

 

$

(78.8

)

 

$

547.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Year Ended December 31, 2024

 

 

 

Beginning
Balance

 

 

Capitalization
of Costs

 

 

Amortization

 

 

Ending
Balance

 

Costs to obtain a contract

 

$

378.5

 

 

$

111.5

 

 

$

(64.3

)

 

$

425.7

 

Costs to fulfill a contract

 

$

420.0

 

 

$

144.0

 

 

$

(65.7

)

 

$

498.3

 

v3.25.4
Property and Equipment (Tables)
12 Months Ended
Dec. 31, 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:

 

 

December 31, 2025

 

 

December 31, 2024

 

Property and equipment

 

 

 

 

 

 

Software and capitalized software development costs

 

$

667.6

 

 

$

497.2

 

Buildings

 

 

304.4

 

 

 

275.6

 

Computer equipment

 

 

303.7

 

 

 

203.2

 

Rental clocks

 

 

53.1

 

 

 

48.0

 

Furniture, fixtures and equipment

 

 

43.3

 

 

 

41.9

 

Other

 

 

21.0

 

 

 

20.7

 

 

 

1,393.1

 

 

 

1,086.6

 

Less: accumulated depreciation and amortization

 

 

(743.5

)

 

 

(576.4

)

 

 

649.6

 

 

 

510.2

 

Construction in progress

 

 

1.2

 

 

 

14.7

 

Land

 

 

36.5

 

 

 

36.5

 

Property and equipment, net

 

$

687.3

 

 

$

561.4

 

 

v3.25.4
Goodwill and Intangible Assets, Net (Tables)
12 Months Ended
Dec. 31, 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:

 

 

December 31, 2025

 

 

 

Weighted Average Remaining Useful Life

 

Gross

 

 

Accumulated Amortization

 

 

Net

 

 

 

(Years)

 

 

 

 

 

 

 

 

 

Intangibles:

 

 

 

 

 

 

 

 

 

 

 

Naming rights

 

2.8

 

$

60.2

 

 

$

(22.8

)

 

$

37.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Weighted Average Remaining Useful Life

 

Gross

 

 

Accumulated Amortization

 

 

Net

 

 

 

(Years)

 

 

 

 

 

 

 

 

 

Intangibles:

 

 

 

 

 

 

 

 

 

 

 

Naming rights

 

11.8

 

$

60.2

 

 

$

(14.0

)

 

$

46.2

 

 

v3.25.4
Leases (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Summary of Lease Assets and Liabilities

The table below presents the lease assets and liabilities as of December 31, 2025 and December 31, 2024.

Balance Sheet location

 

December 31, 2025

 

 

December 31, 2024

 

Operating lease right-of-use assets

 

$

89.4

 

 

$

80.6

 

Lease liabilities:

 

 

 

 

 

 

Operating lease liabilities

 

$

28.4

 

 

$

20.4

 

Long-term operating lease liabilities

 

$

61.9

 

 

$

63.0

 

Schedule of Undiscounted Cash Flows for Future Annual Maturities of Operating Lease Liabilities

The undiscounted cash flows for the future annual maturities of our operating lease liabilities and the reconciliation of those total undiscounted cash flows to our lease liabilities as of December 31, 2025 were as follows:

2026

 

$

29.6

 

2027

 

 

28.3

 

2028

 

 

20.7

 

2029

 

 

13.1

 

2030

 

 

5.7

 

Thereafter

 

 

3.9

 

Total undiscounted cash flows

 

$

101.3

 

Present value discount

 

 

(11.0

)

Lease liabilities

 

$

90.3

 

v3.25.4
Corporate Investments and Funds Held For Clients (Tables)
12 Months Ended
Dec. 31, 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:

 

 

December 31, 2025

 

Type of issue

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

Cash and cash equivalents

 

$

370.0

 

 

$

 

 

$

 

 

$

370.0

 

Funds held for clients cash and cash equivalents

 

 

4,762.5

 

 

 

 

 

 

 

 

 

4,762.5

 

Available-for-sale securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

298.7

 

 

 

0.7

 

 

 

 

 

 

299.4

 

Certificates of deposit

 

 

75.0

 

 

 

0.1

 

 

 

 

 

 

75.1

 

Total investments

 

$

5,506.2

 

 

$

0.8

 

 

$

 

 

$

5,507.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 December 31, 2025, are as follows:

 

 

December 31, 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

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Certificates of deposit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

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 December 31, 2025 are as follows:

Expected maturity

 

Amortized cost

 

 

Fair value

 

One year or less

 

$

331.9

 

 

$

332.2

 

One year to five years

 

 

41.8

 

 

 

42.3

 

Total available-for-sale securities

 

$

373.7

 

 

$

374.5

 

v3.25.4
Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 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 December 31, 2025 and 2024:

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

 

 

$

299.4

 

 

$

 

 

$

299.4

 

Certificates of deposit

 

$

 

 

$

75.1

 

 

$

 

 

$

75.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

 

 

$

24.7

 

 

$

 

 

$

24.7

 

v3.25.4
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 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:

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

453.4

 

 

$

502.0

 

 

$

340.8

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding (in thousands)

 

 

55,765

 

 

 

56,208

 

 

 

57,707

 

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

 

 

351

 

 

 

88

 

 

 

267

 

Diluted weighted average shares outstanding (in thousands)

 

 

56,116

 

 

 

56,296

 

 

 

57,974

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

8.13

 

 

$

8.93

 

 

$

5.91

 

Diluted

 

$

8.08

 

 

$

8.92

 

 

$

5.88

 

v3.25.4
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2025
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:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Non-cash stock-based compensation expense:

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

15.7

 

 

$

13.5

 

 

$

10.6

 

Sales and marketing

 

 

28.8

 

 

 

19.0

 

 

 

23.9

 

Research and development

 

 

34.7

 

 

 

26.3

 

 

 

22.3

 

General and administrative

 

 

39.5

 

 

 

(81.7

)

 

 

73.0

 

Total non-cash stock-based compensation expense

 

$

118.7

 

 

$

(22.9

)

(1)

$

129.8

 

(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 equity incentive awards as of December 31, 2025:

 

 

Restricted Stock
Awards

 

 

Restricted Stock
Units

 

Unrecognized compensation cost

 

$

175.8

 

 

$

11.3

 

Weighted average period for recognition (years)

 

 

2.3

 

 

 

1.1

 

Summary of Grant-Date Fair Values of Restricted Stock / RSUs and PSUs Granted and Related Assumptions

The following table presents a summary of the grant date fair values of restricted stock granted during the years ended December 31, 2025, 2024 and 2023 and the related assumptions:

 

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

Grant date fair value of restricted stock

 

$160.82 - $263.93

 

$144.16 - $210.65

 

$167.76 - $337.44

Risk-free interest rate

 

4.17%

 

4.27%

 

3.58%

Estimated volatility

 

40.1%

 

40.1%

 

40.9%

Expected life (in years)

 

2.1

 

2.3

 

2.3

The following table presents a summary of the grant date fair values of RSUs and PSUs granted during the years ended December 31, 2025, 2024 and 2023 and the related assumptions:

 

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

Grant date fair value of restricted stock

 

$199.31 - $213.06

 

$158.95 - $199.03

 

$55.83 - $297.55

Risk-free interest rate

 

 

 

4.89%

Estimated volatility

 

 

 

42.5%

Expected life (in years)

 

1.5

 

1.4

 

1.0

Summary of Restricted Stock Unit and PSU Activity

The following table summarizes restricted stock award activity for the year ended December 31, 2025:

 

 

Time-Based
Restricted Stock Awards

 

 

Market-Based
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

 

 

691.9

 

 

$

219.06

 

 

 

188.4

 

 

$

203.34

 

Vested

 

 

(367.9

)

 

$

248.79

 

 

 

(160.0

)

 

$

187.76

 

Forfeited

 

 

(331.0

)

 

$

231.88

 

 

 

(57.7

)

 

$

240.02

 

Unvested shares of restricted stock outstanding at December 31, 2025

 

 

1,133.3

 

 

$

216.76

 

 

 

166.4

 

 

$

253.59

 

The following table summarizes RSU and PSU activity for the year ended December 31, 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

 

 

80.7

 

 

$

212.95

 

 

 

80.2

 

 

$

213.17

 

Vested

 

 

(13.8

)

 

$

208.57

 

 

 

(23.7

)

 

$

181.24

 

Forfeited

 

 

(14.0

)

 

$

209.87

 

 

 

 

 

$

 

Unvested restricted stock units outstanding at December 31, 2025

 

 

76.5

 

 

$

209.86

 

 

 

80.2

 

 

$

213.17

 

Summary of Aggregate Fair Value of Restricted Stock Awards, RSUs and PSUs

The following table presents the aggregate fair value of restricted stock awards that vested during the indicated period:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Time-Based Restricted Stock Awards

 

$

87.3

 

 

$

46.5

 

 

$

43.0

 

Market-Based Restricted Stock Awards

 

$

41.5

 

 

$

19.8

 

 

$

 

The following table presents the aggregate fair value of RSUs and PSUs that vested during the indicated period:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

RSUs

 

$

2.6

 

 

$

0.6

 

 

$

 

PSUs

 

$

4.9

 

 

$

0.9

 

 

$

1.7

 

v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense

The following table lists the components of the provision for income taxes:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Provision for current income taxes

 

 

 

 

 

 

 

 

 

Federal

 

$

0.8

 

 

$

103.8

 

 

$

94.1

 

State

 

 

11.1

 

 

 

37.4

 

 

 

31.9

 

Total provision for current income taxes

 

 

11.9

 

 

 

141.2

 

 

 

126.0

 

Provision for deferred income taxes

 

 

 

 

 

 

 

 

 

Federal

 

 

118.5

 

 

 

3.9

 

 

 

5.4

 

State

 

 

35.6

 

 

 

1.9

 

 

 

0.2

 

Total provision for deferred income taxes

 

 

154.1

 

 

 

5.8

 

 

 

5.6

 

Total provision for income taxes

 

$

166.0

 

 

$

147.0

 

 

$

131.6

 

Income Tax Rate Reconciliation

The following schedule reconciles the statutory federal tax rate to the effective income tax rate:

 

 

Year ended December 31,

 

 

 

2025

 

 

2024
as adjusted(2)

 

 

2023
as adjusted(2)

 

U.S. federal statutory tax rate

 

$

130.1

 

 

 

21.0

%

 

$

136.3

 

 

 

21.0

%

 

$

99.2

 

 

 

21.0

%

State and local income taxes, net of federal income tax effect(1)

 

 

36.5

 

 

 

5.9

%

 

 

37.3

 

 

 

5.7

%

 

 

27.4

 

 

 

5.8

%

Tax credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research credit, federal benefit

 

 

(9.2

)

 

 

-1.5

%

 

 

(7.9

)

 

 

-1.2

%

 

 

(12.4

)

 

 

-2.6

%

Nontaxable or nondeductible items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

5.3

 

 

 

0.9

%

 

 

(22.1

)

 

 

-3.4

%

 

 

13.6

 

 

 

2.9

%

Other

 

 

2.4

 

 

 

0.4

%

 

 

2.5

 

 

 

0.4

%

 

 

2.1

 

 

 

0.4

%

Changes in unrecognized tax benefits

 

 

(0.3

)

 

 

0.0

%

 

 

 

 

 

0.0

%

 

 

3.8

 

 

 

0.8

%

Other adjustments

 

 

1.3

 

 

 

0.2

%

 

 

0.9

 

 

 

0.1

%

 

 

(2.1

)

 

 

-0.4

%

Effective tax rate

 

$

166.0

 

 

 

26.8

%

 

$

147.0

 

 

 

22.7

%

 

$

131.6

 

 

 

27.9

%

(1)
State taxes in Oklahoma, California, Illinois, and New York and local taxes in New York City made up the majority (greater than 50 percent) of the tax effect in this category.
(2)
Disclosures for 2024 and 2023 were adjusted for retrospective application of ASU 2023-09, as described in Note 2 “Summary of Significant Accounting Policies.”
Schedule of Net Deferred Tax Assets and Liabilities The significant components of our deferred tax assets and liabilities were as follows:

 

 

December 31,

 

 

 

2025

 

 

2024

 

Deferred income tax assets (liabilities):

 

 

 

 

 

 

Mark-to-market investments - OCI

 

$

(0.1

)

 

$

0.2

 

Stock-based compensation

 

 

16.3

 

 

 

18.0

 

Investment in Paycom Payroll Holdings, LLC

 

 

(324.9

)

 

 

(167.9

)

Tax credits

 

 

3.0

 

 

 

 

Net operating losses

 

 

1.3

 

 

 

 

Noncurrent deferred income tax liabilities, net

 

$

(304.4

)

 

$

(149.7

)

Schedule of Components of Payments for Income Taxes The following table lists the components of the payments for income taxes, net of refunds:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Federal

 

$

53.0

 

 

$

99.5

 

 

$

103.0

 

State

 

 

 

 

 

 

 

 

 

California

 

 

5.0

 

 

 

5.5

 

 

 

4.6

 

Oklahoma

 

 

3.2

 

 

 

9.3

 

 

 

5.3

 

Other

 

 

16.9

 

 

 

20.5

 

 

 

25.9

 

Total income tax payments, net of refunds

 

$

78.1

 

 

$

134.8

 

 

$

138.8

 

Summary of Reconciliation of the Total unrecognized Tax Benefits

The following table presents a reconciliation of the total unrecognized tax benefits as of the years ended December 31, 2025, 2024 and 2023.

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Balance at January 1

 

 

 

 

 

 

 

 

 

Tax positions related to current year:

 

$

3.8

 

 

$

3.8

 

 

$

 

Additions

 

 

0.7

 

 

 

0.8

 

 

 

3.8

 

(Reductions)

 

 

(1.0

)

 

 

(0.8

)

 

 

 

Balance at December 31

 

$

3.5

 

 

$

3.8

 

 

$

3.8

 

v3.25.4
Segment Reporting (Tables)
12 Months Ended
Dec. 31, 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 years ended December 31, 2025, 2024 and 2023.

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenues

 

 

 

 

 

 

 

 

 

Recurring

 

$

1,912.7

 

 

$

1,733.9

 

 

$

1,563.4

 

Implementation and other

 

 

26.0

 

 

 

24.4

 

 

 

22.3

 

Interest on funds held for clients

 

 

113.0

 

 

 

124.9

 

 

 

108.0

 

Total revenues

 

 

2,051.7

 

 

 

1,883.2

 

 

 

1,693.7

 

Cost of revenues

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

263.0

 

 

 

267.4

 

 

 

223.7

 

Depreciation and amortization

 

 

82.4

 

 

 

67.2

 

 

 

52.6

 

Total cost of revenues

 

 

345.4

 

 

 

334.6

 

 

 

276.3

 

Gross profit

 

 

1,706.3

 

 

 

1,548.6

 

 

 

1,417.4

 

Administrative expenses

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

482.8

 

 

 

434.4

 

 

 

417.6

 

Research and development

 

 

283.4

 

 

 

242.6

 

 

 

199.0

 

General and administrative

 

 

279.0

 

 

 

158.6

 

 

 

288.1

 

Depreciation and amortization

 

 

93.9

 

 

 

78.7

 

 

 

61.4

 

Total administrative expenses

 

 

1,139.1

 

 

 

914.3

 

 

 

966.1

 

Total operating expenses

 

 

1,484.5

 

 

 

1,248.9

 

 

 

1,242.4

 

Operating income

 

 

567.2

 

 

 

634.3

 

 

 

451.3

 

Interest expense

 

 

(3.4

)

 

 

(3.4

)

 

 

(1.9

)

Other income, net

 

 

55.6

 

 

 

18.1

 

 

 

23.0

 

Income before income taxes

 

 

619.4

 

 

 

649.0

 

 

 

472.4

 

Provision for income taxes

 

 

166.0

 

 

 

147.0

 

 

 

131.6

 

Net income

 

$

453.4

 

 

$

502.0

 

 

$

340.8

 

v3.25.4
Subsequent Events (Tables)
12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Summary of Grant of Awards of PSUs and RSUs to Executive Officers

Effective February 18, 2026, the Compensation Committee of the Board of Directors granted the following awards of PSUs and RSUs to the Company’s executive officers (dollars in millions):

Name

 

Target PSU Value(1)

 

RSU Value

Chad Richison

 

$9.000

 

$9.000

Shane Hadlock

 

$2.625

 

$2.625

Robert D. Foster

 

$2.250

 

$2.250

Jeff York

 

$1.750

 

$1.750

Randy Peck

 

$1.250

 

$1.250

(1)
“Target PSU Value” assumes achievement of the maximum performance level.
v3.25.4
Summary of Significant Accounting Policies - Additional Information (Detail)
12 Months Ended
Jun. 30, 2025
USD ($)
Dec. 31, 2025
USD ($)
Segment
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Jul. 31, 2024
USD ($)
Summary Of Significant Accounting Policy [Line Items]          
Number of operating segments | Segment   1      
Number of reportable segments | Segment   1      
Interest costs incurred   $ 3,400,000 $ 3,400,000 $ 5,300,000  
Interest costs capitalized   0 0 3,400,000  
Computer software development costs capitalized   152,900,000 125,700,000 96,700,000  
Amortization expense of capitalized software costs   109,000,000 83,100,000 61,900,000  
Goodwill impairment amount $ 0 0      
Impairment of intangible assets with definite lives   0 0 0  
Impairment of long-lived assets   0 0 0  
Advertising costs   125,500,000 86,300,000 106,800,000  
Sales taxes   21,300,000 $ 19,300,000 $ 17,600,000  
Stock Repurchase Plan [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Available authorized repurchase amount   $ 1,110,000,000      
Stock repurchase plan expiration date   Aug. 15, 2026      
Shares withheld to satisfy tax withholding obligations | shares   1,730,720 924,493    
Stock repurchased, average costs per share | $ / shares   $ 213.81 $ 156.29    
Stock Repurchase Plan [Member] | Certain Individuals [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Shares withheld to satisfy tax withholding obligations | shares   184,752 112,288    
Maximum [Member] | Stock Repurchase Plan [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Stock repurchase plan, authorized amount         $ 1,500,000,000
Internal use Software [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Capitalized and amortized period   3 years      
v3.25.4
Summary of Significant Accounting Policies - Estimated Useful Lives (Detail)
Dec. 31, 2025
Software and Capitalized Software Costs [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 3 years
Buildings [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 30 years
Computer Equipment [Member] | Minimum [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 3 years
Computer Equipment [Member] | Maximum [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 6 years
Rental Clocks [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 5 years
Furniture, Fixtures and Equipment [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 5 years
Land Improvements [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 15 years
Leasehold Improvements [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 5 years
Vehicles [Member]  
Property and Equipment [Line Items]  
Property and equipment useful life 3 years
v3.25.4
Summary of Significant Accounting Policies - Estimated Useful Lives (Parenthetical) (Details)
Jul. 01, 2025
Jun. 30, 2025
Servers and Networking Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment useful life 6 years 3 years
v3.25.4
Summary of Significant Accounting Policies - Summary of Changes in Deferred Revenue (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Balance, beginning of period $ 144.6 $ 130.5
Recognition of revenue included in beginning of period balance (38.3) (21.9)
Contract balance, net of revenue recognized during the period 43.9 36.0
Balance, end of period $ 150.2 $ 144.6
v3.25.4
Summary of Significant Accounting Policies - Additional Information (Detail1)
$ in Millions
Dec. 31, 2025
USD ($)
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 $ 29.2
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 $ 26.0
Deferred revenue expect to recognize period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Deferred revenue expect to recognize amount $ 95.0
Deferred revenue expect to recognize period 1 year
v3.25.4
Summary of Significant Accounting Policies - Summary of Asset Balances and Related Amortization Expense For Contract Costs (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Costs to Obtain a Contract [Member]    
Capitalized Contract Cost [Line Items]    
Beginning Balance $ 425.7 $ 378.5
Capitalization of Costs 116.6 111.5
Amortization (73.2) (64.3)
Ending Balance 469.1 425.7
Costs to Fulfill a Contract [Member]    
Capitalized Contract Cost [Line Items]    
Beginning Balance 498.3 420.0
Capitalization of Costs 128.3 144.0
Amortization (78.8) (65.7)
Ending Balance $ 547.8 $ 498.3
v3.25.4
Property and Equipment - Schedule of Property and Equipment and Accumulated Depreciation and Amortization (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property and Equipment [Line Items]    
Property and equipment, gross $ 1,393.1 $ 1,086.6
Less: accumulated depreciation and amortization (743.5) (576.4)
Software And Capitalized Software Development Costs [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 667.6 497.2
Buildings [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 304.4 275.6
Computer Equipment [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 303.7 203.2
Rental Clocks [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 53.1 48.0
Furniture, Fixtures and Equipment [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 43.3 41.9
Other [Member]    
Property and Equipment [Line Items]    
Property and equipment, gross 21.0 20.7
Property and Equipment, net, Excluding Land and Construction in Progress [Member]    
Property and Equipment [Line Items]    
Property and equipment, net 649.6 510.2
Construction in Progress [Member]    
Property and Equipment [Line Items]    
Property and equipment, net 1.2 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 $ 687.3 $ 561.4
v3.25.4
Property and Equipment - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property and Equipment [Line Items]      
Software development costs capitalized $ 152,900,000 $ 125,700,000 $ 96,700,000
Interest costs incurred 3,400,000 3,400,000 5,300,000
Interest costs capitalized 0 0 3,400,000
Depreciation and amortization 93,900,000 78,700,000 61,400,000
Property and Equipment [Member]      
Property and Equipment [Line Items]      
Depreciation and amortization $ 167,500,000 $ 142,000,000 $ 110,000,000
v3.25.4
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($)
12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Line Items]        
Goodwill   $ 51,900,000 $ 51,900,000  
Goodwill impairment amount $ 0 0    
Amortization of intangible assets   8,800,000 3,900,000 $ 3,900,000
Estimated remaining amortization expense in 2026   13,600,000    
Estimated remaining amortization expense in 2027   13,600,000    
Estimated remaining amortization expense in 2028   10,200,000    
Naming Rights [Member]        
Goodwill and Intangible Assets Disclosure [Line Items]        
Gain on modification of liability   35,600,000    
Goodwill [Member]        
Goodwill and Intangible Assets Disclosure [Line Items]        
Goodwill   $ 51,900,000 $ 51,900,000  
v3.25.4
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets (Detail) - Naming Rights [Member] - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finite Lived Intangible Assets [Line Items]    
Gross $ 60.2 $ 60.2
Accumulated Amortization (22.8) (14.0)
Net $ 37.4 $ 46.2
Weighted average remaining useful life 2 years 9 months 18 days 11 years 9 months 18 days
v3.25.4
Leases - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lessee Lease Description [Line Items]      
Operating lease rent expense $ 25.2 $ 21.7 $ 18.1
Cash paid for operating leases $ 28.9    
Weighted average discount rate of operating leases 5.10%    
Average remaining operating lease term 3 years 7 months 6 days    
Operating lease liabilities, leases not yet commenced, description There were no new leases that had not yet commenced as of December 31, 2025.    
Operating lease liabilities, leases not yet commenced $ 0.0    
Minimum [Member]      
Lessee Lease Description [Line Items]      
Operating lease expiration year Dec. 31, 2026    
Maximum [Member]      
Lessee Lease Description [Line Items]      
Operating lease expiration year Dec. 31, 2032    
Operating lease option to extend seven    
v3.25.4
Leases - Summary of Lease Assets and Liabilities (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Lessee Lease Description [Line Items]    
Operating lease right-of-use assets $ 89.4 $ 80.6
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Operating lease right-of-use assets Operating lease right-of-use assets
Lease liabilities:    
Lease liabilities $ 90.3  
Operating Lease Liabilities [Member]    
Lease liabilities:    
Lease liabilities 28.4 $ 20.4
Long-term Operating Lease Liabilities [Member]    
Lease liabilities:    
Lease liabilities $ 61.9 $ 63.0
v3.25.4
Leases - Schedule of Undiscounted Cash Flows for Future Annual Maturities of Operating Lease Liabilities (Detail)
$ in Millions
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 29.6
2027 28.3
2028 20.7
2029 13.1
2030 5.7
Thereafter 3.9
Total undiscounted cash flows 101.3
Present value discount (11.0)
Operating Lease, Liability, Total $ 90.3
v3.25.4
Long-Term Debt - Additional Information (Detail) - USD ($)
12 Months Ended
Jul. 28, 2023
Jul. 29, 2022
Dec. 31, 2025
Term Loan Facility [Member]      
Debt Instrument [Line Items]      
Number of draws made no    
Revolving Credit Facility [Member]      
Debt Instrument [Line Items]      
Debt outstanding     $ 0
Revolving Credit Facility [Member] | Maximum [Member] | Amendment No. 2 [Member]      
Debt Instrument [Line Items]      
Line of credit facility, maximum borrowing capacity $ 1,000,000,000    
Revolving Credit Agreement [Member]      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate   1.25%  
Unamortized debt issuance costs written off 1,200,000    
Additional credit facility capacity, subject to certain conditions 500,000,000 $ 500,000,000  
Line of credit   29,000,000  
Unamortized debt issuance cost     $ 1,500,000
Line of credit facility, maximum borrowing capacity   650,000,000  
Line of credit facility, maturity date     Jul. 29, 2027
Line of credit facility, borrowings outstanding   $ 29,000,000  
Revolving Credit Agreement [Member] | Minimum [Member] | Amendment No. 2 [Member]      
Debt Instrument [Line Items]      
Line of credit facility, maximum borrowing capacity $ 650,000,000    
Revolving Credit Agreement [Member] | Lenders [Member]      
Debt Instrument [Line Items]      
Line of credit facility agreement date   Jul. 29, 2022  
Revolving Credit Agreement [Member] | 2022 Term Loan Facility [Member]      
Debt Instrument [Line Items]      
Line of credit facility, maximum borrowing capacity   $ 750,000,000  
Revolving Credit Agreement [Member] | Term Loan Facility [Member]      
Debt Instrument [Line Items]      
Line of credit facility, maturity date Jul. 28, 2023    
Revolving Credit Agreement [Member] | Federal Funds Rate Plus [Member]      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate     0.50%
Revolving Credit Agreement [Member] | S O F R Plus [Member]      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate     0.10%
Revolving Credit Agreement [Member] | S O F R Plus One Month Interest Period [Member]      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate     1.00%
Leverage Ratio Is Less Than 1.0 To 1.0 [Member] | July 2022 Revolving Credit Agreement [Member] | S O F R Plus [Member]      
Debt Instrument [Line Items]      
Borrowings basis spread on variable rate     1.25%
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 Less Than 1.0 To 1.0 [Member] | Revolving Credit Agreement [Member] | A B R Loans [Member]      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate     0.25%
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 One Point Zero To One Point Zero But Less Than Two Point Zero To One Point Zero [Member] | Revolving Credit Agreement [Member] | S O F R Plus [Member]      
Debt Instrument [Line Items]      
Borrowings basis spread on variable rate     1.50%
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] | A B R Loans [Member]      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate     0.50%
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 Two Pont Zero To One Point Zero But Less Than Three Point Zero To One Point Zero [Member] | Revolving Credit Agreement [Member] | S O F R Plus [Member]      
Debt Instrument [Line Items]      
Borrowings basis spread on variable rate   1.75%  
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] | A B R Loans [Member]      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate     0.75%
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%
Leverage Ratio Is Greater Than Or Equal To Three Point Zero To One Point Zero [Member] | Revolving Credit Agreement [Member] | S O F R Plus [Member]      
Debt Instrument [Line Items]      
Borrowings basis spread on variable rate     2.00%
Leverage Ratio Is Greater Than Or Equal To Three Point Zero To One Point Zero [Member] | Revolving Credit Agreement [Member] | A B R Loans [Member]      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate     1.00%
v3.25.4
Corporate Investments and Funds Held For Clients - Cash and Cash Equivalents and Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Corporate Investments and Funds Held for Clients [Line Items]      
Cash and cash equivalents, amortized cost $ 370.0 $ 402.0  
Funds held for clients cash and cash equivalents, amortized cost 4,762.5 3,640.8  
Total investments, amortized cost 5,506.2 4,067.7  
Gross unrealized losses   (0.2)  
Cash and cash equivalents, fair value 370.0 402.0 $ 294.0
Funds held for clients cash and cash equivalents, fair value 4,762.5 3,640.8  
Total investments, fair value 5,507.0 4,067.5  
U.S. Treasury Securities [Member]      
Corporate Investments and Funds Held for Clients [Line Items]      
Gross unrealized gain 0.8    
Available-for-sale Securities [Member] | U.S. Treasury Securities [Member]      
Corporate Investments and Funds Held for Clients [Line Items]      
Amortized cost [1] 298.7 24.9  
Gross unrealized gain [1] 0.7    
Gross unrealized losses [1]   (0.2)  
Fair value [1] 299.4 $ 24.7  
Available-for-sale Securities [Member] | Certificates of Deposit [Member]      
Corporate Investments and Funds Held for Clients [Line Items]      
Amortized cost [1] 75.0    
Gross unrealized gain [1] 0.1    
Fair value [1] $ 75.1    
[1] All available-for-sale securities were included within the funds held for clients.
v3.25.4
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]
$ in Millions
Dec. 31, 2024
USD ($)
Corporate Investments And Funds Held For Clients [Line Items]  
Securities in unrealized loss position for less than 12 months, Gross unrealized losses $ (0.2)
Securities in unrealized loss position for less than 12 months, Fair value 24.7
Gross unrealized losses (0.2)
Fair value 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 (0.2)
Securities in unrealized loss position for less than 12 months, Fair value 24.7
Gross unrealized losses (0.2)
Fair value $ 24.7
v3.25.4
Corporate Investments and Funds Held For Clients - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]    
Debt securities, Available-for-sale, Realized Gain (Loss) $ 0 $ 0
Investment credit impairment losses $ 0 $ 0
v3.25.4
Corporate Investments and Funds Held For Clients - Summary of Expected Maturities of Available for Sale Securities (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract]  
Amortized cost, One year or less $ 331.9
Amortized cost, One year to five years 41.8
Amortized cost 373.7
Fair value, One year or less 332.2
Fair value, One year to five years 42.3
Fair value $ 374.5
v3.25.4
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] - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Certificates of Deposit [Member]    
Assets:    
Assets $ 75.1  
U.S. Treasury Securities [Member]    
Assets:    
Assets 299.4 $ 24.7
Level 2 [Member] | Certificates of Deposit [Member]    
Assets:    
Assets 75.1  
Level 2 [Member] | U.S. Treasury Securities [Member]    
Assets:    
Assets $ 299.4 $ 24.7
v3.25.4
Employee Savings Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
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 $ 20,600,000 $ 19,100,000 $ 15,900,000
Employee stock purchase plan overlapping offering period 24 months    
Purchase of shares of common stock 35,284    
Purchase of shares of treasury stock 33,700,000,000    
Compensation expense related to ESPP $ 118,700,000 $ (22,900,000) [1] $ 129,800,000
ESPP [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Employees Company's common stock shares purchase limit percentage 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 68,984 87,073 72,942
After Two Years Of Employment [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Matching contributions, vesting percentage 100.00%    
Treasury Stock [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Purchase of shares of treasury stock 33,700    
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%    
[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, $117.5 million of previously recognized compensation costs that were recorded in reporting periods prior to 2024 were reversed to additional paid-in capital in the consolidated balance sheets and to general and administrative expenses in the consolidated statements of comprehensive income.
v3.25.4
Earnings Per Share - Computation of Basic and Diluted Net Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net income $ 453.4 $ 502.0 $ 340.8
Denominator:      
Basic weighted average shares outstanding 55,765 56,208 57,707
Diluted weighted average shares outstanding 56,116 56,296 57,974
Earnings per share:      
Earnings per share, basic $ 8.13 $ 8.93 $ 5.91
Earnings per share, diluted $ 8.08 $ 8.92 $ 5.88
Restricted Stock Units [Member]      
Denominator:      
Dilutive effect of unvested restricted stock and restricted stock units 351 88 267
v3.25.4
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Feb. 10, 2025
Nov. 23, 2020
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
May 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Capitalized compensation cost     $ 25.2 $ 17.5 $ 14.7  
Compensation expense related to ESPP     118.7 (22.9) [1] 129.8  
Software and Capitalized Software Costs [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Capitalized compensation cost     $ 25.2 17.5 14.7  
2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Maximum number of shares authorized           3,600,000
Time-based Restricted Stock Units [Member] | Executive Officers and Employees [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Maximum number of shares authorized     80,741      
Restricted Stock [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Restricted shares of common stock issued     880,267      
Restricted Stock [Member] | Non-Employee Members [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Restricted shares of common stock issued     7,693      
Restricted Stock [Member] | Market-Based Shares [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Restricted shares of common stock issued     188,370      
Restricted Stock [Member] | Time-Based Shares [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Restricted shares of common stock issued     691,897      
Restricted Stock [Member] | Time-Based Shares [Member] | Minimum [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period     1 year      
Restricted Stock [Member] | Time-Based Shares [Member] | Maximum [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period     4 years      
Restricted Stock [Member] | Time-Based Shares [Member] | Non-Employee Members [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Share-based compensation arrangement by share-based payment award, award vesting rights     Such shares of restricted stock will cliff-vest on the seventh day following the first anniversary date of the grant, provided that such director is providing services to the Company through the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock award agreement.      
Restricted Stock [Member] | VWAP Value Equals or Exceeds $222 Per Share [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
VWAP Share Price     $ 250      
Vesting percentage, restricted shares     50.00%      
Restricted Stock [Member] | VWAP Value Equals or Exceeds $251 Per Share [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
VWAP Share Price     $ 282      
Vesting percentage, restricted shares     50.00%      
Performance-Based Restricted Stock Units [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Number of units vested     23,700      
Restricted shares of common stock issued     80,200      
Shares eligible to vest based on performance     23,715      
Performance-Based Restricted Stock Units [Member] | Executive Officers [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Number of units vested 23,715          
Performance-Based Restricted Stock Units [Member] | Executive Officers and Employees [Member] | 2023 Long-Term Incentive Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Maximum number of shares authorized     80,238      
Market-Based Restricted Stock Awards [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Number of units vested     160,000      
Restricted shares of common stock issued   1,610,000 188,400      
Compensation expense related to ESPP   $ 117.5        
Restricted shares of common stock forfeitured     57,700      
Restricted Stock Awards and PSU Awards [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Capitalized compensation cost     $ 118.7 $ 22.9    
Restricted Stock Units and PSU Units [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]            
Compensation expense related to ESPP         $ 129.8  
[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.
v3.25.4
Stock-Based Compensation - Summary of Grant-Date Fair Values of Restricted Stock / RSUs and PSUs Granted and Related Assumptions (Detail) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restricted Stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Risk-free interest rate 4.17% 4.27% 3.58%
Estimated volatility 40.10% 40.10% 40.90%
Expected life (in years) 2 years 1 month 6 days 2 years 3 months 18 days 2 years 3 months 18 days
Restricted Stock [Member] | Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Grant-date fair value $ 160.82 $ 144.16 $ 167.76
Restricted Stock [Member] | Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Grant-date fair value $ 263.93 $ 210.65 $ 337.44
Restricted Stock Units (RSUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Risk-free interest rate     4.89%
Estimated volatility     42.50%
Expected life (in years) 1 year 6 months 1 year 4 months 24 days 1 year
Restricted Stock Units (RSUs) [Member] | Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Grant-date fair value $ 199.31 $ 158.95 $ 55.83
Restricted Stock Units (RSUs) [Member] | Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Grant-date fair value $ 213.06 $ 199.03 $ 297.55
v3.25.4
Stock-Based Compensation - Summary of Restricted Stock Unit and PSU Activity (Detail) - $ / shares
12 Months Ended
Nov. 23, 2020
Dec. 31, 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   691,900
Restricted Stock Awards and restricted stock units, Vested   (367,900)
Restricted Stock Awards and restricted stock units, Forfeited   (331,000)
Unvested shares of restricted stock and restricted stock units outstanding at end of period   1,133,300
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   219.06
Vested, Weighted Average Grant Date Fair Value Per Share   248.79
Forfeited, Weighted Average Grant Date Fair Value Per Share   231.88
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period   $ 216.76
Time-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   23,600
Restricted Stock Awards and restricted stock units, Granted   80,700
Restricted Stock Awards and restricted stock units, Vested   (13,800)
Restricted Stock Awards and restricted stock units, Forfeited   (14,000)
Unvested shares of restricted stock and restricted stock units outstanding at end of period   76,500
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   212.95
Vested, Weighted Average Grant Date Fair Value Per Share   208.57
Forfeited, Weighted Average Grant Date Fair Value Per Share   209.87
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period   $ 209.86
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   (160,000)
Restricted Stock Awards and restricted stock units, Forfeited   (57,700)
Unvested shares of restricted stock and restricted stock units outstanding at end of period   166,400
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   203.34
Vested, Weighted Average Grant Date Fair Value Per Share   187.76
Forfeited, Weighted Average Grant Date Fair Value Per Share   240.02
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period   $ 253.59
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   80,200
Restricted Stock Awards and restricted stock units, Vested   (23,700)
Unvested shares of restricted stock and restricted stock units outstanding at end of period   80,200
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   213.17
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   $ 213.17
v3.25.4
Stock-Based Compensation - Summary of Restricted Stock Unit and PSU Activity (Parenthetical) (Detail) - USD ($)
$ in Millions
12 Months Ended
Nov. 23, 2020
Dec. 31, 2025
Dec. 31, 2024
[1]
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Allocated share based compensation expense   $ 118.7 $ (22.9) $ 129.8
Performance-Based Restricted Stock Units [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Restricted shares of common stock issued   80,200    
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      
[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, $117.5 million of previously recognized compensation costs that were recorded in reporting periods prior to 2024 were reversed to additional paid-in capital in the consolidated balance sheets and to general and administrative expenses in the consolidated statements of comprehensive income.
v3.25.4
Stock-Based Compensation - Summary of Aggregate Fair Value of Restricted Stock Awards, RSUs and PSUs (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Time-Based Restricted Stock Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Aggregate fair value of awards $ 87,300,000 $ 46,500,000 $ 43,000,000
Market-Based Restricted Stock Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Aggregate fair value of awards 41,500,000 19,800  
Restricted Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Aggregate fair value of awards 2,600,000 600,000  
Performance-Based Restricted Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Aggregate fair value of awards $ 4,900,000 $ 900,000 $ 1,700,000
v3.25.4
Stock-based Compensation - Summary of Non-cash Stock-based Compensation Expense (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Non-cash stock-based compensation expense $ 118.7 $ (22.9) [1] $ 129.8
Operating Expenses [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Non-cash stock-based compensation expense 15.7 13.5 10.6
Sales and Marketing Expense [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Non-cash stock-based compensation expense 28.8 19.0 23.9
Research and Development Expense [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Non-cash stock-based compensation expense 34.7 26.3 22.3
General and Administrative Expense [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Non-cash stock-based compensation expense $ 39.5 $ (81.7) $ 73.0
[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, $117.5 million of previously recognized compensation costs that were recorded in reporting periods prior to 2024 were reversed to additional paid-in capital in the consolidated balance sheets and to general and administrative expenses in the consolidated statements of comprehensive income.
v3.25.4
Stock-based Compensation - Summary of Non-cash Stock-based Compensation Expense (Parenthetical) (Details) - USD ($)
$ in Millions
12 Months Ended
Nov. 23, 2020
Dec. 31, 2025
Dec. 31, 2024
[1]
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Allocated share based compensation expense   $ 118.7 $ (22.9) $ 129.8
Market-Based Restricted Stock Awards [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Restricted shares of common stock issued 1,610,000 188,400    
Allocated share based compensation expense $ 117.5      
[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.
v3.25.4
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
12 Months Ended
Dec. 31, 2025
USD ($)
Restricted Stock Awards [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]  
Unrecognized compensation cost $ 175.8
Weighted average period for recognition (years) 2 years 3 months 18 days
Restricted Stock Units (RSUs) [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]  
Unrecognized compensation cost $ 11.3
Weighted average period for recognition (years) 1 year 1 month 6 days
v3.25.4
Income Taxes - Components of Income Tax Expense (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Provision for current income taxes      
Federal $ 0.8 $ 103.8 $ 94.1
State 11.1 37.4 31.9
Total provision for current income taxes 11.9 141.2 126.0
Provision for deferred income taxes      
Federal 118.5 3.9 5.4
State 35.6 1.9 0.2
Total provision for deferred income taxes 154.1 5.8 5.6
Total provision for income taxes $ 166.0 $ 147.0 [1] $ 131.6 [1]
[1] Disclosures for 2024 and 2023 were adjusted for retrospective application of ASU 2023-09, as described in Note 2 “Summary of Significant Accounting Policies.”
v3.25.4
Income Taxes - Income Tax Rate Reconciliation (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
[1]
Dec. 31, 2023
[1]
Income Tax Disclosure [Abstract]      
U.S. federal statutory tax rate $ 130.1 $ 136.3 $ 99.2
U.S. federal statutory tax rate, percentage 21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect [2] $ 36.5 $ 37.3 $ 27.4
State and local income taxes, net of federal income tax effect, percentage [2] 5.90% 5.70% 5.80%
Tax credits      
Research credit, federal benefit $ (9.2) $ (7.9) $ (12.4)
Research credit, federal benefit, percentage (1.50%) (1.20%) (2.60%)
Nontaxable or nondeductible items      
Stock-based compensation $ 5.3 $ (22.1) $ 13.6
Other $ 2.4 $ 2.5 $ 2.1
Share-based payment awards, percentage 0.90% (3.40%) 2.90%
Other, percentage 0.40% 0.40% 0.40%
Changes in unrecognized tax benefits $ (0.3) $ 0.0 $ 3.8
Changes in unrecognized tax benefits, percentage 0.00% 0.00% 0.80%
Other adjustments $ 1.3 $ 0.9 $ (2.1)
Other adjustments, percentage 0.20% 0.10% (0.40%)
Total provision for income taxes $ 166.0 $ 147.0 $ 131.6
Effective tax rate, percentage 26.80% 22.70% 27.90%
[1] Disclosures for 2024 and 2023 were adjusted for retrospective application of ASU 2023-09, as described in Note 2 “Summary of Significant Accounting Policies.”
[2] State taxes in Oklahoma, California, Illinois, and New York and local taxes in New York City made up the majority (greater than 50 percent) of the tax effect in this category.
v3.25.4
Income Taxes - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax [Line Items]      
Effective income tax rate 26.80% 22.70% [1] 27.90% [1]
Unrecognized tax benefits $ 3,500,000 $ 3,800,000 $ 3,800,000
Income tax payments, net of refunds 78,100,000 134,800,000 138,800,000
Unrecognized tax benefits interest and penalities expense 0 $ 300,000 $ 800,000
State Income Tax [Member]      
Income Tax [Line Items]      
Net operating loss carryforwards for state income tax $ 1,300,000    
[1] Disclosures for 2024 and 2023 were adjusted for retrospective application of ASU 2023-09, as described in Note 2 “Summary of Significant Accounting Policies.”
v3.25.4
Income Taxes - Schedule of Net Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred income tax assets (liabilities):    
Mark-to-market investments - OCI $ (0.1) $ 0.2
Stock-based compensation 16.3 18.0
Investment in Paycom Payroll Holdings, LLC (324.9) (167.9)
Tax credits 3.0  
Net operating losses 1.3  
Noncurrent deferred income tax liabilities, net $ (304.4) $ (149.7)
v3.25.4
Income Taxes - Schedule of Components of Payments for Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax [Line Items]      
Income tax payments, net of refunds $ 78.1 $ 134.8 $ 138.8
Federal [Member]      
Income Tax [Line Items]      
Income tax payments, net of refunds 53.0 99.5 103.0
State [Member] | Oklahoma [Member]      
Income Tax [Line Items]      
Income tax payments, net of refunds 3.2 9.3 5.3
State [Member] | California [Member]      
Income Tax [Line Items]      
Income tax payments, net of refunds 5.0 5.5 4.6
State [Member] | Other [Member]      
Income Tax [Line Items]      
Income tax payments, net of refunds $ 16.9 $ 20.5 $ 25.9
v3.25.4
Income Taxes - Summary of Reconciliation of the Total unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Uncertainties [Abstract]      
Beginning balance $ 3.8 $ 3.8  
Tax positions related to current year: 3.8 3.8  
Additions 0.7 0.8 $ 3.8
(Reductions) (1.0) (0.8)  
Ending balance $ 3.5 $ 3.8 $ 3.8
v3.25.4
Segment Reporting - Additional Information (Detail)
12 Months Ended
Dec. 31, 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.
v3.25.4
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
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues      
Total revenues $ 2,051.7 $ 1,883.2 $ 1,693.7
Cost of revenues      
Operating expenses 263.0 267.4 223.7
Depreciation and amortization 82.4 67.2 52.6
Total cost of revenues 345.4 334.6 276.3
Gross profit 1,706.3 1,548.6 1,417.4
Administrative expenses      
Sales and marketing 482.8 434.4 417.6
Research and development 283.4 242.6 199.0
General and administrative 279.0 158.6 288.1
Depreciation and amortization 93.9 78.7 61.4
Total administrative expenses 1,139.1 914.3 966.1
Total operating expenses 1,484.5 1,248.9 1,242.4
Operating income 567.2 634.3 451.3
Interest expense (3.4) (3.4) (1.9)
Other income, net 55.6 18.1 23.0
Income before income taxes 619.4 649.0 472.4
Provision for income taxes 166.0 147.0 [1] 131.6 [1]
Net income 453.4 502.0 340.8
Recurring [Member]      
Revenues      
Total revenues 1,912.7 1,733.9 1,563.4
Implementation and Other [Member]      
Revenues      
Total revenues 26.0 24.4 22.3
Interest on Funds Held for Clients [Member]      
Revenues      
Total revenues $ 113.0 $ 124.9 $ 108.0
[1] Disclosures for 2024 and 2023 were adjusted for retrospective application of ASU 2023-09, as described in Note 2 “Summary of Significant Accounting Policies.”
v3.25.4
Subsequent Events - Summary of Grant of Awards of PSUs and RSUs to Executive Officers (Detail) - Subsequent Event [Member]
$ in Thousands
Feb. 18, 2026
USD ($)
Chad Richison [Member]  
Subsequent Event [Line Items]  
Target PSU Value $ 9,000 [1]
RSU Value 9,000
Shane Hadlock [Member]  
Subsequent Event [Line Items]  
Target PSU Value 2,625 [1]
RSU Value 2,625
Robert Foster [Member]  
Subsequent Event [Line Items]  
Target PSU Value 2,250 [1]
RSU Value 2,250
Jeff York [Member]  
Subsequent Event [Line Items]  
Target PSU Value 1,750 [1]
RSU Value 1,750
Randy Peck [Member]  
Subsequent Event [Line Items]  
Target PSU Value 1,250 [1]
RSU Value $ 1,250
[1] “Target PSU Value” assumes achievement of the maximum performance level.
v3.25.4
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member]
Feb. 18, 2026
PSU Awards [Member]  
Subsequent Event [Line Items]  
Share-based compensation arrangement by share-based payment award, award vesting rights The number of PSUs that will vest and be converted into shares of common stock will be based on the achievement of a total revenues performance target.
Restricted Stock Units [Member]  
Subsequent Event [Line Items]  
Share-based compensation arrangement by share-based payment award, award vesting rights The RSUs will vest in three substantially equal tranches on February 5, 2027, February 5, 2028, and February 5, 2029, provided that the executive officer is employed by, or providing services to, the Company on the applicable vesting date.