Total revenue for the third quarter of 2025 reached $493.3 million, a 9.1% year‑over‑year increase. The growth was largely driven by a 10.6% rise in recurring and other revenue, which climbed to $466.5 million, reflecting strong demand for Paycom’s automation‑focused human‑capital‑management platform. Segment data show that revenue from the Implementation and Other segment fell to $26.8 million from $30.1 million a year earlier, indicating a shift toward higher‑margin recurring services.
GAAP net income was $110.7 million, or $1.96 per diluted share. This figure includes a one‑time, tax‑adjusted gain of $26 million ($0.47 per share) from a naming‑rights agreement modification. Non‑GAAP net income was $110 million, or $1.94 per diluted share. Both GAAP and non‑GAAP earnings per share missed consensus estimates by a narrow margin—$0.02 for GAAP EPS and $0.01–$0.02 for non‑GAAP EPS—primarily because the one‑time gain and a modest decline in internal support volumes offset the gains from recurring revenue growth.
Adjusted EBITDA rose to $194.3 million, a margin of 39.4% versus 37.9% in the prior year, an improvement of 150 basis points. The margin expansion is attributed to automation efficiencies and a workforce reduction of roughly 500 employees, which lowered internal support costs. Compared with Q3 2024, where adjusted EBITDA was $171.3 million, the company achieved a 13% year‑over‑year increase, underscoring the effectiveness of its cost‑control initiatives.
Full‑year guidance was maintained unchanged: total revenue is projected at $2.045 billion to $2.055 billion, and adjusted EBITDA at $872 million to $882 million. Management reiterated confidence in sustained demand and margin expansion, citing the successful rollout of its AI‑powered product “IWant” and continued automation of core processes. The unchanged guidance signals that executives expect the current growth trajectory to persist through the remainder of 2025.
CEO Chad Richison highlighted double‑digit recurring revenue growth and expanding margins, emphasizing the impact of the “IWant” platform. CFO Robert Foster noted that profitability continued to improve despite an 11% decline in interest on client funds, and that adjusted EBITDA grew 13% year‑over‑year. These comments reinforce the company’s focus on delivering high‑margin, automation‑driven solutions while managing costs.
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