PAYCPaycom Software, Inc.

Services-Prepackaged Software

Revenue: $2.1B; 8.9% YoY
Operating margin: 27.6%; 18% YoY
EBITDA: $744M; 4.7% YoY
Market cap: $11.7B
Employees: 1,000; $2M revenue each
Net debt / EBITDA: -0.2×; −$169M net debt
AI in 10-K: 11.7; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
150% of net income
Cash flow under 80% of net income
Dilutive SBCNo
6% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
60% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
1% of assets
Over 40% of assets
Shareholder dissentYes
61% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$2M · 92nd pct
Bottom quartile of its SIC industry
Quiet on AINo
11.7 per 10K words · 94th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 0.2× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$11.7B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$2M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$1.1B	$1.4B	$1.7B	$1.9B	$2.1B	8.9%
Operating income	$254M	$379M	$451M	$634M	$567M	11%
Net income	$196M	$281M	$341M	$502M	$453M	9.7%
Operating cash flow	$319M	$365M	$485M	$534M	$679M	27%
Capex	$121M	$133M	$193M	$193M	$271M	40%
Stock-based comp	$98M	$95M	$130M	−$23M	$119M	618%
Buybacks	—	$95M	$287M	$123M	$326M	165%
Dividends	—	—	$65M	$85M	$85M	0.0%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Sep 3, 2026	Richison Chad R.	SCHEDULE 13D/A	19.3%	Passive
Dec 17, 2025	Richison Chad R.	SCHEDULE 13D/A	15.2%	Passive
Jun 16, 2025	Richison Chad R.	SCHEDULE 13D/A	15.7%	Passive
Dec 13, 2024	Richison Chad R.	SC 13D/A	5.9%	Passive
Feb 20, 2024	Richison Chad R.	SC 13D/A	18.2%	Passive
Feb 9, 2024	Richison Chad R.	SC 13D/A	6.3%	Passive
Aug 11, 2023	Richison Chad R.	SC 13D/A	19.9%	Passive
Nov 18, 2022	Richison Chad R.	SC 13D/A	6.1%	Passive
Feb 15, 2022	Richison Chad R.	SC 13D/A	20.1%	Passive
Nov 23, 2020	Richison Chad R.	SC 13D/A	6.1%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $2M · 8
Net: −$2M

Pay vs performance

No pay-versus-performance disclosure yet.