Slide 1: Paycom Software, Inc. Reports Second Quarter 2026 Results
1 NEWS RELEASE Paycom Software, Inc. Reports Second Quarter 2026 Results 2026-08-05 Second Quarter Total Revenues of $531 million, up 10% year-over-year Second Quarter GAAP Net Income of $107 million, representing 20% of total revenues, or $2.34 per diluted share Second Quarter Non-GAAP Net Income o
Slide 2: Financial Highlights for the Second Quarter of 2026
2 GAAP Net Income was $107.4 million, or $2.34 per diluted share, compared to GAAP net income of $89.5 million, or $1.58 per diluted share, in the same period last year. Non-GAAP Net Income1 was $127.7 million, or $2.78 per diluted share, compared to $116.6 million, or $2.06 per diluted share, in th
Slide 3: Use of Non-GAAP Financial Information
3 adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margin to net income margin, the forward-looking non-GAAP e ective income tax rate to the GAAP e ective income tax rate, and the forward-looking free cash ow margin to operating cash ow margin are not available at this time
Slide 4: Conference Call Details About Paycom Financial Presentation
4 similar non-GAAP nancial measures to supplement results under GAAP. In addition, adjusted EBITDA is a measure that provides useful information to management about the amount of cash available for reinvestment in our business, paying dividends, repurchasing common stock and other purposes. Manageme
Slide 5: Forward-Looking Statements
5 recalculate exactly due to rounding. All percentages have been calculated using unrounded amounts. Forward-Looking Statements Certain statements in this press release are, and certain statements on the related teleconference call may be, forward-looking statements within the meaning of the Private
Slide 6: Unaudited Consolidated Balance Sheets
6 Paycom Software, Inc. Unaudited Consolidated Balance Sheets (in millions, except per share amounts) December 31, June 30, 2026 2025 Assets Current assets: Cash and cash equivalents $ 198.0 $ 370.0 Accounts receivable 53.5 44.9 Prepaid expenses 53.6 47.5 Inventory 1.7 1.7 Income tax receivable 3.4
Slide 7: Unaudited Consolidated Statements of Comprehensive Income
7 Administrative expenses Sales and marketing 118.8 116.0 236.4 226.9 Research and development 51.9 74.8 112.6 137.1 General and administrative 77.3 70.2 146.6 135.9 Depreciation and amortization 25.6 22.8 52.3 44.5 Total administrative expenses 273.6 283.8 547.9 544.4 Total operating expenses 362.7
Slide 8: Unaudited Consolidated Statements of Cash Flows
8 Proceeds from employee stock purchase plan 4.4 — Net change in client funds obligation (2,131.2) (2,048.8) Net cash used in nancing activities (2,676.7) (2,129.5) Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents (2,303.6) (2,389.7) Cash, cash equivalents, restric
Slide 9: Earnings per share to non-GAAP net income per share
9 Earnings per share, basic $ 2.34 $ 1.59 $ 5.43 $ 4.08 Earnings per share, diluted $ 2.34 $ 1.58 $ 5.43 $ 4.06 Non-GAAP net income per share, basic $ 2.79 $ 2.08 $ 5.97 $ 4.89 Non-GAAP net income per share, diluted $ 2.78 $ 2.06 $ 5.96 $ 4.87 Three Months Ended June 30, Six Months Ended June 30, 20
Slide 10: Adjusted total administrative expenses and adjusted research and development expenses
10 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Adjusted total administrative expenses: Total administrative expenses $ 273.6 $ 283.8 $ 547.9 $ 544.4 Less: Non-cash stock-based compensation expense (15.6) (32.2) (27.5) (51.2) Adjusted total administrative expenses $ 258.
Slide 11: Free cash flow and free cash flow margin
11 Free cash ow and free cash ow margin: Net cash provided by operating activities $ 427.6 $ 305.0 Purchases of property and equipment (54.9) (99.4) Free cash ow $ 372.7 $ 205.6 Operating cash ow margin 38.8% 30.1% Free cash ow margin 33.8% 20.3% Paycom Software, Inc. Unaudited Components of Non-Cas