Slide 1: Investor Presentation
Investor Presentation December 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain written statements in this presentation may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation
Slide 3: Paychex – The Digitally Driven HR Leader
THE PA YCHEX S TOR Y Paychex – The Digitally Driven HR Leader 1 2 3 4 Leader Innovative Predictable Sustainable in attractive technology leader and powerful growth driven by markets and trusted advisor – business model multiple proven a key differentiator levers 3
Slide 4: Leader in Human Capital Management (HCM) Solutions
PA YC HEX AT-A-GL ANCE Leader in Human Capital Management (HCM) Solutions Award-winning HCM technology + HR Advisory Solutions to Help Businesses Succeed Durable Recurring Revenue Model Consistent EPS Growth Best Operating Margins in Industry PEO & Insurance 11% 43% Adjusted Operating Adjusted Dilut
Slide 5: Leading Provider Across HCM Solutions
Leading Provider Across HCM Solutions Payroll & HCM HR Outsourcing1 Software Retirement Insurance • #1 HR Outsourcer2 • Top 2 in both small and • A leading 401(k) • A top insurance mid-market 3 recordkeeper in the agency in the U.S. • ~2.5M ASO and PEO U.S.4 worksite employees • $1.1T+ financial • >
Slide 6: Leader in Large and Growing HCM Market
Leader in Large and Growing HCM Market Market Size – Employees1 (U.S. Private Sector Employees) Employees $100B+ 136M Market Opportunity (U.S.) PAYX Target Market 1-5,000 Employees Mid-Single Digit Market Growth (U.S.) 86M Paychex 13M 15% (Share of U.S. Target Market Employees) 1 Source: U.S. Census
Slide 7: Secular Trends Play to Our Strengths
Secular Trends Play to Our Strengths Market Trends Paychex Advantage Technology Innovation and Adoption Seamless, all-in-one HCM solutions Leader in AI-powered, Digital self-service solutions data-driven HCM solutions and AI and advanced analytics trusted advisor Complexity in Employer-Employee Rela
Slide 8: Well-Positioned in Fast Growing Market Segments
A C LO S E R LO O K Well-Positioned in Fast Growing Market Segments HCM Technology HR Outsourcing • Integration of AI and machine learning to • Increasing demand for assistance navigating automate tasks and personalize experiences a complex regulatory and HR environment • Increasing focus on workfor
Slide 9: What Differentiates Paychex
What Differentiates Paychex Innovative Digital Solutions Powerful Data Analytics Deep HR Expertise Empowering businesses Empowering businesses to make Navigating a complex environment through our digital technology data-driven decisions with the help of seasoned HR Comprehensive suite of HCM solutio
Slide 10: Paychex – The Digitally Driven HR Leader
THE PA YCHEX S TOR Y Paychex – The Digitally Driven HR Leader 1 2 3 4 Leader Innovative Predictable Sustainable in attractive technology leader and powerful growth driven by markets and trusted advisor – business model multiple proven a key differentiator levers 10
Slide 11: Award-winning HR Technology & Expert-Enabled Advisory Solutions
Award-winning HR Technology & Expert-Enabled Advisory Solutions Comprehensive HCM Solutions force Managem + Advisory Solutions Driving Higher Lifetime Value rk Wo en yroll Pa Ret t d ir Lifetime Value of Paychex Flex Solutions de em Embed ent PE Payroll O / ASO isiti o n I n su HCM Software HCM Soft
Slide 12: Well Positioned to Capture the AI Opportunity
Well Positioned to Capture the AI Opportunity Large and History and Experience Investing to Realize the Growing Data Sets Leveraging AI Full Potential of AI Paychex is powered by one of the We have been leveraging AI for Accelerating AI investments to largest, proprietary SMB data sets years across
Slide 13: Leading Technology Provider Leveraging Best-in-class Partners
Leading Technology Provider Leveraging Best-in-class Partners ~500 Strategic Partners 13
Slide 14: Recognized for Excellence in Ethics, Innovation, and Workplace Culture
Recognized for Excellence in Ethics, Innovation, and Workplace Culture Numerous recent awards from leading industry publications 14
Slide 15: Go-to-Market Strategy for Award-Winning HCM Solutions
Go-to-Market Strategy for Award-Winning HCM Solutions Purpose-Built for Distinct Customer Segments Small Business & Small Business Mid-Market Enterprise & Do-it-Yourself <100 Employees 100+ Employees Powered by Specialized Sales Experts and Digital Channels Retirement ASO Insurance PEO 15
Slide 16: Paychex – The Digitally Driven HR Leader
THE PA YCHEX S TOR Y Paychex – The Digitally Driven HR Leader 1 2 3 4 Leader Innovative Predictable Sustainable in attractive technology leader and powerful growth driven by markets and trusted advisor – business model multiple proven a key differentiator levers 16
Slide 17: Powerful and Predictable Business Model
Powerful and Predictable Business Model Growing client base Consistent revenue 1 2 and expanding and earnings product attachment growth profile with high retention Disciplined and 4 3 Strong cash shareholder friendly flow engine capital allocation 17
Slide 18: Consistent Revenue and Earnings Growth Profile
Consistent Revenue and Earnings Growth Profile Total Revenue Adj. Diluted EPS¹ $4.98 $5.6B 7% 10% CAGR CAGR $2.7B $1.85 FY15 FY16 FY17 FY18² FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY15 FY16 FY17 FY18² ³ FY19 FY20 FY21 FY22 FY23 FY24 FY25 Resilient financial results during economic downturns 1 Adjusted D
Slide 19: Highest Combination of Revenue Growth and Margins
Highest Combination of Revenue Growth and Margins 51% 46% 40% Rule of 40 36% 35% Revenue Growth Adj. EBITDA Margin PAYX Peer A Peer B Peer C Peer D Industry-leading margins Note: PAYX and HCM peers based on trailing-twelve-months (TTM) as of 5/31/25 for PAYX and 6/30/25 for HCM peers. EBITDA has bee
Slide 20: Shifting from Payroll Services to Technology and HR Solutions
P AYCH EX TR AN SF OR M A TIO N Shifting from Payroll Services to Technology and HR Solutions Management Solutions PEO & Insurance Solutions ~60% 5% - 10% Other 10% - 15% Insurance Solutions Service Revenue from Non-Payroll Solutions 25% - 30% HR Solutions (ASO) >70% $4.1B $1.3B HR Outsourcing WSE G
Slide 21: Strong Cash Flow Engine
Strong Cash Flow Engine Significant Capital Returns to Shareholders Strong Cash Position & High-Impact Investments ($B) (FY25) Free Cash Flow1 Free Cash Flow1 $1.7B $2.0 Capital Intensity Low $1.5 Total Cash & Corp. Investments $1.7B Return on Equity 42% $1.0 $0.5 Dividends $0.0 FY20 FY21 FY22 FY23
Slide 22: Disciplined and Shareholder-Friendly Capital Allocation Priorities
Disciplined and Shareholder-Friendly Capital Allocation Priorities 1 Invest in the Business 2 Return Capital to Shareholders 3 Strategic M&A • Technology Platforms • Industry-leading dividend • PEO Expansion • AI Capabilities yield with target payout ratio of 70-80% • Product Tuck-ins • Digital & Ad
Slide 23: Strong Balance Sheet with Consistent Capital Allocation
Strong Balance Sheet with Consistent Capital Allocation Mid-term Gross Leverage Target of <1.5X Dividends are the Primary Method of Capital Distribution Key Drivers Shareholder Returns Dividends Share Repurchases EBITDA(1) growth Debt repayment Target payout ratio of To offset dilution and return 70
Slide 24: Corporate Responsibility Efforts
PA YCHEX VA LUES I N A C TION Corporate Responsibility Efforts Corporate Responsibility: A Core Focus & Foundation of Our Purpose Environmental Social Governance AI Oversight ✓ Ongoing ambition to achieve ✓ Strengthened our talent ✓ Continued journey of Board ✓ AI Data and Governance Net Zero GHG em
Slide 25: Paychex – The Digitally Driven HR Leader
THE PA YCHEX S TOR Y Paychex – The Digitally Driven HR Leader 1 2 3 4 Leader Innovative Predictable Sustainable in attractive technology leader and powerful growth driven by markets and trusted advisor – business model multiple proven a key differentiator levers 25
Slide 26: Long Growth Runway – Multiple Drivers
Long Growth Runway – Multiple Drivers Grow Client and Employee Base: 1 Channels, Partners, eCommerce, Digital Marketing and Acquisitions Expand Product Penetration: 2 HCM Software, HR, Retirement, Insurance and Benefits Drive Technology Innovation: 3 AI, Personalization, Data Analytics, Integrations
Slide 27: Mid-Term Financial Goals
Mid-Term Financial Goals Total Revenue Adjusted Diluted Operating Margins Dividend Growth Growth EPS Growth Upper Single Upper Annual Margin Consistent with to Lower Single Digit Expansion Earnings Growth Double Digit 27