What is the 13F Pro Quality Score for PAYC?

13F Pro ranks Paycom Software, Inc. (PAYC) on the 13F Pro Quality Score, a 0–100 composite of 32 fundamental signals including return on invested capital, free cash flow consistency, balance-sheet strength, earnings quality, growth durability, and valuation discipline. The score refreshes after each 10-K and 10-Q filing on SEC EDGAR. View PAYC's current score at https://13fpro.ai/company/PAYC (free sign-up required for the full ranking).

Which hedge funds own the most PAYC stock?

Based on the most recent Form 13F-HR filings on SEC EDGAR, the largest reported institutional holders of PAYC include BlackRock,, HARRIS ASSOCIATES L P, VANGUARD PORTFOLIO MANAGEMENT. Holdings are reported quarterly within 45 days of quarter-end and updated on https://13fpro.ai/company/PAYC as soon as new 13F filings post.

Where does 13F Pro source PAYC data?

All Paycom Software, Inc. fundamentals and ownership data come directly from SEC EDGAR. Paycom Software, Inc. files with the SEC under CIK 1590955. 13F Pro ingests XBRL financial facts from 10-K and 10-Q filings, Form 13F-HR institutional holdings, and Form 4 insider transactions, with no third-party rewrites or estimates.

What sector is PAYC in?

Paycom Software, Inc. (PAYC) is classified in the Technology sector. 13F Pro publishes sector-level fund flow analysis and quality leaders at https://13fpro.ai/research/sector/technology.

What drives PAYC's revenue?

Per Paycom Software, Inc.'s latest 10-Q filed with the SEC on 2026-08-06, the biggest revenue drivers are: Recurring ($497.9M, +11% YoY); Interest on funds held for clients ($26.0M, -8.5% YoY); Implementation and other ($7.3M, +22% YoY). Figures are extracted from the filing text and machine-verified against the document. Full breakdown at https://13fpro.ai/company/PAYC.

What are PAYC's largest expenses?

Paycom Software, Inc.'s latest 10-Q reports these as the largest expense items: Sales and marketing ($118.8M, +2.4% YoY); General and administrative ($77.3M, +10.2% YoY); Cost of revenues (operating expenses) ($64.6M, -5.6% YoY). Sourced directly from SEC EDGAR filing text for Q2 FY2026 (quarter ended June 30, 2026).

How often is PAYC research updated on 13F Pro?

PAYC's fundamentals refresh within hours of each new 10-K or 10-Q filing on SEC EDGAR. Institutional ownership updates after each quarterly 13F filing window. Insider transactions update after each Form 4 filing. The 13F Pro Quality Score recalculates after every fundamentals refresh.

Paycom Software, Inc.(PAYC)Stock Analysis

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13F Pro Quality Score

65.8/100

Rank #460 of 2,962 stocksTOP 25%

View Technology peers →

Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Nov 14, 2026.

Revenue Growth

62.0/100

Profitability

83.3/100

Balance Sheet

86.5/100

Earnings Quality

62.7/100

Free Cash Flow

80.7/100

Institutional Flow

14.2/100

Revenue Scale

64.3/100

Dilution Risk

22.7/100

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Why PAYC Scores 66/100

exact factor attribution · 2026-09-11

PAYC's composite is driven by profitability and free cash flow, held back by institutional flow and shareholder dilution. Bars show each factor's exact push vs. a median company, using the same weights the ranking engine applies.

Profitability

+5.0 pts

83th pct

Free cash flow

+4.6 pts

81th pct

Capital efficiency

+3.6 pts

87th pct

Revenue growth

+2.4 pts

62th pct

Scale

+2.1 pts

64th pct

Earnings quality

+1.3 pts

63th pct

Earnings growth

-0.1 pts

48th pct

Shareholder dilution

-1.4 pts

23th pct

Institutional flow

-1.8 pts

14th pct

Latest change (2026-08-08): 70 → 70 · ↑ Capital efficiency 77→85; despite ↓ Revenue growth 62→51

Factor percentiles are cross-sectional ranks across the ~2,800-stock scored universe, computed from SEC EDGAR filings. Not investment advice.

PAYC Stock Analysis & AI Quality Score

Data updated 2026-09-11

AI stock analysis and institutional research for Paycom Software, Inc. (PAYC), a Technology sector company. 13F Pro's AI-powered ranking engine scores PAYC at 65.8/100 on a 32-signal composite quality model, placing it at rank #460 of 2,962 stocks — the top 25% of the AI-ranked universe. PAYC scores in the top quartile across balance sheet strength (86.5), profitability (83.3), free cash flow (80.7). Areas of concern include institutional flow (14.2), which score below median versus the broader universe. Shareholder dilution risk is elevated at 22.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Paycom Software, Inc. reports quarterly revenue of $531.2M, net income of $107.4M, an operating margin of 31.7%. Top institutional holders of PAYC by reported 13-F value include BlackRock, HARRIS ASSOCIATES L P, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. PAYC trades on the NYSE exchange and files with the SEC under CIK 1590955. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PAYC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Paycom Software, Inc. directly from SEC EDGAR. Paycom Software, Inc.'s 13F Pro composite quality score has ranged between 62 and 80 since 2021, currently 65.8 — a stable long-term trajectory across 68 quarterly and live scoring snapshots.

What's Driving PAYC's Business? Latest 10-Q Breakdown

✓ 26/26 datapoints verified

AI-extracted from Paycom Software, Inc.'s 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.

Paycom grew Q2 revenue 9.8% YoY to $531.2M while operating margin expanded to 31.7% from 23.2%, but the company took on its first-ever debt ($900.0M drawn) to fund an aggressive $1,389.7M six-month buyback that cut shares outstanding by ~19%.

Biggest Revenue Drivers

Recurring$497.9M+11% YoY

Addition of new clients, sales of additional applications to existing clients, increased usage, and pricing strategies, partially offset by client attrition among smaller clients

Interest on funds held for clients$26.0M-8.5% YoY

Lower interest rates partially offset by higher average funds held for client balances

Biggest Revenue Drivers

Total revenue: $531.2M+9.8% YoY

Recurring$497.9M+11% YoY

Addition of new clients, sales of additional applications to existing clients, increased usage, and pricing strategies, partially offset by client attrition among smaller clients

Interest on funds held for clients$26.0M-8.5% YoY

Lower interest rates partially offset by higher average funds held for client balances

Implementation and other$7.3M+22% YoY

Largest Expense Items

Sales and marketing$118.8M+2.4% YoY

$4.6 million increase in marketing and advertising expense, partially offset by lower employee-related expenses from reduced headcount

General and administrative$77.3M+10.2% YoY

$4.2 million increase in professional fees and $1.9 million increase in technology and communications expenses

Cost of revenues (operating expenses)$64.6M-5.6% YoY

$8.1 million decrease in employee-related expenses attributable to lower headcount

Research and development$51.9M-30.6% YoY

Decrease in employee-related expenses from reduced headcount tied to automation

Margins: Operating margin expanded to 31.7% from 23.2% YoY as total operating expenses fell to 68.3% of revenue from 76.8%, driven mainly by headcount-related reductions in R&D and cost of revenues amid the company's automation strategy.

Watch Items from the Filing

Company drew $900.0M under its Revolving Credit Facility to fund stock repurchases, introducing its first-ever long-term debt, pushing interest expense up 1,245% YoY to $10.5M for the quarter.
Shares outstanding fell to 44.3M from 54.8M at year-end 2025 as the company repurchased 10.9 million shares for $1,389.7 million in the first half of 2026, boosting per-share earnings.
No individual client represents 10% or more of total revenues, limiting customer concentration risk.
R&D expense declined 30.6% YoY to $51.9M due to lower headcount, which management attributes to automation of core business systems rather than reduced investment scope.

AI-extracted and verified against SEC EDGAR filing text. Not investment advice.

Read the full 10-Q on SEC EDGAR →Share on X

Revenue

Q2 2026

$531.2M

Net Income

Q2 2026

$107.4M

Free Cash Flow

Q2 2026

$190.1M

Operating Margin

Q2 2026

31.7%

ROIC

Q2 2026

45.8%

Period

Revenue & Net Income

Earnings Per Share

Key Financials Over Time

Export Financial Table · Pro

Revenue

+8.9% YoY

$2.05BFY 2025

FY22 $1.38BFY23 $1.69BFY24 $1.88BFY25 $2.05B

Net Income

-9.7% YoY

$453.4MFY 2025

FY22 $281.4MFY23 $340.8MFY24 $502.0MFY25 $453.4M

Operating Income

-10.6% YoY

$567.2MFY 2025

FY22 $378.7MFY23 $451.3MFY24 $634.3MFY25 $567.2M

EPS (Diluted)

-9.4% YoY

$8.08FY 2025

FY22 $4.84FY23 $5.88FY24 $8.92FY25 $8.08

Total Assets

+29.7% YoY

$7.60BFY 2025

FY22 $3.90BFY23 $4.20BFY24 $5.86BFY25 $7.60B

Total Debt

—FY 2025

FY22 $29.0MFY23 —FY24 —FY25 —

Op. Cash Flow

+27.2% YoY

$678.9MFY 2025

FY22 $365.1MFY23 $485.0MFY24 $533.9MFY25 $678.9M

Free Cash Flow

+19.6% YoY

$408.0MFY 2025

FY22 $232.4MFY23 $292.4MFY24 $341.0MFY25 $408.0M

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020
Revenue	$2.05B +8.9%	$1.88B +11.2%	$1.69B +23.2%	$1.38B +30.3%	$1.06B +25.4%	$841.4M
Net Income	$453.4M -9.7%	$502.0M +47.3%	$340.8M +21.1%	$281.4M +43.6%	$196.0M +36.6%	$143.5M
Operating Income	$567.2M -10.6%	$634.3M +40.5%	$451.3M +19.2%	$378.7M +49.3%	$253.6M +36.2%	$186.1M
EPS (Diluted)	$8.08 -9.4%	$8.92 +51.7%	$5.88 +21.5%	$4.84 +43.6%	$3.37 +37.0%	$2.46
Total Assets	$7.60B +29.7%	$5.86B +39.6%	$4.20B +7.6%	$3.90B +21.4%	$3.22B +23.3%	$2.61B
Total Debt	—	—	—	$29.0M -6.2%	$30.9M -5.3%	$32.7M
Operating Cash Flow	$678.9M +27.2%	$533.9M +10.1%	$485.0M +32.8%	$365.1M +14.3%	$319.4M +40.6%	$227.2M
Free Cash Flow	$408.0M +19.6%	$341.0M +16.6%	$292.4M +25.8%	$232.4M +17.0%	$198.7M +49.3%	$133.1M

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Available Research

13F Pro tracks comprehensive data for Paycom Software, Inc. including:

SEC EDGAR filings (10-K, 10-Q, 8-K)

XBRL financial facts (revenue, EPS, margins)

Insider transactions (Form 4)

Institutional 13F holdings

Quality rankings (32 signals)

AI analyst debates & daily meetings

Historical financial trends

Peer comparison & sector analysis

Top Institutional Holders of PAYC

BlackRock, Inc.
$632.5M5,032,303 sh
HARRIS ASSOCIATES L P
$427.0M3,397,446 sh
VANGUARD PORTFOLIO MANAGEMENT LLC
$260.2M2,070,073 sh
VANGUARD CAPITAL MANAGEMENT LLC
$231.7M1,843,191 sh
TWO SIGMA INVESTMENTS, LP
$176.1M1,400,923 sh
STATE STREET CORP
$173.8M1,383,048 sh
REINHART PARTNERS, LLC.
$153.3M1,219,906 sh
GEODE CAPITAL MANAGEMENT, LLC
$152.5M1,213,158 sh
BAILLIE GIFFORD & CO
$122.6M975,398 sh
FIRST TRUST ADVISORS LP
$122.4M974,155 sh

Fund	Value	Shares
BlackRock, Inc.	$632.5M	5,032,303
HARRIS ASSOCIATES L P	$427.0M	3,397,446
VANGUARD PORTFOLIO MANAGEMENT LLC	$260.2M	2,070,073
VANGUARD CAPITAL MANAGEMENT LLC	$231.7M	1,843,191
TWO SIGMA INVESTMENTS, LP	$176.1M	1,400,923
STATE STREET CORP	$173.8M	1,383,048
REINHART PARTNERS, LLC.	$153.3M	1,219,906
GEODE CAPITAL MANAGEMENT, LLC	$152.5M	1,213,158
BAILLIE GIFFORD & CO	$122.6M	975,398
FIRST TRUST ADVISORS LP	$122.4M	974,155

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Is PAYC a good stock to buy?

13F Pro's AI-powered analysis of Paycom Software, Inc. (PAYC) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for PAYC are available on the PAYC stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing. PAYC is classified as a mid company.

Which hedge funds own PAYC?

Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling PAYC. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Paycom Software, Inc.'s investment landscape.