Paycom Software, Inc. — Cyborg Score 7/10

Solid
Human Capital Management (HCM) Software / SaaS

Strategic Profile

Paycom delivered strong results in 2025, exceeding strategic and financial goals through full solution automation and achieving 91% client retention. The company's commitment to innovation, including the expansion of automated decisioning tools like IWant, Beti, and Gone, positions Paycom as the leader in its industry.

Cyborg Score Rationale

Paycom maintains a 91% annual revenue retention rate, experienced client growth, and launched its AI solution IWant™ while issuing 2026 guidance for revenues of $2.175-2.195 billion and adjusted EBITDA of $950-970 million. However, 2026 revenue guidance of $2.175-2.195 billion representing 6-7% YoY growth falls short of the $2.23 billion analysts had projected.

Top Insights

  • 91% annual revenue retention rate demonstrates strong customer stickiness and satisfaction
  • Client count increased 5% YoY to approximately 20,300, with 7.4 million employee records stored in the system
  • Launch of AI-powered IWant™ solution represents differentiation in automating HR decisioning
  • Strong balance sheet with $370 million in cash, no debt, and capital returns of $84.8 million in dividends

Named Competitors

  • ADP Workforce Now — Comprehensive payroll and HR platform
  • Workday HCM — Cloud-based enterprise HCM suite
  • BambooHR — Mid-market focused HRIS solution
  • Guidepoint — Small business HR and payroll platform

Recent Developments

  • (February 2026) Q4 2025 earnings reported with 10% revenue growth to $544.3 million and 91% client retention
  • (February 2026) 2026 guidance misses analyst expectations, targeting 6-7% revenue growth vs $2.23 billion consensus
  • (January 2026) Forrester Consulting study validates significant ROI from Paycom's full-solution automation
  • (January 2026) Jeff York returns as Paycom's Chief Sales Officer

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