PAYC Paycom Software margins

Relative Growth: Rel. Growth: 90

Relative Strength: Rel. Strength: 92

Relative Valuation: Rel. Valuation: 56

Relative Profitability: Rel. Profitability: 96

Gross margin

83.7%

Operating margin

30.3%

EBITDA margin

41.9%

Net margin

22.8%

The Paycom Software shows a gross margin of 83.7%, an operating margin of 30.3%, an EBITDA margin of 41.9%, and a net margin of 22.8%. EBITDA margin drove the improvement across the available margins, increasing by 4.6 percentage points.

PAYC margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Paycom Software's margins averaged 83.01% gross, 29.71% operating, 39.23% EBITDA, and 23.22% net. For Paycom Software, gross, operating, and EBITDA margins are above their three-year averages, while net margin is below its three-year average.

PAYC margin expansion

Year-over-year margin changes in percentage points

All available margins expanded year over year, led by EBITDA margin with an increase of 4.6 percentage points.

Gross margin expansion

1.3pp

Operating margin expansion

2.2pp

EBITDA margin expansion

4.6pp

Net margin expansion

1.6pp

PAYC Gross margin

Across the last 3 years, Paycom Software's gross margin came to 83.01%. Against its three-year average, Paycom Software's gross margin is currently 83.7%, 0.7 percentage points above its three-year average. Gross margin was highest at 84% in Sep 2023 and lowest at 82.1% in Sep 2024.

PAYC Operating margin

Over the last 3 years, Paycom Software's operating margin averaged 29.71%. Currently, Paycom Software's current operating margin is 30.3%, which is 0.6 percentage points above its three-year average. During this period, operating margin reached a high of 33.7% in Dec 2024 and a low of 26.6% in Dec 2023.

PAYC EBITDA margin

Paycom Software recorded an average EBITDA margin of 39.23% across the last 3 years. Paycom Software currently reports an EBITDA margin of 41.9%, 2.7 percentage points above its three-year average. Looking back over the last 3 years, Paycom Software's EBITDA margin reached 42.4% at its highest point in Dec 2024 and 34.7% at its lowest in Dec 2023.

PAYC Net margin

Paycom Software recorded an average net margin of 23.22% across the last 3 years. Paycom Software currently reports a net margin of 22.8%, 0.4 percentage points below its three-year average. During this period, net margin reached a high of 26.9% in Mar 2024 and a low of 20.1% in Dec 2023.

PAYC margin group comparison

Margins compared with peer-group, industry and sector averages

With a gross margin of 83.7%, PAYC stands higher than the Technology sector, the industry and its peers average. Looking at the Technology sector average of 52%, Paycom Software's gross margin is 61% higher.

PAYC margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Paycom Software's gross margin?

For the period ending Jun 30, 2026, PAYC recorded a gross margin of 83.7%.

What is Paycom Software's operating margin?

For the period ending Jun 30, 2026, PAYC recorded an operating margin of 30.3%.

What is Paycom Software's EBITDA margin?

The current EBITDA margin for PAYC is 41.9% as of Jun 30, 2026.

What is Paycom Software's net margin?

As of Jun 30, 2026, PAYC has a net margin of 22.8%.

What are the average margins of PAYC?

Across the last 3 years, PAYC averaged 83.0% gross, 29.7% operating, 39.2% EBITDA, and 23.2% net.

What are the highest historical margins of PAYC?

Looking back across 5 years, PAYC reached 85% gross in Sep 2021, 33.7% operating in Dec 2024, 42.4% EBITDA in Dec 2024, and 26.9% net in Mar 2024.

What are the lowest historical margins of PAYC?

Over this 5-year history, Paycom Software's margins fell as low as 82.1% gross in Sep 2024, 22.3% operating in Sep 2021, 28.8% EBITDA in Sep 2021, and 17.3% net in Sep 2021.