Paycom Software Repurchases 20% of Shares, Stock Rises Nearly 100%
Paycom Software (NYSE:PAYC) repurchased nearly 20% of its shares in the first half of 2026 for $1.4 billion while the stock was near a 52-week low. The company used part of its credit facility to fund these buybacks, which were described as opportunistic due to what management called a 'valuation disconnect.' Despite using leverage and reducing shareholders' equity by nearly two-thirds year-over-year, Paycom raised full-year adjusted EBITDA guidance above $1 billion. The aggressive share repurchase strategy coincided with strong financial performance. Q2 revenue rose 10% to $531 million, recurring revenue increased 11%, and non-GAAP EPS exceeded expectations at $2.78 versus a consensus of $2.38. The company’s adjusted EBITDA margin expanded by over three percentage points. Paycom's stock nearly doubled between April and August 2026, rising from around $120 to more than $239 per share. Analysts have assigned six 'buy' ratings and fourteen 'hold' ratings with no sell calls as of the latest report.
Tickers: $PAYC
Topics: credit facility usage EBITDA guidance leveraged financing share buybacks