Paycom Software, Inc.

Good afternoon. My name is Cameron, and I will be your conference operator today. At this time, I would like to welcome everyone to Paycom's fourth quarter and year-end 2025 financial results conference call. All lines have been placed on mute. Prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star key. Thank you. I will now turn the call over to James Stafford, Head of Investor Relations. You may begin.

Thank you and welcome to PACOM's earnings conference call for the fourth quarter of 2025. Certain statements made on this call that are not historical facts, including those related to our future plans, objectives, and expected performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this conference call. While we believe any forward-looking statements made on this call are reasonable, actual results may differ materially because the statements are based on our current expectations and subject to risks and uncertainties. These risks and uncertainties are discussed in our filings with the SEC, including our most recent annual report on Form 10-K. You should refer to and consider these factors when relying on such forward-looking information. Any forward-looking statement made speaks only as of the date on which it is made and and we do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Also during today's call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP net income, and certain adjusted expenses. We use these non-GAAP financial measures to review and assess our performance and for planning purposes. A reconciliation schedule showing GAAP versus non-GAAP results is included in the press release that we issued after the close of the market today and is available on our website at investors.paycom.com. I will now turn the call over to Chad Richardson, Paycom's CEO and President. Chad?

Thanks, James, and thank you to everyone joining our call today. I'll comment on our 2025 achievements and our areas of focus for 2026. I'll then turn it over to Bob for a review of our fourth quarter and full-year results, along with our full-year guidance. We will then take your questions. Let's get started. We executed well against our 2025 plan, exceeding our strategic and financial goals by focusing on full solution automation, client ROI achievement, and providing world-class service. We delivered strong results, including double-digit recurring revenue growth and near-record adjusted EBITDA margin. We advanced our full solution automation strategy with the launch of many automated decisioning tools that complement our command-driven AI product, iWarn, and other award-winning automation solutions, Betty and Gone. Our focus on client ROI achievement and world-class service strengthened revenue retention in 2025, which increased to 91%. This is a testament to the success that our clients are achieving through full solution automation, as well as the world-class service we are providing across our client base. In addition, we experienced a record number of clients returning to the Paycom platform in 2025. Automation is the future of our industry, and Paycom is leading the way with the most automated solution in the markets. While I'm excited about the momentum in client retention, we still only have approximately 5% of the total addressable market, and the opportunities ahead of us are robust. ACOM is a truly differentiated company. Our single database architecture and employee-first technology allow us to offer automated decisioning that is unmatched in our industry. This architecture enables us to deliver greater accuracy and efficiency eliminating the need for complex integrations while driving strong ROI and satisfaction for our clients and their employees. Our automation tools across our full solution are clear examples of our commitment to innovation. Betty is one of these and reduces payroll processing labor by up to 90% while cutting the time spent correcting payroll errors by up to 85%. Another is Gong, which automates PTO, fully streamlining time off requests. These are just a few solutions that eliminate duplicative tasks, reduce redundancy, and contribute directly to unparalleled ROI for our clients. Our most advanced AI solution, iWant, is designed to accelerate the speed to value by allowing anyone to become an expert in the system without any training. Forrest's recent analysis of a composite organization with more than 500 employees found that organizations using I-1 experience an ROI of over 400% driven by productivity gains at every level. Managers save as many as 600 hours per year, executives up to 60 hours, HR teams up to 240 hours, and employees across the organization collectively reclaim 3,600 hours annually. Leaders describe IWANT as a catalyst for deeper insight, and one CEO remarked, I get immediate value. Without any training or knowledge of HACOM, I can go in and immediately understand more about my business. Since our founding, we have led the way in innovation and automation. With full solution automation and decision logic, we are again transforming our industry. Payroll and HCM are critical solutions in the enterprise that require 100% accuracy and pay comments delivering on that expectation every day. As we look to 2026 and beyond, we will continue to extend our technological lead and focus on delivering unparalleled value to our clients while continuing to attack the remaining 95% of the addressable market that is available to us. I want to thank our employees who have been diligently focused on meeting our clients, executing our goals, and delivering strong results in 2025. With that, let me turn it over to Bob.