Paycom Q4 2025: 91% retention, 70%+ on BETI — but growth resets to 6–7%
The BETI cannibalization story that crashed the stock in 2023 appears resolved on the customer base. The growth profile has reset permanently lower.
Paycom reported Q4 and full-year 2025 results in February 2026. Revenue retention climbed to 91% (up from 90% in 2024). More than 70% of clients are now on BETI as the cannibalization story that triggered the October 2023 stock collapse (-38.5% in a single day) appears resolved on a customer-base basis.
The growth profile, however, has reset. 2026 guidance lands at 6–7% revenue growth with approximately 44% adjusted EBITDA margin — a healthy business but no longer the 20%+ grower the post-IPO Paycom was. Securities class actions stemming from the 2023 disclosure issue remain pending.
Buyer-side takeaway
Paycom is a more focused, more retention-oriented vendor in 2026 than it was in 2022. Less aggressive feature-push behavior, more emphasis on existing customer expansion. For new evaluations, the IWant AI launch (July 2025) is the strongest forward-looking story to test — not the BETI marketing.