PAYCHEX INC

Listed Company

PAYXCIK 0000723531NasdaqLarge AcceleratedServices-Engineering, Accounting, Research, ManagementDelawareFY ends May 31

Period

FY 2025

Revenue

$5.57B

Net Income

—

Total Assets

$16.56B

Equity

$4.13B

Shares Out

358.30M

Op. Cash Flow

$1.90B

Business

PAYCHEX INC is an industry-leading human capital management company that delivers integrated technology and advisory solutions for HR, payroll, benefits, insurance, and related services. The company offers cloud-based HCM platforms and SaaS applications, payroll processing, HR outsourcing (ASO), PEO services, retirement and benefits administration, insurance products, funding solutions, talent acquisition and management, workforce management, and partner marketplaces. Its key business divisions include Management Solutions (HCM technology, payroll, HR and talent modules, retirement and funding) and PEO and Insurance Solutions. Paychex serves clients across the U.S. and parts of Europe through direct and virtual sales forces, digital marketing, channel partners, and referral networks.

Summary from filing dated 2025-07-11

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-05-31	FY 2024 2024-05-31	FY 2023 2023-05-31	FY 2022 2022-05-31	FY 2021 2021-05-31
Total service revenue	5,410	5,132	4,907	4,554	3,998
Interest on funds held for clients	162	146	100	58	59
Total revenue	5,572	5,278	5,007	4,612	4,057
Cost of service revenue	1,540	1,479	1,453	1,356	1,271
Selling, general and administrative expenses	1,824	1,625	1,521	1,415	1,325
Total expenses	3,364	3,104	2,974	2,772	2,596
Operating income	2,208	2,174	2,033	1,840	1,461
Interest expense	−105	−37	−37	—	—
Other income, net	74	81	52	—	—
Income before income taxes	2,176	2,218	2,048	1,825	1,434
Income taxes	519	528	491	432	337
Net income	1,657	1,690	1,557	1,393	1,098
Other comprehensive Income (loss), net of tax	91	15	−26	−186	−5
Comprehensive income	1,749	1,705	1,531	1,207	1,093
Basic earnings per share	4.6	4.69	4.32	3.86	3.05
Diluted earnings per share	4.58	4.67	4.3	3.84	3.03
Weighted-average common shares outstanding	360	360	360	361	360
Weighted-average common shares outstanding, assuming dilution	362	362	362	363	362

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-05-31	FY 2024 2024-05-31	FY 2023 2023-05-31	FY 2022 2022-05-31	FY 2021 2021-05-31
Cash and cash equivalents	1,629	1,469	1,222	370	995
Restricted cash	48	48	50	50	51
Corporate investments	35	34	373	854	—
Interest receivable	28	23	24	22	24
Accounts receivable, net of allowance for credit losses	1,331	1,060	873	724	578
PEO unbilled receivables, net of advance collections	617	542	529	572	451
Prepaid income taxes	39	48	48	34	34
Prepaid expenses and other current assets	378	322	290	272	249
Current assets before funds held for clients	4,103	3,545	3,409	2,899	2,420
Funds held for clients	4,813	3,706	4,119	3,683	3,750
Total current assets	8,917	7,252	7,528	6,582	6,170
Long-term corporate investments	0	4	4	5	—
Property and equipment, net of accumulated depreciation	512	412	396	401	396
Operating lease right-of-use assets, net of accumulated amortization	64	47	62	79	103
Intangible assets, net of accumulated amortization	1,947	195	187	225	276
Goodwill	4,514	1,883	1,834	1,832	1,821
Long-term deferred costs	482	477	470	433	384
Other long-term assets	129	115	65	54	34
Total assets	16,564	10,383	10,546	9,635	9,227
Accounts payable	130	104	85	106	89
Accrued corporate compensation and related items	184	135	210	225	210
Accrued worksite employee compensation and related items	736	662	764	683	586
Short-term debt	19	19	10	9	7
Long-term debt, net, current portion	400	0	—	—	—
Deferred revenue	69	50	47	38	38
Other current liabilities	552	470	395	388	337
Current liabilities before client fund obligations	2,089	1,440	1,511	1,450	1,267
Client fund obligations	4,867	3,869	4,294	3,819	3,671
Total current liabilities	6,956	5,309	5,805	5,269	4,938
Accrued income taxes	119	103	83	58	26
Deferred income taxes	445	86	112	166	218
Long-term debt, net of debt issuance costs	4,548	799	798	798	797
Operating lease liabilities	56	49	57	75	92
Other long-term liabilities	312	237	197	185	208
Total liabilities	12,436	6,582	7,053	6,550	6,279
Commitments and contingencies - Note Q	—	—	—	—	—
Common stock, $0.01 par value; Authorized: 600.0 shares; Issued and outstanding: 360.5 shares as of May 31, 2025 and 360.1 shares as of May 31, 2024	4	4	4	4	4
Additional paid-in capital	1,901	1,730	1,626	1,546	1,447
Retained earnings	2,277	2,213	2,023	1,670	1,446
Accumulated other comprehensive loss	−54	−145	−160	−134	52
Total stockholders' equity	4,128	3,801	3,493	3,085	2,948
Total liabilities and stockholders' equity	16,564	10,383	10,546	9,635	9,227

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-05-31	FY 2024 2024-05-31	FY 2023 2023-05-31	FY 2022 2022-05-31	FY 2021 2021-05-31
Net income	1,657	1,690	1,557	1,393	—
Depreciation and amortization	210	177	177	192	192
Amortization of premiums and discounts on AFS securities, net	23	−7	18	29	36
Amortization of deferred contract costs	237	232	219	202	191
Stock-based compensation costs	112	61	63	53	53
Benefit from deferred income taxes	−16	−30	−44	2	−21
Provision for credit losses	24	20	18	11	8
Net realized losses on sales of AFS securities	400,000	3	10	−200,000	—
Net realized losses on disposal of assets	4	33	1	400,000	—
Premium paid on cash flow hedges	−19	0	0	—	—
Interest receivable	−4	1	−2	2	2
Accounts receivable and PEO unbilled receivables, net	−131	113	−136	−154	−273
Prepaid expenses and other current assets	−12	−25	−18	−8	−16
Accounts payable and other current liabilities	42	−127	86	113	169
Deferred costs	−247	−245	−269	−267	−208
Net change in other long-term assets and liabilities	22	6	31	26	32
Net change in operating lease right-of-use assets and liabilities	−2	−4	−4	−4	−900,000
Net cash provided by operating activities	1,901	1,898	1,706	1,590	1,260
Purchases of AFS securities	−14,303	−6,869	−14,585	−17,808	−6,090
Proceeds from sales and maturities of AFS securities	14,293	7,161	14,943	16,555	5,772
Net change in purchased receivables	−157	−154	−7	−84	—
Purchases of property and equipment	−192	−161	−143	−134	−118
Proceeds from sales of property and equipment	0	0	17	1	4
Acquisition of businesses, net of cash acquired	−2,968	−208	−3	−25	−20
Purchases of other assets	−30	−30	−10	−11	−9
Net cash (used in)/provided by investing activities	−3,357	−261	212	−1,505	−461
Net change in client fund obligations	−291	−425	475	143	340
Net proceeds from short-term borrowings	0	9	2	1	2
Proceeds from issuance of corporate bonds	4,181	0	0	—	—
Dividends paid	−1,449	−1,315	−1,175	−1,000	−909
Repurchases of common shares	−105	−169	0	−145	−156
Debt issuance costs	−48	0	0	—	—
Contingent consideration paid for acquisitions	0	0	−3	−2	—
Activity related to equity-based plans	4	26	−10	23	86
Net cash provided by/(used in) financing activities	2,293	−1,875	−711	−979	−636
Net change in cash, restricted cash, and equivalents	837	−238	1,207	−895	163

Filings

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