v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
14.
SEGMENT REPORTING

The Company conducts business as a single operating segment, which is based upon the Company’s current organizational and management structure, as well as information used by the CODM to allocate resources. The Company derives revenues from customers by providing a cloud-based HCM solution delivered as Software-as-a-Service. Our payroll application is the foundation of our solution and is based on a core system of record to maintain a single database for all HCM functions. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis. No individual client represents 10% or more of total revenues.

The accounting policies of the segment are the same as those described in Note 2 “Summary of Significant Accounting Policies”. The Company’s CODM is our Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on net income, as reported on the consolidated statements of comprehensive income. Net income is used monthly to monitor budget versus actual results. The CODM manages the business using consolidated expense information as well as regularly provided budgeted or forecasted expense information for the single operating segment. The total assets of the segment are reported on the consolidated balance sheets. Significant non-cash items including expenditures for purchases of long-lived assets and non-cash stock-based compensation expense of the segment are reported on the consolidated statements of cash flows.

The Company does not have any intra-entity sales or transfers.

The table below highlights the Company’s revenues, expenses and net income for our single reportable segment, which are consistent with amounts reported on the consolidated statements of comprehensive income for the three and six months ended June 30, 2026 and 2025.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

$

497.9

 

 

$

449.1

 

 

$

1,035.2

 

 

$

942.5

 

Implementation and other

 

 

7.3

 

 

 

6.0

 

 

 

14.0

 

 

 

12.6

 

Interest on funds held for clients

 

 

26.0

 

 

 

28.5

 

 

 

53.9

 

 

 

59.0

 

Total revenues

 

 

531.2

 

 

 

483.6

 

 

 

1,103.1

 

 

 

1,014.1

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

64.6

 

 

 

68.4

 

 

 

127.5

 

 

 

134.8

 

Depreciation and amortization

 

 

24.5

 

 

 

19.1

 

 

 

48.9

 

 

 

37.4

 

Total cost of revenues

 

 

89.1

 

 

 

87.5

 

 

 

176.4

 

 

 

172.2

 

Gross profit

 

 

442.1

 

 

 

396.1

 

 

 

926.6

 

 

 

841.9

 

Administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

118.8

 

 

 

116.0

 

 

 

236.4

 

 

 

226.9

 

Research and development

 

 

51.9

 

 

 

74.8

 

 

 

112.6

 

 

 

137.1

 

General and administrative

 

 

77.3

 

 

 

70.2

 

 

 

146.6

 

 

 

135.9

 

Depreciation and amortization

 

 

25.6

 

 

 

22.8

 

 

 

52.3

 

 

 

44.5

 

Total administrative expenses

 

 

273.6

 

 

 

283.8

 

 

 

547.9

 

 

 

544.4

 

Total operating expenses

 

 

362.7

 

 

 

371.3

 

 

 

724.4

 

 

 

716.6

 

Operating income

 

 

168.5

 

 

 

112.3

 

 

 

378.7

 

 

 

297.5

 

Interest expense

 

 

(10.5

)

 

 

(0.8

)

 

 

(14.5

)

 

 

(1.6

)

Other income (expense), net

 

 

(1.1

)

 

 

5.7

 

 

 

8.0

 

 

 

11.6

 

Income before income taxes

 

 

156.9

 

 

 

117.2

 

 

 

372.1

 

 

 

307.5

 

Provision for income taxes

 

 

49.5

 

 

 

27.7

 

 

 

109.0

 

 

 

78.6

 

Net income

 

$

107.4

 

 

$

89.5

 

 

$

263.1

 

 

$

228.9