Paycor

United States · www.paycor.com · 33 vendors

Resilience scores

Technology vendors

Services catalogue

3 services in catalogue across 2 categories; runs on 33 sub-vendors.

Insights

Last updated 2026-08-14

33 direct vendors, 253 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

11 in-scope frameworks identified; showing 3.

PCI DSS (source) — Assessment Required

Paycor processes payroll payments and may handle payment card data in certain contexts (e.g., expense management, pay card programs). If Paycor stores, processes, or transmits cardholder data, PCI DSS compliance is required. The risk is Medium because payroll platforms increasingly offer pay card and expense management features that may trigger PCI DSS obligations. However, Paycor's primary payment method is ACH/direct deposit, which is not subject to PCI DSS.

Evidence: https://www.paycor.com/security/, https://www.pcisecuritystandards.org/, https://www.paycor.com/human-capital-management/payroll/

SOC 2 (source) — Compliant

Paycor is a cloud-based SaaS HCM and payroll platform serving thousands of US businesses. SOC2 Type II compliance is a standard and expected requirement for cloud service providers handling sensitive payroll, HR, and financial data. Paycor has publicly confirmed SOC2 Type II certification, which significantly reduces compliance risk. The risk is Low because the certification is current and publicly disclosed, demonstrating ongoing third-party validation of security controls. Failure to maintain SOC2 would be a significant commercial risk given client expectations in the HCM market.

Evidence: https://www.paycor.com/security/, https://trust.paycor.com/, https://www.aicpa.org/resources/article/soc-2-reporting-on-an-examination-of-controls-at-a-service-organization-relevant-to-security-availability-processing-integrity-confidentiality-or-privacy

IRS Compliance — Compliant

Paycor is a payroll service provider responsible for calculating, withholding, and remitting federal and state payroll taxes on behalf of clients. IRS compliance is a core operational requirement. The risk is Medium because payroll tax errors or late filings can result in significant penalties for both Paycor and its clients, and the complexity of multi-state payroll tax compliance creates ongoing risk. Paycor's business model depends on maintaining IRS compliance as a Reporting Agent.

Evidence: https://www.paycor.com/resource-center/articles/payroll-tax-compliance/, https://www.paycor.com/human-capital-management/payroll/, https://www.irs.gov/businesses/small-businesses-self-employed/payroll-taxes

Financials

Three-year financials

Financial Resilience Score: 7/10

Paycor demonstrates strong financial resilience despite persistent GAAP losses over its last three fiscal years as an independent public company. The business model is built on a highly recurring SaaS revenue base (>95% recurring), with subscription-based HCM software delivering strong revenue visibility and multi-year contracts. Revenue grew at an approximate 25% CAGR from FY19 to FY24, reaching ~$655M in FY24, and non-GAAP adjusted operating income has been positive and expanding, indicating underlying operational profitability masked by heavy stock-based compensation and amortization of acquired intangibles. The company maintains a well-capitalized balance sheet with approximately $1.24B in stockholders' equity, substantial cash reserves from its 2021 IPO proceeds (~$425M gross), and low net debt. Non-GAAP gross margins in the 70-75% range and net revenue retention of ~105-110% reflect operational efficiency and customer stickiness. The April 2025 acquisition by Paychex for ~$4.1B validates strategic value and provides additional financial backing, though it also introduces integration risk. Concentration in the US SMB/mid-market segment exposes the business to US employment cycles and competitive pressure from larger players like ADP, Workday, UKG, and Rippling.

Key strengths: Recurring SaaS revenue base (>95% recurring), Strong revenue growth (~25% CAGR FY19-FY24), High non-GAAP gross margins (~70-75%), Strong net revenue retention (~105-110%), Well-capitalized balance sheet with ~$1.24B equity, Acquisition by Paychex (~$4.1B) provides strategic backing, Positive and expanding non-GAAP adjusted operating income

Risk factors: Persistent GAAP net losses across FY22-FY24, Heavy stock-based compensation burden, Intense competition from ADP, Paychex, Paylocity, Workday, UKG, Rippling, Gusto, Customer concentration in US SMB/mid-market, Sensitivity to US employment levels and small business health, Post-acquisition integration risk with Paychex, Very limited international diversification (~100% US revenue)

Revenue by geography

Revenue by product/service

Workforce by country

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