Paylocity Holding (PCTY) Company Report

Paylocity (PCTY) reported strong Q1 fiscal year 2026 results, with 14% recurring revenue growth and 12% total revenue growth, leading to raised guidance for revenue and profitability. The company also increased its long-term financial targets, citing significant progress in EBITDA and free cash flow leverage, and expanding gross margins.
PCTY continues to gain market share in the Human Capital Management (HCM) space, driven by unit growth and increasing average revenue per client through an expanded product suite. The company is also successfully moving upmarket, with its enterprise team focusing on the 500-plus employee segment and expanding its target market up to 5,000 employees.
Paylocity has embedded AI into all its products, seeing a significant year-over-year increase in adoption of its AI assistant, which enhances client and employee efficiency. The integration of the Airbase acquisition for Paylocity for Finance is ahead of schedule, targeting 10-20% adoption among its 40,000+ clients over multiple years.
PCTY has been active with share repurchases, buying back $500 million since May 2024, with another $500 million remaining under authorization, and plans to continue buybacks to offset dilution. The company anticipates continued margin expansion, driven by AI automation, scale, and pricing power, while managing the business "ex-float" despite expected interest rate cuts.

Dec 10, 2025, 7:35 PM

Transcript

Paylocity Discusses Strong Q1 FY26 Results, Raised Guidance, and Strategic Investments

PCTY

Guidance Update

Share Buyback

New Projects/Investments

Paylocity reported strong Q1 fiscal year 2026 results, with 14% recurring revenue growth and 12% total revenue growth, leading to a raised full-year guidance for revenue and profitability.
The company increased its long-term financial targets due to significant progress in EBITDA and free cash flow leverage, gross margin expansion, and early benefits from AI and automation.
Paylocity has been active with share repurchases, buying back $500 million of stock since May 2024, with $500 million remaining under current authorization, and plans to continue being active.
Investments in AI and automation are embedded across products, driving increased client adoption and usage of the AI Assistant, and contributing to the defensibility of its complex HCM offerings, particularly in payroll compliance.
The integration of the Airbase acquisition (Paylocity for Finance) is ahead of schedule, realizing cost synergies, and early adoption is trending as expected, with a multi-year target of 10%-20% adoption among existing clients.

Dec 10, 2025, 7:35 PM

Transcript

Paylocity Reports Strong Q1 FY26 Results and Raises Guidance

PCTY

Guidance Update

Share Buyback

New Projects/Investments

Paylocity announced strong Q1 fiscal year 2026 results, with 14% recurring revenue growth and 12% total revenue growth, and subsequently raised its guidance for revenue and profitability.
The company introduced new long-term financial targets, citing significant progress in EBITDA and free cash flow leverage, adjusted gross margin expansion, and durable revenue growth, with early benefits from AI and automation contributing to efficiencies.
Management observed a stable macro and demand environment, with client workforce levels slightly up year-over-year, and continues to gain market share in the HCM payroll space.
Paylocity has been actively engaged in share repurchases, buying back $500 million of stock since May 2024, with $500 million remaining under current authorization, and plans to continue these activities.
The integration of the Airbase acquisition is ahead of schedule, and the company has seen a significant year-over-year increase in the adoption and usage of its AI assistant by clients.

Dec 10, 2025, 7:35 PM

Transcript

Paylocity Reports Strong Q1 2026 Results, Raises Guidance, and Updates Long-Term Targets

PCTY

Earnings

Guidance Update

New Projects/Investments

Paylocity reported strong Q1 fiscal 2026 financial results, with total revenue of $408.2 million, a 12% increase year-over-year, and Adjusted EBITDA of $146.4 million, representing a 35.9% margin.
The company raised its fiscal 2026 guidance, with total revenue now expected to be in the range of $1.715 billion-$1.730 billion and Adjusted EBITDA between $615 million-$625 million.
Paylocity also increased its long-term financial targets, raising the revenue target from $2 billion to $3 billion and the Adjusted EBITDA margin target from 35%-40% to 40%-45%. These updates are driven by the success of Paylocity for Finance, expansion into IT, and a differentiated AI strategy.
In Q1, the company repurchased nearly 1.2 million shares for $200 million, with $500 million remaining under the current repurchase program.

Nov 4, 2025, 10:00 PM

Transcript

Paylocity Reports Q1 Fiscal 2026 Results and Updates Guidance

PCTY

Earnings

Guidance Update

Share Buyback

Paylocity reported Q1 Fiscal 2026 total revenue of $408.0 million, a 16% year-over-year increase, with diluted earnings per share of $0.75, up 19% from Q1 Fiscal 2025.
For Fiscal 2026, the company projects total revenue between $1.723 billion and $1.733 billion and an Adjusted EBITDA margin of 35-36%.
Q2 Fiscal 2026 guidance includes total revenue of $415 million to $420 million and recurring revenue growth of 16-17%.
Since May 2024, Paylocity has repurchased approximately 3.0 million shares for $500 million, with ~$500 million remaining under its current repurchase program.

Nov 4, 2025, 10:00 PM

Presentation

Paylocity Reports Strong Q1 Fiscal 2026 Results, Raises Guidance and Long-Term Targets

PCTY

Earnings

Guidance Update

Share Buyback

Paylocity (PCTY) started Fiscal 2026 with strong financial results, reporting total revenue of $408.2 million, a 12% increase over Q1 of last year, and recurring and other revenue growth of 14%.
The company's Adjusted EBITDA for the first quarter was $146.4 million, achieving a 35.9% margin and exceeding the top end of its guidance.
Paylocity increased all aspects of its Fiscal 2026 guidance and raised its long-term financial targets, including a revenue target increase from $2 billion to $3 billion and an Adjusted EBITDA margin target increase from 35%-40% to 40%-45%.
In Q1, Paylocity repurchased nearly 1.2 million shares of common stock for $200 million at an average price of $173.30 per share, with $500 million remaining under the current repurchase program.
The company highlighted its AI-driven platform and the recent launch of Paylocity for Finance, which expanded its market-leading workforce platform into the office of the CFO and IT, contributing to strong results and increased confidence.

Nov 4, 2025, 10:00 PM

Transcript

Paylocity Reports Strong Q1 Fiscal 2026 Results, Raises Full-Year Guidance, and Updates Long-Term Targets

PCTY

Earnings

Guidance Update

Product Launch

Paylocity (PCTY) reported strong financial results for the first quarter of Fiscal 2026, which ended on September 30, 2025, with total revenue of $408.2 million, an increase of 12% over Q1 of last year, and recurring and other revenue growth of 14%.
The company's Adjusted EBITDA for Q1 Fiscal 2026 was $146.4 million, representing a 35.9% margin.
Paylocity increased its financial guidance for Fiscal 2026, with recurring and other revenue now expected to be in the range of $1.605 billion to $1.620 billion, reflecting approximately 10% growth over Fiscal 2025.
The company updated its long-term financial targets, raising the revenue target from $2 billion to $3 billion and the Adjusted EBITDA margin target from 35%-40% to 40%-45%.
Strategic initiatives, including the launch of Paylocity for Finance and expansion into IT, along with continued investment in its AI-driven platform, contributed to the strong results and increased confidence in future growth.

Nov 4, 2025, 10:00 PM

Transcript

Paylocity Announces Q1 Fiscal Year 2026 Financial Results and Updates Long-Term Targets

PCTY

Earnings

Share Buyback

Guidance Update

Paylocity reported Q1 Fiscal Year 2026 Total Revenue of $408.2 million, an increase of 12% year-over-year, with Recurring & Other Revenue growing 14% to $378.9 million.
GAAP net income for Q1 Fiscal Year 2026 was $48.0 million or $0.86 per share, and Adjusted EBITDA reached $146.4 million.
The company repurchased $200 million or 1.2 million shares in Q1 Fiscal Year 2026, contributing to a total of $500 million or 3.0 million shares repurchased since May 2024.
Paylocity announced updated long-term financial targets, including increased Adjusted EBITDA and Free Cash Flow margin targets, and provided Q2 Fiscal Year 2026 Total Revenue guidance in the range of $405.5 million to $410.5 million.

Nov 4, 2025, 9:09 PM

8-K

Paylocity Discusses Market Opportunity, Airbase Acquisition, and Macro Environment at Conference

PCTY

M&A

New Projects/Investments

Guidance Update

Paylocity operates in a large mid-market for payroll, HCM, and finance application software, serving 40,000 clients with a low single-digit penetration rate in a target market of 1.2-1.3 million businesses.
The company recently acquired Airbase, a finance application suite, which is expected to contribute approximately 1% of revenue in fiscal year 2025 and act as a 100 basis point headwind to Adjusted EBITDA for the same period, though this has been offset organically in guidance. The integration is projected to take 12-24 months, with a stronger go-to-market push anticipated in fiscal 2026.
Paylocity has observed a stable macro environment in the first two quarters of fiscal 2025, with workforce levels remaining roughly flat to slightly positive, which is a net improvement from the previous fiscal year.
Strong sales execution, including an 8% increase in sales headcount for the current fiscal year, and a consistent 25%+ of new business from the broker channel, have contributed to growth. The company also achieved its $600 average revenue per client (PEPY) goal set in August 2023.

Mar 4, 2025, 4:35 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Paylocity Holding.

Q1 2026

Nov 4, 2025

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Q4 2025

Aug 5, 2025

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Q3 2025

May 1, 2025

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Paylocity Holding (PCTY)

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