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PCTY

Paylocity Holding Corporation

PCTY

Paylocity Holding Corporation • NASDAQ
$147.33 ▲ 0.26% (+0.38)
Market Cap $8.18 B
52w High $223.80
52w Low $135.46
Dividend Yield 0%
P/E 36.92
Volume 159.97K
Outstanding Shares 55.49M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $408.172M ▲ $205.581M ▼ $47.991M ▼ 11.758% ▼ $0.87 ▼ $102.366M ▲
Q4-2025 $400.737M ▼ $205.645M ▲ $48.606M ▼ 12.129% ▼ $0.88 ▼ $92.679M ▼
Q3-2025 $454.548M ▲ $197.665M ▼ $91.483M ▲ 20.126% ▲ $1.64 ▲ $153.002M ▲
Q2-2025 $376.98M ▲ $205.812M ▲ $37.465M ▲ 9.938% ▼ $0.67 ▼ $72.283M ▲
Q1-2025 $317.586M $174.93M $34.517M 10.869% $0.89 $62.741M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $165.192M ▼ $4.236B ▼ $3.133B ▼ $1.103B ▼
Q4-2025 $398.07M ▼ $4.389B ▼ $3.156B ▼ $1.234B ▲
Q3-2025 $477.785M ▼ $5.168B ▼ $3.959B ▼ $1.209B ▲
Q2-2025 $482.364M ▼ $5.294B ▲ $4.122B ▲ $1.172B ▲
Q1-2025 $778.549M $4.025B $2.919B $1.106B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $47.991M ▼ $86.456M ▼ $-17.693M ▲ $-229.692M ▲ $-232.878M ▼ $82.659M ▲
Q4-2025 $48.606M ▼ $86.569M ▼ $-127.005M ▼ $-869.387M ▼ $-79.715M ▼ $64.281M ▼
Q3-2025 $91.483M ▲ $186.001M ▲ $-27.577M ▲ $-291.959M ▼ $-4.579M ▲ $183.69M ▲
Q2-2025 $37.465M ▼ $54.201M ▼ $-287.638M ▼ $1.154B ▲ $-296.185M ▼ $51.216M ▼
Q1-2025 $49.573M $91.455M $-13.328M $-318.293M $376.738M $89.127M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Implementation Services and Other
Implementation Services and Other
 $20.00M ▲$20.00M ▲$0 ▼$20.00M ▲
Recurring Fees
Recurring Fees
 $330.00M ▲$400.00M ▲$350.00M ▼$360.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Paylocity shows a clear story of consistent growth paired with steadily improving profitability. Revenue has climbed strongly year after year, and profit margins have expanded as the business has scaled. Operating and net income have grown faster than sales, suggesting good cost control and operating leverage in the model. The company already runs solidly profitable, which is notable for a software firm still in a strong growth phase. Overall, the income statement reflects a mature, high‑growth SaaS business rather than an early-stage, cash-burning one.

Balance Sheet

Balance Sheet The balance sheet looks conservative and stronger over time. Total assets have grown meaningfully, with some lumpiness that is typical for a payroll/HCM provider holding client funds. Cash levels have risen, while debt remains modest relative to the size of the business, which lowers financial risk. Shareholders’ equity has built up steadily, showing that profits are being retained and reinvested rather than relying heavily on borrowing. In simple terms, the company appears financially solid, with a cushion to handle downturns or keep investing in growth.

Cash Flow

Cash Flow Cash generation has kept pace with, and even outperformed, accounting profits. Operating cash flow has increased each year, indicating that customers are paying on time and the business model converts earnings into cash efficiently. Free cash flow is consistently positive and growing, even after funding ongoing investment in the platform and infrastructure. Capital spending remains relatively modest, which is typical for a scalable cloud software business. This pattern supports a view of a company that can both self-fund its growth and maintain financial flexibility.

Competitive Edge

Competitive Edge Paylocity operates in a crowded market but has carved out a strong position by focusing on small and mid-sized businesses with a modern, all‑in‑one HR and payroll platform. Its software becomes deeply embedded in clients’ everyday operations—handling payroll, HR, time, talent, and engagement—making it painful and risky for customers to switch providers. Features like the social “Community” hub, on‑demand pay, and embedded video and communication tools differentiate it from more traditional competitors such as ADP and Paychex. The recent move into integrated finance and spend management further tightens its grip on clients’ workflows and budgets. The main ongoing risks are intense competition, rapid technology change, and the need to keep the product clearly ahead of rivals in usability and features.

Innovation and R&D

Innovation and R&D Innovation is a central part of Paylocity’s strategy and a key support for its moat. The company has been early in weaving artificial intelligence and machine learning into its HCM suite, from scheduling and learning recommendations to generative AI tools that help create HR content. Its “co‑creator” approach—building features alongside customers—helps ensure new tools address real problems and deepens customer loyalty. The acquisition of Airbase and the launch of Paylocity for Finance broaden the platform from HR into finance, potentially increasing stickiness and revenue per customer. Looking ahead, success will depend on how well Paylocity extends AI into deeper analytics, expands its finance capabilities, and continues enhancing the employee experience without overcomplicating the product.

Summary

Overall, Paylocity combines strong growth, rising profitability, and solid cash generation with a relatively low‑risk balance sheet. Its unified, cloud‑based platform and focus on employee engagement create high switching costs and a sticky customer base, especially among small and mid-sized businesses. Continuous innovation—particularly in AI, employee experience, and integrated finance—supports a durable competitive position but also requires ongoing investment and flawless execution. Key things to watch include the pace of product innovation, competitive responses from larger incumbents, the success of the finance suite, and how macro conditions for smaller businesses affect demand. The current financial and strategic profile points to a scaled, resilient software business still with meaningful runway, but operating in a highly competitive and fast‑moving market.

NEWS

November 4, 2025 · 4:05 PM UTC

Paylocity Announces First Quarter Fiscal Year 2026 Financial Results

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October 16, 2025 · 11:30 AM UTC

Rain Announces Integration With Paylocity, Improving Seamless Earned Wage Access

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October 9, 2025 · 4:05 PM UTC

Paylocity announces Q1 FY26 earnings conference call

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October 1, 2025 · 9:00 AM UTC

Paylocity Named Official HCM Partner of the New York Islanders and Official Partner of UBS Arena

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