olivLaw · US equity research
Paylocity Holding Corporation PCTY
Services-Prepackaged Software · SIC 7372 · Vertical: Services-Prepackaged Software (SIC 7372)
Paylocity is a cloud software provider for human capital management, finance and IT, with AI embedded directly into everyday workflows. The company closed fiscal 2026 with total revenue above 1.7 billion USD, and its continued growth in client base and revenue per client makes it relevant to analysis of the HCM software market, especially as AI adoption spreads. Figures come from the annual report and the company's results release.
At the close of 04 Nov 2026, Paylocity Holding Corporation (PCTY) stock was 170.96 USD (−0.09% on the day), with market capitalisation 9.1 bn USD, P/E 34.7 on diluted EPS of 4.92 USD over the last 12 months, beta 0.59, 52-week range 95.10–177.67 USD. Latest reported quarter (Q4 2026): revenue of 444.7 m USD (+11.0% YoY), net income of 60.3 m USD (+24.1% YoY), diluted EPS 1.12 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 62.1
- strong (55–70)
- Bollinger (20, 2)
- 152.61 – 181.76
- in the upper half of the band · %B 0.63 · band width 17.4%
- SMA 50 / 200
- 155.46 / 126.82
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 5.55 / 6.01
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +16.0% | −1.1% | +17.1 pp | — |
| 3 months | +15.7% | −0.5% | +16.1 pp | — |
| 6 months | +66.7% | +4.4% | +62.3 pp | — |
| Year to date | +12.1% | +12.3% | −0.2 pp | — |
| 1 year | +22.7% | +13.5% | +9.2 pp | −1.8% |
| 3 years | +17.7% | +76.4% | −58.7 pp | +36.7% |
| 5 years | −38.9% | +63.7% | −102.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 363.0 m | 377.0 m | 454.5 m | 400.7 m | 408.2 m | 416.1 m | 502.3 m | 444.7 m |
| Cost of revenue | 115.0 m | 124.5 m | 129.9 m | 128.9 m | 128.4 m | 134.0 m | 139.1 m | 144.4 m |
| Gross profit | 248.0 m | 252.4 m | 324.7 m | 271.9 m | 279.8 m | 282.1 m | 363.2 m | 300.4 m |
| Research & development | 47.3 m | 56.2 m | 51.4 m | 51.0 m | 55.6 m | 57.7 m | 52.5 m | 55.5 m |
| Operating income | 64.1 m | 46.6 m | 127.0 m | 66.2 m | 74.2 m | 70.4 m | 157.0 m | 84.4 m |
| Depreciation & amortisation | 21.6 m | 25.7 m ≈ | 26.0 m ≈ | 26.5 m | 27.5 m | 27.8 m ≈ | 27.3 m ≈ | 29.2 m |
| Pre-tax income | 68.9 m | 46.8 m | 126.6 m | 66.8 m | 74.9 m | 70.2 m | 157.0 m | 85.2 m |
| Income tax | 19.3 m | 9.4 m | 35.1 m | 18.2 m | 26.9 m | 20.0 m | 45.8 m | 24.9 m |
| Net income | 49.6 m | 37.5 m | 91.5 m | 48.6 m | 48.0 m | 50.2 m | 111.3 m | 60.3 m |
| Diluted EPS | 0.88 | 0.66 | 1.61 | 0.86 ≈ | 0.86 | 0.92 | 2.05 | 1.12 ≈ |
| Operating cash flow | 91.5 m | 54.2 m ≈ | 186.0 m ≈ | 86.6 m | 86.5 m | 117.0 m ≈ | 217.9 m ≈ | 111.9 m |
| Capex | 2.3 m | 3.0 m ≈ | 2.3 m ≈ | 5.4 m | 3.8 m | 3.4 m ≈ | 8.4 m ≈ | 20.6 m |
| Share repurchases | 0 | 8.4 m ≈ | 82.7 m ≈ | 58.6 m | 200.0 m | 100.0 m ≈ | 50.0 m ≈ | 48.1 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 5 percentile of its own 38-quarter history (min 21.1, median 94.1, max 482.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 467.6 m | 561.3 m | 635.6 m | 852.7 m | 1.2 bn | 1.4 bn | 1.6 bn | 1.8 bn |
| Revenue YoY | +23.9% | +20.0% | +13.2% | +34.1% | +37.8% | +19.4% | +13.7% | +11.0% |
| Net income | 53.8 m | 64.5 m | 70.8 m | 90.8 m | 140.8 m | 206.8 m | 227.1 m | 269.7 m |
| Net income YoY | +39.4% | +19.8% | +9.9% | +28.2% | +55.1% | +46.8% | +9.8% | +18.8% |
| Diluted EPS | 0.97 | 1.15 | 1.26 | 1.61 | 2.49 | 3.63 | 4.02 | 4.92 |
| Diluted EPS YoY | +38.6% | +18.6% | +9.6% | +27.8% | +54.7% | +45.8% | +10.7% | +22.4% |
| net % | 11.5% | 11.5% | 11.1% | 10.6% | 12.0% | 14.7% | 14.2% | 15.2% |
| Free cash flow | 103.8 m | 96.1 m | 115.4 m | 137.0 m | 260.8 m | 366.6 m | 405.2 m | 497.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 271.9 m USD
- Financial debt
- 81.3 m USD
- Net debt
- -190.7 m USD
- Equity
- 1.2 bn USD
- Total assets
- 4.9 bn USD
- Debt / equity
- 0.07x
- Current ratio
- 1.09x
- ROE
- 22.0%
- ROA
- 5.8%
- FCF margin
- 28.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 635.6 m | 852.7 m | 1.2 bn | 1.4 bn | 1.6 bn | 1.8 bn | SEC (XBRL)· 05 Aug 2026verified |
| Cost of revenue | 219.3 m | 287.0 m | 367.0 m | 441.7 m | 498.2 m | 545.8 m | SEC (XBRL)· 05 Aug 2026verified |
| Gross profit | 416.3 m | 565.6 m | 807.6 m | 960.8 m | 1.1 bn | 1.2 bn | SEC (XBRL)· 05 Aug 2026verified |
| Research & development | 76.7 m | 102.9 m | 164.0 m | 178.3 m | 205.9 m | 221.4 m | SEC (XBRL)· 05 Aug 2026verified |
| Operating income | 58.0 m | 84.6 m | 155.0 m | 260.1 m | 304.0 m | 386.0 m | SEC (XBRL)· 05 Aug 2026verified |
| Depreciation & amortisation | 43.0 m | 50.2 m | 60.9 m | 76.4 m | 99.6 m | 111.8 m | SEC (XBRL)· 05 Aug 2026verified |
| EBITDA | 101.0 m ≈ | 134.8 m ≈ | 215.9 m ≈ | 336.5 m ≈ | 403.7 m ≈ | 497.8 m ≈ | SEC (XBRL)· 05 Aug 2026derived |
| Pre-tax income | 57.1 m | 83.6 m | 158.6 m | 277.0 m | 309.1 m | 387.3 m | SEC (XBRL)· 05 Aug 2026verified |
| Income tax | -13.7 m | -7.2 m | 17.8 m | 70.2 m | 81.9 m | 117.6 m | SEC (XBRL)· 05 Aug 2026verified |
| Net income | 70.8 m | 90.8 m | 140.8 m | 206.8 m | 227.1 m | 269.7 m | SEC (XBRL)· 05 Aug 2026verified |
| Diluted EPS | 1.26 | 1.61 | 2.49 | 3.63 | 4.02 | 4.92 | SEC (XBRL)· 05 Aug 2026verified |
| Weighted average diluted shares | 56.3 m | 56.4 m | 56.6 m | 57.0 m | 56.6 m | 54.8 m | SEC (XBRL)· 05 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 202.3 m | 139.8 m | 288.8 m | 401.8 m | 398.1 m | 271.9 m | SEC (XBRL)· 05 Aug 2026verified |
| Receivables | 6.3 m | 15.8 m | 25.1 m | 33.0 m | 41.6 m | 50.1 m | SEC (XBRL)· 05 Aug 2026verified |
| Current assets | 2.0 bn | 4.2 bn | 3.0 bn | 3.5 bn | 3.3 bn | 3.7 bn | SEC (XBRL)· 05 Aug 2026verified |
| Property, plant & equipment, net | 59.8 m | 62.8 m | 64.1 m | 60.6 m | 54.2 m | 71.4 m | SEC (XBRL)· 05 Aug 2026verified |
| Goodwill | 33.7 m | 101.9 m | 102.1 m | 108.9 m | 343.1 m | 379.0 m | SEC (XBRL)· 05 Aug 2026verified |
| Intangibles (excl. goodwill) | 13.0 m | 45.5 m | 34.5 m | 28.3 m | 92.7 m | 86.1 m | SEC (XBRL)· 05 Aug 2026verified |
| Total assets | 2.4 bn | 4.8 bn | 3.7 bn | 4.2 bn | 4.4 bn | 4.9 bn | SEC (XBRL)· 05 Aug 2026verified |
| Accounts payable | 4.2 m | 8.4 m | 6.2 m | 8.6 m | 17.3 m | 10.9 m | SEC (XBRL)· 05 Aug 2026verified |
| Long-term debt | — | — | — | 0 | 162.5 m | 81.3 m | SEC (XBRL)· 05 Aug 2026verified |
| Current liabilities | 1.9 bn | 4.1 bn | 2.8 bn | 3.1 bn | 2.9 bn | 3.4 bn | SEC (XBRL)· 05 Aug 2026verified |
| Total liabilities | 1.9 bn | 4.2 bn | 2.9 bn | 3.2 bn | 3.2 bn | 3.7 bn | SEC (XBRL)· 05 Aug 2026verified |
| Equity | 476.9 m † | 613.5 m † | 842.9 m † | 1.0 bn † | 1.2 bn † | 1.2 bn † | SEC (XBRL)· 05 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 124.9 m | 155.1 m | 282.7 m | 384.7 m | 418.2 m | 533.3 m | SEC (XBRL)· 05 Aug 2026verified |
| Capex | 9.5 m | 18.1 m | 21.9 m | 18.0 m | 13.1 m | 36.2 m | SEC (XBRL)· 05 Aug 2026verified |
| Free cash flow | 115.4 m ≈ | 137.0 m ≈ | 260.8 m ≈ | 366.6 m ≈ | 405.2 m ≈ | 497.1 m ≈ | SEC (XBRL)· 05 Aug 2026derived |
| Investing cash flow | 48.4 m | -479.8 m | -220.2 m | -101.9 m | -455.5 m | -154.8 m | SEC (XBRL)· 05 Aug 2026verified |
| Financing cash flow | 280.5 m | 2.2 bn | -1.4 bn | 141.6 m | -325.8 m | 9.0 m | SEC (XBRL)· 05 Aug 2026verified |
| Share repurchases | — | 0 | 0 | 150.0 m | 149.6 m | 398.1 m | SEC (XBRL)· 05 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 71 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 9.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet55
- Growth52
- Quality80
- Returns100
- Valuation83
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 103.09 – 259.05 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/Sales156.56 – 259.05 (Mid 204.39)17 companies used · median multiple 6.0x · quartiles 4.6x – 7.7xADBE, ADSK, BBAI, CCSI, CDNS, CRM, IDAI, INTU, MSFT, NOW, PTC, RBLX, SNPS, SSNC, TTWO, TWLO, WCT
- Peers: EV/EBITDA103.09 – 220.40 (Mid 175.14)7 companies used · median multiple 18.3x · quartiles 10.6x – 23.1xADBE, ADSK, CCSI, CRM, PTC, SNPS, SSNC
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 71/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 69.2% | 73 (on a fixed band) | 11% |
| EBIT margin · Quality | 21.8% | 69 (vs peers) | 9% |
| FCF margin · Quality | 28.1% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 14.7% | 59 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 11.0% | 38 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | -0.4x | 92 (vs peers) | 6% |
| Current ratio · Balance sheet | 1.1x | 17 (on a fixed band) | 6% |
| EV/Sales · Valuation | 5.0x | 70 (vs peers) | 17% |
| FCF yield · Valuation | 5.5% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 4.4% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet55/100 · 2/2 factors with a value
- Growth52/100 · 2/2 factors with a value
- Quality80/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation83/100 · 2/2 factors with a value
Memo
Paylocity Holding Corporation (PCTY). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.8 bn USD in 2026; YoY growth 11.0%; net margin 15.2%; ROE 22.0%; net debt/EBITDA -0.4x.
The estimated value range is 129.82–239.73 USD per share (median of 2 methods, agreement: same basis (multiples on one peer group, not independent confirmations)); assumptions are illustrative. Against the central value of 189.76 USD, the price of 170.96 USD leaves a potential of 11.0% (value / price − 1) and a margin of safety of 9.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 71/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 69.2%
- FCF margin: 28.1%
- Net debt / EBITDA: -0.4x
- EV/Sales: 5.0x
- FCF yield: 5.5%
- Shareholder yield (distributions): 4.4%
What contradicts it
- Current ratio: 1.1x
Versus the vertical median
Services-Prepackaged Software (SIC 7372) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MSFTMicrosoft Corporation | 4,127.5 bn | 29.0 | 34.2% | 41.2% | +17.8% | +13% / +47% |
| PLTRPalantir Technologies Inc. | 413.7 bn | 120.4 | 41.2% | 50.3% | +56.2% | +2% / +756% |
| ORCLOracle Corporation | 374.1 bn | 19.3 | 41.6% | 26.4% | +17.3% | −39% / +6% |
| CRWDCrowdStrike Holdings, Inc. | 246.8 bn | 1,120.4 | 1.3% | 1.1% | +21.7% | +89% / +307% |
| CRMSalesforce, Inc. | 186.9 bn | 20.7 | 19.4% | 22.0% | +9.6% | −1% / −10% |
| NOWServicenow, Inc. | 112.9 bn | 78.1 | 11.8% | 9.4% | +20.9% | −33% / −21% |
| SNOWSnowflake Inc. | 102.5 bn | — | -48.2% | -20.1% | +29.2% | +16% / +55% |
| ADBEAdobe Inc. | 96.7 bn | 13.9 | 61.9% | 28.0% | +10.5% | −22% / −59% |
| INTUIntuit Inc. | 95.3 bn | 21.7 | 23.6% | 21.3% | +13.9% | −44% / −38% |
| CDNSCadence Design Systems, Inc. | 90.4 bn | 65.5 | 22.9% | 22.5% | +14.1% | +6% / +21% |
| SNPSSynopsys Inc | 88.7 bn | 81.8 | 3.7% | 11.4% | +15.1% | +11% / −15% |
| ADSKAutodesk, Inc. | 56.4 bn | 35.0 | 53.9% | 21.1% | +17.5% | −11% / +24% |
| VEEVVeeva Systems Inc. | 50.3 bn | 50.8 | 14.4% | 29.3% | +16.3% | +29% / +78% |
| TTWOTake-Two Interactive Software, Inc. | 39.1 bn | — | -9.0% | -4.8% | +18.2% | −15% / +32% |
| KCKingsoft Cloud Holdings Ltd | 36.3 bn | — | -13.1% | -9.8% | +28.2% | −34% / +85% |
| RBLXRoblox Corporation | 35.3 bn | — | -478.2% | -16.5% | +35.8% | −48% / +25% |
| TWLOTwilio Inc. | 33.0 bn | 26.8 | 14.9% | 21.8% | +13.7% | +65% / +230% |
| MDBMongodb, Inc. | 26.5 bn | 449.1 | 2.0% | 2.1% | +22.8% | −1% / −21% |
| PTCPTC Inc. | 21.2 bn | 19.0 | 35.1% | 41.4% | +19.2% | +11% / +24% |
| UUnity Software Inc. | 18.7 bn | — | -18.9% | -29.0% | +2.0% | −0% / +44% |
| SSNCSs&C Technologies Holdings, Inc. | 18.7 bn | 22.9 | 12.7% | 13.2% | +6.6% | −7% / +41% |
| NTNXNutanix, Inc. | 17.2 bn | 12.3 | 37,460.2% | 52.8% | +12.4% | +33% / +48% |
| TYLTyler Technologies, Inc. | 16.8 bn | 53.3 | 10.5% | 13.5% | +9.1% | −10% / +4% |
| DOCUDocusign, Inc. | 15.0 bn | 49.1 | 17.8% | 9.8% | +8.2% | +16% / +87% |
| GWREGuidewire Software, Inc. | 14.0 bn | 104.7 | 10.5% | 9.4% | +22.7% | −21% / +71% |
1- and 3-year price returns: for PCTY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 115.10 Total return -33% · Per year -33% | 202.58 Total return 18% · Per year 18% | 303.91 Total return 78% · Per year 78% |
| 3 years | 135.72 Total return -21% · Per year -7% | 266.41 Total return 56% · Per year 16% | 435.27 Total return 155% · Per year 37% |
| 5 years | 160.04 Total return -6% · Per year -1% | 350.33 Total return 105% · Per year 15% | 623.40 Total return 265% · Per year 30% |
- Exit P/E± 66.60
- Net margin± 46.62
- Annual revenue growth± 34.87
- Annual dilution± 3.92
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Paylocity is a cloud software provider for human capital management, finance and IT, with AI embedded directly into everyday workflows. The company closed fiscal 2026 with total revenue above 1.7 billion USD, and its continued growth in client base and revenue per client makes it relevant to analysis of the HCM software market, especially as AI adoption spreads. Figures come from the annual report and the company's results release.
SWOT
Strengths
Weaknesses
- Larger competitors have more resources, brand recognition and longer operating histories 1.
- Revenue is seasonal, with strong quarter-to-quarter swings that make quarterly comparisons less meaningful 1.
- Reliance on third parties for data centers and couriers could expose the company to service interruptions 1.
Opportunities
Risks
- Intense competitionhigh
Larger competitors could develop better-received products or offer more attractive commercial terms, which could hurt sales 1.
- Infrastructure outageshigh
Failures at data centers, networks or third-party providers could cause service unavailability and penalties for clients 1.
- Liquidity risk in payment processingmedium
If clients default on payment obligations, the company could be required to advance funds, which could affect liquidity 1.
- Unreliable AI outputsmedium
Generative AI products could produce inaccurate or biased results, with consequences for reputation and possible litigation 1.
- Quarterly fluctuations in resultslow
Revenue and expenses vary with client employee counts and renewal rates, which makes short-term forecasting difficult 1.
Investment thesis
What would need to be true (bull case)
- If recurring revenue growth and high retention hold, the company could keep expanding its client base and revenue per client 12.
- Ignite AI and the Grayscale acquisition could support new revenue sources and improve client productivity 2.
- Rising operating cash flow could allow continued share repurchases and investment in the product 2.
What would break the thesis
- If growth slows, as the fiscal 2027 guidance may suggest, the company could become more exposed to pressure from larger competitors 2.
- If AI innovation brings cheaper solutions, existing products could lose appeal 1.
- Dependence on macroeconomic conditions and interest rates could affect income on client funds and the pace of client additions 1.
What to watch
- Delivery of fiscal 2027 total revenue guidance2027
- Trend in annual revenue retention rate above the 92% levelnext 10-K
- Contribution of Ignite AI and the Grayscale acquisition to recurring revenueQ1 2027
- Effect of the longer deferred contract cost amortization period on adjusted EBITDA margin2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Paylocity 1 sells SaaS software for HR, payroll, finance and IT, aimed mainly at US firms with between 10 and 5,000 employees. Total revenue rose from 1,402.5 million USD in fiscal 2024 to 1,771.3 million USD in fiscal 2026 1. Its recurring revenue model and annual revenue retention rate above 92% 1 give high visibility into future results.
The company sells directly through its own sales force and through a referral network of 401(k) advisors, benefits administrators, insurance brokers and accountants 1. Clients pay based on the solutions bought and the number of employees, while implementation and client services are billed separately 1.
Paylocity completed the acquisition of Grayscale Labs in April 2026 to expand its AI-powered recruiting capabilities and launched Ignite AI, AI embedded across its platform 2. The company also repurchased 398.1 million USD of stock in fiscal 2026 2.
Segments
Payroll and tax
The payroll segment covers wage calculation, withholdings, tax filings for local, state and federal jurisdictions, and global payroll for employees in over 100 countries 1. It is the company's core product line.
HR, time and talent
This category includes HR administration, time and scheduling, recruiting, onboarding, learning, performance and compensation, along with benefits and retirement administration 1.
Finance and IT
Finance tools cover expense management, accounts payable, corporate cards and procurement, while IT tools automate access to software and hardware 1. These are extensions of the platform rather than its original core.
Market context
Paylocity estimates its realized target addressable market at about 22.5 billion USD 1. According to the company, there are about 1.3 million businesses with 10 to 5,000 employees in the US, which points to room for growth from a client base of 44,400 at June 30, 2026 1.
The HCM and payroll market is fragmented and highly competitive, with larger vendors competing on resources and brand recognition 1. The company's fiscal 2027 guidance implies total revenue growth of about 7%, which could signal a slowdown from the prior year 2.
Trends
- AI adoptionmixed
Generative AI and automated agents could raise productivity and open new product categories, but could also lower prices if more efficient rival technologies emerge 1. The effect depends on how the company monetizes its new capabilities.
- Growing client basetailwind
The client count rose from about 39,050 to 44,400 over two years, which the company sees as a significant opportunity 1. Continuing this trend could support recurring revenue.
- Macroeconomic uncertaintyheadwind
Changes in interest rates, inflation and trade policy could affect the pace of client additions and interest income on client funds 1. The company notes these factors have already influenced quarterly results.
- Consolidation in the industryheadwind
Larger competitors could be acquired by third parties with greater resources, which could intensify price pressure 1. The effect on Paylocity is uncertain but relevant to competition.
Competitive position
Paylocity 1 faces competition from payroll and HR service and software providers, as well as local and regional vendors. Larger competitors have stronger brand recognition and considerably greater resources, which lets them invest more in products and promotion 1.
Competition varies by product category, and firms that also offer payment or workforce administration platforms can bundle services 1. Paylocity differentiates on a unified platform and integration with hundreds of partner systems 1.
- Automatic Data ProcessingADP
Large payroll and HR provider, named in the filing as a principal competitor 1.
- DayforceDAY
Human capital and payroll platform, named as a direct competitor in the filing 1.
- PaychexPAYX
Payroll and HR services provider, identified as a principal competitor 1.
- Paycom SoftwarePAYC
HCM and payroll software provider serving the same client segment, named in the filing 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Paylocity’s (PCTY) Record Profits Come With A Slowing Growth ForecastYahoo Finance — News · 17 Sept 2026 · EN
- Paylocity CEO Williams Sells 12,000 Shares for $1.8 MillionYahoo Finance — News · 03 Sept 2026 · EN
The latest news item in our archive is from 17 Sept 2026; the newest SEC filing is from 22 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Proxy statement22 Oct 2026
- Current report17 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report21 Aug 2026Departure or appointment of officers
- Annual report05 Aug 2026
- Current report04 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report08 May 2026
- Current report07 May 2026Results of operations · Other events · Financial statements and exhibits
- Quarterly report06 Feb 2026
- Current report05 Feb 2026Results of operations · Financial statements and exhibits
- Current report05 Dec 2025Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Paylocity Holding Corporation · 05 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Paylocity Holding Corporation · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.