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Paylocity Holding (PCTY) FY2026 results: revenue $1.8 billion, up 11.0% on the year

Paylocity Holding Corp. (PCTY) reported revenue of $1.8 billion for fiscal 2026, the year ended 30 June 2026, up 11.0% on the year before. Net income was $270 million, up 18.8%, and diluted earnings per share $4.92. The figures are the company's own, from the 10-K it filed with the SEC on 5 August 2026.

Revenue
$1.8 billion
+11.0% on the year
FY2019FY2026
Operating margin
21.8%
19.1% a year earlier
FY2019FY2026
Net income
$270 million
+18.8% on the year
FY2019FY2026
Diluted EPS
$4.92
+22.4% on the year
FY2019FY2026

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 9 new.

  • Fiscal 2026 net income and EPS rose: GAAP net income for fiscal 2026 was $269.7 million, up from $227.1 million. Diluted EPS was $4.92, up from $4.02, an increase of 22.4%.
  • Adjusted EBITDA excluding interest up 16.4%: Fiscal 2026 Adjusted EBITDA excluding interest income on funds held for clients was $534.9 million, or 32.4% of recurring and other revenue, compared with 31.2% in fiscal 2025.
  • Ignite AI launched for HR, Finance, IT: Ignite AI is built into core workflows so clients can finish tasks faster and surface insights sooner. It is designed for HR, Finance and IT teams at companies of all sizes.
  • Client base up roughly 7%: Management attributed growth to higher average revenue per client and a client base about 7% larger.
  • Free cash flow margin 24.2%: Free cash flow was $427.8 million, or 24.2% of total revenue, compared with $342.8 million, or 21.5%, in fiscal 2025.
Read the Q4 FY2026 earnings call summary

From this 10-K

Paylocity sells cloud-based human capital management (HCM), finance and IT software as a service to businesses in the United States. Excluding clients gained through acquisitions, it served approximately 44,400 clients as of June 30, 2026, which on average had over 150 employees, and its clients typically have between 10 and 5,000 employees. It earns revenue based on the products a client buys, the number of the client's employees and the services it provides for them.

Paylocity Holding Corp., the 10-K for 2026

Paylocity sells cloud-based human capital management (HCM), finance and IT software as a service to businesses in the United States. Excluding clients gained through acquisitions, it served approximately 44,400 clients as of June 30, 2026, which on average had over 150 employees, and its clients typically have between 10 and 5,000 employees. It earns revenue based on the products a client buys, the number of the client's employees and the services it provides for them.

Products

Its payroll and tax services calculate wages, deductions and withholdings using data from its time and labor and human resources products, and its HR tools cover headcount tracking, employee self-service, workflows and documents, an HR compliance dashboard and outsourced HR support. Its time and labor products include time and attendance tracking and scheduling with AI-driven shift recommendations. Paylocity for Finance includes headcount planning, expense management, accounts payable automation, corporate cards and guided procurement, and in fiscal 2025 it acquired Airbase. Paylocity for IT connects employee records to IT systems to automate access, single sign-on and multi-factor authentication, and tracks employee hardware. Ignite AI, its platform-wide AI with agents, automates tasks across pay, time and recruiting, and the Ignite AI Hub lets leaders manage which agents are active and measure their use.

Integrations and selling

Its Integration Marketplace connects with hundreds of third-party systems, such as 401(k), benefits and insurance providers. It sells through a direct sales force and gets leads from marketing and from a referral network of 401(k) advisors, benefits administrators, insurance brokers, third-party administrators, HR consultants and accountants. Clients are supported by implementation and training services and client service teams, and it also provides tax and regulatory services.

People

As of June 30, 2026 it had approximately 6,900 employees, substantially all of them in the United States and full-time.

From Paylocity Holding's annual report on Form 10-K for the fiscal year ended 30 June 2026. The filing

Written from the 10-K filed 5 August 2026: read the full 10-K.

The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026

Income statement (profit and loss)

$ millionFY2026FY2025FY2024On the yearLast 8 years
Revenue1,7711,5951,403+11.0%
Cost of revenue546498442+9.6%
Gross profit1,2261,097961+11.7%
Gross margin69.2%68.8%68.5%
Research and development221206178+7.5%
Operating income386304260+27.0%
Operating margin21.8%19.1%18.5%
Pre-tax income387309277+25.3%
Income tax11881.970.2+43.5%
Effective tax rate30.4%26.5%25.4%
Net income270227207+18.8%
Net margin15.2%14.2%14.7%
Diluted EPS$4.92$4.02$3.63+22.4%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2026FY2025FY2024On the yearLast 8 years
Operating cash flow533418385+27.5%
Capital expenditure36.213.118.0+176.5%
Free cash flow497405367+22.7%
Free cash flow margin28.1%25.4%26.1%
Cash from investing-155-456-102
Cash from financing9.0-326142
Depreciation and amortisation11299.676.4+12.2%
Share-based compensation139143146-2.9%
Buybacks398150150+166.1%
Diluted shares, weighted55m57m57m-3.1%
Shares outstanding at period end53m55m56m-3.8%

Balance sheet

$ millionFY2026FY2025FY2024On the yearLast 8 years
Shareholders' equity1,2211,2341,033-1.0%
Debt81.21620.0-50.0%
Operating lease liabilities42.246.846.8-9.8%
Other liabilities3,5392,9463,166+20.1%
Total liabilities and equity4,8844,3894,245+11.3%
Fixed assets71.454.260.6+31.7%
Goodwill379343109+10.5%
Intangible assets86.192.728.3-7.0%
Securities held for sale or to maturity612620508-1.2%
Cash and equivalents272398402-31.7%
Receivables50.141.633.0+20.3%
Other assets3,4132,8403,105+20.2%
Total assets4,8844,3894,245+11.3%

10-K for the year ended 30 June 2026, filed 5 August 2026: the filing.