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Paylocity Holding Corporation
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NASDAQ: PCTY Technology IT 🔎 Screen
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$8.5B
Market Cap
45.1
P/E
1.99
PEG
25.4%
ROCE
22.0%
ROE
0.10
D/E
21.8%
OPM
-0.7%
% from 52W High
81
α RS
🔍 PCTY is showing a multi-screen setup because it matches 20 of 39 tracked screener presets, RS Rating is 81, it's within 0.7% of its 52-week high, and it has maintained a 22-day Near 52-Week High momentum persistence. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating 52W High Momentum Streaks
Sources
Conviction 20/39 · RS Rating 81 · 0.7% from 52W high · Near 52-Week High streak: 22d
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🌏 Global Investor Returns
Currency-adjusted total returns for PCTY including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Paylocity Holding Corporation provides cloud-based human capital management, finance, and IT software solutions in the United States. The company offers payroll solutions comprising payroll and tax services, global payroll, on-demand payment, garnishments, and elevate payroll; human resources (HR) solutions consisting of human resources, employee self-service, workflows and documents, HR compliance dashboard, and elevate HR and HR edge; time and labor solutions, including time and attendance, scheduling, and time collection; and talent solutions, such as recruiting, onboarding, learning, performance, compensation, and market pay. It also provides benefits solutions comprising benefit enrollment and updates, third-party administrative solutions, and retirement; employee experiences consisting of community, video, employee voice, recognition and rewards, data insights, and reporting; and Paylocity for finance solutions, such as headcount planning, expense management, accounts payable automation, corporate cards, and guided procurement. In addition, the company offers Paylocity for IT which includes access management and identity, and asset management; and implementation and training, client services, and tax and regulatory services. It serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. The company markets and sells its products through sales representatives. Paylocity Holding Corporation was founded in 1997 and is headquartered in Schaumburg, Illinois.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding PCTY
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 1.11M $119.8M 0.15% Mar 2026
Jim Simons Renaissance Technologies LLC 235.0K $25.4M 0.04% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Paylocity reported 11.6% recurring revenue growth to $469.9M in Q3 FY2026 and raised full-year guidance.
Revenue & Profitability
For Q3 fiscal 2026, Paylocity reported recurring and other revenue of $469.9 million (up 11.6% YoY). Total revenue grew 10.5% versus the same period last year. GAAP operating income was $157.0 million, and GAAP net income was $111.3 million. Adjusted EBITDA reached $220.2 million (43.8% margin), exceeding guidance by $16.2 million. The company raised full-year fiscal 2026 recurring revenue guidance to $1.638–1.643 billion and total revenue to $1.755–1.760 billion.
Outlook
Management sees a stable demand environment with resilient workforce levels that have been up year-over-year, and they assume flat workforce levels for fourth-quarter guidance. Regulatory changes such as the One Big Beautiful Bill and the Secure 2.0 Act increase complexity in payroll, tax, and benefits administration, which benefits Paylocity’s compliance expertise. The company’s guidance assumes no further Federal Reserve rate cuts in fiscal 2026.
Growth Drivers
Key growth levers include the expansion of AI capabilities (e.g., the Grayscale acquisition for recruiting automation), cross-selling finance and IT solutions into the existing client base, and the new Paylocity Elevate managed services offering. The broker channel continues to be a strong driver, contributing more than 25% of new business. The company also benefits from client workforce growth and increasing average revenue per unit through product attach.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Adjusted gross profit margin was 77.3% in Q3, up 30 basis points year-over-year. Through nine months, adjusted gross margin improved 60 basis points. Adjusted EBITDA margin (excluding float) expanded 110 basis points to 43.8%. Full-year adjusted EBITDA guidance was raised to $638–642 million. Management expects continued operating leverage from automation and AI, with G&A expenses declining 20 basis points as a percentage of revenue. Free cash flow margin exceeded 24% over the last twelve months.
Key Risks
Risks mentioned include the zero-margin-for-error nature of payroll compliance across thousands of tax jurisdictions, reputational risk from processing errors, and the potential impact of AI disruption in the market—though management expressed confidence in the company’s moat. No other specific risks were flagged by management or analysts in the Q&A session.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-08-04
Recurring revenue grew 12.4% in Q4 and 12.2% for fiscal 2026, with total revenue up 11% year-over-year. New AI-driven products and acquisitions fueled client growth and ARPU, while free cash flow and margins expanded. Fiscal 2027 guidance projects continued growth and margin improvement.
Q3 2026 Q3 2026 2026-05-07
Q3 saw recurring revenue up 11.6% year-over-year, beating guidance and driving a full-year outlook raise. AI innovation, the Grayscale acquisition, and new managed services fueled growth, while strong cash flow enabled $350M in share repurchases and a new $1B buyback plan.
Q2 2026 Q2 2026 2026-02-05
Q2 FY2026 delivered 10% revenue growth and strong profitability, driven by robust sales, product innovation, and stable demand. Full-year guidance was raised across all metrics, with continued investment in AI, R&D, and share repurchases supporting future growth.
Q1 2026 Q1 2026 2025-11-04
Q1 FY2026 saw 12% revenue growth and strong recurring revenue, driven by AI innovation and new finance/IT modules. Guidance for FY2026 was raised, with long-term targets increased to $3B revenue and 80%+ gross margin. Broker channel and product adoption remain key growth drivers.
Q4 2025 Q4 2025 2025-08-05
Recurring revenue grew 14% and total revenue 12% in fiscal 2025, with strong Q4 results and robust free cash flow. The launch of Paylocity for Finance and Airbase integration expanded the product suite, while guidance for fiscal 2026 anticipates continued growth and margin expansion.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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