Paylocity Holding Corporation delivers a comprehensive suite of cloud-native software solutions, primarily focusing on human capital management (HCM) and payroll processing for ...
Paylocity Holding Corporation, founded in 1997 and headquartered in Schaumburg, Illinois, is a prominent player in the human capital management (HCM) and payroll software industry. With a workforce of approximately 6,900 employees, the company serves a diverse clientele, ranging from small to medium-sized businesses (with 50 to 1,000 employees) to ...Paylocity Holding Corporation, founded in 1997 and headquartered in Schaumburg, Illinois, is a prominent player in the human capital management (HCM) and payroll software industry. With a workforce of approximately 6,900 employees, the company serves a diverse clientele, ranging from small to medium-sized businesses (with 50 to 1,000 employees) to larger enterprises and nonprofit organizations. Paylocity's platform integrates payroll, HR management, time and attendance, talent management, and benefits administration into a unified, cloud-based system. The company's flagship product, Payroll and Tax Services, automates payroll processing, tax filing, expense management, and garnishment handling, ensuring compliance with federal and state regulations. Beyond payroll, Paylocity offers robust HCM tools, including employee self-service portals, document management, a compliance dashboard, and 'HR Edge' features. Its time and attendance tracking module supports various devices, from physical kiosks to mobile apps. The talent management suite covers recruiting, onboarding, learning, performance, compensation, and succession planning. Additionally, Paylocity provides benefits administration, third-party administrative services, and employee engagement tools like community platforms, recognition programs, and surveys. For data-driven insights, the platform offers analytics, reporting, and a modern workforce index. Financially, Paylocity is a public company listed on NASDAQ (symbol: PCTY), with a market capitalization of approximately $8.05 billion as of the latest data. The company has demonstrated robust financial performance, with a revenue per share of $32.75 and a net profit margin of 15.2% on a trailing twelve-month basis. Its gross profit margin stands at 69.2%, indicating strong operational efficiency. Paylocity's EBITDA margin is 28.2%, and its return on equity is 23.4%, reflecting solid profitability. The company's debt-to-equity ratio is low at 0.101, and it maintains a current ratio of 1.089, indicating good short-term liquidity. Paylocity serves industries such as business services, healthcare, manufacturing, hospitality, retail, and technology, and distributes its solutions through a direct sales team. The company is led by CEO Toby Williams, who took over in August 2024, with Steve Sarowitz as founder and executive chairman. Paylocity's commitment to innovation and client success has earned it recognition in the industry, positioning it as a key partner for organizations seeking to enhance their HR and payroll operations.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.8B
+11.0%
-11.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$269.7M
+18.8%
-45.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+69.2%
+0.6%
-6.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+21.8%
+14.3%
-39.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+15.2%
+7.0%
-38.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$497.1M
+45.0%
-52.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+28.1%
+30.6%
-46.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
10.1%
-42.8%
-11.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.09x
-4.5%
+0.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and thank you for standing by. Welcome to the Paylocity Holding Corporation Fourth Quarter 2026 Fiscal Year Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Ryan Glenn, Chief Financial Officer. Please go ahead.
Ryan Glenn: Good afternoon, and welcome to Paylocity's earnings results call for the fourth quarter and fiscal '26, which ended on June 30, 2026. I'm Ryan Glenn, Chief Financial Officer; and joining me on the call today are Steve Beauchamp, Executive Chairman; and Toby Williams, President and CEO of Paylocity. Today, we will be discussing the results announced in our press release issued after the market closed. A webcast replay of this call will be available for the next 45 days on our website under the Investor Relations tab. Before beginning, we must caution you that today's remarks, including statements made during the question-and-answer session, contain forward-looking statements. These statements are subject to numerous important factors, risks, and uncertainties, which could cause actual results to differ from the results implied by these or other forward-looking statements. Also, these statements are based solely on the present information and are subject to risks and uncertainties that can cause actual results to differ materially from those projected in the forward-looking statements. For additional information, please refer to our filings with the Securities and Exchange Commission for the risk factors contained therein and other disclosures. We do not undertake any duty to update any forward-looking statements. Also during the course of today's call, we will refer to certain non-GAAP financial measures. We believe that non-GAAP measures are more representative of how we internally measure the business, and there is a reconciliation schedule detailing these results currently available in our press release, which is located on our website at paylocity.com under the Investor Relations tab and filed with the Securities and Exchange Commission. Please note that we are unable to reconcile any forward-looking non-GAAP financial measure to the directly comparable GAAP financial measure because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort. With that, let me turn the call over to Steve.
Steven Beauchamp: Thanks, Ryan, and thanks to all of you for joining us on our fourth quarter and fiscal '26 earnings call. Our differentiated value proposition of providing the most modern platform in the industry continues to resonate in the marketplace and helped drive recurring revenue growth of 12.4% and total revenue growth of 11% in Q4. For fiscal '26, recurring revenue grew 12.2% and total revenue grew 11% as we ended the year with approximately $1.8 billion of revenue. Our sustained multi-year investment in R&D and …
