Paylocity closed fiscal 2026 with double-digit growth, stronger profitability, and an expanded product strategy spanning HR, Finance, and IT. Fourth-quarter revenue rose 11.0% year over year to $444.7 million, while recurring and other revenue increased 12.4% to $415.6 million. For the full year, total revenue reached $1.771 billion, GAAP net income grew 18.8% to $269.7 million, and adjusted EBITDA increased to $654.9 million, representing a 37.0% margin. Free cash flow totaled $427.8 million, or 24.2% of revenue, while the client base expanded by roughly 7%. Product development centered on Ignite AI, the acquisition of Grayscale Labs, Paylocity Retirement, and Elevate Solutions. Management expects fiscal 2027 revenue of $1.880 billion to $1.895 billion, implying approximately 7% growth. For HR and enterprise leaders, the results show Paylocity evolving from a payroll-led HCM provider into a broader operating platform that combines software, embedded AI, financial workflows, and managed services.



Q4 2026 Recurring & Other Revenue of $415.6 million, up 12.4% year-over-year

Q4 2026 Total Revenue of $444.7 million, up 11.0% year-over-year

FY 2026 Recurring & Other Revenue of $1.651 billion, up 12.2% year-over-year

FY 2026 Total Revenue of $1.771 billion, up 11.0% year-over-year

Continued growth in cash flows in FY 2026 - net cash provided by operating activities margin of 30.1% and free cash flow margin of 24.2%

Repurchased $398.1 million or 2.8 million shares of common stock during FY 2026; $697.8 million or 4.6 million shares repurchased since May 2024

SCHAUMBURG, Ill., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading cloud-based provider of HCM, finance and IT software solutions, today announced financial results for the fourth quarter and fiscal 2026, which ended June 30, 2026.

“Fiscal 26 was a strong year as our differentiated position in the market was reflected in solid sales and operational execution, helping to drive 12.2% recurring and other revenue growth and 11.0% total revenue growth. Our durable growth was driven by the continued expansion of average revenue per client and a roughly 7% increase in our client base – while also increasing profitability across our organization. As we continue to expand our product suite, a critical component of our strategy is driven by the launch of Ignite AI, which is designed to help accelerate productivity for HR, Finance, and IT teams across companies of all sizes and industries. Our approach to AI remains focused on driving value for our clients - Ignite AI is woven directly into core workflows to help clients complete tasks faster and surface insights more quickly. In Fiscal 26 we continued to expand our product suite with the acquisition of Grayscale, which expands our recruiting capabilities with AI-powered automation that helps employers engage with candidates earlier and faster, and the announcement of Paylocity Retirement, which helps employers reduce manual work and provide their employees easier access to their retirement savings. Additionally, we launched Elevate Solutions, which pairs our unified platform with dedicated payroll and HR teams who work directly with clients to lighten their administrative workload, allowing them to focus more time on strategic priorities. We also continue to return capital to shareholders by repurchasing $398.1 million or approximately 2.8 million shares of our stock in Fiscal 26. I would also like to thank all of our employees for their efforts supporting our clients, and congratulate our teams for another successful year,” said Toby Williams, President and Chief Executive Officer of Paylocity.

Key Recent Achievements

FY 2026 Recurring & other revenue of $1.651 billion, up 12.2% year-over-year.

FY 2026 Total revenue of $1.771 billion, up 11.0% year-over-year.

FY 2026 GAAP net income increased 18.8% to $269.7 million from $227.1 million in FY 2025 and $4.92 per diluted share from $4.02 in FY 2025, an increase of 22.4%.

FY 2026 Adjusted EBITDA, a non-GAAP measure, increased 12.3% to $654.9 million from $583.0 million in FY 2025, or 37.0% of Total revenue compared to 36.5% in FY 2025.

FY 2026 Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, increased 16.4% to $534.9 million from $459.6 million in FY 2025, or 32.4% of Recurring and other revenue compared to 31.2% in FY 2025.

Completed acquisition of Grayscale Labs, Inc. in April 2026 to expand AI-powered recruiting capabilities

Fourth Quarter Fiscal 2026 Financial Highlights

Revenue:

Recurring & other revenue was $415.6 million, an increase of 12.4% from the fourth quarter of fiscal 2025.

Total revenue was $444.7 million, an increase of 11.0% from the fourth quarter of fiscal 2025.

Operating Income:

GAAP operating income was $84.4 million and non-GAAP operating income was $120.2 million in the fourth quarter of fiscal 2026, compared to GAAP operating income of $66.2 million and non-GAAP operating income of $105.6 million in the fourth quarter of fiscal 2025.

Net Income:

GAAP net income was $60.3 million or $1.12 per share in the fourth quarter of fiscal 2026 based on 54.0 million diluted weighted average common shares outstanding, compared to $48.6 million or $0.86 per share in the fourth quarter of fiscal 2025 based on 56.3 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

Adjusted EBITDA, a non-GAAP measure, was $145.5 million in the fourth quarter of fiscal 2026 compared to $130.7 million in the fourth quarter of fiscal 2025.

Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $116.4 million in the fourth quarter of fiscal 2026 compared to $99.9 million in the fourth quarter of fiscal 2025.

Fiscal 2026 Financial Highlights

Revenue:

Recurring & other revenue was $1.651 billion, an increase of 12.2% from fiscal 2025.

Total revenue was $1.771 billion, an increase of 11.0% from fiscal 2025.

Operating Income:

GAAP operating income was $386.0 million and non-GAAP operating income was $557.3 million in fiscal 2026, compared to GAAP operating income of $304.0 million and non-GAAP operating income of $484.4 million in fiscal 2025.

Net Income:

GAAP net income was $269.7 million or $4.92 per share for fiscal 2026, based on 54.8 million diluted weighted average common shares outstanding, compared to $227.1 million or $4.02 per share for fiscal 2025 based on 56.6 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

Adjusted EBITDA, a non-GAAP measure, was $654.9 million for fiscal 2026 compared to $583.0 million for fiscal 2025.

Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $534.9 million for fiscal 2026 compared to $459.6 million for fiscal 2025.

Balance Sheet and Cash Flow:

Cash and cash equivalents totaled $271.9 million at the end of fiscal 2026.

Long-term debt totaled $81.3 million as of the end of fiscal 2026, representing borrowings under our credit facility. This reflects approximately $81.3 million repaid on our outstanding balance during fiscal 2026.

Net cash provided by operating activities for fiscal 2026 was $533.3 million or 30.1% of Total revenue compared to $418.2 million or 26.2% of Total revenue for fiscal 2025.

Free cash flow, a non-GAAP measure, was $427.8 million or 24.2% of Total revenue for fiscal 2026 compared to $342.8 million or 21.5% of Total revenue for fiscal 2025.

Free cash flow excluding interest income on funds held for clients, a non-GAAP measure, was $307.8 million or 18.6% of Recurring and other revenue for fiscal 2026 compared to $219.3 million or 14.9% of Recurring and other revenue for fiscal 2025.

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Change in Deferred Contract Costs Benefit Period

Beginning in fiscal 2027 we will amortize deferred contract costs over an 8-year useful life, an increase from our current 7-year convention. This prospective change is expected to increase fiscal 2027 Adjusted EBITDA margins by approximately 120–140 basis points, depending on business performance, and timing and volume of sales and client implementations, and is reflected in the guidance below.

Business Outlook

Based on information available as of August 4, 2026, Paylocity is issuing guidance for the first quarter and full fiscal 2027 as indicated below.

First Quarter 2027:

Recurring and other revenue is expected to be in the range of $414.0 million to $419.0 million, which represents approximately 10% growth over fiscal 2026 first quarter recurring and other revenue.

Total revenue is expected to be in the range of $439.5 million to $444.5 million, which represents approximately 8% growth over fiscal 2026 first quarter total revenue.

Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $152.0 million to $156.0 million.

Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $126.5 million to $130.5 million.

Fiscal 2027:

Recurring and other revenue is expected to be in the range of $1.777 billion to $1.792 billion, which represents approximately 8% growth over fiscal 2026 recurring and other revenue.

Total revenue is expected to be in the range of $1.880 billion to $1.895 billion, which represents approximately 7% growth over fiscal 2026 total revenue.

Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $690.0 million to $700.0 million.

Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $587.0 million to $597.0 million.

We are unable to reconcile forward-looking non-GAAP financial measures included in our guidance to their directly comparable GAAP financial measures because the information which is needed to complete the reconciliations is unavailable at this time without unreasonable effort.

Conference Call Details

Paylocity will host a conference call to discuss its fourth quarter and full fiscal 2026 results today at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through https://investors.paylocity.com/events-and-presentations where you will be provided with dial in details. A replay of the call will be available and archived via webcast at https://investors.paylocity.com/.

About Paylocity

Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy-to-use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection-with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.

Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures when reporting and discussing its financial results, including the financial measures in this release that are designated as being “non-GAAP.” Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance, as they provide investors with the company’s view of its financial performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance, including comparisons of current results to prior periods’ results by excluding items the company does not believe reflect fundamental business performance and are not representative or indicative of its results of operations. Non-GAAP financial measures have limitations as an analytical tool and other companies may define their non-GAAP financial measures differently than we do. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in the accompanying tables to this release, as well as the definitions of those non-GAAP measures following such tables.

Safe Harbor/Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, future financial position and performance, anticipated results of operations, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include statements about management's estimates regarding future revenues and financial performance, and other statements about management’s beliefs, intentions or goals and are expressed in good faith and believed to be reasonable at the time such statements are made. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on such statements. These forward-looking statements involve risks and uncertainties, many of which are beyond Paylocity’s control, that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the general economic conditions in regions in which Paylocity does business, changes in interest rates, business disruptions, reductions in employment and increases in business failures that have occurred or may occur in the future; Paylocity’s ability to leverage forms of artificial intelligence and machine learning in its technology, which may be constrained by current and future laws, regulations, interpretive positions or standards governing new and evolving technologies and ethical considerations that could restrict or impose burdensome and costly requirements on its ability to continue to leverage data in innovative ways; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; challenges related to cybersecurity threats and evolving cybersecurity regulations; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; risks related to acquisitions and investments in other businesses and technologies; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets; Paylocity’s ability to protect and defend its intellectual property and its use of open source software in its products; the risk that Paylocity’s security measures are compromised or a threat actor gains unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; the possibility that Paylocity may be adversely affected by other economic, business, and/or competitive factors; and other risks and potential factors that could affect Paylocity’s business and financial results that are identified in Paylocity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on August 6, 2025, as well as any revisions or supplements to the information in subsequent reports filed or furnished to the SEC. These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and unless legally required, Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.