A Business at a Glance
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Paylocity Holding Corp
PCTY
$7.1B
Mkt Cap
$125.27
+3.87%
Paylocity Holding Corp (PCTY) has a current P/E ratio of 29.5, compared to its historical median P/E of 72.0. The stock is currently considered Cheap based on its historical valuation range.
Paylocity Holding Corp (PCTY) has a 5-year average return on invested capital (ROIC) of 43.4%. This indicates strong capital allocation and a potential competitive advantage.
Paylocity Holding Corp (PCTY) has a market capitalization of $6.7B. It is classified as a mid-cap stock.
Paylocity Holding Corp (PCTY) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 6.54%.
Based on historical P/E analysis, Paylocity Holding Corp (PCTY) appears cheap. The current P/E of 29.5 is 59% below its historical median of 72.0. The estimated fair value CAGR (P/E method) is 28.2%.
Paylocity Holding Corp (PCTY) operates in the Services-Prepackaged Software industry, within the Technology sector.
Paylocity Holding Corp (PCTY) reported annual revenue of $1.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Paylocity is a leading cloud-based provider of human capital management, payroll, and spend management software solutions delivered as a SaaS platform to mid-market organizations. The company serves approximately 41,650 clients across the U.S. with an average client size of over 150 employees, generating revenue based on solutions purchased, number of client employees, and services provided. The platform offers a unified employee system of record spanning the full employee lifecycle from recruitment to retirement, with integrated capabilities across HR, finance, and IT functions, complemented by AI-powered features including intelligent automation, tailored insights, and embedded guidance. Paylocity distributes its solutions through a direct sales force supplemented by an extensive referral network of 401(k) advisors, benefits administrators, insurance brokers, and HR consultants, with broker channels representing more than 25% of new business. The company's competitive advantages include its modern, intuitive user interface, unified database architecture, extensive third-party integration ecosystem, and industry-leading customer service and implementation organization. The business model is characterized by recurring revenue with annual revenue retention rates exceeding 92%, providing significant visibility into future operating results, and the company has demonstrated consistent expansion of average revenue per client through product innovation and cross-selling of new solutions such as Paylocity for Finance.
【Strong execution and AI momentum】 Management highlighted continued strong sales and operational execution through fiscal 2026, with recurring revenue growth of 11–14% across quarters and consistent outperformance against guidance. The company is investing significantly in research and development to expand AI capabilities throughout the platform, including new features such as the Policy and Procedures Agent and AI Assistant for HR rules and regulations, which are driving increased utilization and client engagement. Management expects to continue driving operational leverage through automation and AI investments while maintaining industry-leading service levels, with confidence in achieving updated long-term financial targets including $3 billion revenue, 40–45% Adjusted EBITDA margin, and 25–30% free cash flow margin. The company remains focused on expanding its client base and average revenue per client through product innovation, with Paylocity for Finance representing a significant multi-year opportunity for both new client acquisition and cross-selling into the existing 41,650-client base.
| Metric | Target | Period |
|---|---|---|
| Recurring and other revenue | $1.638 billion–$1.643 billion | FY2026 |
| Total revenue | $1.755 billion–$1.760 billion | FY2026 |
| Adjusted EBITDA | $638 million–$642 million | FY2026 |
| Adjusted EBITDA excluding interest income on funds held for clients | $521 million–$525 million | FY2026 |
| Q4 FY2026 Recurring and other revenue | $402.2 million–$407.2 million | Q4 FY2026 |
| Q4 FY2026 Total revenue | $428.4 million–$433.4 million | Q4 FY2026 |
Recurring and other revenue (FY2026): “Recurring and other revenue guidance is now expected to be in the range of $1.638 billion-$1.643 billion, or approximately 11% to 12% growth over fiscal 2025 recurring and other revenue.”
Total revenue (FY2026): “Total revenue guidance is now expected to be in the range of $1.755 billion-$1.760 billion, or approximately 10% growth over fiscal 2025.”
Adjusted EBITDA (FY2026): “Adjusted EBITDA is expected to be in the range of $638 million-$642 million.”
Adjusted EBITDA excluding interest income on funds held for clients (FY2026): “Adjusted EBITDA excluding interest income on funds held for clients is expected to be in the range of $521 million-$525 million.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.7B | 1.6B | 1.4B | 1.2B | 853M | 636M |
| Net Income | 238M | 227M | 207M | 141M | 91M | 71M |
| EPS | $4.34 | $4.02 | $3.63 | $2.49 | $1.61 | $1.26 |
| Free Cash Flow | 461M | 405M | 367M | 261M | 137M | 115M |
| ROIC | 58.5% | 44.3% | 57.3% | 51.1% | 40.8% | 23.4% |
| Gross Margin | 69.0% | 68.8% | 68.5% | 68.8% | 66.3% | 65.5% |
| Debt/Equity | 0.07 | 0.13 | 0.00 | 3.38 | 6.84 | 4.06 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 338M | 304M | 260M | 155M | 85M | 58M |
| Operating Margin | 20.1% | 19.1% | 18.5% | 13.2% | 9.9% | 9.1% |
| ROE | 21.7% | 20.0% | 22.0% | 19.3% | 16.7% | 16.3% |
| Shares Outstanding | 54M | 56M | 57M | 57M | 56M | 56M |
Paylocity Holding Corp passes 9 of 9 quality checks, indicating strong fundamentals.
Paylocity Holding Corp trades at 29.5x trailing earnings, compared to its 15-year median P/E of 72.0x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 14.6x vs a median of 50.2x. The company's 5-year average ROIC is 43.4% with a gross margin of 67.6%. Total shareholder yield (buybacks) is 6.5%. At current prices, the estimated annualized return to fair value is +30.0%.
Paylocity Holding Corp (PCTY) has a net profit margin of 14.2%. This is a healthy margin.
Paylocity Holding Corp (PCTY) generated $405 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Paylocity Holding Corp (PCTY) has a debt-to-equity ratio of 0.13. This indicates a conservatively financed balance sheet.
Paylocity Holding Corp (PCTY) reported earnings per share (EPS) of $4.02 in its most recent fiscal year.
Paylocity Holding Corp (PCTY) has a return on equity (ROE) of 20.0%. This indicates the company generates strong returns for shareholders.
Paylocity Holding Corp (PCTY) has a 5-year average gross margin of 67.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 14 years of financial data for Paylocity Holding Corp (PCTY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Paylocity Holding Corp (PCTY) has a book value per share of $21.84, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management highlighted continued strong sales and operational execution through fiscal 2026, with recurring revenue growth of 11–14% across quarters and consistent outperformance against guidance. The company is investing significantly in research and development to expand AI capabilities throughout the platform, including new features such as the Policy and Procedures Agent and AI Assistant for HR rules and regulations, which are driving increased utilization and client engagement. Management expects to continue driving operational leverage through automation and AI investments while maintaining industry-leading service levels, with confidence in achieving updated long-term financial targets including $3 billion revenue, 40–45% Adjusted EBITDA margin, and 25–30% free cash flow margin. The company remains focused on expanding its client base and average revenue per client through product innovation, with Paylocity for Finance representing a significant multi-year opportunity for both new client acquisition and cross-selling into the existing 41,650-client base.
Based on recent SEC filings and earnings calls, Paylocity Holding Corp (PCTY) has provided the following forward guidance: Recurring and other revenue: $1.638 billion–$1.643 billion (FY2026); Total revenue: $1.755 billion–$1.760 billion (FY2026); Adjusted EBITDA: $638 million–$642 million (FY2026); Adjusted EBITDA excluding interest income on funds held for clients: $521 million–$525 million (FY2026); Q4 FY2026 Recurring and other revenue: $402.2 million–$407.2 million (Q4 FY2026), plus 1 additional metric.
Q4 FY2026 Recurring and other revenue (Q4 FY2026): “For the fourth quarter of fiscal 2026, recurring and other revenue is expected to be in the range of $402.2 million-$407.2 million, or approximately 9%-10% growth over fourth quarter fiscal 2025 recurring and other revenue.”
Q4 FY2026 Total revenue (Q4 FY2026): “Total revenue is expected to be in the range of $428.4 million-$433.4 million, or approximately 7%-8% growth over fourth quarter fiscal 2025 total revenue.”
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