Want to see PCTY full AI Analyst Report?
Top Page
Paylocity
(NASDAQ:PCTY)
Select Model
Select Model
Rating:76Outperform
Price Target:
$166.00
▲(9.18% Upside)
Action:Reiterated
Date:09/18/26
The score is driven primarily by strong financial performance—robust growth, solid margins, and excellent free cash flow—supported by constructive earnings guidance. Offsetting factors include only moderately supportive technicals (near-term weakness) and a growth-leaning valuation with no dividend support, while the new credit facility modestly strengthens liquidity.
Positive Factors
Recurring revenue growth
Strong recurring revenue growth demonstrates continued demand for Paylocity’s cloud HCM platform and supports predictable subscription economics. Sustained expansion in payroll and workforce-management revenue can provide a durable base for cross-selling, client expansion, and continued operating leverage.
Negative Factors
Acquisition-related margin pressure
The acquired Grayscale and Aidora businesses are currently subscale from a margin perspective, creating a near-term drag on profitability. Integration and scaling requirements may temper consolidated margin expansion until these offerings contribute more efficiently to the broader platform.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue growth
Strong recurring revenue growth demonstrates continued demand for Paylocity’s cloud HCM platform and supports predictable subscription economics. Sustained expansion in payroll and workforce-management revenue can provide a durable base for cross-selling, client expansion, and continued operating leverage.
Read all positive factors
Paylocity Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business segments, highlighting which areas contribute most to growth and profitability, and indicating where the company might focus future efforts.
Breaks down revenue by different business segments, highlighting which areas contribute most to growth and profitability, and indicating where the company might focus future efforts.
Data provided by:
The Fly
The FlyPaylocity (PCTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.67B
Dividend YieldN/A
Average Volume (3M)615.85K
Price to Earnings (P/E)29.0
Beta (1Y)0.75
Revenue Growth11.04%
EPS Growth22.52%
CountryUS
Employees6,900
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)4.99
Shares Outstanding53,056,965
10 Day Avg. Volume691,547
30 Day Avg. Volume615,848
Financial Highlights & Ratios
PEG Ratio0.94
Price to Book (P/B)4.63
Price to Sales (P/S)3.19
P/FCF Ratio11.37
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue3.11
Enterprise Value/Gross Profit4.49
Enterprise Value/Ebitda11.02
Forecast
1Y Price Target
$175.60Price Target Upside15.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)8.83
Revenue Forecast (FY)$1.89B
Paylocity Business Overview & Revenue Model
Company Description
Paylocity Holding Corporation delivers a comprehensive suite of cloud-native software solutions, primarily focusing on human capital management (HCM) and payroll processing for businesses and their workforces throughout the United States. At its c...
How the Company Makes Money
Paylocity primarily makes money by selling subscriptions to its cloud HCM platform and charging customers recurring fees to use its modules (e.g., payroll, HR, time & labor, talent, and engagement tools). Revenue is generally generated on an ongoi...
Paylocity Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a solid set of operating and financial results: double-digit recurring revenue growth, expanding ARPU and client counts, meaningful adjusted EBITDA and free cash flow expansion, successful product launches, and accelerating AI adoption. Management provided constructive FY27 guidance while acknowledging conservative assumptions, near-term margin pressure from recent subscale acquisitions and required investments, and sensitivity to interest-rate-driven interest income. On balance, the company demonstrates strong execution and healthy momentum, with manageable near-term headwinds tied to integration and macro assumptions.Positive Updates
Strong Recurring and Total Revenue Growth
Q4 recurring revenue of $415.6M, up 12.4% year-over-year; Q4 total revenue up 11% YoY. Fiscal '26 recurring revenue grew 12.2% and total revenue grew 11% to roughly $1.8B.
Negative Updates
Acquisitions Are Near-Term Margin Headwinds
Management noted that recent acquisitions (Grayscale, Aidora) are currently subscale from a margin standpoint and represent a slight headwind to margins in fiscal '27.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Recurring and Total Revenue Growth
Q4 recurring revenue of $415.6M, up 12.4% year-over-year; Q4 total revenue up 11% YoY. Fiscal '26 recurring revenue grew 12.2% and total revenue grew 11% to roughly $1.8B.
Read all positive updates
Company Guidance
Paylocity guided Q1 FY27 recurring and other revenue of $414.0–$419.0M (~10% YoY) and total revenue of $439.5–$444.5M (~8% YoY), with adjusted EBITDA of $152.0–$156.0M (or $126.5–$130.5M excluding interest income on client-held funds); for full FY27 they expect recurring and other revenue of $1.777–$1.792B (~8% growth), total revenue of $1.880–$1.895B (~7% growth), adjusted EBITDA of $690–$700M (or $587–$597M excluding client-fund interest, implying ~80 bps of operating leverage at the midpoint). Guidance assumes Q1 average daily client funds of ~$3.0B at a ~340 bps yield (~$25.5M Q1 interest income) and FY27 average daily client funds of ~$3.4–$3.5B at ~300 bps (~$103M interest income), includes two 25‑bp rate cuts (Jan and Mar) and flat workforce levels vs FY26, and reflects a change to amortize deferred contract costs over 8 years (vs 7) that should increase FY27 adjusted EBITDA margin by roughly 120–140 bps.Paylocity Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
88
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.77B | 1.60B | 1.40B | 1.17B | 852.65M |
| Gross Profit | 1.23B | 1.10B | 960.79M | 807.56M | 565.65M |
| EBITDA | 499.10M | 421.75M | 354.20M | 220.23M | 134.31M |
| Net Income | 269.74M | 227.13M | 206.77M | 140.82M | 90.78M |
Balance Sheet | |||||
| Total Assets | 4.88B | 4.39B | 4.25B | 3.70B | 4.81B |
| Cash, Cash Equivalents and Short-Term Investments | 271.92M | 398.07M | 401.81M | 288.77M | 139.76M |
| Total Debt | 123.45M | 217.89M | 54.45M | 70.27M | 77.52M |
| Total Liabilities | 3.66B | 3.16B | 3.21B | 2.85B | 4.20B |
| Stockholders Equity | 1.22B | 1.23B | 1.03B | 842.86M | 613.46M |
Cash Flow | |||||
| Free Cash Flow | 497.10M | 342.75M | 366.57M | 215.81M | 102.47M |
| Operating Cash Flow | 533.25M | 418.23M | 384.60M | 282.72M | 155.05M |
| Investing Cash Flow | -154.79M | -455.55M | -101.89M | -220.16M | -479.77M |
| Financing Cash Flow | 8.98M | -325.82M | 141.65M | -1.43B | 2.17B |
Paylocity Technical Analysis
Positive
152.04
Price Trends
146.47
Negative
129.47
Positive
125.07
Positive
Market Momentum
-0.67
Positive
48.50
Neutral
55.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCTY, the sentiment is Positive. The current price of 152.04 is above the 20-day moving average (MA) of 144.71, above the 50-day MA of 146.47, and above the 200-day MA of 125.07, indicating a neutral trend. The MACD of -0.67 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 55.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCTY.
Paylocity Risk Analysis
Paylocity disclosed 29 risk factors in its most recent earnings report. Paylocity reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Paylocity Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.71B | 16.45 | 11.28% | 0.92% | 8.08% | -18.39% | |
78 Outperform | $13.22B | 42.31 | 9.34% | ― | 8.19% | 6.70% | |
76 Outperform | $7.67B | 28.95 | 23.44% | ― | 11.04% | 22.52% | |
71 Outperform | $9.79B | 23.43 | 40.43% | 0.68% | 9.23% | 27.04% | |
65 Neutral | $6.47B | -48.97 | -8.33% | ― | 22.90% | 61.40% | |
58 Neutral | $221.79M | -26.67 | -4.27% | ― | 24.27% | 48.44% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
PCTY
Paylocity
144.47
-11.95
-7.64%
ASUR
Asure
7.68
-0.63
-7.58%
NICE
NICE
113.90
-24.11
-17.47%
TYL
Tyler Technologies
322.81
-173.42
-34.95%
PAYC
Paycom
220.99
22.64
11.42%
TTAN
ServiceTitan, Inc. Class A
67.09
-34.05
-33.67%
Paylocity Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Paylocity Expands Revolving Credit Facility to Boost Liquidity
Positive
Sep 17, 2026
On Sept. 17, 2026, Paylocity Holding Corporation entered into an amended and restated revolving credit agreement establishing a $1.75 billion senior secured revolving credit facility with PNC Bank and other lenders. The facility, which replaces a ...
Executive/Board ChangesShareholder Meetings
Paylocity Announces Planned Board Transition for 2027 Meeting
Neutral
Aug 21, 2026
On August 20, 2026, Paylocity announced that board member Craig Conway has decided not to stand for re-election at the company’s 2027 annual meeting of stockholders, which is expected to be held on December 3, 2026. Conway will remain on the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.