Paylocity (0P7) AI Stock Analysis

Paylocity

(XETRA:0P7)

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Positive Factors

Recurring Revenue GrowthDouble-digit recurring revenue growth demonstrates continued customer adoption of Paylocity’s cloud HCM platform. Because subscription revenue repeats across customer relationships, this momentum supports durable visibility, ongoing cross-selling potential, and a stronger foundation for future operating leverage.

Negative Factors

Acquisition and Product Investment PressureRecent acquisitions and new managed-service offerings are expected to weigh on near-term margins as Paylocity integrates businesses and funds product expansion. Although these investments may support future growth, the associated costs could delay operating leverage and create execution pressure over the next several quarters.

Paylocity (0P7) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 8.92B
Dividend Yield: ―
Average Volume (3M): 93
Price to Earnings (P/E): 34.3
Beta (1Y): 0.20
Revenue Growth: 3.36%
EPS Growth: 13.54%
Country: Germany
Employees: 6,900
Sector: Technology
Sector Strength: 61
Industry: Software - Application

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 core...

Paylocity Earnings Call Summary

Earnings Call Date:Aug 03, 2026(Q4-2026)|% Change Since:24.39%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

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.

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 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:0P7 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICE	81Outperform	$6.58B	16.17	11.28%	―	8.08%	-18.39%
PAYC	80Outperform	$11.70B	28.02	40.43%	0.57%	9.23%	27.04%
TTAN	75Outperform	$8.13B	-61.50	-8.33%	―	22.90%	61.40%
TYL	73Outperform	$15.68B	49.16	10.25%	―	7.96%	9.43%
ASUR	67Neutral	$283.90M	-79.14	-1.85%	―	20.59%	79.90%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

DE:0P7 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:0P7	Paylocity Holding	153.00	31.00	25.41%
ASUR	Asure Software Inc	9.41	0.95	11.23%
NICE	Nice Ltd.	113.76	-21.78	-16.07%
TYL	Tyler Technologies	394.30	-72.72	-15.57%
PAYC	Paycom Software	264.20	81.08	44.28%
TTAN	ServiceTitan, Inc. Class A	84.26	-10.52	-11.10%

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.

Paylocity AI Stock Analysis