Paylocity earnings date
Paylocity (PCTY) Q1 2027 Earnings Report
MX:PCTY Q1 2027 EPS Results
- Actual EPS
- MXN 38.87
- Consensus EPS
- MXN 35.90
- Beat/Miss
- Beat by +MXN 2.98
- One Year Ago EPS
- MXN 32.55
MX:PCTY Q1 2027 Revenue Results
- Actual Revenue
- MXN 8.40B
- Expected Revenue
- MXN 8.24B
- Beat/Miss
- Beat by +MXN 158.94M
- YoY Revenue Growth
- +10.66%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 11/05/2026
- Time
- After Close
- Conference Call
- Thursday, November 5, 2026
Paylocity's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q1 2027 Earnings Call Audio
Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
The call was strongly positive. Paylocity reported double-digit recurring-revenue growth, exceeded Q1 revenue and EBITDA guidance, raised fiscal 2027 revenue and profitability outlooks, and cited stable demand, strong retention, product adoption, AI monetization opportunities, and momentum across new finance, IT, retirement, and Elevate offerings. The primary challenges discussed were a year-over-year gross-margin decline attributed to timing and staffing for new offerings, continued R&D investment, and guidance assumptions of flat workforce levels and no further interest-rate changes.
For Q2 fiscal '27, recurring and other revenue is expected to be in the range of $423 million to $428 million or approximately 10% growth over second quarter fiscal '26 recurring and other revenue, total revenue is expected to be in the range of $452.5 million to $457.5 million or approximately 9% growth over second quarter fiscal '26 total revenue, adjusted EBITDA is expected to be in the range of $152.5 million to $156.5 million, and adjusted EBITDA, excluding interest income on funds held for clients, is expected to be in the range of $123 million to $127 million; for fiscal '27, recurring and other revenue is now expected to be in the range of $1.792 billion to $1.807 billion or approximately 9% growth over fiscal '26 recurring and other revenue, total revenue is expected to be in the range of $1.910 billion to $1.925 billion or approximately 8% growth over fiscal '26 total revenue, adjusted EBITDA guidance is now expected to be in the range of $711.5 million to $721.5 million, and adjusted EBITDA, excluding interest income on funds held for clients, is expected to be in the range of $593.5 million to $603.5 million, which represents approximately 90 basis points of leverage at the midpoint; average daily client funds are estimated at approximately $3.3 billion in Q2 with an average annual yield of approximately 360 basis points and approximately $29.5 million of interest income, and approximately $3.5 billion for the full year with an average annual yield of approximately 340 basis points and approximately $118 million of interest income, with guidance reflecting the recent 25 basis point rate hike in September but assuming no additional changes to interest rates during the remainder of fiscal '27, while workforce levels are assumed flat year-over-year within the guidance.
- Strong First-Quarter Revenue GrowthQ1 recurring and other revenue was $424.5 million, up 12% year over year. Total revenue was $451.7 million, an increase of nearly 11% and $7.2 million above the top end of guidance.
- Fiscal 2027 Guidance RaisedThe company raised fiscal 2027 recurring and other revenue guidance by $15 million at the midpoint to $1.792 billion to $1.807 billion, representing approximately 9% growth over fiscal 2026. Total revenue guidance was raised by $30 million at the midpoint to $1.910 billion to $1.925 billion, representing approximately 8% growth.
- Higher Profitability and EBITDA OutlookQ1 adjusted EBITDA was $159.5 million, representing a 35.3% margin and exceeding the top end of guidance by $3.5 million. Adjusted EBITDA excluding interest income on funds held for clients was up 30 basis points year over year. Fiscal 2027 adjusted EBITDA guidance increased to $711.5 million to $721.5 million, while adjusted EBITDA excluding client-funds interest income increased to $593.5 million to $603.5 million, representing approximately 90 basis points of leverage at the midpoint.
- GAAP ProfitabilityFor Q1, gross profit was stated as $304F.1 million in the transcript, operating income was $82.2 million, and net income was $57.6 million.
- AI-Driven Recruiting Optimizer LaunchPaylocity launched Recruiting Optimizer, which uses purpose-built AI agents to help rediscover qualified candidates, automate outreach and follow-up, support screening, and streamline interview scheduling. The company stated that early clients improved recruiting productivity by 35%, filled roles 25% faster, and reduced candidate drop-off by 15%. The offering is monetized as a premium product.
- Broad Ignite AI AdoptionSince launch, Ignite AI has answered nearly 30 million questions and surfaced over 3 billion recommendations. Usage of the Answer & Insight Agent grew over 90% over the last month, with clients using it to run and analyze reports, answer operational questions, and uncover workforce insights.
- AI Monetization and Product DifferentiationThe company said some AI capabilities are embedded in the payroll platform without a separate charge, while other capabilities that save customers substantial time are monetized separately. Recruiting Optimizer and the planned leave-management offering are examples of separately monetized AI-enabled modules. Management said AI products are increasingly part of prospect evaluations and are contributing to differentiation, new-business momentum, and ARPU opportunities.
- Continued R&D Investment and EfficiencyYear-over-year investment in total R&D increased by nearly 15% in Q1, and the company plans to continue investing in R&D throughout fiscal 2027. Management cited product launches, AI development, code-generation tools, and efficiency gains within R&D, stating that these investments are supporting innovation and product releases.
- Healthy Demand Across the Product PortfolioManagement described demand as stable and positive across HCM, finance, and IT, with strong momentum in the sales organization. Q1 growth was characterized as fairly balanced between ARPU increases and new units, as well as between new-logo sales and sales back into the existing client base.
- Strong New Product TractionPaylocity reported healthy demand for Paylocity Elevate Solutions and Paylocity for Retirement, with strong attach rates and broad-based interest from new and existing clients. Management said the solutions had strong pipelines, a strong ability to close opportunities, and demand both from the broader market and the existing client base.
- Finance and IT MomentumThe company said it was tracking exactly to its plan for Paylocity for Finance, including progress in integrating the business and product set and selling into new deals and the customer base. Finance and IT were described as smaller and newer parts of the business but having good momentum, supported by integration with the employee record and use cases such as onboarding and offboarding.
- Referral Channel ContributionThe referral channel contributed more than 25% of new business in Q1. Management attributed the sustained success of the broker channel to the modern platform, third-party integrations, and the fact that Paylocity does not compete with broker partners by selling insurance products.
- Strong Client Retention and Stable Workforce LevelsManagement said strong client retention contributed to Q1 results and the increased fiscal 2027 outlook. Client workforce levels were up approximately 50 to 60 basis points year over year, described as rounding to about 1%, while fiscal 2027 guidance continues to assume flat year-over-year workforce levels.
- Elevate Client Conference EngagementPaylocity hosted more than 3,000 attendees at its Elevate Client Conference, with attendance up slightly year over year. The event included mostly current clients as well as a fair number of prospects and featured discussions on AI, HCM, finance, IT, and new product launches.
- Share Repurchase ActivityPaylocity repurchased 1.1 million common shares for $152.5 million in Q1 at an average share price of approximately $139 per share. Diluted shares outstanding declined nearly 4% year over year, and approximately $1.1 billion remained under the current repurchase authorization.
- Client Funds and Interest IncomeThe average daily balance of client funds was approximately $3.1 billion in Q1. The company expects an average daily balance of approximately $3.3 billion in Q2 at an average annual yield of approximately 360 basis points, representing approximately $29.5 million of Q2 interest income. For the full year, it expects an average daily balance of approximately $3.5 billion at an average annual yield of approximately 340 basis points, representing approximately $118 million of interest income.
- Cash Position and Operating LeverageThe company ended the quarter with $194.5 million in cash, cash equivalents, and invested corporate cash, and $131.3 million outstanding on its credit facility. Management said automation and AI investments are helping scale teams and focus employees on more strategic work, supporting longer-term adjusted gross margin, adjusted EBITDA, and free cash flow expansion.
- External Recognition and Workplace AwardsPaylocity was named a Top Payroll Software 2026 by HR Tech Outlook, ranked #1 in AI recruiting in G2's Fall 2026 Grid Reports, and earned top placements across more than 25 product categories. It was also named one of America's Greatest Workplaces for Parents by Newsweek, received Great Place to Work certification for the eighth consecutive year, and was selected as one of TIME's American Growth Leaders for 2027.
- Open Platform StrategyManagement reiterated its open-platform approach, including integrations with third-party providers and support for customers interacting with Paylocity systems through frontier models such as Claude and OpenAI. The company said it intends to continue meeting customers where they are through its product roadmap.
- Near-Term Revenue and EBITDA GuidanceFor Q2 fiscal 2027, recurring and other revenue is expected to be $423 million to $428 million, or approximately 10% growth year over year. Total revenue is expected to be $452.5 million to $457.5 million, or approximately 9% growth. Adjusted EBITDA is expected to be $152.5 million to $156.5 million, and adjusted EBITDA excluding client-funds interest income is expected to be $123 million to $127 million.
MX:PCTY Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2027 (Q2) | 36.94- | 34.41 | ― | ― |
| Nov 05, 2026 | 2027 (Q1) | 35.9038.87 | 32.55 | 19.43% (+6.32) | |
| Aug 04, 2026 | 2026 (Q4) | 30.0834.22 | 29.02 | 17.95% (+5.21) | |
| May 07, 2026 | 2026 (Q3) | 47.9953.75 | 45.2 | 18.93% (+8.56) | |
| Feb 05, 2026 | 2026 (Q2) | 29.8234.41 | 28.27 | 21.71% (+6.14) | |
| Nov 04, 2025 | 2026 (Q1) | 29.1832.55 | 30.88 | 5.42% (+1.67) | |
| Aug 05, 2025 | 2025 (Q4) | 26.0629.02 | 27.53 | 5.41% (+1.49) | |
| May 01, 2025 | 2025 (Q3) | 39.4345.20 | 41.11 | 9.95% (+4.09) | |
| Feb 06, 2025 | 2025 (Q2) | 26.4928.27 | 27.71 | 2.01% (+0.56) | |
| Oct 30, 2024 | 2025 (Q1) | 27.6630.88 | 26.04 | 18.57% (+4.84) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
