Growth ConcernsManagement guided FY26 recurring revenue growth of 10% and total revenue growth of 8%, a marked deceleration from FY25 growth of 15%/14%, respectively.
Labor Market ImpactThe expected deterioration in labor market indicators may negatively affect demand and limit upside potential for Paylocity.
Macro EnvironmentADP's Net Job Adds have been trending down in recent years, and so far in 2025 those trends appear to be exacerbated which could mean added pressure to PCTY's growth.