Kenneth B. Robinson, Director at Paylocity Holding(PCTY -1.41%), sold 800 shares of common stock on Aug. 27, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$127,000Shares sold800Post-transaction shares (directly held)6,745Post-transaction value$1 millionTransaction value based on SEC Form 4 weighted average sale price ($158.41); post-transaction value based on Aug. 27, 2026, market close ($158.15).
Key questionsWhat is the scale of the transaction relative to the insider's total direct position?
Robinson sold shares equal to 11% of his direct holdings before the transaction, reducing his direct equity position to 6,745 shares. The Director currently retains an insider ownership interest of 0.01% in the company.How has the stock performed leading up to this disclosure?
Paylocity shares recorded a 13% one-year loss as of the Aug. 27, 2026, transaction date. The company reported trailing twelve-month revenue of $1.8 billion and net income of $269.7 million for the same general period.What are the core business operations of the company?
Paylocity provides cloud-native software for human capital management and payroll processing, including specialized tools for expense management and tax services. The company maintains a market capitalization of $8.5 billion as of the Aug. 28, 2026, market close.Company OverviewMetricValueShare Price (as of market close 2026-08-28)$157.93Market Capitalization$8.5 billionRevenue (TTM)$1.8 billionNet Income (TTM)$269.7 millionCompany SnapshotPaylocity delivers a comprehensive cloud-native software platform specializing in human capital management (HCM) and payroll processing solutions, with primary revenue derived from subscription-based software services and payroll tax processing for mid-market and enterprise customers across the United States.The company operates a recurring revenue business model centered on cloud-based HCM and payroll solutions, generating revenue through subscription fees, implementation services, and ancillary payroll processing services that drive predictable, scalable cash flows.Paylocity primarily serves mid-market and enterprise businesses seeking integrated workforce management solutions, with customers spanning multiple industries requiring comprehensive payroll, benefits administration, talent management, and compliance capabilities.Paylocity is a leading provider of cloud-native HCM and payroll software, with TTM revenue of $1.8 billion and approximately 6,900 employees at its Schaumburg headquarters. The company's competitive advantage stems from its unified platform architecture, which consolidates payroll, benefits, talent management, and workforce analytics into a single, integrated solution, enabling customers to reduce operational complexity and enhance workforce productivity. Paylocity's subscription-based business model, coupled with its focus on mid-market customers underserved by legacy providers, positions the company for sustained growth in the increasingly digital human capital management market.
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What this transaction means for investorsOne of the issues plaguing Paylocity has been a general sell-off in software stocks at various points over the last year, due to fears that artificial intelligence is increasing in capabilities to offer services similar to those of software companies. Over the last 12 months, the Paylocity stock price has dropped 12% as of this writing. In comparison, the S&P 500 is up 18.8% over the same period.
On the surface, hearing that an insider is selling shares amid a declining stock price may sound alarming. But given the context of the transaction, this doesn't appear to ring any alarm bells. While Robinson sold 800 shares, he still holds 6,745 shares, indicating continued alignment with the company's future success.
For what lies ahead, analysts seem to view the stock favorably. According to CNN, of the 22 analysts who cover the stock, 77% rate it a buy, while 23% rate it as a hold. From that group, the median one-year price target is $170, representing a potential gain of 11.6%. The highest price target in the group is $250, representing a potential gain of 64.2%, while the lowest, $128, represents a loss of roughly 16%.
A month has gone by since the last earnings report for Paylocity (PCTY - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Paylocity due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Paylocity Holding Corporation before we dive into how investors and analysts have reacted as of late.
Paylocity Q4 Earnings Beat Estimates, Revenues Increase Y/YPaylocity reported fourth-quarter fiscal 2026 non-GAAP net income of $1.84 per share, which increased 17.9% year over year and beat the Zacks Consensus Estimate by 19.48%.
Total revenues increased 11% year over year to $444.7 million and surpassed the Zacks Consensus Estimate by 3.18%.
Top-line growth was driven by the 12.4% increase in recurring and other revenues (roughly 93% of total revenues) to $415.6 million. Interest income on funds held for clients (about 7% of total revenues) declined 5.6% year over year to $29.1 million.
Quarterly Details of PCTYPaylocity's adjusted gross profit was $327.5 million, up 10.4% from the year-ago period, though the adjusted gross margin contracted roughly 40 basis points (bps) to 73.6%. Non-GAAP operating income rose 13.8% year over year to $120.2 million, with the non-GAAP operating margin expanding about 70 bps to 27%.
Adjusted EBITDA increased 11.3% from the year-ago quarter to $145.5 million, with the adjusted EBITDA margin up roughly 10 bps to 32.7%. Adjusted EBITDA excluding interest income on funds held for clients rose 16.5% year over year to $116.4 million, with margin (as a percentage of recurring and other revenues) up roughly 100 bps to 28%.
GAAP net income for the quarter was $60.3 million, or $1.12 per share, up 24.1% and 30.2%, respectively, from $48.6 million, or 86 cents per share, in the year-ago quarter.
Balance Sheet & Cash Flow DetailsAs of June 30, 2026, Paylocity's cash and cash equivalents were $271.9 million, down from $299.7 million as of March 31, 2026.
Long-term debt totaled $81.3 million as of the end of fiscal 2026, down 50% from $162.5 million a year earlier, reflecting repayment of approximately $81.3 million on the outstanding credit facility balance (originally drawn to fund the October 2024 acquisition of Airbase Inc.) during fiscal 2026.
Net cash provided by operating activities for fiscal 2026 was $533.3 million (30.1% of total revenues), up 27.5% from $418.2 million (26.2% of total revenues) in fiscal 2025. Free cash flow rose 24.8% year over year to $427.8 million, or 24.2% of total revenues, compared with $342.8 million, or 21.5%, in fiscal 2025.
Paylocity repurchased $398.1 million, or approximately 2.8 million shares, of common stock during fiscal 2026, bringing cumulative repurchases since May 2024 to $697.8 million, or approximately 4.6 million shares. Approximately $1.3 billion remained available under the share repurchase authorization as of June 30, 2026.
Acquisitions & Product DevelopmentsIn April 2026, Paylocity completed the acquisition of Grayscale Labs, Inc., an AI-powered recruiting automation company, expanding its recruiting capabilities to help clients engage candidates earlier and move faster through hiring workflows.
The company also launched Paylocity Elevate Solutions, pairing its unified platform with dedicated payroll and HR experts to handle implementation, ongoing payroll processing and HR execution on clients' behalf, comprising Elevate Implementation, Elevate Payroll and Elevate HR.
The company also disclosed a change in accounting convention: beginning in fiscal 2027, deferred contract costs will be amortized over an eight-year useful life, up from seven years, a shift expected to lift fiscal 2027 adjusted EBITDA margins by approximately 120-140 bps.
Management also pointed to continued investment in its AI platform capabilities across HR, Finance and IT workflows as a key driver of the company's product strategy heading into fiscal 2027.
PCTY Issues Q1 & Fiscal 2027 GuidanceFor the first quarter of fiscal 2027, Paylocity expects total revenues in the range of $439.5-$444.5 million, indicating approximately 8% growth from the year-ago period. Recurring and other revenues are projected between $414 million and $419 million, implying approximately 10% growth.
Adjusted EBITDA is projected in the range of $152-$156 million, while adjusted EBITDA excluding interest income on funds held for clients is expected between $126.5 million and $130.5 million.
For fiscal 2027, Paylocity projects total revenues between $1.88 billion and $1.895 billion, implying approximately 7% growth over fiscal 2026. Recurring and other revenues are expected in the range of $1.777-$1.792 billion, suggesting approximately 8% growth.
Adjusted EBITDA is expected between $690 million and $700 million, while adjusted EBITDA excluding interest income on funds held for clients is projected between $587 million and $597 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 15.39% due to these changes.
VGM ScoresCurrently, Paylocity has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Paylocity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerPaylocity is part of the Zacks Internet - Software industry. Over the past month, Snap (SNAP - Free Report) , a stock from the same industry, has gained 4.9%. The company reported its results for the quarter ended June 2026 more than a month ago.
Snap reported revenues of $1.6 billion in the last reported quarter, representing a year-over-year change of +18.9%. EPS of $0.06 for the same period compares with -$0.01 a year ago.
For the current quarter, Snap is expected to post earnings of $0.16 per share, indicating a change of +166.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +50% over the last 30 days.
Snap has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Toby J. Williams, President and CEO of Paylocity Holding(PCTY +2.17%), reported the sale of 12,000 shares of common stock on Aug. 14, 2026, for approximately $1.8 million, according to a SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$1.8 millionShares sold12,000Post-transaction shares (directly held)347,771Post-transaction value$51.5 millionTransaction value based on SEC Form 4 weighted average sale price ($148.52); post-transaction value based on Aug. 14, 2026, market close ($148.28).
Key questionsWhat was the primary driver behind this transaction?
The transaction was an automated execution under a Rule 10b5-1 trading plan established on Feb. 17, 2026, designed to allow insiders to sell a predetermined number of shares at set times to manage personal liquidity.How does this sale impact the executive's total equity position?
Following the sale, Williams maintains a direct ownership interest of nearly 348,000 shares in the company, which represents a market value of $51.5 million based on the Aug. 14, 2026, closing price.What is the context regarding the source of these shares?
The 12,000 shares sold were acquired through the exercise of derivative securities on the same day.What is the company's current financial profile in relation to this trade?
Paylocity, which reported trailing twelve-month revenue of $1.8 billion and net income of $269.7 million, saw its shares decline 14% over the year ending on the transaction date of Aug. 14, 2026.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$145.47Market Capitalization$8.2 billionRevenue (TTM)$1.8 billionNet Income (TTM)$269.7 millionCompany SnapshotPaylocity delivers a comprehensive cloud-native software platform specializing in human capital management (HCM) and payroll processing solutions, generating revenue primarily through subscription-based software services and payroll tax administration for mid-market and enterprise organizations.The company operates a recurring revenue business model in which clients subscribe to its integrated platform for payroll processing, tax compliance, benefits administration, and workforce management, with revenue derived from per-employee-per-month (PEPM) pricing and transaction-based fees.Paylocity serves mid-market and enterprise businesses across the United States seeking to streamline human resources operations, automate payroll and tax compliance, and enhance workforce engagement through a unified, cloud-based platform.Paylocity is a leading provider of cloud-based HCM and payroll solutions with a market capitalization of $8.2 billion and TTM revenues of $1.8 billion. The company maintains a strong competitive position through its integrated technology platform that consolidates payroll, tax, benefits, and workforce management functions, enabling clients to reduce operational complexity and improve compliance. Paylocity's recurring subscription model and expanding customer base demonstrate the durability of its business model within the enterprise software sector.
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What this transaction means for investorsThe sale of approximately $1.8 million may sound like a lot on the surface. But digging into the details, this doesn't appear to be a transaction that could represent a warning signal for shareholders. Williams did sell 12,000 shares, but this was a pre-planned transaction established in February and involved derivative securities, so it wasn't a sale made on a whim. The CEO still owns 347,771 directly, which indicates continued alignment with the company's success. After all, with that many shares, Williams should be rooting for the success of Paylocity as much as anyone.
The stock has struggled a bit thus far in 2026, climbing just 1.3%. In comparison, the S&P 500 has climbed 11.9%. But among the 22 analysts covering the stock, Paylocity is still viewed favorably. According to CNN, out of those 22 analysts, 77% rate the stock a buy, while 23% rate it a hold. The median one-year price target from that group is $170, representing a potential 9.9% gain from the stock price as of this writing. The highest price target in the group is $250, implying a potential gain of 61.7%, while the lowest is $128, implying a potential loss of 17.2%.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Paylocity. The Motley Fool has a disclosure policy.
Investors in Paylocity Holding Corporation (PCTY - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Nov. 20, 2026 $160.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Paylocity shares, but what is the fundamental picture for the company? Currently, Paylocity is a Zacks Rank #2 (Buy) in the Internet - Software industry that ranks in the Top 32% of our Zacks Industry Rank. Over the last 60 days, four analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.83 per share to $1.92 in that period.
Given the way analysts feel about Paylocity right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
SAN FRANCISCO, Aug. 25, 2026 (GLOBE NEWSWIRE) -- HireQuotient, which recently announced its strategic partnership with Paylocity (NASDAQ: PCTY) and its induction into their elite partner marketplace, delivers another strong return on investment (ROI) for one of the largest building and facility services providers in the New York City. Willow Marcon, SVP of Human Resources at Alliance Building Services, reported closing 35+ specialized, heavily regulated roles while reclaiming 70% of the manual effort previously consumed by sourcing and accelerating time-to-close by more than half. Beyond the recruiter bandwidth recovered, Alliance consolidated a fragmented software stack - spreadsheets, legacy databases, and disconnected point solutions onto a single AI-native applicant tracking system, EasySource, producing measurable ROI within the first hiring cycle.
The partnership, which went live two months ago, represents a shift from legacy database management to real-time, predictive talent acquisition in specialized service sectors industries where maintaining service levels across vast physical footprints is constantly threatened by high turnover and administrative friction.
Structural Recruitment Challenges in the Building Services Sector
Challenge 1: Severe Churn Velocity and the Sourcing Treadmill
The Problem: The U.S. Bureau of Labor Statistics projects roughly 351,300 annual openings for janitors and building cleaners through 2034, overwhelmingly driven by replacement demand rather than growth. A 2017 ISSA/BSCAI survey of building service contractors found 41% of firms reporting annual turnover of 50% or higher. This churn keeps recruiters in permanent hiring mode, where manual workflows consume 40% to 70% of their total working hours purely on sourcing, resume sifting, and crafting search strings.
How EasySource Solves It: EasySource's AI sourcing auto-pilot ingests job vetting criteria and autonomously maps passive talent pools within few minutes, building daily active candidate pipelines on complete autopilot - the mechanism behind the 70% of manual sourcing effort reclaimed at Alliance. System keeps sourcing on its own through 70+ database integrations including all government repositories, hence acting like a junior sourcer.
Challenge 2: Frontline Deskless Disconnect and Manual Dialing Fatigue
The Problem: Research from Gartner and Forrester indicates 80% of the global workforce is deskless, meaning candidates rarely check professional email during working hours. Without automation, a single recruiter places over 200 calls per day - up to 7 hours purely dialing just to connect with just 2 to 5 interested, qualified candidates, against industry cold-call connect rates of 2.7% to 4%.
How EasySource Solves It: AI-assisted calling and multi-channel outreach reach thousands of candidates simultaneously, so recruiters converse only with the pre-screened handful expressing active interest.
Challenge 3: Fragmented Point Solutions and Surface-Level Keyword Matching
The Problem: Gartner research highlights that talent acquisition teams face severe tech stack fragmentation, forcing subscriptions across at least 3 different sourcing tools to assemble specialized candidate profiles. In building services this compounds: sourcing in a spreadsheet, credentialing in a legacy database, outreach in a personal inbox, shift compliance in a scheduling tool, union onboarding in a shared drive. Compounding this, legacy platforms like Greenhouse, Workday, iCIMS, Paradox, Eightfold, ClearCompany, Workable, BreezyHR, MokaHR, GoPerfect, Jobvite, and HigherMe rely on keyword-based screening filters, producing high false-negative rates where qualified candidates with non-standard resume phrasing are rejected while ill-fitted applicants slip through. In regulated roles where licensure and union status are non-negotiable, failure mode is expensive.
How EasySource Solves It: EasySource unifies discovery, contact enrichment, multi-channel outreach, credential verification, scheduling, and onboarding into one platform, and applies semantic and contextual search that evaluates profile context, skill adjacencies, and career trajectories rather than keywords.
Unsnarling the Legacy Software Knot
Founded in 1992, Alliance Building Services manages more than 60 million square feet of premium commercial real estate, major transit hubs, and iconic sports venues like Citi Field. Recruiters must continuously source, background-check, and onboard heavily regulated personnel, such as licensed security guards and union building superintendents, under tight operational deadlines. Prior to integrating HireQuotient's platform, the talent acquisition team operated in a fragmented software environment with many manual processes which were time consuming and exhausting for human recruiters.
Historically, building services companies have run talent acquisition on Microsoft Excel, legacy on-premise databases, and a patchwork of single-purpose point solutions - a stack assembled over years rather than designed. In evaluating alternatives, Marcon found that conventional platforms provide standard ATS capabilities but lack autonomous outbound candidate discovery, pre-verified contact enrichment, and personalized AI outreach through SMS and AI calling agents complemented with email - and none offer an AI-native onboarding suite run by AI agents completing tasks. An ATS is a system of record and a spreadsheet is a system of memory; neither is a system of action.
Hand-in-Hand Implementation
Recognizing that rigid enterprise software often fails when forced onto existing business operations, HireQuotient opted for an intensive, high-touch deployment model. HireQuotient's implementation specialists spent three weeks on-site at Alliance's Manhattan headquarters, mapping how the recruiting team handled job syndication, credentialing, shift compliance, and union-specific onboarding. Over the subsequent two weeks, HireQuotient customized EasySource's underlying models to match Alliance's exact workflow.
The results were immediate and measurable. During an initial two-week window following deployment, the recruiting team closed multiple specialized, highly regulated roles, representing a sixty (60%) percent faster average cycle time-to-hire. HireQuotient's unified onboarding module then replaced the company's legacy stack, reducing the time required to process new hires.
Measurable ROI at Alliance Building Services
By replacing spreadsheet-driven sourcing, legacy databases, and fragmented point solutions with EasySource's unified AI sourcing autopilot and automated multi-channel vetting, Alliance Building Services reclaimed 70% of the manual effort previously consumed by sourcing, closed 35+ specialized and heavily regulated roles, and accelerated time-to-close by more than 50%, enabling its talent team to focus exclusively on closing qualified candidates rather than finding them.
The Science of Longevity: Event-Driven and Closed-Loop AI
Unlike traditional applicant tracking systems that rely on scheduled batch processes to synchronize data across payroll and HR platforms, EasySource uses a real-time, event-driven architecture. Every candidate action - uploading a certification, clearing a compliance check, emits an immediate event payload that triggers the next stage of the workflow. When a security officer's license verification clears, the system instantly generates their onboarding package and sends an automated mobile notification without a recruiter initiating the transfer.
The platform also tackles early-stage attrition like new hires quitting within the first 90 days - through a "backward and forward loop" integration. It continuously pulls downstream post-hire retention and shift-performance data from Alliance's scheduling and payroll systems and feeds it backward into top-of-funnel sourcing and screening models. By analyzing the attributes of employees who stay long-term, the platform dynamically retrains its screening filters: where factors such as role-clarity comprehension, commute stability, and behavioral alignment correlate with longer tenure, it automatically adjusts sourcing parameters to prioritize similar profiles.
"We designed our AI-native ATS to transition HR from static database management to a dynamic, real-time intelligence engine," says Smarthveer Sidana, Founder & CEO of HireQuotient. "In high-volume sectors like facility services, speed and quality cannot be a trade-off. By linking top-of-funnel with real-world retention data through a closed-loop architecture, we help frontline industries like Alliance Building Services build build competitive talent and business advantage."
Executive Leadership Driving the Shift
The transformation at Alliance was spearheaded by Marcon, who joined the firm in 2023 with a clear mandate to scale operations through technology. Holding an MBA in HR Management and advanced certifications in Strategic HR Leadership from Cornell University, Marcon spent over 16 years building talent acquisition programs at global technology and financial enterprises, including Google, Amazon, and Bloomberg. Her analytical background made her highly receptive to HireQuotient's data-driven, predictive model.
"Managing a vast physical and operational footprint in a market as demanding as New York City requires exceptional speed and complete compliance," says Marcon. "By deploying HireQuotient, we have replaced fragmented administrative work with a cohesive, event-driven workflow. This implementation has significantly reduced our hiring cycle, allowing our team to focus on strategic human interactions. The technology is not merely an administrative utility; it is a foundational pillar of our modern human resources strategy."
Vision: The Business Services Opportunity
The ROI delivered at Alliance reflects a broader trend across business services and frontline-adjacent industries in North America, where organizations including Restaurant Technologies Inc. (RTI), Arc Health, W3 Insurance, Camico, and BellWether are deploying HireQuotient to streamline high-volume and specialized talent acquisition.
Commenting on the market opportunity and the strategic integration with Paylocity, Prateek Agrawal, Head of Product at HireQuotient, added:
"Business services is one of the largest and most underserved hiring markets in North America, held back for far too long by spreadsheets, legacy databases, and disconnected point solutions. Gartner's research shows talent teams juggling at least three separate sourcing tools just to assemble one usable candidate profile, and Forrester has quantified the compounding 'frontline tax' employers absorb when a deskless workforce - 80% of the global labor pool is managed on systems never designed for it. That is the opportunity: an entire sector running its most important function on tooling built for a different era. Seeing a New York Real Estate Giant like Alliance Building Services reclaim 70% of manual sourcing effort, close 35+ specialized roles, and cut time-to-close by more than 50% proves that when AI handles discovery, outreach, and qualification, human recruiters are empowered to do what they do best - build relationships and close top talent."
About HireQuotient
HireQuotient is an enterprise AI HR technology company building autonomous HR solutions. Its flagship platform, EasySource, acts as an AI co-pilot for recruitment teams, automating candidate discovery, credential verification across state license repositories, multi-channel engagement via voice, text, email, and does everything until onboarding. The startup specializes in frontline industries, including but not limited to healthcare, building services, construction, manufacturing, insurance, retail.
BlackRock Inc. purchased a new position in shares of Paylocity Holding Corporation (NASDAQ:PCTY – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm purchased 4,116,664 shares of the software maker’s stock, valued at approximately $430,315,000. BlackRock Inc. owned about 7.69% of Paylocity as of its most recent SEC filing.
Several other institutional investors have also bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Paylocity by 5.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 136,388 shares of the software maker’s stock valued at $25,551,000 after buying an additional 7,594 shares during the period. Focus Partners Wealth increased its holdings in Paylocity by 24.5% in the 1st quarter. Focus Partners Wealth now owns 1,365 shares of the software maker’s stock worth $256,000 after acquiring an additional 269 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in Paylocity by 537.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 465 shares of the software maker’s stock valued at $84,000 after acquiring an additional 392 shares during the period. Marshall Wace LLP raised its stake in Paylocity by 2,782.7% in the 2nd quarter. Marshall Wace LLP now owns 35,688 shares of the software maker’s stock valued at $6,466,000 after acquiring an additional 34,450 shares during the period. Finally, Cerity Partners LLC lifted its holdings in Paylocity by 10.0% during the second quarter. Cerity Partners LLC now owns 19,241 shares of the software maker’s stock valued at $3,486,000 after purchasing an additional 1,749 shares during the last quarter. Hedge funds and other institutional investors own 94.76% of the company’s stock.
Analyst Upgrades and Downgrades A number of brokerages have weighed in on PCTY. Jefferies Financial Group reiterated a “buy” rating and set a $165.00 target price on shares of Paylocity in a research report on Wednesday, August 5th. Citizens Jmp lowered their price target on shares of Paylocity from $170.00 to $150.00 and set a “market outperform” rating on the stock in a research report on Friday, May 8th. Wall Street Zen cut shares of Paylocity from a “buy” rating to a “hold” rating in a research note on Saturday, July 4th. Stephens cut their price objective on shares of Paylocity from $160.00 to $120.00 and set an “equal weight” rating for the company in a report on Friday, May 8th. Finally, Zacks Research lowered shares of Paylocity from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 27th. Twelve equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $160.53.
Check Out Our Latest Analysis on PCTY Paylocity Price Performance PCTY stock opened at $152.24 on Wednesday. The firm has a 50 day moving average of $128.01 and a 200-day moving average of $115.47. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.07. Paylocity Holding Corporation has a 12 month low of $92.99 and a 12 month high of $181.97. The firm has a market capitalization of $8.08 billion, a P/E ratio of 30.76 and a beta of 0.47.
Paylocity (NASDAQ:PCTY – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The software maker reported $1.84 EPS for the quarter, beating the consensus estimate of $1.62 by $0.22. Paylocity had a net margin of 15.23% and a return on equity of 27.02%. The company had revenue of $444.73 million during the quarter, compared to analysts’ expectations of $431.46 million. During the same quarter in the previous year, the company earned $1.56 earnings per share. Paylocity’s revenue for the quarter was up 11.0% on a year-over-year basis. As a group, sell-side analysts predict that Paylocity Holding Corporation will post 6.86 earnings per share for the current fiscal year.
Insider Activity In related news, CFO Ryan Glenn sold 3,345 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $149.75, for a total transaction of $500,913.75. Following the completion of the transaction, the chief financial officer directly owned 122,563 shares in the company, valued at $18,353,809.25. The trade was a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Andrew Cappotelli sold 2,550 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $149.83, for a total value of $382,066.50. Following the transaction, the senior vice president owned 44,329 shares of the company’s stock, valued at approximately $6,641,814.07. The trade was a 5.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 30,300 shares of company stock valued at $4,553,607 over the last 90 days. Company insiders own 19.40% of the company’s stock.
Paylocity Profile (Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
Further Reading Five stocks we like better than Paylocity Pathward’s Credit Scare Tests Its Comeback Story Wiring the AI Boom: Rumble’s $13.7B Pivot StoneX: Too Far Too Fast? DICK’s Sporting Goods Faces Pain Now for a Bigger Prize Want to see what other hedge funds are holding PCTY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paylocity Holding Corporation (NASDAQ:PCTY – Free Report).
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Canada Pension Plan Investment Board bought a new stake in shares of Paylocity Holding Corporation (NASDAQ:PCTY – Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 129,600 shares of the software maker’s stock, valued at approximately $13,547,000. Canada Pension Plan Investment Board owned approximately 0.24% of Paylocity at the end of the most recent reporting period.
Several other large investors have also recently made changes to their positions in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Paylocity by 5.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 136,388 shares of the software maker’s stock worth $25,551,000 after buying an additional 7,594 shares in the last quarter. Focus Partners Wealth increased its holdings in Paylocity by 24.5% in the first quarter. Focus Partners Wealth now owns 1,365 shares of the software maker’s stock valued at $256,000 after buying an additional 269 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in Paylocity by 537.0% in the second quarter. EverSource Wealth Advisors LLC now owns 465 shares of the software maker’s stock valued at $84,000 after buying an additional 392 shares in the last quarter. Marshall Wace LLP raised its position in shares of Paylocity by 2,782.7% in the second quarter. Marshall Wace LLP now owns 35,688 shares of the software maker’s stock worth $6,466,000 after acquiring an additional 34,450 shares during the period. Finally, Cerity Partners LLC raised its position in shares of Paylocity by 10.0% in the second quarter. Cerity Partners LLC now owns 19,241 shares of the software maker’s stock worth $3,486,000 after acquiring an additional 1,749 shares during the period. 94.76% of the stock is currently owned by institutional investors and hedge funds.
Insider Transactions at Paylocity In other news, CFO Ryan Glenn sold 3,345 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $149.75, for a total value of $500,913.75. Following the transaction, the chief financial officer owned 122,563 shares in the company, valued at $18,353,809.25. This trade represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven I. Sarowitz sold 441 shares of Paylocity stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $155.00, for a total value of $68,355.00. Following the completion of the sale, the director directly owned 4,472,954 shares in the company, valued at $693,307,870. This represents a 0.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 30,741 shares of company stock valued at $4,621,962 in the last 90 days. Corporate insiders own 19.40% of the company’s stock.
Paylocity Stock Down 0.1% Shares of NASDAQ PCTY opened at $157.93 on Friday. The firm has a market cap of $8.38 billion, a price-to-earnings ratio of 31.91 and a beta of 0.48. The company’s 50-day simple moving average is $131.32 and its 200-day simple moving average is $116.22. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.07. Paylocity Holding Corporation has a 52-week low of $92.99 and a 52-week high of $180.86. Paylocity (NASDAQ:PCTY – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The software maker reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.22. The firm had revenue of $444.73 million during the quarter, compared to the consensus estimate of $431.46 million. Paylocity had a net margin of 15.23% and a return on equity of 27.02%. The company’s revenue for the quarter was up 11.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.56 EPS. Equities analysts predict that Paylocity Holding Corporation will post 6.92 EPS for the current fiscal year.
Key Stories Impacting Paylocity Here are the key news stories impacting Paylocity this week:
Positive Sentiment: Higher long-term earnings forecasts: Zacks Research raised its FY2027 EPS estimate to $6.33 from $5.98 and its FY2028 forecast to $7.18 from $6.67. It also initiated a FY2029 estimate of $8.28 and increased several quarterly forecasts, signaling improved expectations for Paylocity’s earnings trajectory. Zacks nevertheless maintained a “Hold” rating. Zacks Research comments on Paylocity FY2029 earnings Positive Sentiment: AI recruiting traction: Paylocity’s partner HireQuotient highlighted results at Alliance Building Services, where its AI-native recruiting platform reportedly reduced manual recruiting work by 70% and cut time-to-hire by more than half. The customer example supports demand for Paylocity’s integrated human-capital-management ecosystem. Paylocity partners for AI-powered recruiting Positive Sentiment: Sector momentum: Paylocity traded higher alongside MongoDB, Datadog, Five9 and Monday.com, suggesting investor appetite for software and technology shares also contributed to the stock’s recent strength. Software stocks trade higher Neutral Sentiment: Mixed estimate revisions: Zacks slightly reduced its Q2 2028 EPS forecast to $1.57 from $1.58 and Q4 2027 to $1.39 from $1.43, partly offsetting the broader upward revisions. The current-year consensus remains approximately $6.86 per share. Neutral Sentiment: Limited insider sale: Director Steven Sarowitz sold 441 shares for approximately $68,355 under a pre-arranged Rule 10b5-1 plan. The transaction reduced his holdings by only 0.01%, leaving him with nearly 4.47 million shares, making it unlikely to materially alter investor sentiment. Paylocity director stock sale Negative Sentiment: Valuation risk remains: With PCTY trading near its 52-week high and at roughly 32 times earnings, the stock may be vulnerable if future growth slows or estimates are revised lower. Zacks’ continued “Hold” rating reinforces that the improved outlook is not yet a broad-based bullish endorsement. Wall Street Analysts Forecast Growth PCTY has been the subject of several recent analyst reports. BMO Capital Markets lifted their price target on Paylocity from $143.00 to $175.00 and gave the company an “outperform” rating in a research note on Wednesday, August 5th. Barclays increased their price target on Paylocity from $128.00 to $154.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 5th. UBS Group raised their price objective on Paylocity from $122.00 to $128.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Citizens Jmp cut their price objective on Paylocity from $170.00 to $150.00 and set a “market outperform” rating for the company in a research report on Friday, May 8th. Finally, BTIG Research upped their target price on Paylocity from $150.00 to $180.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Twelve analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $160.53.
Read Our Latest Stock Report on PCTY
Paylocity Profile (Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
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Great Lakes Advisors LLC purchased a new stake in Paylocity Holding Corporation (NASDAQ:PCTY – Free Report) during the second quarter, according to the company in its most recent filing with the SEC. The firm purchased 4,197 shares of the software maker’s stock, valued at approximately $439,000.
A number of other institutional investors and hedge funds have also made changes to their positions in PCTY. Optiver Holding B.V. grew its position in Paylocity by 5,925.0% during the first quarter. Optiver Holding B.V. now owns 241 shares of the software maker’s stock valued at $26,000 after acquiring an additional 237 shares during the period. Global Retirement Partners LLC purchased a new position in shares of Paylocity in the 2nd quarter worth about $27,000. Basecamp Wealth Advisors LLC raised its holdings in shares of Paylocity by 4,250.0% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 261 shares of the software maker’s stock worth $28,000 after purchasing an additional 255 shares during the period. Los Angeles Capital Management LLC purchased a new position in shares of Paylocity in the 4th quarter worth about $30,000. Finally, Elevation Wealth Partners LLC lifted its stake in shares of Paylocity by 500.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 342 shares of the software maker’s stock valued at $36,000 after purchasing an additional 285 shares in the last quarter. 94.76% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades PCTY has been the subject of a number of research reports. Zacks Research cut Paylocity from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. BMO Capital Markets raised their price target on shares of Paylocity from $143.00 to $175.00 and gave the company an “outperform” rating in a report on Wednesday, August 5th. Weiss Ratings raised shares of Paylocity from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, August 11th. TD Cowen boosted their price objective on shares of Paylocity from $168.00 to $177.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Robert W. Baird set a $201.00 price objective on shares of Paylocity in a research note on Wednesday, August 5th. Twelve research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Paylocity presently has a consensus rating of “Moderate Buy” and an average target price of $160.53.
View Our Latest Analysis on Paylocity Paylocity Price Performance PCTY opened at $153.34 on Monday. Paylocity Holding Corporation has a twelve month low of $92.99 and a twelve month high of $182.83. The firm has a market cap of $8.14 billion, a price-to-earnings ratio of 30.98 and a beta of 0.47. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.07. The company has a fifty day simple moving average of $126.14 and a 200 day simple moving average of $115.11.
Paylocity (NASDAQ:PCTY – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The software maker reported $1.84 EPS for the quarter, topping analysts’ consensus estimates of $1.62 by $0.22. The firm had revenue of $444.73 million for the quarter, compared to analyst estimates of $431.46 million. Paylocity had a net margin of 15.23% and a return on equity of 27.02%. The firm’s revenue was up 11.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.56 EPS. Equities research analysts expect that Paylocity Holding Corporation will post 6.86 EPS for the current fiscal year.
Key Stories Impacting Paylocity Here are the key news stories impacting Paylocity this week:
Positive Sentiment: TD Cowen raised its price target for Paylocity from $168 to $177 and maintained a “buy” rating, indicating potential upside from the referenced share price. The move signals continued confidence in Paylocity’s growth outlook. Benzinga analyst price-target report Positive Sentiment: Paylocity’s 50-day moving average recently moved above its 200-day average, forming a bullish “golden cross.” This technical signal could attract momentum-focused investors and reinforce the stock’s ongoing uptrend. Zacks golden cross analysis Positive Sentiment: Recent coverage highlighted the extension of Paylocity’s uptrend after a strong quarterly report. The company reported adjusted earnings of $1.84 per share versus the $1.62 consensus estimate and revenue of $444.7 million versus expectations of $431.5 million, with revenue up 11% year over year. Kalkine Media Paylocity uptrend report Neutral Sentiment: CFO Ryan Glenn, SVPs Andrew Cappotelli and Joshua Scutt, and Director Steven I. Sarowitz sold a combined 19,164 shares worth approximately $2.87 million. Because the transactions were executed under pre-arranged Rule 10b5-1 plans, they are a limited signal of near-term pessimism. Sarowitz still owns more than 4.48 million shares, and the other executives retain substantial positions. SEC insider transaction filing Insiders Place Their Bets In related news, SVP Andrew Cappotelli sold 2,550 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $149.83, for a total value of $382,066.50. Following the transaction, the senior vice president owned 44,329 shares in the company, valued at approximately $6,641,814.07. The trade was a 5.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Ryan Glenn sold 3,345 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $149.75, for a total value of $500,913.75. Following the completion of the transaction, the chief financial officer directly owned 122,563 shares of the company’s stock, valued at $18,353,809.25. This represents a 2.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 30,300 shares of company stock valued at $4,553,607 in the last three months. 19.40% of the stock is owned by insiders.
About Paylocity (Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
Read More Five stocks we like better than Paylocity VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding PCTY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paylocity Holding Corporation (NASDAQ:PCTY – Free Report).
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Paylocity Holding Corporation (PCTY - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PCTY's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
Shares of PCTY have been moving higher over the past four weeks, up 23.6%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that PCTY could be poised for a breakout.
Looking at PCTY's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 3 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting PCTYon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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Stock to Watch: Paylocity (PCTY - Free Report) Illinois-based Paylocity Holding Corporation offers cloud-based payroll and human capital management (HCM) software solutions to medium-sized organizations across the U.S.
PCTY is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PCTY has a Growth Style Score of B, forecasting year-over-year earnings growth of 5.8% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.19 to $8.79 per share. PCTY also boasts an average earnings surprise of +18.2%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PCTY should be on investors' short list.
Bank of America Corp DE boosted its holdings in Paylocity Holding Corporation (NASDAQ:PCTY – Free Report) by 17.8% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 449,722 shares of the software maker’s stock after acquiring an additional 68,084 shares during the period. Bank of America Corp DE owned 0.84% of Paylocity worth $48,588,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds have also recently added to or reduced their stakes in PCTY. Edgestream Partners L.P. raised its position in Paylocity by 30.8% during the first quarter. Edgestream Partners L.P. now owns 28,503 shares of the software maker’s stock worth $3,079,000 after acquiring an additional 6,715 shares during the last quarter. Janus Henderson Group PLC grew its position in shares of Paylocity by 97.0% in the first quarter. Janus Henderson Group PLC now owns 452,153 shares of the software maker’s stock valued at $48,857,000 after purchasing an additional 222,593 shares during the last quarter. Bull Harbor Capital LLC acquired a new stake in shares of Paylocity in the first quarter valued at approximately $350,000. Smith Group Asset Management LLC increased its stake in shares of Paylocity by 159.7% during the 1st quarter. Smith Group Asset Management LLC now owns 6,906 shares of the software maker’s stock worth $746,000 after purchasing an additional 4,247 shares in the last quarter. Finally, Amundi increased its stake in shares of Paylocity by 143.3% during the 1st quarter. Amundi now owns 606,158 shares of the software maker’s stock worth $65,489,000 after purchasing an additional 357,001 shares in the last quarter. 94.76% of the stock is currently owned by hedge funds and other institutional investors.
Insider Activity In other Paylocity news, Director Steven I. Sarowitz sold 11,136 shares of the firm’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $150.81, for a total value of $1,679,420.16. Following the sale, the director directly owned 4,535,052 shares of the company’s stock, valued at approximately $683,931,192.12. This trade represents a 0.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Andrew Cappotelli sold 899 shares of Paylocity stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $115.05, for a total value of $103,429.95. Following the completion of the sale, the senior vice president owned 17,679 shares of the company’s stock, valued at $2,033,968.95. This trade represents a 4.84% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 19.40% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities research analysts have commented on PCTY shares. Barclays increased their target price on Paylocity from $128.00 to $154.00 and gave the company an “equal weight” rating in a report on Wednesday, August 5th. BMO Capital Markets boosted their price target on Paylocity from $143.00 to $175.00 and gave the stock an “outperform” rating in a report on Wednesday, August 5th. Zacks Research downgraded Paylocity from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. Cantor Fitzgerald increased their price objective on Paylocity from $140.00 to $165.00 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Finally, Weiss Ratings upgraded Paylocity from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday. Twelve investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Paylocity currently has a consensus rating of “Moderate Buy” and an average target price of $160.00.
Read Our Latest Research Report on Paylocity
Paylocity Stock Up 0.4% PCTY stock opened at $145.67 on Thursday. The stock has a market capitalization of $7.73 billion, a P/E ratio of 29.43 and a beta of 0.48. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.09 and a current ratio of 1.09. Paylocity Holding Corporation has a one year low of $92.99 and a one year high of $182.83. The company has a 50 day moving average price of $120.77 and a two-hundred day moving average price of $114.60.
Paylocity (NASDAQ:PCTY – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The software maker reported $1.84 earnings per share for the quarter, topping analysts’ consensus estimates of $1.62 by $0.22. The company had revenue of $444.73 million for the quarter, compared to analyst estimates of $431.46 million. Paylocity had a return on equity of 27.02% and a net margin of 15.23%.The business’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.56 EPS. As a group, sell-side analysts expect that Paylocity Holding Corporation will post 6.86 EPS for the current year.
About Paylocity (Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
Featured Articles Five stocks we like better than Paylocity GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs Want to see what other hedge funds are holding PCTY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paylocity Holding Corporation (NASDAQ:PCTY – Free Report).
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SAN FRANCISCO, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Premier U.S.-based insurance firm Wallace Welch & Willingham ( W3 Insurance ) announced it's results by deploying HireQuotient's EasySource. HireQuotient recently announced it's strategic partnership with Paylocity (NASDAQ: PCTY) and induction into their elite partner network, to helps frontline employers cut time-to-hire by up to 70%.
Paylocity Holding Corporation delivered its fourth consecutive quarterly earnings beat, driven by durable revenue growth and expanding its client base. AI-driven product innovation, including the Ignite AI ecosystem and recent acquisitions, positions PCTY to capitalize on rising digital HR/payroll demand and untapped market opportunities. Despite underperforming peers on ROE and operating margin, PCTY shows improving profitability, steady operating cash flow, and boasts an ultra-low debt-to-equity ratio of 0.10.
SAN FRANCISCO, Aug. 11, 2026 (GLOBE NEWSWIRE) -- HireQuotient, a pioneer in artificial intelligence-driven talent acquisition solutions, who announced their strategic partnership with Paylocity (NASDAQ: PCTY) last week to empower frontline industries with AI agents for recruitment, today announced the successful early results from deployment of its flagship sourcing platform, EasySource, at Stern at Home Therapy.
Paylocity Holding Corporation (NASDAQ:PCTY – Get Free Report) Director Steven Sarowitz sold 11,136 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $150.81, for a total value of $1,679,420.16. Following the completion of the sale, the director owned 4,535,052 shares in the company, valued at approximately $683,931,192.12. The trade was a 0.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Paylocity Trading Down 3.2% NASDAQ:PCTY opened at $145.65 on Tuesday. Paylocity Holding Corporation has a 12-month low of $92.99 and a 12-month high of $182.83. The firm has a market cap of $7.73 billion, a PE ratio of 29.42 and a beta of 0.48. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.07. The stock has a fifty day moving average price of $119.57 and a 200 day moving average price of $114.58.
Paylocity (NASDAQ:PCTY – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The software maker reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.22. The company had revenue of $444.73 million for the quarter, compared to the consensus estimate of $431.46 million. Paylocity had a return on equity of 27.02% and a net margin of 15.23%.Paylocity’s revenue was up 11.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.56 EPS. Sell-side analysts anticipate that Paylocity Holding Corporation will post 6.33 earnings per share for the current fiscal year.
Hedge Funds Weigh In On Paylocity Hedge funds have recently made changes to their positions in the company. Flagship Harbor Advisors LLC purchased a new stake in shares of Paylocity in the 4th quarter valued at about $27,000. Los Angeles Capital Management LLC purchased a new position in Paylocity during the 4th quarter worth approximately $30,000. Advisory Services Network LLC acquired a new position in Paylocity during the third quarter worth approximately $38,000. Optiver Holding B.V. increased its position in Paylocity by 5,925.0% during the first quarter. Optiver Holding B.V. now owns 241 shares of the software maker’s stock worth $26,000 after buying an additional 237 shares during the period. Finally, Global Retirement Partners LLC purchased a new stake in Paylocity in the second quarter valued at approximately $27,000. Hedge funds and other institutional investors own 94.76% of the company’s stock.
Analysts Set New Price Targets PCTY has been the topic of several analyst reports. UBS Group raised their target price on shares of Paylocity from $122.00 to $128.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Robert W. Baird set a $201.00 price target on shares of Paylocity in a report on Wednesday, August 5th. Cantor Fitzgerald increased their price objective on shares of Paylocity from $140.00 to $165.00 and gave the company an “overweight” rating in a research report on Wednesday, August 5th. BTIG Research raised their price objective on shares of Paylocity from $150.00 to $180.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Finally, KeyCorp lifted their price objective on shares of Paylocity from $172.00 to $178.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 5th. Twelve analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $160.00.
Check Out Our Latest Stock Analysis on PCTY
Paylocity Company Profile (Get Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
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Paylocity Holding Corporation (NASDAQ:PCTY – Get Free Report) has been assigned a consensus rating of “Moderate Buy” from the seventeen ratings firms that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and twelve have assigned a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $160.00.
Several research analysts have commented on the company. TD Cowen lifted their price target on Paylocity from $137.00 to $168.00 and gave the stock a “buy” rating in a research report on Wednesday. BMO Capital Markets increased their price objective on Paylocity from $143.00 to $175.00 and gave the company an “outperform” rating in a research report on Wednesday. Stephens reduced their price objective on Paylocity from $160.00 to $120.00 and set an “equal weight” rating for the company in a research report on Friday, May 8th. Barclays raised their price objective on shares of Paylocity from $128.00 to $154.00 and gave the stock an “equal weight” rating in a research note on Wednesday. Finally, Raymond James Financial set a $140.00 target price on shares of Paylocity in a research note on Friday, May 8th.
Read Our Latest Research Report on Paylocity
Paylocity Trading Up 2.5% Shares of NASDAQ:PCTY opened at $151.49 on Friday. The company has a market cap of $8.11 billion, a P/E ratio of 30.60 and a beta of 0.48. The stock’s 50-day moving average is $118.39 and its 200-day moving average is $114.45. Paylocity has a 52-week low of $92.99 and a 52-week high of $190.52. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.08 and a current ratio of 1.09.
Paylocity (NASDAQ:PCTY – Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The software maker reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.22. Paylocity had a return on equity of 27.02% and a net margin of 15.23%.The business had revenue of $444.73 million during the quarter, compared to analysts’ expectations of $431.46 million. During the same quarter in the previous year, the firm earned $1.56 EPS. The firm’s revenue was up 11.0% compared to the same quarter last year. Equities research analysts predict that Paylocity will post 6.28 earnings per share for the current year.
Insider Activity In other news, SVP Andrew Cappotelli sold 899 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $115.05, for a total value of $103,429.95. Following the sale, the senior vice president directly owned 17,679 shares in the company, valued at approximately $2,033,968.95. This represents a 4.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 19.40% of the company’s stock.
Hedge Funds Weigh In On Paylocity A number of large investors have recently modified their holdings of PCTY. AQR Capital Management LLC lifted its holdings in Paylocity by 75.1% during the 4th quarter. AQR Capital Management LLC now owns 943,591 shares of the software maker’s stock worth $143,747,000 after buying an additional 404,605 shares in the last quarter. Morgan Stanley raised its position in shares of Paylocity by 117.9% in the 4th quarter. Morgan Stanley now owns 817,209 shares of the software maker’s stock valued at $124,625,000 after acquiring an additional 442,218 shares during the period. Millennium Management LLC boosted its position in shares of Paylocity by 97.7% during the third quarter. Millennium Management LLC now owns 748,803 shares of the software maker’s stock worth $119,262,000 after purchasing an additional 369,975 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Paylocity by 6.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 659,472 shares of the software maker’s stock worth $100,570,000 after acquiring an additional 42,725 shares in the last quarter. Finally, Alyeska Investment Group L.P. acquired a new position in shares of Paylocity in the 3rd quarter valued at approximately $104,657,000. 94.76% of the stock is currently owned by institutional investors and hedge funds.
Key Headlines Impacting Paylocity Here are the key news stories impacting Paylocity this week:
Positive Sentiment: Strong quarterly results: Paylocity topped fiscal Q4 earnings and revenue estimates, while recurring revenue increased 12.4% year over year. Management also provided a fiscal 2027 outlook viewed as consistent with balanced growth. Paylocity Q4 Earnings Beat Estimates, Revenues Increase Y/Y Positive Sentiment: AI and product expansion: An earnings deep dive highlighted Paylocity’s efforts to use AI to broaden its payroll, human-capital-management and employee-experience offerings. Investors may view these initiatives as supporting customer retention, higher platform adoption and longer-term revenue growth. PCTY Q2 deep dive: AI-driven product expansion and balanced growth shape outlook Positive Sentiment: Broad analyst support: BMO Capital Markets raised its target to $175 from $143 and maintained an “outperform” rating. BTIG increased its target to $180 from $150 with a “buy” rating, while Cantor Fitzgerald raised its target to $165 from $140 and assigned an “overweight” rating. The revisions indicate improved confidence in Paylocity’s earnings trajectory. Analyst price-target updates Neutral Sentiment: Investor focus: The earnings call and presentation emphasized execution against the fiscal 2027 plan, recurring-revenue trends and the pace at which AI-enabled products contribute to growth. Paylocity Q4 2026 Earnings Call Transcript Paylocity Company Profile (Get Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
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California State Teachers Retirement System grew its position in Paylocity Holding Corporation (NASDAQ:PCTY – Free Report) by 18.9% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 49,614 shares of the software maker’s stock after purchasing an additional 7,891 shares during the period. California State Teachers Retirement System owned approximately 0.09% of Paylocity worth $5,360,000 at the end of the most recent quarter.
Other institutional investors have also recently modified their holdings of the company. AQR Capital Management LLC lifted its stake in Paylocity by 75.1% during the 4th quarter. AQR Capital Management LLC now owns 943,591 shares of the software maker’s stock valued at $143,747,000 after acquiring an additional 404,605 shares during the period. Morgan Stanley lifted its holdings in shares of Paylocity by 117.9% in the 4th quarter. Morgan Stanley now owns 817,209 shares of the software maker’s stock valued at $124,625,000 after buying an additional 442,218 shares during the period. Millennium Management LLC boosted its stake in shares of Paylocity by 97.7% in the third quarter. Millennium Management LLC now owns 748,803 shares of the software maker’s stock worth $119,262,000 after buying an additional 369,975 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Paylocity by 6.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 659,472 shares of the software maker’s stock worth $100,570,000 after acquiring an additional 42,725 shares during the period. Finally, Alyeska Investment Group L.P. purchased a new stake in Paylocity in the 3rd quarter worth approximately $104,657,000. 94.76% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In PCTY has been the topic of a number of analyst reports. Weiss Ratings restated a “sell (d+)” rating on shares of Paylocity in a research report on Tuesday, July 21st. Truist Financial decreased their target price on shares of Paylocity from $180.00 to $165.00 and set a “buy” rating on the stock in a research note on Monday, June 29th. TD Cowen increased their price target on Paylocity from $137.00 to $168.00 and gave the company a “buy” rating in a report on Wednesday. Citizens Jmp reduced their price objective on Paylocity from $170.00 to $150.00 and set a “market outperform” rating on the stock in a research report on Friday, May 8th. Finally, Cantor Fitzgerald upped their target price on Paylocity from $140.00 to $165.00 and gave the company an “overweight” rating in a report on Wednesday. Twelve analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $160.00.
Get Our Latest Report on Paylocity
Key Paylocity News Here are the key news stories impacting Paylocity this week:
Positive Sentiment: Strong quarterly results: Paylocity topped fiscal Q4 earnings and revenue estimates, while recurring revenue increased 12.4% year over year. Management also provided a fiscal 2027 outlook viewed as consistent with balanced growth. Paylocity Q4 Earnings Beat Estimates, Revenues Increase Y/Y Positive Sentiment: AI and product expansion: An earnings deep dive highlighted Paylocity’s efforts to use AI to broaden its payroll, human-capital-management and employee-experience offerings. Investors may view these initiatives as supporting customer retention, higher platform adoption and longer-term revenue growth. PCTY Q2 deep dive: AI-driven product expansion and balanced growth shape outlook Positive Sentiment: Broad analyst support: BMO Capital Markets raised its target to $175 from $143 and maintained an “outperform” rating. BTIG increased its target to $180 from $150 with a “buy” rating, while Cantor Fitzgerald raised its target to $165 from $140 and assigned an “overweight” rating. The revisions indicate improved confidence in Paylocity’s earnings trajectory. Analyst price-target updates Neutral Sentiment: Investor focus: The earnings call and presentation emphasized execution against the fiscal 2027 plan, recurring-revenue trends and the pace at which AI-enabled products contribute to growth. Paylocity Q4 2026 Earnings Call Transcript Insiders Place Their Bets In related news, SVP Andrew Cappotelli sold 899 shares of Paylocity stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $115.05, for a total value of $103,429.95. Following the completion of the transaction, the senior vice president owned 17,679 shares in the company, valued at $2,033,968.95. The trade was a 4.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 19.40% of the stock is currently owned by company insiders.
Paylocity Price Performance Shares of NASDAQ PCTY opened at $151.49 on Friday. The stock’s 50-day moving average is $118.39 and its two-hundred day moving average is $114.45. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.09 and a quick ratio of 1.08. Paylocity Holding Corporation has a 1-year low of $92.99 and a 1-year high of $190.52. The company has a market cap of $8.11 billion, a price-to-earnings ratio of 30.60 and a beta of 0.48.
Paylocity (NASDAQ:PCTY – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The software maker reported $1.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.22. Paylocity had a return on equity of 27.02% and a net margin of 15.23%.The business had revenue of $444.73 million during the quarter, compared to analysts’ expectations of $431.46 million. During the same quarter last year, the business posted $1.56 EPS. The business’s quarterly revenue was up 11.0% compared to the same quarter last year. Analysts forecast that Paylocity Holding Corporation will post 6.28 EPS for the current fiscal year.
About Paylocity (Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
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Key Takeaways Paylocity beat Q4 earnings and revenue estimates as total revenues rose 11% year over year.PCTY expects about 7% fiscal 2027 revenue growth and forecasts higher adjusted EBITDA.Paylocity expanded AI offerings, acquired Grayscale Labs and launched Elevate Solutions. Paylocity (PCTY - Free Report) reported fourth-quarter fiscal 2026 non-GAAP net income of $1.84 per share, which increased 17.9% year over year and beat the Zacks Consensus Estimate by 19.48%.
Total revenues increased 11% year over year to $444.7 million and surpassed the Zacks Consensus Estimate by 3.18%.
Top-line growth was driven by the 12.4% increase in recurring and other revenues (roughly 93% of total revenues) to $415.6 million. Interest income on funds held for clients (about 7% of total revenues) declined 5.6% year over year to $29.1 million.
Quarterly Details of PCTYPaylocity's adjusted gross profit was $327.5 million, up 10.4% from the year-ago period, though the adjusted gross margin contracted roughly 40 basis points (bps) to 73.6%. Non-GAAP operating income rose 13.8% year over year to $120.2 million, with the non-GAAP operating margin expanding about 70 bps to 27%.
Adjusted EBITDA increased 11.3% from the year-ago quarter to $145.5 million, with the adjusted EBITDA margin up roughly 10 bps to 32.7%. Adjusted EBITDA excluding interest income on funds held for clients rose 16.5% year over year to $116.4 million, with margin (as a percentage of recurring and other revenues) up roughly 100 bps to 28%.
GAAP net income for the quarter was $60.3 million, or $1.12 per share, up 24.1% and 30.2%, respectively, from $48.6 million, or 86 cents per share, in the year-ago quarter.
Balance Sheet & Cash Flow DetailsAs of June 30, 2026, Paylocity's cash and cash equivalents were $271.9 million, down from $299.7 million as of March 31, 2026.
Long-term debt totaled $81.3 million as of the end of fiscal 2026, down 50% from $162.5 million a year earlier, reflecting repayment of approximately $81.3 million on the outstanding credit facility balance (originally drawn to fund the October 2024 acquisition of Airbase Inc.) during fiscal 2026.
Net cash provided by operating activities for fiscal 2026 was $533.3 million (30.1% of total revenues), up 27.5% from $418.2 million (26.2% of total revenues) in fiscal 2025. Free cash flow rose 24.8% year over year to $427.8 million, or 24.2% of total revenues, compared with $342.8 million, or 21.5%, in fiscal 2025.
Paylocity repurchased $398.1 million, or approximately 2.8 million shares, of common stock during fiscal 2026, bringing cumulative repurchases since May 2024 to $697.8 million, or approximately 4.6 million shares. Approximately $1.3 billion remained available under the share repurchase authorization as of June 30, 2026.
Acquisitions & Product DevelopmentsIn April 2026, Paylocity completed the acquisition of Grayscale Labs, Inc., an AI-powered recruiting automation company, expanding its recruiting capabilities to help clients engage candidates earlier and move faster through hiring workflows.
The company also launched Paylocity Elevate Solutions, pairing its unified platform with dedicated payroll and HR experts to handle implementation, ongoing payroll processing and HR execution on clients' behalf, comprising Elevate Implementation, Elevate Payroll and Elevate HR.
The company also disclosed a change in accounting convention: beginning in fiscal 2027, deferred contract costs will be amortized over an eight-year useful life, up from seven years, a shift expected to lift fiscal 2027 adjusted EBITDA margins by approximately 120-140 bps.
Management also pointed to continued investment in its AI platform capabilities across HR, Finance and IT workflows as a key driver of the company's product strategy heading into fiscal 2027.
PCTY Issues Q1 & Fiscal 2027 GuidanceFor the first quarter of fiscal 2027, Paylocity expects total revenues in the range of $439.5-$444.5 million, indicating approximately 8% growth from the year-ago period. Recurring and other revenues are projected between $414 million and $419 million, implying approximately 10% growth.
Adjusted EBITDA is projected in the range of $152-$156 million, while adjusted EBITDA excluding interest income on funds held for clients is expected between $126.5 million and $130.5 million.
For fiscal 2027, Paylocity projects total revenues between $1.88 billion and $1.895 billion, implying approximately 7% growth over fiscal 2026. Recurring and other revenues are expected in the range of $1.777-$1.792 billion, suggesting approximately 8% growth.
Adjusted EBITDA is expected between $690 million and $700 million, while adjusted EBITDA excluding interest income on funds held for clients is projected between $587 million and $597 million.
Zacks Rank & Stocks to ConsiderPCTY currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader Zacks Computer & Technology include Applied Materials (AMAT - Free Report) , ACI Worldwide (ACIW - Free Report) and Analog Devices (ADI - Free Report) . Each stock sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials shares have gained 112.7% in the year-to-date period. Applied Materials is set to report second-quarter 2026 results on Aug. 13.
Shares of ACI Worldwide have gained 19.7% in the year-to-date period. ACI Worldwide is set to report second-quarter 2026 results on Aug. 6.
Shares of Analog Devices have rallied 40.3% year to date. Analog Devices is slated to report fiscal third-quarter 2026 results on Aug. 19.
Ryan Glenn - Chief Financial Officer
Steven Beauchamp - Executive Chairman of the Board
Toby Williams - President, CEO & Director
Conference Call Participants
Brad Reback - Stifel, Nicolaus & Company, Incorporated, Research Division
Jessica Wang - Raymond James & Associates, Inc., Research Division
Mark Marcon - Robert W. Baird & Co. Incorporated, Research Division
Jordan Boretz
Sitikantha Panigrahi - Mizuho Securities USA LLC, Research Division
Jared Levine - TD Cowen, Research Division
Daniel Jester - BMO Capital Markets Equity Research
Giancarlo Valle - Truist Securities, Inc., Research Division
Ian Black - Needham & Company, LLC, Research Division
Jason Celino - KeyBanc Capital Markets Inc., Research Division
Sheldon McMeans - Barclays Bank PLC, Research Division
George Michael Kurosawa - Citigroup Inc., Research Division
Allan M. Verkhovski - BTIG, LLC, Research Division
Jacob Cody Smith - Guggenheim Securities, LLC, Research Division
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Paylocity Holding Corporation Fourth Quarter 2026 Fiscal Year Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Ryan Glenn, Chief Financial Officer. Please go ahead.
Ryan Glenn
Chief Financial Officer
Good afternoon, and welcome to Paylocity's earnings results call for the fourth quarter and fiscal '26, which ended on June 30, 2026. I'm Ryan Glenn, Chief Financial Officer; and joining me on the call today are Steve Beauchamp, Executive Chairman; and Toby Williams, President and CEO of Paylocity. Today, we will be discussing the results announced in our press release issued after the market closed. A webcast replay of this call will be available for the next 45 days on our website under the Investor Relations tab.
Before beginning, we must caution you that today's remarks, including
Paylocity (PCTY - Free Report) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $1.56 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +19.48%. A quarter ago, it was expected that this provider of cloud-based payroll and human-resources software services would post earnings of $2.43 per share when it actually produced earnings of $2.89, delivering a surprise of +18.93%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Paylocity, which belongs to the Zacks Internet - Software industry, posted revenues of $444.73 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.18%. This compares to year-ago revenues of $400.74 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Paylocity shares have lost about 8.4% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Paylocity?While Paylocity has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Paylocity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.83 on $435.41 million in revenues for the coming quarter and $8.57 on $1.89 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, VERRA MOBILITY CORP (VRRM - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
VERRA MOBILITY CORP's revenues are expected to be $253.62 million, up 7.5% from the year-ago quarter.
3 Payroll Software Makers Set For Growth In 2023Paylocity NASDAQ: PCTY reported fourth-quarter fiscal 2026 recurring revenue growth of 12.4% and total revenue growth of 11%, as the human capital management software provider highlighted product expansion, artificial intelligence initiatives and continued client growth.
For the fiscal year ended June 30, 2026, Paylocity generated approximately $1.8 billion in total revenue, up 11%, while recurring revenue increased 12.2%. The company ended the year with about 44,400 clients, a 7% increase from fiscal 2025, and average revenue per client rose more than 5% to roughly $37,200.
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3 Software Plays Showing Signs of RecoveryExecutive Chairman Steve Beauchamp said the company’s investments in research and development have supported recurring revenue growth and higher client spending. He pointed to Paylocity’s platform spanning HCM, finance and IT functions, along with its expanding AI capabilities.
AI product launches and acquisitions Paylocity emphasized its recent launch of Ignite AI, a set of AI capabilities embedded in existing customer workflows. The offering includes a candidate-fit agent for recruiting, a talent-rediscovery agent designed to identify potential candidates from existing talent pools, and an answers-and-insight agent intended to help HR and payroll teams obtain client-specific information through natural-language questions.
The company also introduced an Ignite AI Hub, a centralized dashboard intended to provide customers visibility into AI usage, including questions answered, tasks completed and issues resolved. Beauchamp said AI interactions nearly doubled sequentially during the quarter.
President and CEO Toby Williams said AI is becoming a larger part of conversations with prospective customers, particularly when customers evaluate tools to improve efficiency in payroll, recruiting and time-and-labor management. However, management said its approach to monetization will vary based on the value provided to clients.
“We’re really focused on delivering value to the clients,” Beauchamp said. “When we deliver enough value to the clients, we look to be able to monetize that value.”
The company recently acquired Aidora, an AI-native leave-of-absence management provider. Williams said Paylocity plans to integrate Aidora’s capabilities into its suite as a premium offering. The company is also integrating AI-powered recruiting automation capabilities from its prior Grayscale acquisition, which it expects to offer as a premium product.
Other recent product initiatives include Elevate Solutions, a managed-services offering, and Paylocity Retirement, which brings retirement-plan administration and employee savings tools to the company’s platform. Williams said financial advisors have responded positively to the retirement offering.
Financial performance and retention Fourth-quarter recurring revenue totaled $415.6 million, while total revenue exceeded the high end of Paylocity’s guidance by $11.3 million. Chief Financial Officer Ryan Glenn said most of the fourth-quarter revenue outperformance came from recurring and other revenue.
Adjusted EBITDA was $145.5 million in the fourth quarter, representing a 32.7% margin and exceeding the top end of guidance by $12.9 million. For fiscal 2026, adjusted EBITDA totaled $654.9 million, or a 37% margin, up 12.3% from the prior year on a dollar basis.
Excluding interest income on funds held for clients, full-year adjusted EBITDA margin was 32.4%, reflecting 120 basis points of operating leverage, according to the company. Fiscal-year free cash flow margin was 24.2%, and free cash flow increased 24.8% on a dollar basis.
On a GAAP basis, Paylocity reported fourth-quarter gross profit of $300.4 million, operating income of $84.4 million and net income of $60.3 million. Full-year gross profit was $1.2 billion, operating income was $386 million and net income was $269.7 million.
Management said fiscal 2026 revenue retention remained above 92%. Benefit brokers accounted for more than 25% of new business during the year, Williams said, as the company continued to invest in its broker channel.
Fiscal 2027 outlook For the first quarter of fiscal 2027, Paylocity expects recurring and other revenue of $414 million to $419 million, representing approximately 10% growth from the prior-year period. Total revenue is projected at $439.5 million to $444.5 million, or approximately 8% growth.
First-quarter adjusted EBITDA is expected to be $152 million to $156 million. First-quarter adjusted EBITDA excluding interest income on client funds is expected to be $126.5 million to $130.5 million. Fiscal 2027 recurring and other revenue is projected at $1.777 billion to $1.792 billion, representing approximately 8% growth. Fiscal 2027 total revenue is projected at $1.880 billion to $1.895 billion, representing approximately 7% growth. Full-year adjusted EBITDA is expected to be $690 million to $700 million. The outlook assumes flat workforce levels in fiscal 2027 compared with fiscal 2026, despite workforce growth in the company’s client base during the fourth quarter. It also incorporates two assumed 25-basis-point interest-rate cuts in the second half of fiscal 2027.
Beginning in fiscal 2027, Paylocity will amortize deferred contract costs over eight years rather than seven years. Glenn said the accounting change is expected to add approximately 120 to 140 basis points to adjusted EBITDA margin during the year, with the benefit occurring ratably rather than entirely in the first quarter.
Glenn said newer acquisitions and product launches will create a modest margin headwind in fiscal 2027 because they are currently subscale, but management does not expect those products to be margin dilutive over time. The company reiterated its expectation for continued multi-year free-cash-flow and margin expansion.
Capital allocation Paylocity repurchased approximately 466,000 shares for $48.1 million in the fourth quarter. For the full fiscal year, it repurchased about 2.8 million shares for $398.1 million, reducing diluted share count by 3.1%.
As of June 30, the company had approximately $1.3 billion remaining under its repurchase authorization, $271.9 million in cash equivalents and invested corporate cash, and $81.3 million outstanding on its credit facility. Glenn said Paylocity expects to continue opportunistic repurchases while preserving flexibility for acquisitions and investments in growth.
About Paylocity (NASDAQ:PCTY)Paylocity NASDAQ: PCTY is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company's integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
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Q4 2026 Recurring & Other Revenue of $415.6 million, up 12.4% year-over-yearQ4 2026 Total Revenue of $444.7 million, up 11.0% year-over-yearFY 2026 Recurring & Other Revenue of $1.651 billion, up 12.2% year-over-yearFY 2026 Total Revenue of $1.771 billion, up 11.0% year-over-yearContinued growth in cash flows in FY 2026 - net cash provided by operating activities margin of 30.1% and free cash flow margin of 24.2%Repurchased $398.1 million or 2.8 million shares of common stock during FY 2026; $697.8 million or 4.6 million shares repurchased since May 2024 SCHAUMBURG, Ill., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading cloud-based provider of HCM, finance and IT software solutions, today announced financial results for the fourth quarter and fiscal 2026, which ended June 30, 2026.
“Fiscal 26 was a strong year as our differentiated position in the market was reflected in solid sales and operational execution, helping to drive 12.2% recurring and other revenue growth and 11.0% total revenue growth. Our durable growth was driven by the continued expansion of average revenue per client and a roughly 7% increase in our client base – while also increasing profitability across our organization. As we continue to expand our product suite, a critical component of our strategy is driven by the launch of Ignite AI, which is designed to help accelerate productivity for HR, Finance, and IT teams across companies of all sizes and industries. Our approach to AI remains focused on driving value for our clients - Ignite AI is woven directly into core workflows to help clients complete tasks faster and surface insights more quickly. In Fiscal 26 we continued to expand our product suite with the acquisition of Grayscale, which expands our recruiting capabilities with AI-powered automation that helps employers engage with candidates earlier and faster, and the announcement of Paylocity Retirement, which helps employers reduce manual work and provide their employees easier access to their retirement savings. Additionally, we launched Elevate Solutions, which pairs our unified platform with dedicated payroll and HR teams who work directly with clients to lighten their administrative workload, allowing them to focus more time on strategic priorities. We also continue to return capital to shareholders by repurchasing $398.1 million or approximately 2.8 million shares of our stock in Fiscal 26. I would also like to thank all of our employees for their efforts supporting our clients, and congratulate our teams for another successful year,” said Toby Williams, President and Chief Executive Officer of Paylocity.
Key Recent Achievements
FY 2026 Recurring & other revenue of $1.651 billion, up 12.2% year-over-year.FY 2026 Total revenue of $1.771 billion, up 11.0% year-over-year.FY 2026 GAAP net income increased 18.8% to $269.7 million from $227.1 million in FY 2025 and $4.92 per diluted share from $4.02 in FY 2025, an increase of 22.4%.FY 2026 Adjusted EBITDA, a non-GAAP measure, increased 12.3% to $654.9 million from $583.0 million in FY 2025, or 37.0% of Total revenue compared to 36.5% in FY 2025.FY 2026 Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, increased 16.4% to $534.9 million from $459.6 million in FY 2025, or 32.4% of Recurring and other revenue compared to 31.2% in FY 2025.Completed acquisition of Grayscale Labs, Inc. in April 2026 to expand AI-powered recruiting capabilities Fourth Quarter Fiscal 2026 Financial Highlights
Revenue:
Recurring & other revenue was $415.6 million, an increase of 12.4% from the fourth quarter of fiscal 2025.Total revenue was $444.7 million, an increase of 11.0% from the fourth quarter of fiscal 2025. Operating Income:
GAAP operating income was $84.4 million and non-GAAP operating income was $120.2 million in the fourth quarter of fiscal 2026, compared to GAAP operating income of $66.2 million and non-GAAP operating income of $105.6 million in the fourth quarter of fiscal 2025.
Net Income:
GAAP net income was $60.3 million or $1.12 per share in the fourth quarter of fiscal 2026 based on 54.0 million diluted weighted average common shares outstanding, compared to $48.6 million or $0.86 per share in the fourth quarter of fiscal 2025 based on 56.3 million diluted weighted average common shares outstanding.
Adjusted EBITDA:
Adjusted EBITDA, a non-GAAP measure, was $145.5 million in the fourth quarter of fiscal 2026 compared to $130.7 million in the fourth quarter of fiscal 2025.Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $116.4 million in the fourth quarter of fiscal 2026 compared to $99.9 million in the fourth quarter of fiscal 2025. Fiscal 2026 Financial Highlights
Revenue:
Recurring & other revenue was $1.651 billion, an increase of 12.2% from fiscal 2025.Total revenue was $1.771 billion, an increase of 11.0% from fiscal 2025. Operating Income:
GAAP operating income was $386.0 million and non-GAAP operating income was $557.3 million in fiscal 2026, compared to GAAP operating income of $304.0 million and non-GAAP operating income of $484.4 million in fiscal 2025.
Net Income:
GAAP net income was $269.7 million or $4.92 per share for fiscal 2026, based on 54.8 million diluted weighted average common shares outstanding, compared to $227.1 million or $4.02 per share for fiscal 2025 based on 56.6 million diluted weighted average common shares outstanding.
Adjusted EBITDA:
Adjusted EBITDA, a non-GAAP measure, was $654.9 million for fiscal 2026 compared to $583.0 million for fiscal 2025.Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $534.9 million for fiscal 2026 compared to $459.6 million for fiscal 2025. Balance Sheet and Cash Flow:
Cash and cash equivalents totaled $271.9 million at the end of fiscal 2026.Long-term debt totaled $81.3 million as of the end of fiscal 2026, representing borrowings under our credit facility. This reflects approximately $81.3 million repaid on our outstanding balance during fiscal 2026.Net cash provided by operating activities for fiscal 2026 was $533.3 million or 30.1% of Total revenue compared to $418.2 million or 26.2% of Total revenue for fiscal 2025.Free cash flow, a non-GAAP measure, was $427.8 million or 24.2% of Total revenue for fiscal 2026 compared to $342.8 million or 21.5% of Total revenue for fiscal 2025.Free cash flow excluding interest income on funds held for clients, a non-GAAP measure, was $307.8 million or 18.6% of Recurring and other revenue for fiscal 2026 compared to $219.3 million or 14.9% of Recurring and other revenue for fiscal 2025.
A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Change in Deferred Contract Costs Benefit Period
Beginning in fiscal 2027 we will amortize deferred contract costs over an 8-year useful life, an increase from our current 7-year convention. This prospective change is expected to increase fiscal 2027 Adjusted EBITDA margins by approximately 120–140 basis points, depending on business performance, and timing and volume of sales and client implementations, and is reflected in the guidance below.
Business Outlook
Based on information available as of August 4, 2026, Paylocity is issuing guidance for the first quarter and full fiscal 2027 as indicated below.
First Quarter 2027:
Recurring and other revenue is expected to be in the range of $414.0 million to $419.0 million, which represents approximately 10% growth over fiscal 2026 first quarter recurring and other revenue.Total revenue is expected to be in the range of $439.5 million to $444.5 million, which represents approximately 8% growth over fiscal 2026 first quarter total revenue.Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $152.0 million to $156.0 million.Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $126.5 million to $130.5 million. Fiscal 2027:
Recurring and other revenue is expected to be in the range of $1.777 billion to $1.792 billion, which represents approximately 8% growth over fiscal 2026 recurring and other revenue.Total revenue is expected to be in the range of $1.880 billion to $1.895 billion, which represents approximately 7% growth over fiscal 2026 total revenue.Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $690.0 million to $700.0 million.Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $587.0 million to $597.0 million. We are unable to reconcile forward-looking non-GAAP financial measures included in our guidance to their directly comparable GAAP financial measures because the information which is needed to complete the reconciliations is unavailable at this time without unreasonable effort.
Conference Call Details
Paylocity will host a conference call to discuss its fourth quarter and full fiscal 2026 results today at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through https://investors.paylocity.com/events-and-presentations where you will be provided with dial in details. A replay of the call will be available and archived via webcast at https://investors.paylocity.com/.
About Paylocity
Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy-to-use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection-with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures when reporting and discussing its financial results, including the financial measures in this release that are designated as being “non-GAAP.” Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance, as they provide investors with the company’s view of its financial performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance, including comparisons of current results to prior periods’ results by excluding items the company does not believe reflect fundamental business performance and are not representative or indicative of its results of operations. Non-GAAP financial measures have limitations as an analytical tool and other companies may define their non-GAAP financial measures differently than we do. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in the accompanying tables to this release, as well as the definitions of those non-GAAP measures following such tables.
Safe Harbor/Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, future financial position and performance, anticipated results of operations, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include statements about management's estimates regarding future revenues and financial performance, and other statements about management’s beliefs, intentions or goals and are expressed in good faith and believed to be reasonable at the time such statements are made. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on such statements. These forward-looking statements involve risks and uncertainties, many of which are beyond Paylocity’s control, that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the general economic conditions in regions in which Paylocity does business, changes in interest rates, business disruptions, reductions in employment and increases in business failures that have occurred or may occur in the future; Paylocity’s ability to leverage forms of artificial intelligence and machine learning in its technology, which may be constrained by current and future laws, regulations, interpretive positions or standards governing new and evolving technologies and ethical considerations that could restrict or impose burdensome and costly requirements on its ability to continue to leverage data in innovative ways; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; challenges related to cybersecurity threats and evolving cybersecurity regulations; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; risks related to acquisitions and investments in other businesses and technologies; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets; Paylocity’s ability to protect and defend its intellectual property and its use of open source software in its products; the risk that Paylocity’s security measures are compromised or a threat actor gains unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; the possibility that Paylocity may be adversely affected by other economic, business, and/or competitive factors; and other risks and potential factors that could affect Paylocity’s business and financial results that are identified in Paylocity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on August 6, 2025, as well as any revisions or supplements to the information in subsequent reports filed or furnished to the SEC. These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and unless legally required, Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
PAYLOCITY HOLDING CORPORATION
Consolidated Balance Sheets
(in thousands, except per share data) June 30, 2025
2026Assets Current assets: Cash and cash equivalents$398,070 $271,917 Accounts receivable, net 41,642 50,093 Deferred contract costs 117,177 132,960 Prepaid expenses and other 50,943 57,582 Total current assets before funds held for clients 607,832 512,552 Funds held for clients 2,704,137 3,210,504 Total current assets 3,311,969 3,723,056 Capitalized internal-use software, net 132,317 143,594 Property and equipment, net 54,210 71,403 Operating lease right-of-use assets 35,997 33,137 Intangible assets, net 92,671 86,140 Goodwill 343,100 378,964 Long-term deferred contract costs 393,671 426,226 Long‑term prepaid expenses and other 7,739 10,363 Deferred income tax assets 17,754 11,475 Total assets$4,389,428 $4,884,358 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$17,347 $10,944 Accrued expenses 193,081 200,279 Total current liabilities before client fund obligations 210,428 211,223 Client fund obligations 2,694,842 3,209,015 Total current liabilities 2,905,270 3,420,238 Long-term debt 162,500 81,250 Long-term operating lease liabilities 46,772 42,200 Other long-term liabilities 8,580 12,930 Deferred income tax liabilities 32,559 106,323 Total liabilities$3,155,681 $3,662,941 Stockholders’ equity: Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2025 and June 30, 2026$— $— Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2025 and June 30, 2026; 55,366 shares issued and outstanding at June 30, 2025 and 53,271 shares issued and outstanding at June 30, 2026 55 53 Additional paid-in capital 327,518 52,271 Retained earnings 900,583 1,170,324 Accumulated other comprehensive income (loss) 5,591 (1,231)Total stockholders' equity$1,233,747 $1,221,417 Total liabilities and stockholders’ equity$4,389,428 $4,884,358 PAYLOCITY HOLDING CORPORATION
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share data) Three Months Ended
June 30, Year Ended
June 30, 2025
2026 2025
2026Revenues: Recurring and other revenue$369,886 $415,594 $1,471,801 $1,651,362 Interest income on funds held for clients 30,851 29,140 123,420 119,964 Total revenues 400,737 444,734 1,595,221 1,771,326 Cost of revenues 128,865 144,350 498,223 545,824 Gross profit 271,872 300,384 1,096,998 1,225,502 Operating expenses: Sales and marketing 100,878 103,700 374,216 393,878 Research and development 51,040 55,528 205,851 221,389 General and administrative 53,727 56,734 212,907 224,242 Total operating expenses 205,645 215,962 792,974 839,509 Operating income 66,227 84,422 304,024 385,993 Other income 572 753 5,039 1,310 Income before income taxes 66,799 85,175 309,063 387,303 Income tax expense 18,193 24,872 81,936 117,562 Net income$48,606 $60,303 $227,127 $269,741 Other comprehensive income (loss), net of tax 1,882 (2,445) 6,527 (6,822)Comprehensive income$50,488 $57,858 $233,654 $262,919 Net income per share: Basic$0.88 $1.13 $4.08 $4.99 Diluted$0.86 $1.12 $4.02 $4.92 Weighted-average shares used in computing net income per share: Basic 55,322 53,491 55,649 54,082 Diluted 56,255 53,964 56,550 54,770 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three and twelve months ended June 30 are included in the above line items:
Three Months Ended
June 30,
Year Ended
June 30,
2025
2026
2025
2026
Cost of revenues$3,595 $3,452 $19,314 $16,914 Sales and marketing 7,804 6,089 36,897 32,857 Research and development 7,352 5,661 38,667 32,827 General and administrative 13,267 13,035 55,185 61,549 Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises$32,018 $28,237 $150,063 $144,147 PAYLOCITY HOLDING CORPORATION
Consolidated Statements of Cash Flows
(in thousands) Year Ended June 30, 2024 2025 2026Cash flows from operating activities: Net income$206,766 $227,127 $269,741 Adjustments to reconcile net income to net cash provided by operating activities Stock-based compensation expense 146,032 142,820 138,657 Depreciation and amortization expense 76,426 99,636 111,797 Deferred income tax expense (benefit) 27,835 (3,208) 82,947 Provision for credit losses 1,565 1,382 1,905 Net amortization of premiums (accretion of discounts) on available-for-sale securities (4,378) (2,025) (1,498)Other (962) 1,045 1,350 Changes in operating assets and liabilities: Accounts receivable (8,186) (3,557) (7,929)Deferred contract costs (70,337) (62,922) (47,933)Prepaid expenses and other (5,829) (7,819) (11,205)Accounts payable 2,423 7,287 (6,472)Accrued expenses and other 13,315 18,460 1,892 Net cash provided by operating activities 384,670 418,226 533,252 Cash flows from investing activities: Purchases of available-for-sale securities (304,465) (260,997) (271,378)Proceeds from sales and maturities of available-for-sale securities 294,438 160,067 272,115 Capitalized internal-use software costs (60,726) (62,402) (69,302)Purchases of property and equipment (18,028) (13,073) (36,152)Acquisitions of businesses, net of cash and funds held for clients acquired (12,031) (277,851) (49,183)Other investing activities (1,079) (1,292) (893)Net cash used in investing activities (101,891) (455,548) (154,793)Cash flows from financing activities: Net change in client fund obligations 325,056 (297,923) 514,173 Borrowings under credit facility — 325,000 — Repayment of credit facility — (162,500) (81,250)Repurchases of common shares (150,000) (149,638) (398,113)Proceeds from employee stock purchase plan 19,143 19,682 18,222 Taxes paid related to net share settlement of equity awards (52,549) (60,034) (43,686)Other financing activities (72) (408) (365)Net cash provided by (used in) financing activities 141,578 (325,821) 8,981 Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents 424,357 (363,143) 387,440 Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of year 2,421,312 2,845,669 2,482,526 Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of year$2,845,669 $2,482,526 $2,869,966 Supplemental Disclosure of Non-Cash Investing and Financing Activities Purchases of property and equipment and internal-use software, accrued but not paid$1,118 $1,833 $1,328 Liabilities assumed for acquisitions$378 $55,730 $4,037 Supplemental Disclosure of Cash Flow Information Cash paid for interest$494 $12,758 $5,570 Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets Cash and cash equivalents$401,811 $398,070 $271,917 Funds held for clients' cash and cash equivalents 2,443,858 2,084,456 2,598,049 Total cash, cash equivalents and funds held for clients' cash and cash equivalents$2,845,669 $2,482,526 $2,869,966 Paylocity Holding Corporation
Reconciliation of GAAP to non-GAAP Financial Measures
(In thousands except per share data) Three Months Ended
June 30,
Year Ended
June 30,
2025
2026 2025 2026Reconciliation from Gross profit to Adjusted gross profit: Gross profit$271,872 $300,384 $1,096,998 $1,225,502 Amortization of capitalized internal-use software costs 16,090 18,316 59,948 70,496 Amortization of certain acquired intangibles 4,606 4,990 16,168 18,553 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 3,595 3,452 19,314 16,914 Other items (1) 584 354 1,365 696 Adjusted gross profit$296,747 $327,496 $1,193,793 $1,332,161 Three Months Ended
June 30,
Year Ended
June 30,
2025
2026 2025 2026
Reconciliation from Operating income to Non-GAAP Operating income: Operating income$66,227 $84,422 $304,024 $385,993 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 32,018 28,237 150,063 144,147 Amortization of acquired intangibles 5,268 5,797 19,120 21,331 Other items (2) 2,109 1,744 11,182 5,815 Non-GAAP Operating income$105,622 $120,200 $484,389 $557,286 Three Months Ended
June 30,
Year Ended
June 30,
2025 2026 2025 2026Reconciliation from Net income to Non-GAAP Net income: Net income$48,606 $60,303 $227,127 $269,741 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 32,018 28,237 150,063 144,147 Amortization of acquired intangibles 5,268 5,797 19,120 21,331 Other items (2) 2,109 1,744 11,182 5,815 Income tax effect on adjustments (3) (47) 3,328 (1,842) 14,108 Non-GAAP Net income$87,954 $99,409 $405,650 $455,142 Three Months Ended
June 30,
Year Ended
June 30,
2025
2026
2025
2026
Calculation of Non-GAAP Net income per share: Non-GAAP Net income$87,954 $99,409 $405,650 $455,142 Diluted weighted-average number of common shares 56,255 53,964 56,550 54,770 Non-GAAP Net income per share$1.56 $1.84 $7.17 $8.31 Three Months Ended
June 30, Year Ended
June 30, 2025 2026 2025 2026Reconciliation from Net income to Adjusted EBITDA and Adjusted EBITDA excluding interest income on funds held for clients Net income$48,606 $60,303 $227,127 $269,741 Interest expense 3,371 1,130 13,053 5,828 Income tax expense 18,193 24,872 81,936 117,562 Depreciation and amortization expense 26,452 29,243 99,636 111,797 EBITDA 96,622 115,548 421,752 504,928 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 32,018 28,237 150,063 144,147 Other items (2) 2,109 1,744 11,182 5,815 Adjusted EBITDA$130,749 $145,529 $582,997 $654,890 Interest income on funds held for clients$(30,851) $(29,140) $(123,420) $(119,964)Adjusted EBITDA excluding interest income on funds held for clients$99,898 $116,389 $459,577 $534,926 Three Months Ended
June 30,
Year Ended
June 30,
2025
2026
2025
2026
Reconciliation of Non-GAAP sales and marketing: Sales and marketing$100,878 $103,700 $374,216 $393,878 Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 7,804 6,089 36,897 32,857 Less: Other items (2) 320 258 1,544 760 Non-GAAP sales and marketing$92,754 $97,353 $335,775 $360,261 Three Months Ended
June 30,
Year Ended
June 30,
2025
2026
2025
2026
Reconciliation of Non-GAAP total research and development: Research and development$51,040 $55,528 $205,851 $221,389 Add: Capitalized internal-use software costs 16,839 20,201 62,402 69,302 Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 7,352 5,661 38,667 32,827 Less: Other items (2) 452 528 2,121 1,720 Non-GAAP total research and development$60,075 $69,540 $227,465 $256,144 Three Months Ended
June 30,
Year Ended
June 30,
2025
2026
2025
2026
Reconciliation of Non-GAAP general and administrative: General and administrative$53,727 $56,734 $212,907 $224,242 Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 13,267 13,035 55,185 61,549 Less: Amortization of certain acquired intangibles 662 807 2,952 2,778 Less: Other items (2) 753 604 6,152 2,639 Non-GAAP general and administrative$39,045 $42,288 $148,618 $157,276 Year Ended
June 30, 2025 2026Reconciliation of Free cash flow, Free cash flow excluding interest income on funds held for clients and Adjusted free cash flow excluding interest income on funds held for clients: Net cash provided by operating activities$418,226 $533,252 Capitalized internal-use software costs (62,402) (69,302)Purchases of property and equipment (13,073) (36,152)Free cash flow$342,751 $427,798 Less: Interest income on funds held for clients (123,420) (119,964)Free cash flow excluding interest income on funds held for clients$219,331 $307,834 Cash paid for other items (4) 8,032 8,297 Adjusted free cash flow excluding interest income on funds held for clients$227,363 $316,131 (1) Represents acquisition-related costs and severance cost adjustments related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(2) Represents acquisition and nonrecurring transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(3) Includes the income tax effect on non-GAAP net income adjustments related to stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, amortization of acquired intangibles and other items, which include acquisition and nonrecurring transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(4) Represents cash paid for acquisition and nonrecurring transaction-related costs and severance costs related to certain roles that have been eliminated.
Definitions of our Non-GAAP Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Excluding Interest Income on Funds Held for Clients, and Adjusted EBITDA Excluding Interest Income on Funds Held for Clients Margin
Adjusted EBITDA is calculated as net income before interest expense, income tax expense, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenues.
Adjusted EBITDA excluding interest income on funds held for clients is calculated in the same manner as Adjusted EBITDA and is further adjusted to eliminate interest income on funds held for clients. Adjusted EBITDA excluding interest income on funds held for clients margin is Adjusted EBITDA excluding interest income on funds held for clients divided by recurring and other revenue.
Adjusted Gross Profit and Adjusted Gross Profit Margin
Adjusted gross profit is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of capitalized internal-use software costs and certain acquired intangibles and other items as described above in this release.
Adjusted gross profit margin is calculated as adjusted gross profit as described in the preceding sentence divided by total revenues.
Non-GAAP Operating Income, Non-GAAP Net Income, and Non-GAAP Income Per Share
Non-GAAP operating income is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described above in this release.
Non-GAAP net income and non-GAAP net income per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described above in this release, including the income tax effect on these items.
Non-GAAP Sales and Marketing Expense, Non-GAAP Sales and Marketing Expense Margin, Non-GAAP Total Research and Development, Non-GAAP Total Research and Development Margin, Non-GAAP General and Administrative Expense, and Non-GAAP General and Administrative Expense Margin
Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Non-GAAP sales and marketing margin is calculated by dividing non-GAAP sales and marketing by total revenues.
Non-GAAP total research and development is adjusted for capitalized internal-use software costs paid and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Non-GAAP total research and development margin is calculated by dividing non-GAAP total research and development by total revenues.
Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of certain acquired intangibles and other items as described above in this release. Non-GAAP general and administrative margin is calculated by dividing non-GAAP general and administrative expense by total revenues.
Free Cash Flow, Free Cash Flow Margin, Free Cash Flow Excluding Interest on Funds Held for Clients, Free Cash Flow Excluding Interest on Funds Held for Clients Margin, Adjusted Free Cash Flow Excluding Interest on Funds Held for Clients and Adjusted Free Cash Flow Excluding Interest on Funds Held for Clients Margin
Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs and purchases of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenues.
Free cash flow excluding interest income on funds held for clients is defined in the same manner as free cash flow but also excludes interest income on funds held for clients. Free cash flow margin excluding interest income on funds held for clients is calculated by dividing free cash flow excluding interest income on funds held for clients by recurring and other revenue.
Adjusted free cash flow excluding interest income on funds held for clients is defined in the same manner as free cash flow excluding interest income on funds held for clients plus cash paid for other items as described above in this release. Adjusted free cash flow margin excluding interest income on funds held for clients is calculated by dividing adjusted free cash flow excluding interest income on funds held for clients by recurring and other revenue.
Bank of New York Mellon Corp raised its holdings in shares of Paylocity Holding Corporation (NASDAQ:PCTY – Free Report) by 9.1% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 344,317 shares of the software maker’s stock after buying an additional 28,676 shares during the period. Bank of New York Mellon Corp owned about 0.64% of Paylocity worth $37,200,000 at the end of the most recent quarter.
Other institutional investors have also added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Paylocity by 5.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 136,388 shares of the software maker’s stock worth $25,551,000 after acquiring an additional 7,594 shares during the last quarter. Focus Partners Wealth grew its position in shares of Paylocity by 24.5% during the 1st quarter. Focus Partners Wealth now owns 1,365 shares of the software maker’s stock valued at $256,000 after acquiring an additional 269 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of Paylocity by 537.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 465 shares of the software maker’s stock worth $84,000 after purchasing an additional 392 shares in the last quarter. Marshall Wace LLP increased its stake in shares of Paylocity by 2,782.7% in the 2nd quarter. Marshall Wace LLP now owns 35,688 shares of the software maker’s stock worth $6,466,000 after purchasing an additional 34,450 shares in the last quarter. Finally, Cerity Partners LLC raised its holdings in Paylocity by 10.0% in the 2nd quarter. Cerity Partners LLC now owns 19,241 shares of the software maker’s stock worth $3,486,000 after purchasing an additional 1,749 shares during the period. 94.76% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth Several equities analysts recently weighed in on the company. Citigroup lifted their target price on Paylocity from $133.00 to $136.00 and gave the company a “buy” rating in a research report on Monday, May 11th. Stephens reduced their price target on Paylocity from $160.00 to $120.00 and set an “equal weight” rating for the company in a research report on Friday, May 8th. Wall Street Zen downgraded Paylocity from a “buy” rating to a “hold” rating in a research note on Saturday, July 4th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Paylocity in a research report on Tuesday. Finally, TD Cowen cut their price objective on Paylocity from $155.00 to $137.00 and set a “buy” rating for the company in a research note on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $151.88.
Get Our Latest Stock Analysis on Paylocity
Insider Buying and Selling In other news, SVP Andrew Cappotelli sold 899 shares of the business’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $115.05, for a total value of $103,429.95. Following the transaction, the senior vice president directly owned 17,679 shares in the company, valued at $2,033,968.95. The trade was a 4.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 19.40% of the stock is currently owned by corporate insiders.
Paylocity Trading Up 3.9% Shares of Paylocity stock opened at $125.27 on Friday. The company has a market capitalization of $6.71 billion, a P/E ratio of 26.71 and a beta of 0.52. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.08 and a current ratio of 1.08. The company has a fifty day moving average of $113.11 and a 200 day moving average of $115.09. Paylocity Holding Corporation has a fifty-two week low of $92.99 and a fifty-two week high of $197.78.
About Paylocity (Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
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SCHAUMBURG, Ill., July 21, 2026 (GLOBE NEWSWIRE) -- Paylocity, a leading provider of HCM, Finance, and IT solutions, today introduced Paylocity Ignite AI, its platform-wide AI with agents that automate manual work, help reduce risk, and enable teams to move faster. Embedded throughout Paylocity’s platform, Ignite AI brings data, insights, and automation into moments where decisions are made and work gets done.
Purpose-Built Agents That Help Teams Take Action
Ignite AI includes new, purpose-built agents that automate tasks across pay, time, recruiting, and other areas where work often slows down.
Answer & Insight Agent
Getting answers from your data today means running reports, exporting spreadsheets, or waiting on someone else to dig them out. And even then, a report shows what happened, not why. Clients told us they need to explore their data on their own terms, because every business asks different questions. The Answer & Insight Agent was built for exactly that: ask a question in natural language and get answers in real time, pulling from your company data across the platform.
Hire faster by understanding exactly where the recruiting funnel breaks downProactively manage overtime in real time before it becomes a cost problemVisualize turnover trends in a clear chart with actionable insights ready to share with senior leadersAnalyze what is driving costs across locations, teams, and shiftsSpot the pay, performance, or retention risks hiding across the workforceUnderstand where onboarding stalls and what it's costing in productivity The real power is in the back-and-forth: ask follow-ups, visualize trends, and go deeper. Because the agent isn’t built around a fixed set of questions, it goes wherever your thinking does. It turns blind spots into real-time, strategic decisions.
Payroll Analysis Agent
Reviewing every anomaly in a large payroll before the deadline takes hours, and errors still slip through. The Payroll Analysis Agent helps payroll teams catch issues before submission by:
Surfacing anomalies based on each organization's historical payroll trendsExplaining what changed and why it matters in plain languageFocusing review on the areas that need attention Payroll admins spend less time hunting for issues and more time resolving them.
Candidate Fit Agent
High-volume recruiting teams need every advantage to move quickly without sacrificing quality. The Candidate Fit Agent helps recruiters:
Surface candidates for review based on role criteriaSummarize how applicants match role requirements, while flagging criteria that may not be compliantReduce time spent sorting and sourcing across large applicant pools Recruiters stay in control of every hiring decision, spending less time screening and more time engaging candidates.
Ignite AI also includes additional agents that improve data quality and streamline payroll operations, including the Resume Summary Agent, which gives recruiters candidate overviews; the Data Inspection Agent, which detects gaps in employee records and guides resolution before they cause downstream issues; and the Time Correction Agent, which surfaces time errors, requests, and compliance issues so supervisors can resolve them before payroll deadlines. These join a growing set of agentic experiences available today including guided benefits enrollment, expense submission, and accounts payable validation, with additional agents planned across scheduling, candidate engagement, and more.
Managing AI with Confidence
To help organizations scale AI responsibly, Paylocity is introducing the Ignite AI Hub, a centralized dashboard for managing and measuring AI across the organization.
With Ignite AI Hub, leaders can:
Measure business impact and productivity gainsMonitor adoption across teamsControl which agents are activeIdentify new opportunities for automation The Ignite AI Hub provides the visibility and control organizations need to confidently deploy AI while keeping people at the center of decision-making.
Shaped Directly by Clients
Ignite AI was developed alongside clients. Paylocity assembled an advisory group of HR and business leaders to help identify high-impact opportunities, validate real-world use cases, and guide product innovation.
“The way Paylocity is weaving AI across the platform is better than anything I’ve seen in other systems,” said Ryan Zimmerman, VP of Human Resources at POLYWOOD. “I’m so excited by the momentum I’m seeing and to be part of shaping it.”
"It actually feels like I have another team member supporting me," said Genevieve Gonnigan, VP of HR & People and Culture, at Lincoln Park Zoo. "Manual processes are a time suck, and Ignite AI turns things that would be a 5- to 10-minute process into a 30-second question or resolves them on its own."
“Ignite AI is the next evolution of AI at work: embedded across the Paylocity platform, built for every team, and informed by the real-world needs of clients who use it every day,” said Toby Williams, President and CEO of Paylocity. “It brings intelligence and automated action directly into the flow of work, helping organizations move faster, make confident decisions, and unlock greater value from their teams. This is only the beginning of what we're building.”
Learn more about Ignite AI.
About Paylocity
Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy-to-use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection—with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.
SAN FRANCISCO, July 20, 2026 (GLOBE NEWSWIRE) -- HireQuotient, an AI-native recruiting platform, today announced its integration with Paylocity (Nasdaq: PCTY), bringing AI-powered candidate sourcing and screening capabilities to Paylocity customers in manufacturing, building services, construction, healthcare and insurance, which are industries where deskless and frontline hiring has historically been underserved by AI recruiting tools. Employers in these sectors who already use HireQuotient are seeing the impact firsthand.
SCHAUMBURG, Ill., July 14, 2026 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, Finance, and IT solutions, today announced that it has scheduled a conference call to review its fourth quarter and fiscal 2026 results on Tuesday, August 4th at 4:00 pm Central Time (5:00 pm Eastern Time).
A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at https://investors.paylocity.com/. To access the call by phone, please click this link, and you will be provided with dial in details.
A replay of the call will be available and archived via webcast at www.paylocity.com. A press release highlighting the Company's results will be issued in advance of the conference call and will be accessible at www.paylocity.com in the investor relations section.
About Paylocity
Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy-to-use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection—with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.
On July 13, 2026, Paylocity Holding Corp (PCTY) shares rose 5.0% today, bringing the current price to $124.50. Over the past week, the stock has increased by 9.
SCHAUMBURG, Ill., July 09, 2026 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of HCM, Finance, and IT solutions, today announced the acquisition of Aidora, an AI-native leave management compliance software company built on a natural language interaction model that automates highly regulated leave processes.
Leave policies across federal, state, local, and company levels are getting more complex—driving increased administrative work, higher compliance risk, and rising expectations for timely, personalized support during key life events. Manual HR processes and disconnected systems only add to the problem, creating inefficiencies and inconsistent employee experiences.
Aidora expands Paylocity's leave management capabilities with an AI-native solution that saves HR teams time and provides employees a faster, clearer way to manage leave. For HR teams, AI handles the details—from eligibility to compliance, documentation, and payroll—all in one place. For employees, AI acts as a guide: answering questions, explaining options, and helping them navigate leave step by step. They can engage with it through a natural language interaction model, by voice or text.
“Leave management is one of the most complex and time-consuming processes HR teams deal with today,” said Toby Williams, President and CEO of Paylocity. “Aidora helps take that work off their plate by automating what has traditionally been manual, and giving HR teams more confidence in how they manage leave, while also providing a better employee experience.”
The acquisition reinforces Paylocity’s focus on embedding AI across its platform to create efficiency for HR teams and remove manual work that slows organizations down. It also extends Paylocity's value across its customer base—with particular impact for mid-market and enterprise employers navigating the most complex leave requirements.
Paylocity does not expect the acquisition of Aidora to have a material impact on first quarter or fiscal 2027 financial results. Paylocity will provide financial guidance in the normal course of business in its next earnings release.
About Paylocity
Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy‑to‑use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection—with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
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#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
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You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Paylocity (PCTY - Free Report) Illinois-based Paylocity Holding Corporation offers cloud-based payroll and human capital management (HCM) software solutions to medium-sized organizations across the U.S.
PCTY is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PCTY has a Growth Style Score of B, forecasting year-over-year earnings growth of 12.8% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $8.09 per share. PCTY boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PCTY should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Paylocity (PCTY - Free Report) Illinois-based Paylocity Holding Corporation offers cloud-based payroll and human capital management (HCM) software solutions to medium-sized organizations across the U.S.
PCTY is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. PCTY has a Momentum Style Score of B, and shares are up 1.5% over the past four weeks.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.32 to $8.09 per share. PCTY boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PCTY should be on investors' short list.
Paylocity (PCTY) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Cwm LLC increased its position in Paylocity Holding Corporation (NASDAQ:PCTY – Free Report) by 113.6% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 25,272 shares of the software maker’s stock after buying an additional 13,441 shares during the period. Cwm LLC’s holdings in Paylocity were worth $3,854,000 at the end of the most recent quarter.
Other institutional investors have also bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Paylocity by 5.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 136,388 shares of the software maker’s stock valued at $25,551,000 after acquiring an additional 7,594 shares in the last quarter. Focus Partners Wealth grew its position in shares of Paylocity by 24.5% during the first quarter. Focus Partners Wealth now owns 1,365 shares of the software maker’s stock worth $256,000 after purchasing an additional 269 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Paylocity by 537.0% during the second quarter. EverSource Wealth Advisors LLC now owns 465 shares of the software maker’s stock worth $84,000 after purchasing an additional 392 shares in the last quarter. Marshall Wace LLP raised its stake in Paylocity by 2,782.7% during the 2nd quarter. Marshall Wace LLP now owns 35,688 shares of the software maker’s stock valued at $6,466,000 after purchasing an additional 34,450 shares during the period. Finally, Cerity Partners LLC raised its stake in Paylocity by 10.0% during the 2nd quarter. Cerity Partners LLC now owns 19,241 shares of the software maker’s stock valued at $3,486,000 after purchasing an additional 1,749 shares during the period. Hedge funds and other institutional investors own 94.76% of the company’s stock.
Paylocity Price Performance Shares of Paylocity stock opened at $104.13 on Thursday. The firm has a market cap of $5.61 billion, a PE ratio of 24.50, a PEG ratio of 3.00 and a beta of 0.57. The stock has a 50 day moving average of $107.38 and a 200 day moving average of $132.00. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.07. Paylocity Holding Corporation has a 12 month low of $92.99 and a 12 month high of $201.97.
Paylocity (NASDAQ:PCTY – Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The software maker reported $1.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.57 by $0.28. The business had revenue of $416.13 million for the quarter, compared to the consensus estimate of $408.37 million. Paylocity had a return on equity of 23.44% and a net margin of 14.19%.The company’s revenue was up 10.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.52 EPS. On average, research analysts expect that Paylocity Holding Corporation will post 5.31 EPS for the current fiscal year.
Analysts Set New Price Targets Several research analysts have weighed in on PCTY shares. KeyCorp dropped their price target on Paylocity from $225.00 to $190.00 and set an “overweight” rating for the company in a research note on Friday, February 6th. BTIG Research reduced their price objective on shares of Paylocity from $180.00 to $150.00 and set a “buy” rating on the stock in a research report on Friday, February 6th. Stephens set a $160.00 target price on shares of Paylocity in a report on Friday, January 16th. Mizuho dropped their target price on shares of Paylocity from $180.00 to $150.00 and set an “outperform” rating for the company in a research report on Friday, February 6th. Finally, BMO Capital Markets cut their target price on shares of Paylocity from $185.00 to $150.00 and set an “outperform” rating for the company in a research note on Friday, February 6th. Fifteen analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $178.16.
Check Out Our Latest Research Report on Paylocity
Paylocity Profile (Free Report)
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.
In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.
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The market's focus on Microsoft's cloud computing platform Azure, growth and concerns around rising competition in artificial intelligence drove shares lower. Shares of Adyen declined as the company posted slower-than-expected revenue growth. We eliminated our stake in payroll software provider Paylocity. The stock has suffered amid the market sell-off of enterprise software companies.
CHARLOTTE, N.C., May 04, 2026 (GLOBE NEWSWIRE) -- isolved®, a provider of human capital management (HCM) solutions that help organizations recruit, retain and elevate their workforce, today announced that Chief Executive Officer Mark Duffell will retire and longtime human resources (HR) technology veteran Michael Haske will become CEO effective May 4, 2026. The transition follows a long-term succession planning process. Duffell will work closely with Haske to ensure a smooth transition.
“When I joined isolved in 2020, we were in the earliest stages of a global pandemic that would change the way we all work,” Duffell said. “isolved delivered critical cloud-native HCM and payroll services to small and medium-sized businesses as they adapted to a changing labor environment. We did this through a commitment to product excellence and service delivery. It has been one of the greatest privileges of my career to lead isolved, and I’m proud of what the company has accomplished for its customers, partners and employees. I am confident isolved will continue its success under Michael’s leadership.”
Duffell joined isolved as CEO in March 2020. During his tenure, the company achieved consistent double-digit growth and profitability, with annual revenue increasing nearly fourfold. He led the evolution of isolved People Cloud™ into a trusted HCM platform for SMBs and mid-market organizations, administrative service organizations (ASOs) and payroll bureaus, serving businesses in all 50 states. Under his leadership, isolved expanded its capabilities to support the full employee experience, from hire to retire, through a combination of intuitive products and customer service. Today, the isolved community includes more than 200,000 employers and more than 9 million employees nationwide.
“Mark has exemplified what it means to be a dedicated and effective leader,” said Rob Palumbo, co-managing partner at Accel-KKR and chairman of the isolved board of directors. “Over more than two decades partnering with Accel-KKR across four successful businesses, Mark has built strong cultures, inspired teams and delivered exceptional results with integrity. We are grateful for his leadership and wish him the best in his retirement. We believe Michael is the right leader for the next phase of isolved’s growth, bringing operational and go-to-market expertise along with deep HCM and product knowledge.”
“I am honored to lead isolved at this pivotal moment in the HCM industry,” Haske said. “Our next phase moves past the traditional SaaS model to establish isolved as a true 'Platform of Action.' By integrating Agentic AI and advanced orchestration protocols, we will empower our customers to bridge the gap between human intent and organizational output, fundamentally changing how work gets done."
Under Haske’s leadership, isolved aims to become an intelligent orchestration layer that goes beyond data management to drive real-time business results through agentic AI and human-in-the-loop collaboration. Haske brings experience scaling platforms at Paylocity, ADP and Paychex, along with recent CEO experience in agentic AI, positioning isolved to help bridge the gap between human intent and organizational output. SMB and mid-market organizations will gain access to advanced automation with the simplicity and support they expect within a unified ecosystem.
Haske has built a career focused on empowering modern workforces through technology, with deep expertise in cloud HCM platforms. He spent 16 years at Paylocity (NASDAQ: PCTY), helping scale the company to more than $1 billion in annual revenue and playing a key role in its IPO as president and chief operating officer. He began his career at ADP and later spent 10 years at Paychex. Most recently, he served as CEO of Krista Software, a provider of agentic AI orchestration and intelligent automation. He holds a bachelor’s degree in business administration in marketing and finance from the University of Michigan.
About isolved®
isolved is a leading provider of human capital management (HCM) solutions that combines modern technology with expert services and support. Purpose-built for People Heroes™, isolved gives HR, payroll and benefits leaders the tools and insights to streamline operations and deliver employee experiences that matter. isolved People Cloud™ is a connected HCM platform with built-in artificial intelligence (AI) and analytics that brings together HR, payroll, benefits, workforce management and talent management in one experience. Built on a legacy of 40 years in the market, isolved is trusted by more than 200,000 employers and used by 9 million U.S. employees, representing about one in 20 American workers. Visit www.isolvedhcm.com.
Q3 2026 Recurring & Other Revenue of $469.9 million, up 11.6% year-over-yearQ3 2026 Total Revenue of $502.3 million, up 10.5% year-over-yearContinued growth in cash flows - trailing twelve months net cash provided by operating activities margin of 29.4% and free cash flow margin of 24.4%Completed acquisition of Grayscale Labs, Inc. in April 2026 to expand AI-powered recruiting capabilitiesRepurchased $50 million or 440,000 shares in Q3 2026 and $350 million or 2.3 million shares in the first nine months of fiscal year 2026Board of Directors approved a $1.0 billion increase to our share repurchase authorization in April 2026; $1.35 billion authorization available as of May 7, 2026 SCHAUMBERG, Ill., May 07, 2026 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, Finance, and IT solutions, today announced financial results for the third quarter of fiscal year 2026, which ended March 31, 2026.
“Our solid results continued into the third quarter of fiscal 26, with recurring revenue growth of 11.6%, total revenue growth of 10.5% and increased revenue and profitability guidance for the fiscal year. Our multi-year investment in R&D continues to drive innovation across our HCM, Finance and IT offerings, all underpinned by expanded AI capabilities and our core employee record data. To drive further expansion of our AI capabilities, last month we announced the acquisition of Grayscale, an AI-powered recruiting automation company that builds upon our existing recruiting capabilities by helping companies hiring at scale move faster without compromising quality. Additionally, as a result of our increasing cash flows, we continue to return capital to shareholders, with $350 million or 2.3 million shares repurchased through Q3 of this fiscal year,” said Toby Williams, President and Chief Executive Officer of Paylocity.
Third Quarter Fiscal 2026 Financial Highlights
Revenue:
Recurring & other revenue was $469.9 million, an increase of 11.6% from the third quarter of fiscal year 2025.Total revenue was $502.3 million, an increase of 10.5% from the third quarter of fiscal year 2025. Operating Income:
GAAP operating income was $157.0 million and non-GAAP operating income was $196.8 million in the third quarter of fiscal year 2026 compared to GAAP operating income of $127.0 million and non-GAAP operating income of $172.7 million in the third quarter of fiscal year 2025. Net Income:
GAAP net income was $111.3 million or $2.05 per share in the third quarter of fiscal year 2026 based on 54.3 million diluted weighted average common shares outstanding compared to $91.5 million or $1.61 per share in the third quarter of fiscal year 2025 based on 56.8 million diluted weighted average common shares outstanding. Adjusted EBITDA:
Adjusted EBITDA, a non-GAAP measure, was $220.2 million in the third quarter of fiscal year 2026 compared to $197.1 million in the third quarter of fiscal year 2025.Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $187.9 million in the third quarter of fiscal year 2026 as compared to $163.6 million in the third quarter of fiscal year 2025. Balance Sheet and Cash Flow:
Cash and cash equivalents totaled $299.7 million as of March 31, 2026.Long-term debt totaled $81.3 million as of March 31, 2026, representing borrowings under our credit facility to fund the acquisition of Airbase Inc. on October 1, 2024. This reflects approximately $81.3 million repaid on our outstanding balance during the first nine months of fiscal year 2026.Net cash provided by operating activities for the first nine months of fiscal year 2026 was $421.4 million compared to $331.7 million for the first nine months of fiscal year 2025. Net cash from operating activities for the trailing twelve months ended March 31, 2026 was $507.9 million or 29.4% of total revenue as compared to $411.6 million or 26.5% of total revenue for the trailing twelve months ended March 31, 2025.Free cash flow, a non-GAAP measure, was $421.0 million or 24.4% of total revenue for the trailing twelve months ended March 31, 2026 compared to $335.8 million or 21.6% of total revenue for the trailing twelve months ended March 31, 2025. A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release in the accompanying tables. Additional information regarding these measures can be found below under the headings “Non-GAAP Financial Measures” and “Definitions of our Non-GAAP Measures.”
Business Outlook
Based on information available as of May 7, 2026, Paylocity is issuing guidance for the fourth quarter and full fiscal year 2026 as indicated below.
Fourth Quarter 2026:
Recurring and other revenue is expected to be in the range of $402.2 million to $407.2 million, which represents approximately 9%-10% growth over fiscal year 2025 fourth quarter recurring and other revenue.Total revenue is expected to be in the range of $428.4 million to $433.4 million, which represents approximately 7%-8% growth over fiscal year 2025 fourth quarter total revenue.Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $128.6 million to $132.6 million.Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $102.4 million to $106.4 million. Fiscal Year 2026:
Recurring and other revenue is expected to be in the range of $1.638 billion to $1.643 billion, which represents approximately 11%-12% growth over fiscal year 2025 recurring and other revenue.Total revenue is expected to be in the range of $1.755 billion to $1.760 billion, which represents approximately 10% growth over fiscal year 2025 total revenue.Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $638.0 million to $642.0 million.Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $521.0 million to $525.0 million. We are unable to reconcile the forward-looking non-GAAP measures set forth above to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.
Conference Call Details
Paylocity will host a conference call to discuss its third quarter fiscal year 2026 results at 4:00 p.m. Central Time today (5:00 p.m. Eastern Time). A live audio webcast of the conference call along with detailed financial information can be accessed through https://investors.paylocity.com/events-and-presentations where dial in details are provided. A replay of the call will be available and archived via webcast at https://investors.paylocity.com/.
About Paylocity
Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy-to-use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection—with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures when reporting and discussing its financial results, including the financial measures in this release that are designated as being “non-GAAP.” Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance, as they provide investors with the company’s view of its financial performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance, including comparisons of current results to prior periods’ results by excluding items the company does not believe reflect fundamental business performance and are not representative or indicative of its results of operations. Non-GAAP financial measures have limitations as an analytical tool and other companies may define their non-GAAP financial measures differently than we do. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in the accompanying tables to this release, as well as the definitions of those non-GAAP measures following such tables.
Safe Harbor/Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, future financial position and performance, anticipated results of operations, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include statements about management's estimates regarding future revenues and financial performance, and other statements about management’s beliefs, intentions or goals and are expressed in good faith and believed to be reasonable at the time such statements are made. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on such statements. These forward-looking statements involve risks and uncertainties, many of which are beyond Paylocity’s control, that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the general economic conditions in regions in which Paylocity does business, changes in interest rates, business disruptions, reductions in employment and increases in business failures that have occurred or may occur in the future; Paylocity’s ability to leverage AI Assist and other forms of artificial intelligence and machine learning in its technology, which may be constrained by current and future laws, regulations, interpretive positions or standards governing new and evolving technologies and ethical considerations that could restrict or impose burdensome and costly requirements on its ability to continue to leverage data in innovative ways; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; challenges related to cybersecurity threats and evolving cybersecurity regulations; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; risks related to acquisitions and investments in other businesses and technologies; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets; Paylocity’s ability to protect and defend its intellectual property and its use of open source software in its products; the risk that Paylocity’s security measures are compromised or a threat actor gains unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; the possibility that Paylocity may be adversely affected by other economic, business, and/or competitive factors; and other risks and potential factors that could affect Paylocity’s business and financial results that are identified in Paylocity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on August 6, 2025, as well as any revisions or supplements to the information in subsequent reports filed or furnished to the SEC. These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and unless legally required, Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
PAYLOCITY HOLDING CORPORATION
Unaudited Consolidated Balance Sheets
(in thousands, except per share data)
June 30,
2025 March 31,
2026Assets Current assets: Cash and cash equivalents$398,070 $299,728Accounts receivable, net 41,642 48,368Deferred contract costs 117,177 128,478Prepaid expenses and other 50,943 43,298Total current assets before funds held for clients 607,832 519,872Funds held for clients 2,704,137 3,838,468Total current assets 3,311,969 4,358,340Capitalized internal-use software, net 132,317 139,972Property and equipment, net 54,210 56,757Operating lease right-of-use assets 35,997 34,919Intangible assets, net 92,671 77,137Goodwill 343,100 343,158Long-term deferred contract costs 393,671 413,589Long‑term prepaid expenses and other 7,739 8,586Deferred income tax assets 17,754 11,917Total assets$4,389,428 $5,444,375 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$17,347 $12,260Accrued expenses 193,081 191,606Total current liabilities before client fund obligations 210,428 203,866Client fund obligations 2,694,842 3,833,941Total current liabilities 2,905,270 4,037,807Long-term debt 162,500 81,250Long-term operating lease liabilities 46,772 43,939Other long-term liabilities 8,580 12,402Deferred income tax liabilities 32,559 88,243Total liabilities$3,155,681 $4,263,641Stockholders’ equity: Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2025 and March 31, 2026$— $—Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2025 and March 31, 2026; 55,366 shares issued and outstanding at June 30, 2025 and 53,537 shares issued and outstanding at March 31, 2026 55 54Additional paid-in capital 327,518 69,445Retained earnings 900,583 1,110,021Accumulated other comprehensive income 5,591 1,214Total stockholders' equity$1,233,747 $1,180,734Total liabilities and stockholders’ equity$4,389,428 $5,444,375 PAYLOCITY HOLDING CORPORATION
Unaudited Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share data)
Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026 Revenues: Recurring and other revenue$421,096 $469,930 $1,101,915 $1,235,768 Interest income on funds held for clients 33,452 32,356 92,569 90,824 Total revenues 454,548 502,286 1,194,484 1,326,592 Cost of revenues 129,853 139,098 369,358 401,474 Gross profit 324,695 363,188 825,126 925,118 Operating expenses: Sales and marketing 91,774 95,732 273,338 290,178 Research and development 51,396 52,515 154,811 165,861 General and administrative 54,495 57,962 159,180 167,508 Total operating expenses 197,665 206,209 587,329 623,547 Operating income 127,030 156,979 237,797 301,571 Other income (expense) (468) 59 4,467 557 Income before income taxes 126,562 157,038 242,264 302,128 Income tax expense 35,079 45,788 63,743 92,690 Net income$91,483 $111,250 $178,521 $209,438 Other comprehensive income (loss), net of tax 3,492 (5,128) 4,645 (4,377)Comprehensive income$94,975 $106,122 $183,166 $205,061 Net income per share: Basic$1.64 $2.07 $3.20 $3.86 Diluted$1.61 $2.05 $3.15 $3.81 Weighted-average shares used in computing net income per share: Basic 55,810 53,721 55,759 54,278 Diluted 56,780 54,274 56,640 55,016 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three and nine months ended March 31 are included in the above line items:
Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026Cost of revenues$4,789 $3,621 $15,719 $13,462Sales and marketing 8,678 7,518 29,093 26,768Research and development 9,143 6,984 31,315 27,166General and administrative 14,865 14,679 41,918 48,514Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises$37,475 $32,802 $118,045 $115,910 PAYLOCITY HOLDING CORPORATION
Unaudited Consolidated Statements of Cash Flows
(in thousands)
Nine Months Ended
March 31, 2025 2026 Cash flows from operating activities: Net income$178,521 $209,438 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 112,538 111,503 Depreciation and amortization expense 73,184 82,554 Deferred income tax expense (benefit) (1,680) 62,793 Provision for credit losses 875 1,352 Net accretion of discounts on available-for-sale securities (1,639) (1,159)Other 951 1,183 Changes in operating assets and liabilities: Accounts receivable (7,814) (10,306)Deferred contract costs (42,559) (30,774)Prepaid expenses and other 2,195 4,120 Accounts payable (1,886) (5,015)Accrued expenses and other 18,971 (4,330)Net cash provided by operating activities 331,657 421,359 Cash flows from investing activities: Purchases of available-for-sale securities (121,777) (259,994)Proceeds from sales and maturities of available-for-sale securities 122,969 268,676 Capitalized internal-use software costs (45,563) (49,101)Purchases of property and equipment (7,624) (15,518)Acquisitions of businesses, net of cash and funds held for clients acquired (277,851) — Other investing activities 1,303 2,228 Net cash used in investing activities (328,543) (53,709)Cash flows from financing activities: Net change in client fund obligations 429,856 1,139,099 Borrowings under credit facility 325,000 — Repayment of credit facility (81,250) (81,250)Repurchases of common shares (91,080) (350,000)Proceeds from employee stock purchase plan 10,561 9,534 Taxes paid related to net share settlement of equity awards (49,121) (36,540)Other financing activities (400) (360)Net cash provided by financing activities 543,566 680,483 Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents 546,680 1,048,133 Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period 2,845,669 2,482,526 Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period$3,392,349 $3,530,659 Supplemental Disclosure of Non-Cash Investing and Financing Activities Purchases of property and equipment and capitalized internal-use software, accrued but not paid$2,372 $3,362 Liabilities assumed for acquisitions$55,730 $— Supplemental Disclosure of Cash Flow Information Cash paid for interest$9,548 $4,508 Cash paid for income taxes, net of refunds received$63,963 $24,557 Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets Cash and cash equivalents$477,785 $299,728 Funds held for clients' cash and cash equivalents 2,914,564 3,230,931 Total cash, cash equivalents and funds held for clients' cash and cash equivalents$3,392,349 $3,530,659 Paylocity Holding Corporation
Reconciliation of GAAP to non-GAAP Financial Measures
(In thousands except per share data)
Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026Reconciliation from Gross profit to Adjusted gross profit: Gross profit$324,695 $363,188 $825,126 $925,118Amortization of capitalized internal-use software costs 15,248 17,212 43,858 52,180Amortization of certain acquired intangibles 4,749 4,443 11,562 13,563Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 4,789 3,621 15,719 13,462Other items (1) 641 — 781 342Adjusted gross profit$350,122 $388,464 $897,046 $1,004,665 Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026Reconciliation from Operating income to Non-GAAP Operating income: Operating income$127,030 $156,979 $237,797 $301,571Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 37,475 32,802 118,045 115,910Amortization of acquired intangibles 5,627 5,098 13,852 15,534Other items (2) 2,611 1,955 9,073 4,071Non-GAAP Operating income$172,743 $196,834 $378,767 $437,086 Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026Reconciliation from Net income to Non-GAAP Net income: Net income$91,483 $111,250 $178,521 $209,438Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 37,475 32,802 118,045 115,910Amortization of acquired intangibles 5,627 5,098 13,852 15,534Other items (2) 2,611 1,955 9,073 4,071Income tax effect on adjustments (3) 873 5,896 (1,795) 10,780Non-GAAP Net income$138,069 $157,001 $317,696 $355,733 Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026Calculation of Non-GAAP Net income per share: Non-GAAP Net income$138,069 $157,001 $317,696 $355,733Diluted weighted-average number of common shares 56,780 54,274 56,640 55,016Non-GAAP Net income per share$2.43 $2.89 $5.61 $6.47 Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026 Reconciliation from Net income to Adjusted EBITDA and Adjusted EBITDA excluding interest income on funds held for clients Net income$91,483 $111,250 $178,521 $209,438 Interest expense 4,436 1,128 9,682 4,698 Income tax expense 35,079 45,788 63,743 92,690 Depreciation and amortization expense 25,972 27,298 73,184 82,554 EBITDA 156,970 185,464 325,130 389,380 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 37,475 32,802 118,045 115,910 Other items (2) 2,611 1,955 9,073 4,071 Adjusted EBITDA$197,056 $220,221 $452,248 $509,361 Interest income on funds held for clients (33,452) (32,356) (92,569) (90,824)Adjusted EBITDA excluding interest income on funds held for clients$163,604 $187,865 $359,679 $418,537 Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026Reconciliation of Non-GAAP sales and marketing: Sales and marketing$91,774 $95,732 $273,338 $290,178Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 8,678 7,518 29,093 26,768Less: Other items (2) 595 140 1,224 502Non-GAAP sales and marketing$82,501 $88,074 $243,021 $262,908 Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026Reconciliation of Non-GAAP total research and development: Research and development$51,396 $52,515 $154,811 $165,861Add: Capitalized internal-use software costs 15,966 17,701 45,563 49,101Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 9,143 6,984 31,315 27,166Less: Other items (2) 658 554 1,669 1,192Non-GAAP total research and development$57,561 $62,678 $167,390 $186,604 Three Months Ended
March 31, Nine Months Ended
March 31, 2025 2026 2025 2026Reconciliation of Non-GAAP general and administrative: General and administrative$54,495 $57,962 $159,180 $167,508Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 14,865 14,679 41,918 48,514Less: Amortization of certain acquired intangibles 878 655 2,290 1,971Less: Other items (2) 717 1,261 5,399 2,035Non-GAAP general and administrative$38,035 $41,367 $109,573 $114,988 Nine Months Ended
March 31, Trailing
Twelve Months Ended
March 31, 2025 2026 2025 2026 Reconciliation of Free cash flow, Free cash flow excluding interest income on funds held for clients and Adjusted free cash flow excluding interest income on funds held for clients: Net cash provided by operating activities$331,657 $421,359 $411,588 $507,928 Capitalized internal-use software costs (45,563) (49,101) (61,788) (65,940)Purchases of property and equipment (7,624) (15,518) (13,951) (20,967)Free cash flow$278,470 $356,740 $335,849 $421,021 Less: Interest income on funds held for clients (92,569) (90,824) (125,117) (121,675)Free cash flow excluding interest income on funds held for clients$185,901 $265,916 $210,732 $299,346 Cash paid for other items (4) 6,723 5,797 Adjusted free cash flow excluding interest income on funds held for clients$192,624 $271,713 (1) Represents acquisition-related costs and severance cost adjustments related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(2) Represents acquisition and transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(3) Includes the income tax effect on non-GAAP net income adjustments related to stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, amortization of acquired intangibles and other items, which include acquisition and transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(4) Represents cash paid for acquisition and transaction-related costs and severance costs related to certain roles that have been eliminated.
Definitions of our Non-GAAP Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Excluding Interest Income on Funds Held for Clients, and Adjusted EBITDA Excluding Interest Income on Funds Held for Clients Margin
Adjusted EBITDA is calculated as net income before interest expense, income tax expense, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenues.
Adjusted EBITDA excluding interest income on funds held for clients is calculated in the same manner as Adjusted EBITDA and is further adjusted to eliminate interest income on funds held for clients. Adjusted EBITDA excluding interest income on funds held for clients margin is Adjusted EBITDA excluding interest income on funds held for clients divided by recurring and other revenue.
Adjusted Gross Profit and Adjusted Gross Profit Margin
Adjusted gross profit is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of capitalized internal-use software costs and certain acquired intangibles and other items as described above in this release.
Adjusted gross profit margin is calculated as adjusted gross profit as described in the preceding sentence divided by total revenues.
Non-GAAP Operating Income, Non-GAAP Net Income, and Non-GAAP Income Per Share
Non-GAAP operating income is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described above in this release.
Non-GAAP net income and non-GAAP net income per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described above in this release, including the income tax effect on these items.
Non-GAAP Sales and Marketing Expense, Non-GAAP Sales and Marketing Expense Margin, Non-GAAP Total Research and Development, Non-GAAP Total Research and Development Margin, Non-GAAP General and Administrative Expense, and Non-GAAP General and Administrative Expense Margin
Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Non-GAAP sales and marketing margin is calculated by dividing non-GAAP sales and marketing by total revenues.
Non-GAAP total research and development is adjusted for capitalized internal-use software costs paid and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Non-GAAP total research and development margin is calculated by dividing non-GAAP total research and development by total revenues.
Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of certain acquired intangibles and other items as described above in this release. Non-GAAP general and administrative margin is calculated by dividing non-GAAP general and administrative expense by total revenues.
Free Cash Flow, Free Cash Flow Margin, Free Cash Flow Excluding Interest on Funds Held for Clients, Free Cash Flow Excluding Interest on Funds Held for Clients Margin, Adjusted Free Cash Flow Excluding Interest Income on Funds Held for Clients and Adjusted Free Cash Flow Excluding Interest Income on Funds Held for Clients Margin
Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs and purchases of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenues.
Free cash flow excluding interest income on funds held for clients is defined in the same manner as free cash flow but also excludes interest income on funds held for clients. Free cash flow margin excluding interest income on funds held for clients is calculated by dividing free cash flow excluding interest income on funds held for clients by recurring and other revenue.
Adjusted free cash flow excluding interest income on funds held for clients is defined in the same manner as free cash flow excluding interest income on funds held for clients plus cash paid for other items as described above in this release. Adjusted free cash flow margin excluding interest income on funds held for clients is calculated by dividing adjusted free cash flow excluding interest income on funds held for clients by recurring and other revenue.
Paylocity (PCTY - Free Report) came out with quarterly earnings of $2.89 per share, beating the Zacks Consensus Estimate of $2.43 per share. This compares to earnings of $2.43 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +19.18%. A quarter ago, it was expected that this provider of cloud-based payroll and human-resources software services would post earnings of $1.57 per share when it actually produced earnings of $1.85, delivering a surprise of +17.83%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Paylocity, which belongs to the Zacks Internet - Software industry, posted revenues of $502.29 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.65%. This compares to year-ago revenues of $454.55 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Paylocity shares have lost about 32.8% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Paylocity?While Paylocity has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Paylocity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.58 on $424.84 million in revenues for the coming quarter and $7.65 on $1.74 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Braze, Inc. (BRZE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 27.
This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +42.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Braze, Inc.'s revenues are expected to be $205.18 million, up 26.6% from the year-ago quarter.
Aflac (NYSE:AFL) Major Shareholder Post Holdings Co. Ltd. Japan Sells 26,500 SharesAflac Incorporated (NYSE:AFL - Get Free Report) major shareholder Post Holdings Co. Ltd. Japan sold 26,500 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $117.00, for a total value of $3,100,500.00. Following the completion of the sale, the insider owned 51,116,235 shares of the company's stock, valued at approximately $5,980,599,495. This represents a 0.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Major shareholders that own more than 10% of a company's stock are required to disclose their transactions with the SEC.
The mean of analysts' price targets for Paylocity (PCTY) points to a 42.1% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
PCTY posts fiscal Q3 earnings beat as revenues climb 10.5% Y/Y, driven by recurring growth, while margins expand and new AI recruiting tools boost offerings.
INDIANAPOLIS & SCHAUMBURG, Ill.--(BUSINESS WIRE)-- #EmployeeBenefits--Remodel Health integrates with Paylocity to streamline ICHRA payroll syncing, automating data, reducing errors, and improving benefits administration.
On May 18, 2026, Paylocity Holding Corp PCTY shares rose 5.5% to $112.97. The stock has experienced a 52-week range between $92.99 and $201.62, indicating significant volatility. This recent increase comes after a year-long decline of 43.8% and a year-to-date decrease of 25.9%.
GF Value™ verdict: The current price of $112.97 is 49.2% below the GF Value™ estimate of $222.43.GF Score™ of 72/100 indicates the stock is rated as above average, suggesting a potential for better long-term returns.Notable signal: Insiders have sold $1.0 million in stock over the last three months, with no buying activity reported. Is PCTY Overvalued or Undervalued? The analysis of Paylocity Holding Corp PCTY reveals that the current share price of $112.97 is substantially undervalued compared to the GF Value™ estimate of $222.43. This represents a margin of safety of 49.2%, indicating that there may be significant upside potential if the company's performance aligns with its valuation. The GF Valuation label suggests that while the stock may be undervalued, it is also identified as a possible value trap, implying investors should exercise caution and conduct thorough due diligence before making investment decisions.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the current price suggests an opportunity, investors should consider the broader context, including recent performance trends and insider selling activity, which may signal concerns about the company's future prospects.
How Does PCTY's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 24.1x 63.9x Forward P/E 13.2x N/A Paylocity's current P/E ratio of 24.1x is significantly below its 5-year median P/E of 63.9x, indicating that the stock is trading at a much lower valuation compared to its historical norms. The forward P/E of 13.2x further illustrates this disparity. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that the stock is undervalued at its current price point.
What Does PCTY's GF Score™ Tell Us? Metric Rating GF Score™ 72/100 Financial Strength 5/10 Profitability 8/10 Growth 10/10 Valuation 2/10 Momentum 1/10 The GF Score™ of 72/100 reflects an above-average rating, suggesting the potential for favorable long-term returns. The strongest aspect is the Growth Rank of 10/10, indicating robust growth potential in the company's operations. However, the weakest area is the Valuation Rank of 2/10, which emphasizes the challenges associated with the current valuation levels and the possibility of being a value trap. The Financial Strength score of 5/10 suggests a moderate level of stability, while the high Profitability rank shows that the company has been able to generate profits effectively.
What Are Insiders Doing with PCTY Stock? Recent insider activity at Paylocity indicates that insiders have sold $1.0 million worth of shares over the last three months, with no reported buying. This trend of selling could imply a lack of confidence among insiders regarding the company’s near-term prospects or valuation. It is worth noting that significant insider selling may raise red flags for potential investors, suggesting that those closest to the business may not foresee immediate improvements in performance or share price.
What This Means for Investors Based on the assessment of GF Value™, PCTY appears to be undervalued at its current price of $112.97 compared to the intrinsic value of $222.43. However, potential investors should be aware of the risks associated with a possible value trap and the recent insider selling activity. Caution is advised as investors evaluate the long-term prospects of the company.
For the complete analysis, visit the Paylocity Holding Corp PCTY stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is PCTY's GF Score™?
PCTY's GF Score™ is 72/100, indicating an above-average potential for long-term returns based on various fundamental aspects.
Is PCTY overvalued or undervalued?
PCTY is currently undervalued, with a GF Value™ estimate of $222.43 compared to its current price of $112.97, suggesting significant upside potential.
What is PCTY's P/E ratio?
PCTY's P/E ratio (TTM) is 24.1x, which is substantially below its 5-year median P/E of 63.9x, indicating the stock is trading at a low valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways BILL is expanding AI-driven finance tools and investing in agentic AI for SMB automation.VSH sees rising AI infrastructure demand for power components used in servers and data centers.TDC offers one of the best autonomous AI platforms for agentic AI whether on-premises or in the cloud. The artificial intelligence (AI) frenzy continues as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Massive spending on AI infrastructure will dramatically change the world over the next few years in fields like hyperscale automation, robotics, healthcare, energy, materials, financials and cybersecurity.
Here we recommend five mid-cap AI infrastructure stocks for investment. These stocks offer deep discounted value that should reveal over a long time period. Consequently, in the long term, these stocks have the potential to become large caps. At this stage, it should be prudent to invest in these stocks at a lucrative valuation.
Five such stocks are: BILL Holdings Inc. (BILL - Free Report) , Paylocity Holding Corp. (PCTY - Free Report) , Teradata Corp. (TDC - Free Report) , Vishay Intertechnology Inc. (VSH - Free Report) and Qorvo Inc. (QRVO - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
BILL Holdings Inc.BILL Holdings is broadening its AI-enabled financial operations platform, adding more controlled spend workflows such as BILL Travel while keeping core growth intact. BILL continues to add predictive and generative AI features for SMBs and accountants.
Management has framed the acceleration of AI as an opportunity to solve customer pain points faster and expand the platform’s role across back-office workflows. BILL is investing in agentic AI to move customers from assisted automation to more autonomous finance operations.
BILL Holdings has an expected revenue and earnings growth rate of 12.6% and 14.7%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 1.8% over the last seven days.
BILL Holdings has a P/E ratio of 16.49X compared with 17.45X of the industry. It has a P/S ratio of 2.49X compared with 2.73X of the industry. BILL has a P/B ratio of 1.04X compared with 3.01X of the industry.
Paylocity Holding Corp.Paylocity Holding benefits from a strong, AI-enabled human capital management platform that improves automation, decision-making and overall user experience, making the solution deeply embedded for mid-market customers.
PCTY’s multi-pronged AI strategy encompasses personalized recommendations, sentiment analysis, predictive workforce insights, and optimized scheduling alongside generative capabilities. PCTY’s AI Assistant is currently available to all clients as part of core HR and Payroll offerings, with expanded functionality rolling out.
PCTY has an expected revenue and earnings growth rate of 7.3% and 4.4%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the last 90 days. Paylocity Holding has a P/E ratio of 13.76X compared with 17.45X of the industry.
Teradata Corp.Teradata’s prospects are expected to benefit from an improvement in ARR growth rate, cost savings, and productivity measures. Growing workloads on data platforms due to Agentic AI’s 24/7, always-on query potential bodes well for TDC’s prospects as it not only manages the critical enterprise data that powers these AI systems but also delivers the performance required by these AI systems.
TDC believes that it offers the best autonomous AI and knowledge platform for Agentic workloads, whether on-premises or in the cloud. An innovative portfolio that includes QueryGrid data analytics fabric, Enterprise Vector Store, AgentBuilder, and ClearScape Analytics with unified ModelOps capabilities is expected to drive top-line growth.
Teradata has an expected revenue and earnings growth rate of -1.1% and 2.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last 30 days.
TDC has a P/E ratio of 12.82X compared with 17.45X of the industry. It has a P/S ratio of 1.88X compared with 3.69X of the industry. TDC has a P/B ratio of 5.71X compared with 15.13X of the industry.
Vishay Intertechnology Inc.Vishay Intertechnology is entering an upcycle with orders rising across its semiconductor and passive businesses, supported by AI power demand, grid spending and automotive electrification. Backlog expanded in the first quarter and VSH guided higher revenues for the second quarter, reflecting broader program ramps and improving customer visibility.
VSH is seeing increasing participation in AI infrastructure by supplying power management content, including high-voltage MOSFETs, capacitors, power inductors and current-sense resistors used in server power and related systems.
On the first-quarter 2026 earnings call, management stated that demand for AI-related applications remains in place and noted customers are building safety stock, particularly in Asia, to secure supply. VSH is working on next-generation designs in server power, next-generation AI power supplies and power monitoring and control systems, including 800-volt power management for data centers.
Vishay Intertechnology has an expected revenue and earnings growth rate of 8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.9% over the last seven days. VSH has a P/E ratio, P/S ratio and P/B ratio of 69.37X, 1.58X and 2.44X, respectively. All three metrics are in line with the industry average.
Qorvo Inc.Qorvo is likely to create new growth opportunities in three large global markets, namely, AI-powered mobile devices, data center network infrastructure and aerospace/defense. QRVO’s edge AI processors, people-sensing AI radar technology and key RF components that enable seamless connectivity in AI-powered data centers are major growth products.
QRVO is expanding its opportunities across markets, customers and product categories while maintaining its commitment to technology leadership and productivity gains. QRVO offers the most complete product portfolio, targeting the highest growth segments of its market, including filters, switches and tuners.
QRVO is well-positioned to win some of the industry's highest growth opportunities by leveraging its diversified product portfolio, systems-level expertise, R&D and manufacturing scale and internal assembly and test capabilities.
Qrovo has an expected revenue and earnings growth rate of -5.1% and -2.3%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last 30 days.
QRVO has a P/E ratio of 13.49X compared with 13.72X of the industry. It has a P/S ratio of 2.21X compared with 2.31X of the industry. QRVO has a P/B ratio of 2.56X compared with 2.18X of the industry.
Paylocity is upgraded to a buy as its fundamentals remain robust despite a 39% share price decline since the prior hold rating. PCTY delivers strong double-digit recurring revenue growth (11.5% YoY), expanding margins, and formidable cash flow with a highly efficient, asset-light business model. Management raised FY26 guidance above consensus, targeting 10-12% revenue growth and leveraging low market penetration (~3%) for future expansion.
Shares of Paylocity (PCTY - Free Report) have gained 7.2% over the past four weeks to close the last trading session at $109.64, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $153.53 indicates a potential upside of 40%.
The mean estimate comprises 19 short-term price targets with a standard deviation of $31.14. While the lowest estimate of $115.00 indicates a 4.9% increase from the current price level, the most optimistic analyst expects the stock to surge 128% to reach $250.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for PCTY, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in PCTYAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, three estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 6.2%.
Moreover, PCTY currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PCTY could gain, the direction of price movement it implies does appear to be a good guide.
SCHAUMBURG, Ill., June 10, 2026 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of HCM, Finance, and IT solutions, today announced the launch of Paylocity Retirement, a new embedded retirement offering that brings plan administration and employee savings tools directly into the Paylocity HCM suite. Paylocity Retirement embeds Vestwell’s retirement technology seamlessly into the Paylocity platform, combining Vestwell’s industry-leading retirement administration technology with the same Paylocity platform employers already use for payroll and HR. The result is a more streamlined experience for administrators, fewer manual processes, and a simpler way for employees to view and manage their retirement savings.
Retirement benefits are one of the most important parts of an employee’s long-term financial wellbeing, yet many organizations still manage them through disconnected systems, manual file transfers, and separate employee portals. That fragmentation can create extra work for HR teams, increase the risk of errors, and make it harder for employees to engage with their savings.
Paylocity addresses those challenges by embedding retirement into existing payroll and HR workflows. Employers can reduce reconciliation work, help improve contribution accuracy, and give employees self-service access to key retirement actions without sending them to a separate system.
With Paylocity:
Retirement contributions are connected to payroll, helping reduce manual reconciliation and minimize potential errors.Employers gain centralized visibility into plan activity, contributions, and performance.Employees can view balances, update contributions, and track progress without leaving Paylocity, making it easier to stay engaged with their savings.Retirement is accessible in the Paylocity Mobile App, bringing savings tools into the experience employees already use every day.Employers and employees have access to dedicated retirement specialists for guidance and support.
“Retirement benefits are essential to long-term financial stability, but managing them shouldn’t add complexity to HR’s plate,” said Melissa King, SVP of Products & Technology at Paylocity. “By partnering with Vestwell, we’re giving clients the best of both worlds: the simplicity of managing payroll and retirement in one connected platform, and the confidence of knowing their plan is backed by dedicated retirement expertise.”
“I’m a big believer in everything living in one ecosystem," said Monika Kennedy, HR Director, HydroPeptide. "Being able to manage retirement right inside Paylocity without sending employees to another site is incredibly valuable.”
Paylocity Retirement powered by Vestwell is available now for employers offering defined contribution retirement plans, including 401(k) and 403(b) plans. Learn more about Paylocity Retirement.
"Vestwell’s mission has always been to make savings accessible, simple, and scalable for every employer and saver — regardless of size," said Aaron Schumm, Founder and Chief Executive Officer of Vestwell. "Partnering with Paylocity is a natural extension of that mission. By embedding our retirement infrastructure directly into Paylocity's platform, we are removing the barriers that have historically made retirement administration burdensome, replacing them with a seamless experience that helps more workers build toward a secure financial future."
About Paylocity
Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy‑to‑use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection—with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.
About Vestwell
Vestwell is the backbone of the modern savings economy. Founded in 2016, Vestwell makes it easier for more Americans to save for life’s most important moments — from retirement to education, emergencies, and disability-related expenses. Vestwell’s platform helps remove traditional barriers to saving, making it more accessible, efficient, and approachable for everyone.
Staffing extends well beyond filling vacancies; it is a critical lever for driving productivity, controlling costs and enabling business scalability. In today’s dynamic and competitive environment, organizations must remain agile and responsive to shifting demand patterns. This elevates staffing from an operational necessity to a strategic function that directly influences revenue growth, margin efficiency, and overall business performance. From managing cyclical hiring needs to building leadership pipelines, effective staffing solutions support both near-term execution and long-term value creation.
The staffing industry itself is undergoing a structural transformation, driven by digital innovation, evolving workforce demographics and the rising adoption of flexible work models. Enterprises are increasingly partnering with staffing firms that offer not just talent supply but also strategic insights into labor market trends, workforce planning, and skills availability. Technology is central to this shift. AI-driven recruitment platforms, virtual assessments, and advanced analytics are improving placement speed, reducing hiring costs, and enhancing match quality, factors that can significantly expand margins and improve return on investment.
As competition for skilled talent intensifies globally, staffing firms with scalable platforms, strong client relationships, and advanced digital capabilities are better positioned to capture market share. Their ability to navigate economic cycles, address persistent skills gaps, and support enterprise growth makes them increasingly relevant in today’s environment. In this context, staffing is not just a support service; it is a structural growth driver that influences industry dynamics, enhances operational efficiency, and underpins long-term shareholder value creation.
For investors, the staffing sector offers compelling opportunities. Firms like Paycom Software, Inc. (PAYC - Free Report) , Paylocity Holding Corporation (PCTY - Free Report) and TriNet (TNET - Free Report) are positioning themselves as enablers of workforce transformation.
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Paycom Software continues to strengthen its position in the human capital management industry as demand for automation-driven workforce solutions accelerates.
The company delivered solid first-quarter 2026 results while continuing to expand adoption of its employee-first platform and AI-powered automation tools. Paycom’s growing portfolio of automated decisioning solutions, including payroll and workforce-management innovations, appears to be driving stronger client engagement, higher operational efficiency, and improved retention trends. The company also continues benefiting from enterprises seeking greater productivity and cost optimization through integrated cloud-based HCM platforms. Importantly, management highlighted that Paycom has penetrated only a small portion of its total addressable market, suggesting substantial long-term expansion opportunities remain available as businesses increasingly prioritize automation, AI integration, and streamlined HR operations.
PAYC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Paylocity Holding Corporation continues strengthening its competitive position as enterprises increasingly seek AI-enabled workforce and operational automation solutions.
The company delivered another quarter of double-digit recurring revenue growth, reflecting resilient demand across its HCM, finance and IT platforms. Paylocity’s long-term investments in research and development appear to be translating into broader product innovation and deeper platform integration, supported by expanding AI functionality built around its employee data ecosystem. The recent acquisition of AI-powered recruiting automation firm Grayscale further enhances Paylocity’s ability to serve high-volume hiring environments while improving recruitment efficiency and speed. Meanwhile, rising cash flow generation is supporting shareholder returns through aggressive share repurchases, reinforcing confidence in the company’s profitability trajectory, operational momentum, and long-term expansion opportunity within the evolving HR technology market. PCTY currently sports a Zacks Rank #1.
TriNet appears to be regaining operational momentum as pricing adjustments stabilize and management sharpens its focus on disciplined execution.
The company has continued managing expenses carefully while simultaneously investing in product innovation, strategic partnerships, and targeted acquisitions to strengthen its long-term competitive position. Improving sales productivity, a stronger customer pipeline, and rising channel activity suggest demand trends may be gradually improving across TriNet’s core small and mid-sized business customer base. The company is also expanding its AI capabilities through solutions like TriNet Assistant, which could enhance service quality, improve efficiency and support scalable growth over time. With operational headwinds easing and investments beginning to gain traction, TriNet appears increasingly positioned for stronger execution, margin stability, and a potential return to sustainable growth during 2026. TNET currently sports a Zacks Rank #1.
Shares of Paylocity (PCTY - Free Report) have gained 4.1% over the past four weeks to close the last trading session at $108.23, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $153.79 indicates a potential upside of 42.1%.
The mean estimate comprises 19 short-term price targets with a standard deviation of $30.81. While the lowest estimate of $120.00 indicates a 10.9% increase from the current price level, the most optimistic analyst expects the stock to surge 131% to reach $250.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in PCTY. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why PCTY Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 1.7%, as one estimate has moved higher compared to no negative revision.
Moreover, PCTY currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PCTY could gain, the direction of price movement it implies does appear to be a good guide.
