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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.

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.

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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 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.

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.

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.

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.

2 hours ago

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.

NYSE:AFL

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.

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].

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.

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.

For more information, visit www.vestwell.com.

CONTACT:
Nicole Andergard Reddy
[email protected]
503-855-7385

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.