Paylocity(NASDAQ) PCTY

Paylocity Holding Corporation manages employee payroll and records. Its cloud software helps businesses handle staff schedules and taxes. The platform automates recruiting and training through a mobile app.

Tools for the Modern Office

• Payroll and Tax: Automates wage calculations and tax filings for diverse workforces; recurring services accounted for 93% of revenue in fiscal 2026.
• Human Resources: Stores employee records and automates administrative tasks in one digital location.
• Talent Management: Streamlines job applications, new hire onboarding, and employee performance reviews.
• Time and Labor: Records work hours and manages schedules using artificial intelligence for shift recommendations.
• Finance and IT: Centralizes business spending, expense reports, and automated access management for company hardware and software.

A Strategy for Expansion

• Acquired Airbase Inc. in October 2024 to add spend management and automated accounts payable tools to the platform.
• Embedded artificial intelligence agents across the software to automate tasks in payroll, recruiting, and attendance tracking.
• Increased the client base to approximately 44,400 organizations by June 30, 2026, representing a two-year compound annual growth rate of 7%.
• Expanded the referral network of advisors and accountants, which generated over 25% of new client revenue in fiscal 2026.

The Unified Technical Edge

Paylocity uses a unified architecture to store all employee data in a single record. This design allows different software modules to share information seamlessly and reduces manual data entry errors.

Key Financial Performance

• Total revenues were $1.77 billion in fiscal 2026, up 11% year over year.
• Recurring and other revenue was $1.65 billion in fiscal 2026, up 12% year over year.
• Net income was $269.7 million in fiscal 2026.
• Annual revenue retention stayed above 92% in each of the last three fiscal years.

Bottom Line

Paylocity has evolved from a payroll tool into a broad platform for managing staff and business finances. Its growth into artificial intelligence and spend management supports its relevance in the software market.