Paylocity

Paylocity helps businesses manage their staff through an easy online platform. The system automates daily tasks like paying employees and tracking their work hours. It simplifies complex human resources and finance processes for American companies.

Software for the Modern Workforce

• Payroll and Tax: Automates pay processing and manages government compliance requirements in a single system.
• Human Capital Management: Provides employee self-service tools, document storage, and compliance dashboards to help HR teams.
• Talent Management: Includes tools for finding new hires, onboarding them, and tracking their performance and learning.
• Time and Benefits: Offers services to track work schedules and manage employee insurance and retirement plans.
• Spend Management: Handles business expenses and corporate cards through an integrated software interface; includes services from the Airbase acquisition.

Recent Growth and Strategic Moves

• Acquired Airbase on October 1, 2024, to add bill pay and procurement tools to its platform.
• Borrowed $325 million from a credit facility to fund the Airbase transaction.
• Amended the 2023 Equity Incentive Plan in December 2025 to increase shares available for employee awards.
• Repaid $81 million of its outstanding debt during the six months ended December 31, 2025.

A Unified Tech Approach

Paylocity uses a single database architecture that allows its different tools to share information instantly. The platform integrates with hundreds of third-party systems like insurance providers to keep business data synchronized.

The Latest Financial Results

• Total revenue reached $416 million in Q2 2026, up 10% from the previous year.
• Net income rose to $50 million in Q2 2026, a 34% increase over the same period in 2025.
• Free cash flow hit $114 million in Q2 2026, up 122% year-over-year.
• Recurring and other revenue made up 93% of total sales for the quarter ended December 31, 2025.
• Operating income grew to $71 million in Q2 2026, up 51% from $47 million a year earlier.

Evolution of the Business

Paylocity has transformed from a payroll provider into a broad provider of HR, finance, and IT software. The company continues to expand its platform by adding spend management tools to its core subscription services.