PCTY earnings analysis
What we found in PCTY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Paylocity reported strong Q3 2026 results with total revenue of $502.3 million, up 11% year-over-year, and EPS of $2.89, a significant beat against estimates. The company saw gross and operating margins increase, supported by 12% growth in recurring revenue driven by new and existing client engagement. Management remains optimistic about future growth and plans to enhance their software offerings.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 11% YoY
- Total revenue increased to $502.3 million in Q3 2026, up from $454.5 million during the same period last year.
- Expanded Gross Margin to 72%
- Gross margin improved from 71% in Q3 2025 to 72% in Q3 2026.
- Significant EPS Beat
- Reported diluted EPS was $2.89, outperforming estimates of $2.42 for the quarter.
- Strong Free Cash Flow
- Free cash flow reached $184 million, showing robust cash generation capabilities.
- Recurring Revenue Growth
- Recurring revenue grew by 12% YoY, representing $469.9 million of the total revenue.
- Increased Total Annual Revenue Guidance
- Management has raised revenue guidance for FY 2026, now expecting $1.76 billion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Interest Rate Risk
- The environment of changing interest rates may affect the cost of the revolving credit facility, currently with $81.3 million in borrowings.
- Sales Cycle Fluctuations
- Clients' employee counts and sales cycles may be impacted by macroeconomic conditions, presenting revenue risks.
- Increased Operating Expenses
- General administrative expenses rose to $57.96 million, potentially impacting profitability in the near term.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.89
- Gross margin
- 72%
- Operating margin
- 31%
What they said about what is next.
Total revenue guidance for FY 2026 is raised to approximately $1.76 billion.
The filing reads better than the one before it.
What came before.
- 10-Q · May 2, 2025
- Paylocity reported quarterly revenue of $454,548 (three months ended March 31, 2025) and diluted EPS of $1.61, with gross margin of 71.4% and operating margin of 28.0%. Revenue, gross profit, operating income and EPS…
- 10-Q · October 31, 2024
- Paylocity reported Q1 (three months ended September 30, 2024) revenue of $362.956M, up $45.370M (+14.3%) vs. $317.586M a year ago, with gross profit of $247.996M and operating income of $64.144M. Diluted EPS was $0.88…
- 10-Q · May 3, 2024
- Paylocity reported solid Q (three months ended March 31, 2024) with revenue of $401,281,000, up 18.1% year-over-year, and diluted EPS of $1.50 (vs. $1.02). Recurring fees and interest income on funds held for clients…
- 10-Q · February 3, 2023
- Paylocity reported Q2 revenues of $273.008M, up $76.971M or 39.3% year-over-year, driven by recurring fees and a sizable jump in interest income on client funds. Gross margin expanded to 67.0% (from 63.9%), operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing PCTY makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever