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…
Earnings analysis · 10-Q
PCTY earnings analysis
Filed May 8, 2026 · Our reading of the company's report
The latest report
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,…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.89
What stood out
-
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.
What to watch
-
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.
Management's outlook
Total revenue guidance for FY 2026 is raised to approximately $1.76 billion.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.