Gusto Tops $1 Billion in Revenue as AI and M&A Sharpen IPO Option

New updates have been reported about Gusto.

Gusto has passed $1 billion in trailing 12‑month revenue, underscoring the payroll and HR platform’s scale relative to its last reported $9.3 billion valuation from a 2025 employee tender offer. Unlike peers that highlight annualized recurring revenue, Gusto’s figure reflects realized revenue, suggesting the company is generating substantial cash flows while still being priced below decacorn competitors on a revenue multiple basis.

Strategically, Gusto has expanded beyond payroll with its roughly $600 million acquisition of retirement-plan provider Guideline and accelerated productivity by embedding AI, which now produces about half of new code and resolves around 50% of customer-support cases. With rivals entangled in litigation and public-market conditions still muted for 2026, Gusto appears well positioned for either a higher-valuation private raise or an eventual IPO, although the company maintains it has nothing new to disclose on timing and continues to publicly emphasize long-term growth and customer focus over near-term listing plans.