Paylocity (PCTY)
NASDAQ:PCTY
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Earnings Data
Report Date
Jul 30, 2026TBA (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
1.61Last Year’s EPS
1.56Same Quarter Last Year
Strong Buy
Based on 18 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong top‑line recurring revenue growth (+11.6% in Q3), margin expansion, robust free cash flow and active capital return while raising fiscal year guidance. Management highlighted product momentum (AI embedding, Grayscale acquisition) and channel strength (broker referrals >25%). Principal near‑term risks are continued investment-driven timing on margins, reliance on interest income assumptions tied to rates and early‑stage execution/monetization risks for new services. On balance, positive operational and financial execution materially outweigh the noted near‑term risks.Company Guidance
Strong recurring revenue growth and guidance beat
Q3 recurring and other revenue of $469.9M, up 11.6% year‑over‑year, beating the high end of guidance by $7.4M; total revenue up 10.5% YoY and $10.3M above the top end of total revenue guidance.
Raised fiscal '26 revenue and EBITDA guidance
Fiscal '26 recurring & other revenue guidance raised to $1.638B–$1.643B (≈11%–12% YoY) and total revenue to $1.755B–$1.760B (~10% YoY). Adjusted EBITDA guidance increased to $638M–$642M (and $521M–$525M excluding interest income on client funds).
Robust profitability and margin expansion
Q3 adjusted EBITDA of $220.2M (43.8% margin) exceeded the top end of guidance by $16.2M; adjusted EBITDA margin excluding client fund interest rose ~110 basis points YoY. Adjusted gross profit was 77.3%, up 30 bps YoY and 60 bps of adjusted gross profit leverage through 9 months.
Improved cash generation and balance sheet actions
Cash provided by operating activities increased ~27% in the first 9 months; free cash flow grew 25.4% over the last 12 months with an LTM free cash flow margin >24%. Q3 cash & equivalents ~$299.7M; debt $81.3M. Fiscal YTD repurchases ~2.3M shares (~$350M), Q3 repurchases ~440k shares (~$50M) and Board authorized an additional $1B buyback.
Interest income from client-held funds contributes material income
Average client funds balance was $3.8B in Q3; company estimates FY average ~ $3.25B with average yield ~360 bps delivering ~ $117M of interest income for the year (Q4 interest income expected ≈ $26.2M at ~330 bps).
Product innovation and AI-driven efficiency gains
Ongoing AI embedding across the platform highlighted by an AP agent that speeds accounts payable by over 60% and processes ~95% of transactions cleanly on first pass. Acquired Grayscale (AI recruiting automation) to accelerate AI recruiting and enable a premium SKU for monetization.
New offerings and market recognition
Launched Paylocity Elevate managed payroll/HR solutions to expand TAM and service offerings. Market accolades include recognition across 5 categories in G2's 2026 Best Software Awards and leader status in 21 Spring 2026 G2 Grid categories; Newsweek America's Greatest Workplaces for Women 2026.
Strong operational scale and channel performance
Moved >$100B on behalf of clients in Q3, prepared/delivered several million W-2/1095 forms and remitted funds to >4,000 tax agencies. More than 40,000 clients served; broker channel referrals accounted for >25% of new business in Q3.
PCTY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PCTY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $109.12 | $110.98 | +1.70% |
Feb 05, 2026 | $127.05 | $117.85 | -7.24% |
Nov 04, 2025 | $139.33 | $145.46 | +4.40% |
Aug 05, 2025 | $181.71 | $186.82 | +2.81% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Paylocity (PCTY) report earnings?
Paylocity (PCTY) is schdueled to report earning on Jul 30, 2026, TBA (Confirmed).
What is Paylocity (PCTY) earnings time?
Paylocity (PCTY) earnings time is at Jul 30, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PCTY EPS forecast?
PCTY EPS forecast for the fiscal quarter 2026 (Q4) is 1.61.