Revenue Growth and Expansion
Paylocity reported a recurring revenue growth of 14% in Q4 and 15% for fiscal year 2025, with total revenue reaching $1.6 billion, marking a 14% increase from fiscal 2024.
Product Innovation and Launches
The company launched 'Paylocity for Finance,' an integrated system for HR and finance, combining tools like Airbase, improving spend management and strategic workforce planning.
Strong Sales Execution
The sales force expanded by 8% to 952 reps, and the company achieved channel performance with benefit brokers representing over 25% of new business in fiscal 2025.
Financial Performance and Guidance
Adjusted EBITDA was $583 million with a margin of 36.5% for fiscal 2025, showing a 15% increase from fiscal 2024. The company expects fiscal 2026 recurring revenue growth of approximately 9%.
Free Cash Flow and Stock Repurchase
Free cash flow margin increased to 21.5% in fiscal 2025. The company repurchased $150 million of shares in fiscal 2025 and increased share repurchase authorization by $500 million.
Industry Recognition
Paylocity received several awards, including America's Greatest Workplaces for Gen Z by Newsweek and America's Best Midsized Companies by Time.