Paylocity's Earnings per Share (EPS) comes in at $0.86, exceeding expectations by $0.11. Revenue also surpasses predictions, reaching $400.7 million, which is an overachievement by $12.5 million.

Paylocity's Earnings per Share (EPS) comes in at $0.86, exceeding expectations by $0.11. Revenue also surpasses predictions, reaching $400.7 million, which is an overachievement by $12.5 million.

Paylocity, a leading provider of cloud-based human capital management (HCM) solutions, has announced its financial expectations for the fiscal year 2026 and the first quarter of 2026.

The company expects total revenue for FY 2026 to be between $1,695.0 million and $1,705.0 million, representing approximately 11% growth over FY 2025. This revenue is expected to be primarily driven by recurring and other revenue, which is projected to be in the range of $1.597 billion to $1.612 billion, representing approximately 9% growth over fiscal year 2025 recurring and other revenue. Adjusted EBITDA for FY 2026 is expected to be in the range of $608.5 million to $618.5 million, and Adjusted EBITDA excluding interest income on funds held for clients is expected to be in the range of $498.5 million to $508.5 million (non-GAAP measures).

For the first quarter of 2026, Paylocity expects total revenue to be between $397.5 million and $402.5 million, representing approximately 10% growth over Q1 2025. Recurring and other revenue for Q1 2026 is expected to be between $370.0 million and $375.0 million, representing approximately 12% growth over Q1 2025. Adjusted EBITDA for Q1 2026 is expected to be in the range of $131.0 million to $135.0 million, and Adjusted EBITDA excluding interest income on funds held for clients is expected to be in the range of $103.5 million to $107.5 million (non-GAAP measures).

In addition to these financial projections, Paylocity's business model is driven by several key catalysts. These include AI-driven innovations and strategic product pillars such as Employee Voice and Paylocity for Finance, which unify HR and finance workflows to enhance productivity, compliance, and cross-functional business integration in mid-market SMEs. Cross-selling and upselling advanced HR modules and AI-powered tools, especially in the cloud payroll and HCM space, strengthen client retention and market position in a large $30 billion payroll software sector.

Paylocity's broker-driven acquisition model and high client stickiness, with 91% of revenue recurring, support strong cash flow and expansion potential. The company also generates float income and financial management efficiencies from its platform handling payroll and cash flows, contributing to additional revenue streams beyond subscription fees.

Other catalysts include the EmphasisHR partnership, which drives EBITDA improvements through scalable HR outsourcing and post-PEO cost optimization for private equity-backed firms, enhancing Paylocity’s ecosystem value and stickiness. Paylocity's robust cash reserves, scalable margins, and sizable market share enable further investment in innovation and strategic growth.

Paylocity's Q4 2025 revenue was $400.7M, a 12.1% year-over-year increase and beating expectations by $12.5M. The company's Q4 GAAP EPS was $0.86, beating expectations by $0.11.

In conclusion, beyond earnings, Paylocity leverages AI innovation, cross-selling, broker-driven client growth, financial float advantages, strategic partnerships, and operational efficiencies to catalyse long-term value. Buybacks contribute as a financial catalyst, though specifics on their scale or timing were not detailed in the current sources.

The financial projections for FY 2026 and Q1 2026 indicate Paylocity's focus on growing its revenue, with total recurring and other revenue projected to increase by approximately 9% and 12% respectively, showing a commitment to its Business model driven by AI-driven innovations and strategic product pillars such as Employee Voice and Paylocity for Finance. In addition to this, the company generates additional revenue streams through float income and financial management efficiencies from its platform handling payroll and cash flows, exemplifying its focus on Investing in and expanding its Finance capabilities.

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