Paylocity Holdin Financials
This page shows Paylocity Holdin (PCTY) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Stable gross margins, rising overhead efficiency, and a low-capex model make cash generation the clearest operating engine here.
From FY2023 to FY2025, operating margin moved from13.2% to19.1% while gross margin stayed nearly flat, so the profit improvement came mainly from fixed costs absorbing a larger revenue base rather than a change in core unit economics. Because FY2025 capex was only$13.1M against$418.2M of operating cash flow, that operating leverage translated into cash with very little reinvestment drag.
The balance sheet looks liability-heavy, but debt is not the main financing source: FY2025 long-term debt was only
Cash conversion quality is notably clean because receivables remain tiny relative to sales: FY2025 accounts receivable were just
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Paylocity Holdin's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Paylocity Holdin has an operating margin of 19.1%, meaning the company retains $19 of operating profit per $100 of revenue. This strong profitability earns a score of 81/100, reflecting efficient cost management and pricing power. This is up from 18.5% the prior year.
Paylocity Holdin's revenue grew 13.7% year-over-year to $1.6B, a solid pace of expansion. This earns a growth score of 78/100.
Paylocity Holdin carries a low D/E ratio of 0.13, meaning only $0.13 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 95/100, indicating a strong balance sheet with room for future borrowing.
Paylocity Holdin's current ratio of 1.14 is below the typical benchmark, resulting in a score of 26/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Paylocity Holdin converts 25.4% of revenue into free cash flow ($405.2M). This strong cash generation earns a score of 91/100.
Paylocity Holdin earns a strong 18.4% return on equity (ROE), meaning it generates $18 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 86/100. This is down from 20.0% the prior year.
Paylocity Holdin scores 2.18, placing it in the grey zone between 1.81 and 2.99. The score is driven primarily by a large market capitalization ($6.2B) relative to total liabilities ($3.2B). This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Paylocity Holdin passes 8 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Paylocity Holdin generates $1.84 in operating cash flow ($418.2M OCF vs $227.1M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Paylocity Holdin generated $1.6B in revenue in fiscal year 2025. This represents an increase of 13.7% from the prior year.
Paylocity Holdin's EBITDA was $403.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 20.0% from the prior year.
Paylocity Holdin reported $227.1M in net income in fiscal year 2025. This represents an increase of 9.8% from the prior year.
Paylocity Holdin earned $4.02 per diluted share (EPS) in fiscal year 2025. This represents an increase of 10.7% from the prior year.
Cash & Balance Sheet
Paylocity Holdin generated $405.2M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 10.5% from the prior year.
Paylocity Holdin held $398.1M in cash against $162.5M in long-term debt as of fiscal year 2025.
Paylocity Holdin had 55M shares outstanding in fiscal year 2025. This represents a decrease of 0.7% from the prior year.
Margins & Returns
Paylocity Holdin's gross margin was 68.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.3 percentage points from the prior year.
Paylocity Holdin's operating margin was 19.1% in fiscal year 2025, reflecting core business profitability. This is up 0.5 percentage points from the prior year.
Paylocity Holdin's net profit margin was 14.2% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.5 percentage points from the prior year.
Paylocity Holdin's ROE was 18.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.6 percentage points from the prior year.
Capital Allocation
Paylocity Holdin invested $205.9M in research and development in fiscal year 2025. This represents an increase of 15.4% from the prior year.
Paylocity Holdin spent $149.6M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 0.2% from the prior year.
Paylocity Holdin invested $13.1M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 27.5% from the prior year.
PCTY Income Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $502.3M+20.7% | $416.1M+2.0% | $408.2M+1.9% | $400.7M-11.8% | $454.5M+20.6% | $377.0M+3.9% | $363.0M+1.6% | $357.3M |
| Cost of Revenue | $139.1M+3.8% | $134.0M+4.4% | $128.4M-0.4% | $128.9M-0.8% | $129.9M+4.3% | $124.5M+8.3% | $115.0M-1.6% | $116.9M |
| Gross Profit | $363.2M+28.7% | $282.1M+0.8% | $279.8M+2.9% | $271.9M-16.3% | $324.7M+28.6% | $252.4M+1.8% | $248.0M+3.2% | $240.4M |
| R&D Expenses | $52.5M-9.0% | $57.7M+3.8% | $55.6M+8.9% | $51.0M-0.7% | $51.4M-8.5% | $56.2M+18.8% | $47.3M+6.9% | $44.2M |
| SG&A Expenses | $58.0M+3.6% | $55.9M+4.4% | $53.6M-0.2% | $53.7M-1.4% | $54.5M-3.6% | $56.5M+17.4% | $48.2M+6.4% | $45.3M |
| Operating Income | $157.0M+123.0% | $70.4M-5.2% | $74.2M+12.1% | $66.2M-47.9% | $127.0M+172.5% | $46.6M-27.3% | $64.1M+2.0% | $62.9M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $45.8M+129.2% | $20.0M-25.8% | $26.9M+48.0% | $18.2M-48.1% | $35.1M+275.1% | $9.4M-51.6% | $19.3M-1.8% | $19.7M |
| Net Income | $111.3M+121.6% | $50.2M+4.6% | $48.0M-1.3% | $48.6M-46.9% | $91.5M+144.2% | $37.5M-24.4% | $49.6M+1.5% | $48.8M |
| EPS (Diluted) | $2.05+122.8% | $0.92+7.0% | $0.86 | N/A | $1.61+143.9% | $0.66-25.0% | $0.88 | N/A |
PCTY Balance Sheet
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $5.4B-21.9% | $7.0B+64.6% | $4.2B-3.5% | $4.4B-15.1% | $5.2B-2.4% | $5.3B+31.5% | $4.0B-5.2% | $4.2B |
| Current Assets | $4.4B-26.1% | $5.9B+86.3% | $3.2B-4.5% | $3.3B-19.3% | $4.1B-3.2% | $4.2B+28.5% | $3.3B-6.5% | $3.5B |
| Cash & Equivalents | $299.7M+84.5% | $162.5M-1.6% | $165.2M-58.5% | $398.1M-16.7% | $477.8M-0.9% | $482.4M-38.0% | $778.5M+93.8% | $401.8M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $48.4M+9.9% | $44.0M+5.5% | $41.7M+0.2% | $41.6M-4.6% | $43.6M+0.4% | $43.5M+26.7% | $34.3M+4.0% | $33.0M |
| Goodwill | $343.2M0.0% | $343.2M0.0% | $343.2M0.0% | $343.1M+0.1% | $342.8M0.0% | $342.9M+215.0% | $108.9M-0.1% | $108.9M |
| Total Liabilities | $4.3B-27.4% | $5.9B+87.5% | $3.1B-0.7% | $3.2B-20.3% | $4.0B-3.9% | $4.1B+41.2% | $2.9B-9.1% | $3.2B |
| Current Liabilities | $4.0B-28.9% | $5.7B+92.8% | $2.9B+1.4% | $2.9B-19.9% | $3.6B-2.2% | $3.7B+48.2% | $2.5B-19.8% | $3.1B |
| Long-Term Debt | $81.3M0.0% | $81.3M0.0% | $81.3M-50.0% | $162.5M-33.3% | $243.8M-25.0% | $325.0M0.0% | $325.0M | $0 |
| Total Equity | $1.2B+7.5% | $1.1B-0.5% | $1.1B-10.6% | $1.2B+2.1% | $1.2B+3.1% | $1.2B+6.0% | $1.1B+7.1% | $1.0B |
| Retained Earnings | $1.1B+11.1% | $998.8M+5.3% | $948.6M+5.3% | $900.6M+5.7% | $852.0M+12.0% | $760.5M+5.2% | $723.0M+7.4% | $673.5M |
PCTY Cash Flow Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $217.9M+86.2% | $117.0M+35.3% | $86.5M-0.1% | $86.6M-53.5% | $186.0M+243.2% | $54.2M-40.7% | $91.5M+14.4% | $79.9M |
| Capital Expenditures | $8.4M+148.5% | $3.4M-11.4% | $3.8M-30.3% | $5.4M+135.8% | $2.3M-22.6% | $3.0M+28.2% | $2.3M-63.2% | $6.3M |
| Free Cash Flow | $209.5M+84.4% | $113.6M+37.5% | $82.7M+1.9% | $81.1M-55.8% | $183.7M+258.7% | $51.2M-42.5% | $89.1M+21.1% | $73.6M |
| Investing Cash Flow | -$26.2M-167.7% | -$9.8M+44.6% | -$17.7M+86.1% | -$127.0M-360.5% | -$27.6M+90.4% | -$287.6M-2058.1% | -$13.3M+47.7% | -$25.5M |
| Financing Cash Flow | -$1.7B-165.4% | $2.6B+1246.5% | -$229.7M+73.6% | -$869.4M-197.8% | -$292.0M-125.3% | $1.2B+462.5% | -$318.3M+59.5% | -$785.9M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $50.0M-50.0% | $100.0M-50.0% | $200.0M+241.5% | $58.6M-29.2% | $82.7M+884.9% | $8.4M | $0-100.0% | $150.0M |
PCTY Financial Ratios
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.3%+4.5pp | 67.8%-0.7pp | 68.5%+0.7pp | 67.8%-3.6pp | 71.4%+4.5pp | 67.0%-1.4pp | 68.3%+1.0pp | 67.3% |
| Operating Margin | 31.3%+14.3pp | 16.9%-1.3pp | 18.2%+1.6pp | 16.5%-11.4pp | 28.0%+15.6pp | 12.4%-5.3pp | 17.7%+0.1pp | 17.6% |
| Net Margin | 22.1%+10.1pp | 12.1%+0.3pp | 11.8%-0.4pp | 12.1%-8.0pp | 20.1%+10.2pp | 9.9%-3.7pp | 13.7%0.0pp | 13.7% |
| Return on Equity | 9.4%+4.9pp | 4.6%+0.2pp | 4.3%+0.4pp | 3.9%-3.6pp | 7.6%+4.4pp | 3.2%-1.3pp | 4.5%-0.3pp | 4.7% |
| Return on Assets | 2.0%+1.3pp | 0.7%-0.4pp | 1.1%+0.0pp | 1.1%-0.7pp | 1.8%+1.1pp | 0.7%-0.5pp | 1.2%+0.1pp | 1.1% |
| Current Ratio | 1.08+0.0 | 1.04-0.0 | 1.07-0.1 | 1.140.0 | 1.13-0.0 | 1.14-0.2 | 1.32+0.2 | 1.13 |
| Debt-to-Equity | 0.070.0 | 0.070.0 | 0.07-0.1 | 0.13-0.1 | 0.20-0.1 | 0.28-0.0 | 0.29+0.3 | 0.00 |
| FCF Margin | 41.7%+14.4pp | 27.3%+7.1pp | 20.3%+0.0pp | 20.2%-20.2pp | 40.4%+26.8pp | 13.6%-11.0pp | 24.6%+4.0pp | 20.6% |
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Frequently Asked Questions
What is Paylocity Holdin's annual revenue?
Paylocity Holdin (PCTY) reported $1.6B in total revenue for fiscal year 2025. This represents a 13.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Paylocity Holdin's revenue growing?
Paylocity Holdin (PCTY) revenue grew by 13.7% year-over-year, from $1.4B to $1.6B in fiscal year 2025.
Is Paylocity Holdin profitable?
Yes, Paylocity Holdin (PCTY) reported a net income of $227.1M in fiscal year 2025, with a net profit margin of 14.2%.
What is Paylocity Holdin's EBITDA?
Paylocity Holdin (PCTY) had EBITDA of $403.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Paylocity Holdin have?
As of fiscal year 2025, Paylocity Holdin (PCTY) had $398.1M in cash and equivalents against $162.5M in long-term debt.
What is Paylocity Holdin's gross margin?
Paylocity Holdin (PCTY) had a gross margin of 68.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Paylocity Holdin's operating margin?
Paylocity Holdin (PCTY) had an operating margin of 19.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Paylocity Holdin's net profit margin?
Paylocity Holdin (PCTY) had a net profit margin of 14.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Paylocity Holdin's return on equity (ROE)?
Paylocity Holdin (PCTY) has a return on equity of 18.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Paylocity Holdin's free cash flow?
Paylocity Holdin (PCTY) generated $405.2M in free cash flow during fiscal year 2025. This represents a 10.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Paylocity Holdin's operating cash flow?
Paylocity Holdin (PCTY) generated $418.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Paylocity Holdin's total assets?
Paylocity Holdin (PCTY) had $4.4B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Paylocity Holdin's capital expenditures?
Paylocity Holdin (PCTY) invested $13.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Paylocity Holdin spend on research and development?
Paylocity Holdin (PCTY) invested $205.9M in research and development during fiscal year 2025.
What is Paylocity Holdin's current ratio?
Paylocity Holdin (PCTY) had a current ratio of 1.14 as of fiscal year 2025, which is considered adequate.
What is Paylocity Holdin's debt-to-equity ratio?
Paylocity Holdin (PCTY) had a debt-to-equity ratio of 0.13 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Paylocity Holdin's return on assets (ROA)?
Paylocity Holdin (PCTY) had a return on assets of 5.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Paylocity Holdin's Altman Z-Score?
Paylocity Holdin (PCTY) has an Altman Z-Score of 2.18, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Paylocity Holdin's Piotroski F-Score?
Paylocity Holdin (PCTY) has a Piotroski F-Score of 8 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Paylocity Holdin's earnings high quality?
Paylocity Holdin (PCTY) has an earnings quality ratio of 1.84x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Paylocity Holdin?
Paylocity Holdin (PCTY) scores 76 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.