Paylocity Holding Corporation
- Open
- 107.79
- Day high
- 112.36
- Day low
- 107.50
- Prev close
- 104.53
- Volume
- 235K
- Mkt cap
- $5.9B
- P/E (TTM)
- 23.3
- EPS (TTM)
- $4.74
- P/B
- 5.0
- P/S
- 3.4
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$172K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions mixed (13F)
Paylocity Holding Corporation (PCTY) is a Technology company listed on NASDAQ. The stock is down 43% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
Paylocity Holding Corporation (PCTY) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PCTY earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $2.43 | $2.89 | +18.9% | $502M | +2.5% |
| Feb 5, 2026 | $1.57 | $1.85 | +17.8% | $416M | -14.0% |
| Nov 4, 2025 | $1.57 | $1.75 | +11.5% | $408M | +1.9% |
| May 1, 2025 | $2.09 | $2.43 | +16.3% | $455M | +2.9% |
| Feb 6, 2025 | $1.42 | $1.52 | +7.0% | $377M | +2.8% |
| Aug 1, 2024 | $1.27 | $1.48 | +16.5% | $357M | +2.0% |
| May 2, 2024 | $1.94 | $2.21 | +13.9% | $401M | +1.0% |
| Feb 8, 2024 | $1.21 | $1.49 | +23.1% | $326M | +0.5% |
| Nov 2, 2023 | $1.09 | $1.40 | +28.4% | $318M | +0.3% |
| Aug 3, 2023 | $1.08 | $1.32 | +22.2% | $308M | +2.3% |
| May 4, 2023 | $1.50 | $1.74 | +16.0% | $340M | +2.0% |
| Feb 2, 2023 | $0.70 | $1.12 | +60.0% | $273M | +5.1% |
PCTY insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 5, 2026 | Cappotelli Andrewofficer: Sr Vice President Operations | Sell | 70 | $116.35 |
| May 21, 2026 | Cappotelli Andrewofficer: Sr Vice President Operations | Sell | 899 | $115.05 |
| May 21, 2026 | Rost Nicholasofficer: VP CAO & Treasurer | Sell | 521 | $115.05 |
| May 19, 2026 | King Melissa Annofficer: SVP Product and Technology | Tax | 366 | $103.93 |
| May 19, 2026 | Scutt Joshuaofficer: Senior Vice President Sales | Tax | 1,560 | $103.93 |
| May 19, 2026 | Williams Toby J.director, officer: President and CEO | Tax | 5,946 | $103.93 |
| May 19, 2026 | Rost Nicholasofficer: VP CAO & Treasurer | Tax | 313 | $103.93 |
| May 19, 2026 | Beauchamp Steven Rdirector, officer: Executive Chairman | Tax | 1,849 | $103.93 |
| May 19, 2026 | Glenn Ryanofficer: Chief Financial Officer | Tax | 2,436 | $103.93 |
| May 19, 2026 | Cappotelli Andrewofficer: Sr Vice President Operations | Tax | 730 | $103.93 |
| May 13, 2026 | Scutt Joshuaofficer: Senior Vice President Sales | Tax | 673 | $110.98 |
| Apr 3, 2026 | King Melissa Annofficer: SVP Product and Technology | Tax | 321 | $108.04 |
| Mar 12, 2026 | Williams Toby J.director, officer: President and CEO | Tax | 1,302 | $114.55 |
| Mar 12, 2026 | Glenn Ryanofficer: Chief Financial Officer | Tax | 585 | $114.55 |
| Mar 5, 2026 | Cappotelli Andrewofficer: Sr Vice President Operations | Sell | 70 | $112.48 |
Source: PCTY SEC Form 4 filings, latest Jun 5, 2026. For informational purposes only — not investment advice.
See the full PCTY insider & 13F page →Paylocity Holding Corporation company profile
Overview
Paylocity Holding Corporation (NASDAQ:PCTY) is a cloud-based human capital management (HCM) and payroll software company founded in 1997 and headquartered in Schaumburg, Illinois. The company went public in March 2014 and has grown to serve over 39,000 clients across various industries in the United States. Paylocity has evolved from a traditional payroll processor into a comprehensive workforce management platform, serving primarily mid-market companies with 100-5,000 employees through its modern, cloud-native software solutions.
Business
Paylocity operates in the human capital management (HCM) software industry, which encompasses the technology systems that businesses use to manage their workforce throughout the entire employee lifecycle. HCM software integrates various HR functions including payroll processing, benefits administration, time tracking, talent management, and employee engagement tools into unified platforms. The company's core offering is a comprehensive cloud-based platform that handles multiple aspects of workforce management. Payroll and Tax Services forms the foundation, automating payroll calculations, tax compliance, and regulatory reporting. The platform includes Human Capital Management solutions covering employee self-service portals, document management, compliance dashboards, and HR administrative tools that help companies manage their workforce data and processes. Time and Attendance capabilities track employee hours through various collection methods including mobile apps, web interfaces, kiosks, and physical time clocks. The Talent Management suite encompasses recruiting, onboarding, learning management, performance reviews, and compensation planning tools that help companies attract, develop, and retain employees. Employee Benefits Management handles benefits enrollment, administration, and third-party integrations with insurance providers. The platform also features Employee Experience solutions including internal social networks (Community), video creation tools, survey capabilities, and peer recognition systems designed to boost engagement and company culture. Recent additions include AI-powered features such as chatbot assistants for policy questions and automated insights, plus spend management capabilities through the 2024 acquisition of Airbase, which extends the platform into financial operations for CFO offices. The company has also developed analytics and reporting tools that provide workforce insights and benchmarking data. Revenue is primarily recurring, with the core HCM platform generating the majority of income, while additional modules and premium features provide expansion opportunities within the existing client base.
Revenue model
Paylocity operates on a Software-as-a-Service (SaaS) subscription model with recurring revenue representing the vast majority of total income. The company charges clients on a per-employee-per-year (PEPY) basis, with pricing varying based on the modules and features selected. The current PEPY target is $600, up from $500 previously, indicating successful upselling of premium features. The primary customers are mid-market U.S. businesses with 100-5,000 employees across diverse industries including business services, financial services, healthcare, manufacturing, restaurants, retail, and technology. The average client has over 150 employees and generates approximately $33,000 in annual recurring revenue. The company serves both for-profit and non-profit organizations, with decision-makers typically being HR directors, CFOs, and business owners. Paylocity generates revenue through multiple channels. Direct sales through an internal team of 885+ sales representatives accounts for the majority of new client acquisition. Channel partnerships with insurance brokers, CPAs, and other professional service providers contribute over 25% of new business through referrals. The company also earns revenue from implementation and training services, though these represent a smaller portion of total income. Several factors influence the company's margins and growth trajectory. Positive margin drivers include the scalable nature of cloud software, successful upselling of premium modules to existing clients, economies of scale in operations, and the recurring revenue model that provides predictable cash flows. The company benefits from high switching costs as payroll and HR systems are mission-critical and complex to replace, contributing to revenue retention rates above 92%. Margin pressures come from continued investment in research and development (particularly AI capabilities), sales force expansion, competitive pricing pressures in the crowded HCM market, and the need to integrate acquisitions like Airbase. Macroeconomic factors such as employment levels, small business formation rates, and corporate spending on HR technology also impact growth, though the essential nature of payroll services provides some recession resilience.
Competitive moat
Paylocity possesses a moderate competitive moat built primarily on switching costs and network effects, though the position faces ongoing competitive pressures in the fragmented HCM market. The company's strongest defensive characteristic is high customer switching costs. Payroll and HR systems are mission-critical business functions that require significant time and resources to implement and migrate. The complexity of transferring employee data, tax configurations, benefit integrations, and compliance settings creates substantial friction for clients considering alternatives. This is evidenced by the company's consistently strong revenue retention rates above 92%. Product integration and data network effects provide additional protection. As clients adopt more modules within the Paylocity ecosystem—from basic payroll to talent management, benefits administration, and now spend management through Airbase—the switching costs compound. The platform becomes more valuable as it centralizes workforce data and creates workflow efficiencies across HR, finance, and operations functions. The company has built distribution advantages through its extensive broker and partner channel network, which generates over 25% of new business. These relationships take time to develop and provide preferred access to prospects, though they are not exclusive arrangements. However, Paylocity's moat faces significant challenges. The HCM market is highly competitive with well-funded rivals including ADP, Paychex, Workday, BambooHR, and numerous specialized providers. Product differentiation is limited as core payroll and HR functions are largely commoditized, forcing competition primarily on user experience, integration capabilities, and pricing. Technology disruption risks are material, particularly from AI automation that could reduce the need for traditional HR software, and from new entrants offering more modern architectures or specialized solutions. Large enterprise software vendors like Microsoft, Google, and Salesforce could also expand into HCM with integrated offerings. The company's focus on mid-market clients provides some protection from enterprise-focused competitors but also limits total addressable market expansion opportunities. Overall, while Paylocity has built meaningful competitive advantages, the moat is not exceptionally wide and requires continuous investment in product innovation and customer relationships to maintain.
Risks & safety
Paylocity demonstrates a strong margin of safety with solid financial fundamentals, though valuation metrics suggest limited downside protection at current levels. **Financial Strength:** • Cash position of $478 million with minimal debt (debt-to-equity ratio of 0.24) • Strong free cash flow generation of $184 million in recent quarter • Current ratio of 3.33 indicating excellent short-term liquidity • No meaningful solvency risk given cash generation and balance sheet strength • Operating cash flow of $385 million annually provides substantial cushion **Valuation Metrics:** • Price-to-earnings ratio of 28.6x suggests modest premium valuation • EV/EBITDA of 20.2x indicates reasonable but not cheap enterprise valuation • Price-to-book ratio of 8.6x reflects significant intangible asset value • Graham number of $28.26 versus current price suggests overvaluation by traditional metrics **Other Considerations:** • Recurring revenue model (90%+ of total) provides predictable cash flows • Revenue retention above 92% indicates stable customer base • Growing PEPY metrics demonstrate pricing power and upselling success • Strong balance sheet supports continued investment in growth and acquisitions
Recent development
Over the past several years, Paylocity has executed a strategic transformation from a traditional payroll processor to a comprehensive workforce management platform, with significant investments in artificial intelligence and strategic acquisitions expanding its addressable market. The company's most significant recent development was the acquisition of Airbase in 2024, a spend management software solution that extends Paylocity's reach into the CFO's office. This acquisition represents approximately 1% of annual revenue and is being fully integrated into the core platform, with management expecting 12-24 months for complete integration. The move expands the total addressable market beyond HR departments to include financial operations and expense management. Artificial intelligence integration has become a central strategic focus, with the launch of the Paylocity AI Assistant providing conversational support across the platform. The AI capabilities include policy and compliance question answering, automated insights, personalized learning recommendations, and enhanced recruiting tools. Management reports 30% increases in chatbot utilization and growing customer engagement with embedded AI features that streamline daily HR tasks. The company has significantly expanded its product portfolio with premium offerings including Recognition & Rewards, Employee Voice survey tools, Advanced Scheduling, Market Pay benchmarking, and enhanced mobile applications. These additions have helped drive the per-employee-per-year (PEPY) metric from $500 to a current target of $600, demonstrating successful upselling to existing clients. Leadership transition occurred in 2024 with founder Steve Beauchamp moving to Executive Chairman while Toby Williams became sole President and CEO, representing a planned succession to continue the company's growth trajectory. The sales organization has been systematically expanded, growing from 588 representatives in 2022 to over 885 currently, while maintaining strong channel partnerships that contribute over 25% of new business. The company has also increased its target market size to include companies with up to 5,000 employees, representing an upmarket expansion strategy.
PCTY company profile · for informational purposes only — not investment advice.
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