Paylocity
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Paylocity (PCTY) investor relations material

Paylocity Q1 2027 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2027 earnings summary5 Nov, 2026

Executive summary

  • Q1 FY27 revenue rose 10.7% YoY to $451.7M; recurring and other revenue increased 12% to $424.5M.

  • Adjusted EBITDA reached $159.5M, up from $146.4M; net income was $57.6M and diluted EPS was $1.07.

  • Strong execution, retention and product adoption supported higher FY27 revenue and profitability guidance.

Financial highlights

  • Gross profit was $304.1M versus $279.8M; operating income was $82.2M versus $74.2M.

  • Adjusted EBITDA margin was 35.3%; adjusted EBITDA excluding client-fund interest income was $132.3M, up from $117.1M.

  • Interest income on funds held for clients declined 7% to $27.2M; recurring and other revenue accounted for 94% of total revenue versus 93% a year earlier.

  • Operating cash flow was $79.7M versus $86.5M; TTM free cash flow was $416.7M, or 23.0% of revenue, versus $336.0M, or 20.5%.

  • Diluted weighted-average shares fell to 53.7M from 55.9M.

Outlook and guidance

  • Q2 recurring and other revenue guidance is $423.0M–$428.0M (~10% YoY growth); total revenue is $452.5M–$457.5M (~9% growth).

  • Q2 adjusted EBITDA guidance is $152.5M–$156.5M, or $123.0M–$127.0M excluding client-fund interest income.

  • FY27 recurring and other revenue guidance is $1.792B–$1.807B (~9% growth); total revenue is $1.910B–$1.925B (~8% growth), up $15M and $30M at the respective midpoints.

  • FY27 adjusted EBITDA guidance is $711.5M–$721.5M, or $593.5M–$603.5M excluding client-fund interest income.

  • Guidance assumes no further rate changes in FY27 after the September 25 bps increase and flat YoY workforce levels.

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Frequently asked questions

Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the United States. The company offers Paylocity Web Pay for enterprise-grade payroll processing and administration; Paylocity Web HR, which provides user-friendly tools that enable to efficiently manage daily HR activities; Talent Management solution that provides tools to plan talent strategy, and execute day-to-day talent activities; Paylocity Web Time, a time and attendance solution; and Paylocity Web Expense, an expense management tool designed to streamline and automate the expense management process.