Paylocity Announces First Quarter Fiscal Year 2026 Financial Results

• Q1 2026 Recurring & Other Revenue of $378.9 million, up 14% year-over-year
• Q1 2026 Total Revenue of $408.2 million, up 12% year-over-year
• Repurchased $200 million or 1.2 million shares in Q1 Fiscal Year 2026; $500 million or 3.0 million shares repurchased since May 2024
• Announcing updated long-term financial targets, including increased Adjusted EBITDA and Free Cash Flow margin targets

SCHAUMBURG, Ill., Nov. 04, 2025 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, Finance, and IT solutions, today announced financial results for the first quarter of fiscal year 2026, which ended September 30, 2025.

“Fiscal 26 is off to a strong start, with recurring & other revenue growth of 14% in the first quarter, combined with a significant increase in profitability, as our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace. Additionally, our AI strategy has continued to progress - delivering predictive and actionable insights, generative AI functionality and a growing number of autonomous agents across the platform to drive productivity through task and workflow automation that goes beyond the basic search capabilities that are considered table stakes in today’s evolving AI landscape. We are also very pleased with the early positive response to our Paylocity for Finance solution, as the value proposition of managing all spend and key business workflows is resonating with both clients and prospects,” said Toby Williams, President and Chief Executive Officer of Paylocity.

First Quarter Fiscal 2026 Financial Highlights

Revenue:

• Total revenue was $408.2 million, an increase of 12% from the first quarter of fiscal year 2025.
• Recurring & other revenue was $378.9 million, an increase of 14% from the first quarter of fiscal year 2025.

Operating Income:

• GAAP operating income was $74.2 million and non-GAAP operating income was $121.2 million in the first quarter of fiscal year 2026 compared to GAAP operating income of $64.1 million and non-GAAP operating income of $104.9 million in the first quarter of fiscal year 2025.

Net Income:

• GAAP net income was $48.0 million or $0.86 per share in the first quarter of fiscal year 2026 based on 55.9 million diluted weighted average common shares outstanding compared to $49.6 million or $0.88 per share in the first quarter of fiscal year 2025 based on 56.3 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

• Adjusted EBITDA, a non-GAAP measure, was $146.4 million in the first quarter of fiscal year 2026 compared to $129.0 million in the first quarter of fiscal year 2025.
• Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $117.1 million in the first quarter of fiscal year 2026 as compared to $99.2 million in the first quarter of fiscal year 2025.

Balance Sheet and Cash Flow:

• Cash and cash equivalents totaled $165.2 million as of September 30, 2025.
• Long-term debt totaled $81.3 million as of September 30, 2025, representing borrowings under our credit facility to fund the acquisition of Airbase on October 1, 2024. This reflects approximately $81.3 million repaid on our outstanding balance during the first quarter of fiscal year 2026.
• Net cash provided by operations for the first three months of fiscal year 2026 was $86.5 million compared to $91.5 million for the first three months of fiscal year 2025.

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release in the accompanying tables. Additional information regarding these measures can be found below under the headings “Non-GAAP Financial Measures” and “Definitions of our Non-GAAP Measures.”

Long-Term Financial Targets

Updated financial targets given sustained revenue growth, increasing profitability and scale: