Paylocity Holding Corporation · NASDAQ:PCTY
Paylocity — Q2 2026 Earnings Presentation
23 slides from Paylocity's earnings presentation, Feb 5, 2026
Slide 1: Q2 Fiscal 2026 Investor Presentation
Q2 Fiscal 2026 Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. This presentation is proprietary and is intended
Slide 3: Our Business
Our Business We are a leading provider of cloud-based HR, Finance, and IT solutions to a diversified set of clients across verticals & geographies Demonstrated ability to drive strong revenue growth with increasing profitability Headquarters 10% YoY Schaumburg, IL 41,650 Rule of growth Rule of 45%
Slide 4: HCM Addressable Market (TAM)
HCM Addressable Market (TAM) We remain squarely focused on increasing our limited penetration of a large, and growing, total addressable market d HCM TAM of ~$22.0 b alize illio n Re Current average Approximately client size of 150+ 1.3 million 73 million employees businesses employees in the 10-5,0
Slide 5: HCM Competitive Landscape
HCM Competitive Landscape Workday Limited overlap in target market. Enterprise solutions focused on companies with several thousand employees and up – do not see them often competitively Ultimate Kronos Group / Dayforce Enterprise Enterprise solution focusing Market primarily on >1,000 employee (10,
Slide 6: A single source of truth
A single source of truth across the enterprise. UNIFIED PLATFORM FOR HR, FINANCE, & IT HR FINANCE HR Talent, benefits, engagement, and compliance Finance Payroll, time tracking, GL integration, and budgeting IT System Access and Asset Management IT 6
Slide 7: The Most Modern Platform
The Most Modern Platform HCM, Finance, & IT 7
Slide 8: Sustained R&D Investment Drives Product Expansion and Revenue Growth
Sustained R&D Investment Drives Product Expansion and Revenue Growth Over 180% increase in Realized ARPU since 2014 Ongoing Product Innovation Community Video Learning Employee Market Pay Voice Employee Experience Recruiting & Benefits Time & Payroll Human Performance & Onboarding Labor Resources Co
Slide 9: The Most Complete HCM Platform for The Modern Workforce
The Most Complete HCM Platform for The Modern Workforce HR Payroll Recruiting Process Payroll in a few Clicks Submit payroll through a simple navigation flow reducing manual data entry and minimizing errors Simplify Tasks for HR and Employees Save time and money with intuitive scheduling and time tr
Slide 10: Providing HR the tools to better engage with their employees
Providing HR the tools to better engage with their employees Employee Voice Recognition & Rewards Feeling heard & valued Create engagement with opportunities for feedback & recognition Flexibility & wellbeing Empower employees to manage their Learning shifts & pay schedule without HR overhead Commun
Slide 11: Finance & spend management software that puts CFOs in control
Finance & spend management software that puts CFOs in control Guided Procurement All Spend on a Single Platform Enables real-time visibility, faster close, seamless adoption for every part of the organization A Singular Employee Record Expense Management A single source of truth for Finance and HR p
Slide 12: Complete control over IT identity and hardware management
Complete control over IT identity and hardware management Automated Access Management Provision and deprovision accounts automatically using employee lifecycle data for a single source of truth between HR and IT Asset Management Smarter Asset Management Track, order, assign, and update employee hard
Slide 13: HCM Competitive Landscape
HCM Competitive Landscape Where Our Clients Come From In-house solutions (did not use a traditional 3rd party provider) Combination of ADP / Paychex represents our largest source Local / regional of new clients payroll providers Why we win Industry-leading product suite combined with strong focus on
Slide 14: Go-To-Market Strategy
Go-To-Market Strategy We hire experienced sales professionals • Most have prior HCM platform, HR technology, spend management, IT or B2B sales experience • All sales are direct through our salesforce • Our reps are focused on deals with 10-5,000 employees with our largest opportunities supported by
Slide 15: Strong Referral Channel
Strong Referral Channel Channel Value Proposition Paylocity is the most complete platform for the modern workforce which helps our channel partners reach employees in new ways We do not compete with our channel partners – We do not sell insurance or benefits; other major payroll / HCM competitors co
Slide 16: Continued Client Service Investments Support Strong Revenue Retention
Continued Client Service Investments Support Strong Revenue Retention Over 92%+ net revenue retention as a public company Providing the most modern platform 92%+ Net Revenue Retention Delivering world class service Retention Churn(1) *Net Revenue Retention = total revenue for the preceding 12 months
Slide 17: Financials
Financials Recurring and Other Revenue $ millions Long-Term Financial Targets Increased profitability targets reflect commitment to driving greater 10% YoY operational efficiency over time 15% YoY growth growth Current 17% YoY growth Total Revenue $3Bn 30% YoY Adjusted Gross Profit 80%+ growth
Slide 18: Financials (cont.)
Financials (cont.) Driving continued margin expansion on an annual basis Adjusted EBITDA excluding interest income on funds held for clients $ millions 31.7% 31.2% Margin Driving greater leverage over time Margin 30.0% • Successfully driven ~450bps of Adj. EBITDA Margin margin leverage excl. int
Slide 19: Financials (cont.)
Financials (cont.) Driving continued margin expansion on an annual basis Free Cash Flow excluding interest income on funds held for clients Demonstrating meaningful $ millions FCF leverage 17.6% Margin • Successfully driven 450bps+ of FCF margin 14.9% leverage excl. interest income on funds held f
Slide 20: Financials (cont.)
Financials (cont.) Driving consistent growth in Earnings per Share on an annual basis Earnings per Share Based on Diluted share count Driving consistent EPS growth through: • Margin leverage – through a combination of economies of scale and operating expense management, primarily in gross margin and
Slide 21: External Recognition
External Recognition 2020-2025 2020-2025 2020-2025 2020-2025 2020-2025 2012-2025 2024-2025 2025 2025 2025 2025 2025 2024-2025 2024-2025 2023-2025 2024 2024 2022-2024 2024 2024 2024 2019-2024 21 21
Slide 22: Positioned for Long-Term Growth & Margin Expansion
Positioned for Long-Term Growth & Margin Expansion • Creating the most modern HCM, Finance, and IT platform • Increasing average revenue per client • Growing client base • Strong client retention 22
Slide 23: Paylocity
“y Paylocity Forward Together. www.paylocity.com