Paylocity Holding CorporationPCTY
NasdaqGS•Technology•Software - Application
Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States. The company offers payroll solutions comprising payroll and tax services, global payroll, on-demand payment, and garnishments; human resources (HR) solutions consisting of human resources, employee self-service, workflows and documents, HR compliance dashboard, and HR edge; time and attendance, scheduling, and time collection; time and labor solutions, including time and attendance, scheduling, and time collection; and talent solutions, such as recruiting, onboarding, market pay, learning, performance, and compensation. It also provides benefits solutions comprising benefit enrollment and updates, and third-party administrative solutions; employee experiences consisting of community, video, employee voice, recognition and rewards, modern workforce index, data insights, and reporting; and Paylocity for finance solutions, such as headcount planning, expense management, accounts payable automation, corporate cards, and guided procurement. In addition, the company offers implementation and training, client services, and tax and regulatory services. It serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. The company also sells its products through sales representatives. Paylocity Holding Corporation was founded in 1997 and is headquartered in Schaumburg, Illinois.
Paylocity Holding Corporation (PCTY) reported trailing twelve months revenue of $1.73B as of March 2026, a 11.3% increase year-over-year. Quarterly revenue reached $502.29M, reflecting continued top-line momentum.
Paylocity Holding Corporation generated $258.04M in TTM net income, with quarterly EBITDA of $184.28M. The operating margin expanded from 27.9% to 31.3%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (31.3%) and net margin (22.1%) indicates moderate non-operating costs. Net margin has improved from 20.1% a year ago, signaling stronger bottom-line efficiency.
PCTY trades at a P/E of 22.3x (in line with broad market averages) and a P/S of 3.3x. The price-to-book ratio of 4.9x reflects a moderate premium to book value.
The company generated $209.55M in free cash flow over the trailing twelve months, a 14.1% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $5.44B in total assets with $81.25M in long-term debt against $1.18B in stockholders equity for a debt-to-equity ratio of 0.1, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~19.8%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 20.0% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~23.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~20.7% — no sign of cost or pricing stress.
FCF covers net income by 1.8x on average — earnings are well-supported by cash generation.
D/E ratio is 0.1 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.4% — net buybacks are reducing shares outstanding and boosting per-share value.