Paylocity Reports Strong Q1 Fiscal 2027 Results

Paylocity Holding Corporation, a prominent provider of cloud-based human capital management (HCM), finance, and IT solutions, has released its financial results for the first quarter of fiscal 2027, which concluded on September 30, 2026. The company, listed on NASDAQ under the ticker PCTY, reported significant growth in both recurring and total revenues.

In the first quarter, Paylocity achieved recurring and other revenue of $424.5 million, marking a 12.0% increase compared to the same period in the previous fiscal year. Total revenue reached $451.7 million, reflecting a 10.7% year-over-year growth¹. The company attributes this success to strong execution by its market teams, high revenue retention rates, and innovative product offerings, particularly in AI-driven solutions.

Paylocity’s President and CEO, Toby Williams, emphasized the positive start to fiscal 2027, highlighting the company’s focus on innovation and AI-driven platforms. He noted the company’s efforts in launching new products like the Recruiting Optimizer and the positive market response to offerings such as Elevate Solutions and Paylocity for Retirement.

Financial Performance

For the first quarter of fiscal 2027, Paylocity reported a GAAP operating income of $82.2 million and a non-GAAP operating income of $133.9 million. This compares to $74.2 million and $121.2 million, respectively, in the first quarter of fiscal 2026². The net income for the quarter was $57.6 million, or $1.07 per share, based on 53.7 million diluted weighted average shares outstanding. This is an improvement from the $48.0 million, or $0.86 per share, reported in the same quarter of the previous year.

The company’s adjusted EBITDA, a non-GAAP measure, was $159.5 million, up from $146.4 million in the first quarter of fiscal 2026. When excluding interest income on funds held for clients, adjusted EBITDA was $132.3 million, compared to $117.1 million in the prior year³.

Balance Sheet and Cash Flow

As of September 30, 2026, Paylocity reported cash and cash equivalents totaling $194.5 million, with long-term debt amounting to $131.3 million. The company generated $79.7 million in net cash from operating activities during the first three months of fiscal 2027, a slight decrease from the $86.5 million generated in the same period of the previous year. For the trailing twelve months, net cash from operating activities was $526.5 million, representing 29.0% of total revenue, compared to $413.2 million, or 25.2% of total revenue, for the previous twelve months. Free cash flow for the trailing twelve months was $416.7 million, or 23.0% of total revenue, up from $336.0 million, or 20.5% of total revenue, in the prior year⁴.

Business Developments

In July 2026, Paylocity completed the acquisition of Aidora Inc., enhancing its AI-powered leave management capabilities. Additionally, the company repurchased $152.5 million worth of shares, equivalent to 1.1 million shares, during the first quarter of fiscal 2027. Since May 2024, Paylocity has repurchased $850.2 million, or 5.7 million shares, reflecting its commitment to returning value to shareholders.

Future Outlook

Looking ahead, Paylocity has issued guidance for the second quarter and full fiscal year 2027. The company expects recurring and other revenue for the second quarter to range between $423.0 million and $428.0 million, representing approximately 10% growth over the second quarter of fiscal 2026. Total revenue is projected to be between $452.5 million and $457.5 million, indicating around 9% growth. For the full fiscal year, recurring and other revenue is anticipated to be between $1.792 billion and $1.807 billion, with total revenue expected to range from $1.910 billion to $1.925 billion.

Adjusted EBITDA for the second quarter is forecasted to be between $152.5 million and $156.5 million, while the full fiscal year is expected to see adjusted EBITDA in the range of $711.5 million to $721.5 million. These projections underscore Paylocity’s confidence in its growth trajectory and market position.

Paylocity will discuss these results in a conference call scheduled for November 5, 2026, at 4:00 p.m. Central Time. The call will be accessible via a live audio webcast on the company’s investor relations website.

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