Paylocity Q4 Revenue Beats Estimates, Raises Full-Year Guidance to $1.74B

PCTYPCTY

Paylocity delivered Q4 revenue of $416.1 million, beating estimates by 1.9% with 10.4% year-over-year growth, while adjusted EPS of $1.85 surpassed forecasts by 15.9% and operating margin rose to 28.6%. The company lifted full-year revenue guidance midpoint to $1.74 billion and raised EBITDA outlook to $626.5 million.

1. Q4 Financial Results

Paylocity reported Q4 revenue of $416.1 million, up 10.4% year-over-year and 1.9% above estimates, with adjusted EPS of $1.85 beating forecasts by 15.9% and operating margin expanding to 28.6%.

2. Guidance Update

The company raised full-year revenue guidance midpoint to $1.74 billion from $1.72 billion and set EBITDA guidance at $626.5 million, exceeding analyst expectations and reflecting confidence in demand.

3. Analyst Q&A Highlights

Analysts probed management on stable selling trends, early AI-driven upsell metrics, Airbase acquisition integration, flat employment outlook and retention remaining above 92%, highlighting areas of strategic focus.

4. Strategic Growth Drivers

Continued adoption of AI-powered HR tools, expansion of rewards modules and momentum in broker-channel sales which now contribute over 25% of new business underpin the company’s growth strategy.

Sources

F