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Sep 30
Paylocity Q1 2026 Earnings Report
Paylocity reported its Q1 FY26 results with solid revenue growth and improved profitability metrics.
Key Takeaways
Paylocity delivered a strong Q1 FY26 with 12% total revenue growth and an increase in non-GAAP operating income and adjusted EBITDA, despite a slight decline in net income.
Total revenue rose to $408.2 million, up 12% from Q1 FY25.
Adjusted EBITDA grew to $146.4 million, reflecting operational efficiency.
Net income slightly declined to $48.0 million from $49.6 million year-over-year.
The company repurchased $200 million worth of shares in the quarter.
Paylocity
Paylocity
Paylocity Revenue by Segment
Revenue by Segment
Recurring & Other Revenue
CapyFin.com Forward Guidance
Paylocity expects moderate revenue and EBITDA growth in Q2 FY26 and FY26, building on the momentum from Q1.
Positive Outlook
- Q2 total revenue expected between $405.5M and $410.5M.
- Q2 adjusted EBITDA expected between $131.5M and $135.5M.
- FY26 total revenue projected between $1.715B and $1.730B.
- FY26 adjusted EBITDA expected between $615M and $625M.
- Recurring revenue for FY26 expected between $1.605B and $1.620B.
Challenges Ahead
- Q2 revenue growth guidance at ~8%, indicating slower growth compared to Q1.
- Adjusted EBITDA growth rate decelerating slightly in Q2 vs. Q1.
- Free cash flow declined YoY in Q1 FY26.
- Net income declined YoY despite top-line growth.
- Cash and cash equivalents down significantly from June 2025.