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Jun 30
Paylocity Q4 2025 Earnings Report
Paylocity reported its financial results for the fourth quarter and full fiscal year 2025, with total revenue increasing by 12% year-over-year for the quarter and 14% for the full fiscal year. The company also announced the launch of Paylocity for Finance and repurchased $150 million in shares during FY 2025.
Key Takeaways
Paylocity delivered a strong performance in Q4 and FY 2025, driven by solid sales and operational execution, leading to significant revenue growth. The company's recurring and other revenue saw a 14% increase in Q4 and 15% for the full fiscal year. Paylocity also expanded its platform with the launch of Paylocity for Finance and returned capital to shareholders through share repurchases.
Total revenue for Q4 2025 reached $400.7 million, marking a 12% increase compared to the same period last year.
Recurring and other revenue for Q4 2025 was $369.9 million, up 14% year-over-year.
GAAP net income for Q4 2025 was $48.6 million, or $0.86 per diluted share.
Adjusted EBITDA for Q4 2025 was $130.7 million, demonstrating strong profitability.
Paylocity
Paylocity
Paylocity Revenue by Segment
Revenue by Segment
Recurring & Other Revenue
CapyFin.com Forward Guidance
Paylocity is providing guidance for the first quarter and full fiscal year 2026, anticipating continued growth in both recurring and total revenue, along with an increase in Adjusted EBITDA.
Positive Outlook
- Q1 2026 Recurring and other revenue expected to be $370.0 million to $375.0 million, representing approximately 12% growth.
- Q1 2026 Total revenue expected to be $397.5 million to $402.5 million, representing approximately 10% growth.
- Q1 2026 Adjusted EBITDA expected to be $131.0 million to $135.0 million.
- FY 2026 Recurring and other revenue expected to be $1.597 billion to $1.612 billion, representing approximately 9% growth.
- FY 2026 Total revenue expected to be $1.707 billion to $1.722 billion, representing approximately 8% growth.
Challenges Ahead
- Growth rates for FY 2026 recurring and other revenue (9%) and total revenue (8%) are projected to be lower than FY 2025 (15% and 14% respectively).
- The company is unable to reconcile forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures without unreasonable effort.
- No specific negative guidance or challenges were explicitly stated for the upcoming periods.
- Potential risks include general economic conditions, changes in interest rates, business disruptions, and cybersecurity threats.
- Challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services.