📊 PCTY Key Takeaways
Is Paylocity Holding Corp (PCTY) a Good Investment?
Paylocity demonstrates exceptional cash flow generation ($196.3M FCF, 23.8% FCF margin) and fortress-like balance sheet leverage (0.07x debt/equity), backed by healthy 68% gross margins typical of quality SaaS. However, slowing revenue growth (8.4% YoY) combined with net income flatness and weak capital efficiency metrics (8.9% ROE) suggest the company is maturing and facing headwinds in scalability.
Why Buy Paylocity Holding Corp Stock? PCTY Key Strengths
- Exceptional free cash flow conversion at 23.8% FCF margin with minimal capital requirements
- Strong gross margins of 68.2% reflecting pricing power and product-market fit
- Fortress balance sheet with minimal leverage (0.07x debt/equity) and $162.5M cash providing strategic flexibility
PCTY Stock Risks: Paylocity Holding Corp Investment Risks
- Decelerating growth with net income stalled at 0% YoY despite 8.4% revenue growth signals operational pressure
- Weak capital efficiency with ROE of 8.9% and ROA of 1.4% despite $7B asset base suggests underutilization of resources
- Tight current ratio of 1.04x indicates limited liquidity cushion and aggressive working capital management
Key Metrics to Watch
- Operating margin trend (currently 17.5%) - watch for compression from increased competition
- Revenue growth acceleration pathway - 8.4% is below typical SaaS benchmarks
- Operating cash flow sustainability as company scales past $800M+ revenue threshold
Paylocity Holding Corp (PCTY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
PCTY Profit Margin, ROE & Profitability Analysis
PCTY vs Technology Sector: How Paylocity Holding Corp Compares
How Paylocity Holding Corp compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Paylocity Holding Corp Stock Overvalued? PCTY Valuation Analysis 2026
Based on fundamental analysis, Paylocity Holding Corp has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Paylocity Holding Corp Balance Sheet: PCTY Debt, Cash & Liquidity
PCTY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Paylocity Holding Corp's revenue has grown significantly by 133% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.49 reflects profitable operations.
PCTY Revenue Growth, EPS Growth & YoY Performance
PCTY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $347.7M | $37.5M | $0.66 |
| Q1 2026 | $333.1M | $48.0M | $0.86 |
| Q3 2025 | $366.8M | $85.3M | $1.50 |
| Q2 2025 | $298.4M | $37.5M | $0.66 |
| Q1 2025 | $291.7M | $34.5M | $0.61 |
| Q3 2024 | $314.2M | $57.6M | $1.02 |
| Q2 2024 | $256.4M | $15.6M | $0.28 |
| Q1 2024 | $245.4M | $30.4M | $0.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Paylocity Holding Corp Dividends, Buybacks & Capital Allocation
PCTY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Paylocity Holding Corp (CIK: 0001591698)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775246815.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773345890.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773345854.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772744582.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772659062.xml | View → |
❓ Frequently Asked Questions about PCTY
What is the AI rating for PCTY?
Paylocity Holding Corp (PCTY) has an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PCTY's key strengths?
Claude: Exceptional free cash flow conversion at 23.8% FCF margin with minimal capital requirements. Strong gross margins of 68.2% reflecting pricing power and product-market fit.
What are the risks of investing in PCTY?
Claude: Decelerating growth with net income stalled at 0% YoY despite 8.4% revenue growth signals operational pressure. Weak capital efficiency with ROE of 8.9% and ROA of 1.4% despite $7B asset base suggests underutilization of resources.
What is PCTY's revenue and growth?
Paylocity Holding Corp reported revenue of $824.3M.
Does PCTY pay dividends?
Paylocity Holding Corp does not currently pay dividends.
Where can I find PCTY SEC filings?
Official SEC filings for Paylocity Holding Corp (CIK: 0001591698) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PCTY's EPS?
Paylocity Holding Corp has a diluted EPS of $1.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PCTY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Paylocity Holding Corp has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PCTY stock overvalued or undervalued?
Valuation metrics for PCTY: ROE of 8.9% (sector avg: 22%), net margin of 11.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy PCTY stock in 2026?
Our dual AI analysis gives Paylocity Holding Corp a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PCTY's free cash flow?
Paylocity Holding Corp's operating cash flow is $203.5M, with capital expenditures of $7.2M. FCF margin is 23.8%.
How does PCTY compare to other Technology stocks?
Vs Technology sector averages: Net margin 11.9% (avg: 18%), ROE 8.9% (avg: 22%), current ratio 1.04 (avg: 2.5).