📊 PCTY Key Takeaways
Is Paylocity Holding Corp (PCTY) a Good Investment?
Paylocity demonstrates exceptional fundamental strength with $405.8M in free cash flow (30.6% FCF margin) and a fortress balance sheet (0.07x Debt/Equity). However, revenue growth is moderating at 8.4% YoY and net income is flat despite top-line growth, signaling potential margin compression and market maturation.
Paylocity Holding Corp Key Strengths (PCTY)
- Outstanding free cash flow generation of $405.8M with 30.6% FCF margin demonstrates highly efficient capital conversion
- Exceptional profitability: 69.7% gross margin and 22.7% operating margin typical of high-quality SaaS businesses
- Conservative balance sheet with minimal leverage (0.07x Debt/Equity, $81.2M long-term debt) and $299.7M cash providing financial stability
PCTY Stock Risks: Paylocity Holding Corp Investment Risks
- Net income growth stalled at 0.0% YoY despite 8.4% revenue growth, indicating margin compression or operating deleverage
- Revenue growth moderating at 8.4% YoY suggests maturing market and potential competitive pressures in payroll/HR software sector
- Tight current ratio of 1.08x is below industry norms (typically 1.5x-2.0x), creating limited cushion for short-term obligations despite strong operating cash flow
Key Metrics to Watch
- Operating margin trend - monitor for continued compression despite revenue growth
- Year-over-year revenue growth rate - track whether deceleration continues or stabilizes
- Free cash flow sustainability - ensure $400M+ annual FCF generation continues
Paylocity Holding Corp (PCTY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 30.6% 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 |
|---|---|---|---|
| Q3 2026 | $421.1M | $91.5M | $1.61 |
| 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 |
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 |
|---|---|---|---|
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779394945.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779394938.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779221300.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779221294.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779221289.xml | View → |
❓ Frequently Asked Questions about PCTY
What is the AI rating for PCTY?
Paylocity Holding Corp (PCTY) has an AI grade of A with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PCTY's key strengths?
Claude: Outstanding free cash flow generation of $405.8M with 30.6% FCF margin demonstrates highly efficient capital conversion. Exceptional profitability: 69.7% gross margin and 22.7% operating margin typical of high-quality SaaS businesses.
What are the risks of investing in PCTY?
Claude: Net income growth stalled at 0.0% YoY despite 8.4% revenue growth, indicating margin compression or operating deleverage. Revenue growth moderating at 8.4% YoY suggests maturing market and potential competitive pressures in payroll/HR software sector.
What is PCTY's revenue and growth?
Paylocity Holding Corp reported revenue of $1.3B.
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 $3.81.
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 grade reflects both perspectives for balanced insights.
What is PCTY's fundamental grade?
Based on our AI fundamental analysis in May 2026, Paylocity Holding Corp has a A grade with 78% 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 17.7% (sector avg: 22%), net margin of 15.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is PCTY's AI grade for 2026?
Our dual AI analysis gives Paylocity Holding Corp a combined A grade 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 $421.4M, with capital expenditures of $15.5M. FCF margin is 30.6%.
How does PCTY compare to other Technology stocks?
Vs Technology sector averages: Net margin 15.8% (avg: 18%), ROE 17.7% (avg: 22%), current ratio 1.08 (avg: 2.5).