Snapshot
Paylocity Holding Corp reported $401M of revenue in Q4 2025, up 12.2% year over year, with diluted EPS of $0.86 and an operating margin of 16.5%.
- Revenue
- $401M
- YoY growth
- +12.2%
- Diluted EPS
- $0.86
- Operating margin
- 16.5%
$401M
Revenue
+12.2%
YoY growth
$0.86
Diluted EPS
16.5%
Operating margin
01 Key takeaways
What management said
- •you for joining us on our fourth quarter and fiscal 2025 earnings call.
- •Our differentiated value proposition of providing the most modern platform in the industry continues to resonate in the marketplace and helped drive recurring revenue growth of 14% and total revenue growth of 12%.
- •In Q4 for fiscal 2025, recurring revenue growth grew 15% and total revenue grew 14% as we ended the year with $1.6 billion of revenue.
- •We believe Paylocity for Finance represents a significant multi-year opportunity for both new clients and a cross-sale back into our 41,650 existing client base, which grew 7% from fiscal 2024.
- •Our commitment to product development also continues to be recognized in the market, with Paylocity recently winning a TrustRadius Top Rated Award in HR management software for the third year in a row.
- •We are pleased to be fully staffed to begin fiscal 2026, and we continue to successfully attract the best sales talent in the industry, positioning us well for durable recurring revenue growth.
- •Revenue retention also remained consistent at greater than 92% in fiscal 2025, and we remain committed to investing in our operations teams to deliver world-class service to our clients.
- •Our strong culture, industry-leading software innovation, and exceptional sales and operational execution would not be possible without the dedication and commitment of our employees.
- •I would now like to pass the call to Ryan to review the financial results in greater detail and provide an initial outlook on fiscal 2026.
- •Recurring revenue for the fourth quarter was $369.9 million, an increase of 14% with total revenue up 12% from the same period last year.
- •Adjusted EBITDA for the fourth quarter was $130.7 million, or 32.6% margin, and exceeded the top end of our guidance by $8 million.
- •Adjusted EBITDA margin for fiscal 2025 was 31.2%, reflecting operating leverage of 120 basis points versus fiscal 2024 and approximately 220 basis points of organic operating leverage when excluding the impact of Airbase.
SourcesCompany financials · earnings call
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