Snapshot
Paylocity Holding Corp reported $408M of revenue in Q1 2026, up 12.5% year over year, with diluted EPS of $0.86 and an operating margin of 18.2%.
- Revenue
- $408M
- YoY growth
- +12.5%
- Diluted EPS
- $0.86
- Operating margin
- 18.2%
$408M
Revenue
+12.5%
YoY growth
$0.86
Diluted EPS
18.2%
Operating margin
01 Key takeaways
What management said
- •Total revenue was $408.2 million, or 12% growth over Q1 of last year.
- •While still in the early days, we are seeing this translate to stronger product penetration, higher average revenue per client, and improving client satisfaction and retention.
- •In addition to our market-leading financial performance, our strong culture at Paylocity continues to be recognized externally as we were recently named to TIME's America's Growth Leaders 2026 list.
- •I will now like to pass the call to Ryan to review the financial results in detail and provide updated fiscal 2026 guidance.
- •Total revenue for the first quarter was $408.2 million, an increase of 12%, with recurring and other revenues up 14% from the same period last year.
- •On a non-GAAP basis, G&A costs were 8.8% of revenue in the first quarter versus 9.5% in the same period last year, representing 70 basis points of leverage.
- •Our Adjusted EBITDA for the first quarter was $146.4 million, or 35.9% margin, and exceeded the top end of our guidance by $11.4 million, resulting in increased margin guidance for fiscal 2026.
- •We're estimating the average daily balance will be approximately $3 billion in Q2, with an average annual yield of approximately 360 basis points, representing approximately $27 million of interest income in Q2.
- •On a full-year basis, we're estimating the average daily balance will be approximately $3.25 billion, with an average annual yield of approximately 340 basis points, representing approximately $110 million of interest income.
- •Note, our guidance reflects an additional 25 basis point rate cut during fiscal 2026 versus our initial expectations for the year we provided on our August earnings call.
- •Our sales and marketing spend target decreases from 20%-25% to 15%-20% of revenue.
- •Our stock-based comp target decreases from less than 10% of revenue to 5% of revenue, and we expect to make progress against these updated financial targets on a go-forward basis.
SourcesCompany financials · earnings call
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