Snapshot
Paylocity Holding Corp reported $416M of revenue in Q2 2026, up 10.4% year over year, with diluted EPS of $0.92 and an operating margin of 16.9%.
- Revenue
- $416M
- YoY growth
- +10.4%
- Diluted EPS
- $0.92
- Operating margin
- 16.9%
$416M
Revenue
+10.4%
YoY growth
$0.92
Diluted EPS
16.9%
Operating margin
01 Key takeaways
What management said
- •Our strong results continued in Q2, with recurring and other revenue growth of 11% as our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace.
- •Total revenue was $416.1 million, or 10% growth over Q2 of last year.
- •Additionally, we recently extended our AI Assistant into HR rules and regulations, tapping into more than 200 IRS and Department of Labor knowledge sources to provide administrators with guidance on tax and labor regulations.
- •As Steve mentioned, the momentum seen in Q1 continued into the Q2 and contributed to a strong selling season performance and increased revenue and profitability guidance for fiscal 2026.
- •Overall, we are pleased with our Q2 results and believe we are well-positioned heading into the back half of the year, which is reflected in our increased guidance for fiscal 2026.
- •I would now like to pass the call to Ryan to review the financial results in detail and provide our increased fiscal 2026 guidance.
- •Q2 recurring and other revenue was $387 million, an increase of 11%, with total revenue of $416.1 million and up 10% from the same period last year.
- •Our adjusted gross profit was 74.4% for Q2 versus 73.8% in Q2 of last fiscal, representing 60 basis points of leverage.
- •On a non-GAAP basis, G&A costs were 9% of revenue in the Q2 versus 9.8% in the same period last year, representing 80 basis points of leverage.
- •Our adjusted EBITDA for the Q2 was $142.7 million, or 34.3% margin, and exceeded the top end of our guidance by $7.2 million, resulting in increased margin guidance for fiscal 2026.
- •I think the go-to-market teams performed really well across sales and marketing and our channel teams, and I think we saw a very stable demand environment.
- •I think similar commentary on the demand environment from last quarter carried through to this quarter.
SourcesCompany financials · earnings call
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