Snapshot
Paylocity Holding Corp reported $502M of revenue in Q3 2026, up 10.5% year over year, with diluted EPS of $2.05 and an operating margin of 31.3%.
- Revenue
- $502M
- YoY growth
- +10.5%
- Diluted EPS
- $2.05
- Operating margin
- 31.3%
$502M
Revenue
+10.5%
YoY growth
$2.05
Diluted EPS
31.3%
Operating margin
01 Key takeaways
What management said
- •In regard to our upcoming conference schedule, we will be attending the Baird Global Consumer, Technology & Services Conference and the William Blair Growth Stock Conference.
- •This acquisition represents a continuation of our broader strategy to embed AI across our platform, delivering intelligence within core workflows.
- •Solid sales and operational execution continued in our busiest time of the year, helping to drive another quarter of strong recurring revenue growth and increased revenue and profitability guidance for fiscal 2026.
- •Recurring and other revenue of $469.9 million grew 11.6% over Q3 of last year and beat the high end of our guidance by $7.4 million.
- •HCM is a highly regulated, complex, and dynamic industry where accuracy and compliance is paramount with zero margin for error.
- •I would now like to pass the call to Ryan to review the financial results in detail and provide updated fiscal 2026 guidance.
- •Q3 recurring net other revenue was $469.9 million, an increase of 11.6%, with total revenue up 10.5% from the same period last year.
- •Our adjusted gross profit was 77.3% for Q3, an increase of 30 basis points from Q3 of last fiscal year.
- •Through the first nine months of fiscal 2026, we have driven 60 basis points of adjusted gross profit leverage as we continue to focus on scaling our operational costs while maintaining industry-leading service levels.
- •On a non-GAAP basis, G&A costs were 8.2% of revenue in the third quarter versus 8.4% in the same period last year, representing 20 basis points of leverage.
- •Through the first nine months of fiscal 2026, we have driven 50 basis points of G&A leverage versus the same period last fiscal year.
- •Our Adjusted EBITDA for the third quarter was $220.2 million or 43.8% margin and exceeded the top end of our guidance by $16.2 million, resulting in increased margin guidance for fiscal 2026.
SourcesCompany financials · earnings call
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