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US cloud-based payroll and human capital management software provider targeting small and mid-size US businesses.
US cloud-based payroll and human capital management software provider targeting small and mid-size US businesses.
Charges clients a monthly fee per employee for payroll and HR software, and earns extra interest on payroll tax and wage funds it holds for clients between collection and payment, so higher interest rates lift profit. Sold mostly through a direct sales force.
Moat: narrow (switching costs, installed base). Payroll/HCM software embedded in client operations creates moderate switching costs, in a competitive SMB market.
Headquarters: Schaumburg, Illinois, US · Founded: 1997 · Employees: 6,900
Size Paylocity (PCTY) is a United States Information Technology company (Packaged Software) with a market value of $9.03B, the 828th largest of 3,117 United States companies the cockpit tracks. Shares closed at $173.15 on 6 Nov 2026.
Performance Over six months the shares gained 56.0%, against +8.9% for the median peer and -1.1% for the United States market (cap-weighted) — 7th highest of 21 in its peer set.
Growth Revenue grew 11.0% over the last twelve months (peer median +22.0%); the operating margin is 22.1% (peer median 6.9%).
Valuation It trades at 19.0× forward earnings against a peer median of 35.2× (4th cheapest of 19).
Price implies For today's price to make sense, revenue must grow about 2% a year for seven years (Req g). Recent delivered growth is +23%, so the hurdle is -20 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 21.6 points above its cost of capital (7.0% WACC).
Backlog Backlog (remaining performance obligations) was $274M at 30 Sep 2026, up 79% on a year earlier — 0.2 years of trailing revenue. Backlog detail →
Short interest Short interest is 5.8% of the free float (15 Oct 2026).
Next results Next results expected around 11 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2026 | FY2025 | FY2024 | FY2023 | |
|---|---|---|---|---|---|
| Revenue | $1.77B | $1.77B | $1.60B | $1.40B | $1.17B |
| Revenue growth | — | +11% | +14% | +19% | — |
| Gross profit | $1.21B | $1.20B | $1.08B | $951M | $797M |
| EBITDA | $504M | $504M | $416M | $336M | $216M |
| Net income | $270M | $270M | $227M | $207M | $141M |
| Free cash flow | $497M | $497M | $405M | $367M | $260M |
| Capital expenditure | $105M | $105M | $75.5M | $78.8M | $66.9M |
| Total debt | $133M | $133M | $218M | $54.4M | $70.3M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Paylocity PCTY | $9.03B | +56% | +11% | 22% | 19.0× | 2.3% |
| Paycom Software PAYC | $10.5B | +73% | +9% | 30% | 15.9× | 3.3% |
| Automatic Data Processing ADP | $120B | +44% | +6% | 27% | 24.0× | 6.6% |
| Paychex PAYX | $41.7B | +26% | +14% | 44% | 19.3× | 3.2% |
| Workday WDAY | $46.5B | +51% | +14% | 13% | 16.0× | 19.7% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | PCTY | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +13.2% | -3.8% | 5th highest of 21 |
| 6-month return | +56.0% | +8.9% | 7th highest of 21 |
| Distance from 52-week high | -4.3% | -31.6% | 2nd highest of 21 |
| Revenue growth (TTM) | +11.0% | +22.0% | 4th lowest of 21 |
| Operating margin | 22.1% | 6.9% | 7th highest of 21 |
| Forward P/E | 19.0× | 35.2× | 4th cheapest of 19 |
| Growth the price implies (Req g, 7 yrs) | 2.3% | 22.0% | 2nd least demanding of 20 |
| Growth delivered (Del g) | +22.8% | +23.4% | 9th lowest of 20 |
| Hurdle (Req g minus delivered) | -20.5 pp | -3.7 pp | 4th least demanding of 20 |
| ROIC minus cost of capital | +21.6 pp | -5.8 pp | 3rd highest of 17 |
| EV / EBITDA | 17.7× | 19.2× | 4th cheapest of 12 |
| Net debt / EBITDA | -0.3× | -0.7× | 6th most indebted of 12 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Paylocity PCTY | United States | $9.03B | +56% | +11% | 22% | 19.0× | 2.3% | +22.8% |
| Elastic ESTC | United States | $9.12B | +65% | +16% | -1% | 24.4× | 13.0% | +23.4% |
| Hinge Health HNGE | United States | $9.34B | +107% | +50% | 19% | 39.6× | 34.1% | +49.9% |
| Full Truck Alliance Co. Ltd. Sponsored ADR YMM | United States | $9.35B | +4% | +9% | 34% | 12.8× | -10.9% | +36.0% |
| Netskope NTSK | United States | $8.70B | +83% | +30% | -94% | n/a | n/a | n/a |
| Oracle Financial Services Software OFSS.NS | India | $9.43B | +8% | +28% | 52% | 22.7× | 22.0% | +9.0% |
| 360 Security Technology 601360.SS | China | $8.63B | -26% | +7% | -4% | 172.6× | 55.2% | -5.7% |
| DigitalOcean DOCN | United States | $8.55B | -56% | +28% | 12% | 44.7× | 41.6% | +23.1% |
| CSG Digital Power Grid Research Institute 301638.SZ | China | $8.52B | -37% | +18% | 10% | n/a | 18.0% | +8.2% |
| Nemetschek NEM.DE | Germany | $8.39B | +10% | +13% | 26% | 29.9× | 11.1% | +14.8% |
| Snap SNAP | United States | $8.39B | -18% | +13% | -5% | 32.3× | 2.7% | +18.8% |
| Xero XRO.AX | Australia | $8.36B | -13% | +27% | 13% | 66.7× | 25.9% | +25.3% |
| HubSpot HUBS | United States | $10.0B | +2% | +21% | 4% | 12.5× | 25.1% | +28.8% |
| Figma FIG | United States | $10.0B | -9% | +43% | -124% | 54.8× | 22.2% | +43.4% |
| Descartes Systems DSG.TO | Canada | $8.10B | +32% | +12% | 33% | 37.9× | 4.4% | +16.8% |
| Gitlab GTLB | United States | $8.01B | +85% | +23% | -8% | 55.0× | 18.8% | +44.4% |
| Wisetech Global WTC.AX | Australia | $10.3B | +15% | +71% | 31% | 32.6× | 30.1% | +32.3% |
| ServiceTitan TTAN | United States | $7.89B | +36% | +23% | -13% | 55.6× | 20.7% | +27.1% |
| Sangfor Technologies 300454.SZ | China | $7.84B | +5% | +21% | 2% | 71.4× | 46.1% | +6.9% |
| Zeta Global ZETA | United States | $7.79B | +81% | +36% | 3% | 28.2× | 49.7% | +28.8% |
| Paycom Software PAYC | United States | $10.5B | +73% | +9% | 30% | 15.9× | 3.3% | +19.5% |
Paylocity reported $274M of remaining performance obligations at 30 Sep 2026, up 79% from a year earlier and up 15% from the previous quarter. That is 0.2 years of trailing revenue already under contract. Book-to-bill last quarter: 1.08.