PCTY
Paylocity Holding Corp
Next earnings Aug 3, 2026 (after close) · consensus $1.65 EPS, $439M rev
Last earnings +6.4% on 2026-05-07
$115.10
▲ +8.86%$115.10▼ -35.90%
over 1Y
L $95.10H $190.36
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+8.9%
1W+14.6%
1M-2.3%
3M+8.4%
YTD-21.0%
1Y-35.9%
Buy
Conviction
Horizon
Long (>12mo)
12-mo target
$•••
Street · 27 analysts
Buy
Profitable HCM SaaS growing mid-teens with 74% gross margins and GAAP earnings — quality at a reasonable 25x.
Revenue $1.47B · FY2025
The read
Solid fundamentals at a roughly fair price — reasonable risk/reward at today's level.
Paylocity is a cloud-based payroll and human-capital-management (HCM) software provider, and it stands out from most SaaS peers by being durably and genuinely profitable. FY2025 revenue grew 14.8% to $1.47B with a 74.5% gross margin, while operating income rose 16.9% to $304M (a 20.7% operating margin) and net income climbed 9.8% to $227M — real GAAP profits, not adjusted-EBITDA storytelling. The multi-year record is excellent: revenue more than doubled from $632M (FY2021) to $1.47B, with net income up from $70.8M to $227M over the same span.
The model is high-quality and self-funding. Operating cash flow of $418M (+8.7%) dwarfs the tiny $13.1M of capex, and the company reinvests heavily in product ($206M R&D, +15.4%) while still returning capital — $150M of buybacks trimmed the share count. The 2.56x liabilities/equity ratio looks levered but is dominated by client payroll funds held in trust (current liabilities), not financial debt; actual long-term debt is just $163M against $398M of cash. ROE is a healthy 18.4% and retained earnings jumped 33.7%.
Is PCTY a buy? The one-page verdict, explained →
The options angle
model · matches our verdictBull call spread (wide)~90d expiry
- Long call 115 @ ~12.11 est
- Short call 132 @ ~6.04 est
debit $607max +$1,093max −$607BE 121.07
High-conviction BUY: a wider spread keeps more of the upside while the short call still cuts cost and decay.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $632M | $848M | $1.10B | $1.28B | $1.47B |
| Gross profit | $416M | $566M | $808M | $961M | $1.10B |
| Operating income | $58.0M | $84.6M | $155M | $260M | $304M |
| Net income | $70.8M | $90.8M | $141M | $207M | $227M |
| Diluted EPS | $1.26 | $1.61 | $2.49 | $3.63 | $4.02 |
| Net margin | 11.2% | 10.7% | 12.8% | 16.1% | 15.4% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$5.93B
EV / EBITDA14.7
EV / Sales4.0
EV / FCF14.6
P / FCF15.2
PEG (trailing)2.91
Earnings yield3.7%
FCF yield6.6%
Quality & risk
ROIC (est.)17.2%
Free cash flow$405M
Total debt$163M
Net cash$235M
Altman Z-Score2.13 grey
Piotroski F-Score7/9
Capital returns
Buyback yield2.4%
Dividend yield (est.)—
Shareholder yield2.4%
Shares Δ YoY-0.7%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsSome governance/structural items recently, but no outright red flags.
Recent filings
all on EDGAR ↗4Period ending 2026-07-012026-07-02open ↗4Period ending 2026-06-042026-06-05open ↗144Filing2026-06-04open ↗4Period ending 2026-06-012026-06-03open ↗4Period ending 2026-06-012026-06-03open ↗144Filing2026-06-01open ↗4Period ending 2026-05-192026-05-21open ↗4Period ending 2026-05-192026-05-21open ↗144Filing2026-05-19open ↗144Filing2026-05-19open ↗4Period ending 2026-05-152026-05-19open ↗4Period ending 2026-05-152026-05-19open ↗
Frequently asked
- Is Paylocity Holding Corp (PCTY) a buy?
- PCTY currently carries a Buy rating with 4/5 conviction, derived from its latest SEC filings. Profitable HCM SaaS growing mid-teens with 74% gross margins and GAAP earnings — quality at a reasonable 25x.
- What is PCTY's fair value?
- A Modified-Graham model based on PCTY's SEC fundamentals estimates a fair value of about $107.50. It is an estimate from reported earnings, not a price target.
- Is PCTY overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, PCTY currently appears fairly valued relative to its SEC-grounded earnings power.
- What is Paylocity Holding Corp's quality score?
- PCTY scores 67.30048905728889/100 (grade B-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001591698, latest 10-Q filed 2026-05-08) · EODHD · Proprietary analysis · as of 6/21/2026, 8:58:03 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:58 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.