Paylocity Holding(US:PCTY)2025-11-04 21:09Financial Performance - Recurring and other revenue for Q1 2026 was $378.9 million, representing a 14% increase year-over-year[6] - Total revenue for Q1 2026 reached $408.2 million, up 12% from Q1 2025[7] - GAAP operating income for Q1 2026 was $74.2 million, compared to $64.1 million in Q1 2025[3] - GAAP net income for Q1 2026 was $48.0 million, or $0.86 per share, down from $49.6 million, or $0.88 per share in Q1 2025[4] - Adjusted EBITDA for Q1 2026 was $146.4 million, an increase from $129.0 million in Q1 2025[8] - Total revenues increased from $362,956 thousand in September 2024 to $408,172 thousand in September 2025, representing a growth of 12.5%[26] - Net income decreased slightly from $49,573 thousand in September 2024 to $47,991 thousand in September 2025, a decline of 3.2%[26] - Operating income rose from $64,144 thousand in September 2024 to $74,211 thousand in September 2025, an increase of 15.5%[26] - Non-GAAP Net income increased from $93,616 thousand in September 2024 to $97,660 thousand in September 2025, a growth of 4.1%[32] - Non-GAAP Net income per share rose from $1.66 in September 2024 to $1.75 in September 2025, an increase of 5.4%[34] Revenue Projections - For Q2 2026, recurring and other revenue is expected to be between $378.5 million and $383.5 million, indicating approximately 10% growth year-over-year[14] - Total revenue for Q2 2026 is projected to be between $405.5 million and $410.5 million, reflecting about 8% growth year-over-year[14] - Updated long-term financial targets include total revenue of $3 billion and Adjusted EBITDA margin of 40-45%[10] Asset and Liability Management - Total current assets increased from $3,311,969 thousand as of June 30, 2025, to $3,162,958 thousand as of September 30, 2025, a decrease of 4.5%[24] - Cash and cash equivalents decreased from $398,070 thousand as of June 30, 2025, to $165,192 thousand as of September 30, 2025, a decline of 58.6%[24] - Total liabilities increased from $3,155,681 thousand as of June 30, 2025, to $3,132,653 thousand as of September 30, 2025, an increase of 0.7%[24] - Total stockholders' equity increased from $1,233,747 thousand as of June 30, 2025, to $1,103,479 thousand as of September 30, 2025, a decrease of 10.5%[24] Research and Development - Research and development expenses increased from $47,260 thousand in September 2024 to $55,607 thousand in September 2025, a rise of 17.8%[26] - Non-GAAP total research and development expenses rose from $52,038 in Q3 2024 to $60,594 in Q3 2025, indicating a focus on innovation[37] Cash Flow and Expenses - Free cash flow for Q3 2024 was $73,917, compared to $67,199 in Q3 2025, showing an increase in cash generation[38] - Non-GAAP sales and marketing expenses for Q3 2024 were $78,570, increasing to $87,056 in Q3 2025, highlighting a rise in marketing investments[35] - General and administrative expenses on a non-GAAP basis were $34,628 for Q3 2024, compared to $36,065 in Q3 2025, suggesting a controlled increase[37] - Adjusted free cash flow excluding interest income on funds held for clients was $45,531 in Q3 2024, down from $39,266 in Q3 2025, reflecting changes in cash management strategies[38] - Interest income on funds held for clients was $(29,851) for Q3 2024, slightly decreasing to $(29,314) in Q3 2025, indicating stable interest income levels[38] - The company incurred $2,528 in other items for Q3 2024, which decreased to $1,764 in Q3 2025, suggesting improved cost management[35] - Capitalized internal-use software costs were $15,210 in Q3 2024, compared to $15,460 in Q3 2025, reflecting consistent investment in technology[38] Strategic Focus - The company is focused on enhancing its AI strategy, delivering predictive insights and generative AI functionalities to improve productivity[2]