Paylocity Announces Fourth Quarter and Full Fiscal Year 2025 Financial Results

Core Insights - Paylocity Holding Corporation reported strong financial results for fiscal year 2025, with a 14% increase in total revenue and a 15% increase in recurring and other revenue, driven by client base expansion and increased average revenue per client [2][5][6] Financial Performance - For Q4 2025, total revenue reached $400.7 million, up 12% year-over-year, while recurring and other revenue was $369.9 million, up 14% year-over-year [5][6] - Fiscal year 2025 total revenue was $1,595.2 million, a 14% increase from fiscal year 2024, with recurring and other revenue at $1,471.8 million, reflecting a 15% growth [6][10] - GAAP net income for Q4 2025 was $48.6 million, or $0.86 per share, compared to $48.8 million, or $0.86 per share in Q4 2024 [7][10] - For fiscal year 2025, GAAP net income increased to $227.1 million, or $4.02 per share, from $206.8 million, or $3.63 per share in fiscal year 2024 [10][6] Operational Highlights - The company launched "Paylocity for Finance," integrating finance and HR teams through a unified system, enhancing operational efficiency and user experience [2][5] - Paylocity repurchased approximately 800,000 shares of its stock for $150 million during fiscal year 2025 and increased share repurchase authorization by $500 million [5][6] Adjusted Metrics - Adjusted EBITDA for fiscal year 2025 was $583.0 million, a 15% increase from $505.6 million in fiscal year 2024, representing 36.5% of total revenue [6][14] - Free cash flow for fiscal year 2025 was $342.8 million, or 21.5% of total revenue, compared to $305.9 million, or 21.8% of total revenue in fiscal year 2024 [21] Guidance - For Q1 2026, recurring and other revenue is expected to be between $370.0 million and $375.0 million, indicating approximately 12% growth over Q1 2025 [22] - Total revenue for Q1 2026 is projected to be between $397.5 million and $402.5 million, representing about 10% growth over Q1 2025 [22] - For fiscal year 2026, recurring and other revenue is expected to be in the range of $1.597 billion to $1.612 billion, reflecting approximately 9% growth over fiscal year 2025 [22]