Paylocity Announces First Quarter Fiscal Year 2026 Financial Results

Core Insights - Paylocity Holding Corporation reported strong financial results for the first quarter of fiscal year 2026, with a 14% growth in recurring and other revenue and a significant increase in profitability, driven by its modern software offerings and AI strategy [2][3][7]. Financial Performance - Recurring and other revenue reached $378.9 million, up 14% year-over-year [7][8]. - Total revenue for the quarter was $408.2 million, reflecting a 12% increase compared to the same period last year [7][8]. - GAAP operating income was $74.2 million, compared to $64.1 million in the first quarter of fiscal year 2025 [3]. - Non-GAAP operating income increased to $121.2 million from $104.9 million year-over-year [3]. - GAAP net income was $48.0 million, or $0.86 per share, down from $49.6 million, or $0.88 per share, in the prior year [4]. Adjusted Metrics - Adjusted EBITDA for the quarter was $146.4 million, up from $129.0 million in the same quarter last year [9]. - Adjusted EBITDA excluding interest income on funds held for clients was $117.1 million, compared to $99.2 million in the prior year [9]. Balance Sheet and Cash Flow - Cash and cash equivalents totaled $165.2 million as of September 30, 2025 [9]. - Long-term debt stood at $81.3 million, with $81.3 million repaid during the quarter [9]. - Net cash provided by operations was $86.5 million, down from $91.5 million in the same quarter last year [10]. Share Repurchase and Financial Targets - The company repurchased $200 million worth of shares in the first quarter, totaling $500 million since May 2024 [7]. - Updated long-term financial targets include total revenue of $3 billion and an adjusted EBITDA margin of 40-45% [7]. Business Outlook - For the second quarter of fiscal year 2026, recurring and other revenue is expected to be between $378.5 million and $383.5 million, indicating approximately 10% growth [15]. - Total revenue guidance for the full fiscal year 2026 is projected to be between $1.715 billion and $1.730 billion, representing about 8% growth [15].