Paylocity Announces Second Quarter Fiscal Year 2026 Financial Results

Core Insights - Paylocity Holding Corporation reported strong financial results for the second quarter of fiscal year 2026, continuing the momentum from Q1 and increasing revenue and profitability guidance for the fiscal year [2][3]. Financial Performance - Total revenue for Q2 2026 was $416.1 million, representing a 10.4% increase year-over-year, while recurring and other revenue was $387.0 million, up 11.3% from the previous year [7][8]. - GAAP operating income reached $70.4 million, compared to $46.6 million in Q2 2025, and non-GAAP operating income was $119.1 million, up from $101.1 million [3][4]. - GAAP net income was $50.2 million or $0.92 per share, an increase from $37.5 million or $0.66 per share in Q2 2025 [4][25]. Cash Flow and Balance Sheet - The company reported a free cash flow margin of 23.6% for the trailing twelve months, with free cash flow totaling $396.9 million, up from $315.1 million the previous year [7][16]. - Cash and cash equivalents stood at $162.5 million as of December 31, 2025, with long-term debt totaling $81.3 million [9][16]. Business Outlook - For Q3 2026, Paylocity expects recurring and other revenue to be in the range of $457.5 million to $462.5 million, indicating approximately 9%-10% growth over the same quarter in fiscal year 2025 [17]. - Total revenue guidance for fiscal year 2026 is projected to be between $1.732 billion and $1.742 billion, reflecting approximately 9% growth compared to fiscal year 2025 [17].