Core Viewpoint - Paylocity Holding Corporation (NASDAQ:PCTY) is identified as one of the top beaten-down software stocks with significant upside potential, despite a lowered price target from $188 to $178, indicating a 74.5% upside from current levels [1]. Financial Performance - For Q2 fiscal 2026, adjusted EBITDA reached $142.7 million with a margin of 34.3%, exceeding guidance by $7.2 million, which led to an improved margin outlook for FY 2026 [2]. - GAAP gross profit was reported at $282.1 million, with net income of $50.2 million and operating income of $70.4 million [2]. - The free cash flow margin was approximately 24% over the last 12 months, and the company repurchased about 690,000 shares for approximately $100 million during the quarter, with $400 million remaining in its share repurchase program [2]. Revenue Outlook - Following the strong Q2 results, Paylocity raised its fiscal 2026 revenue outlook to a range of $1.732 billion to $1.742 billion, with recurring and other revenue guidance adjusted to $1.620 billion to $1.630 billion [3]. Company Overview - Paylocity offers cloud-based human capital management, spend management solutions, and payroll software, serving the workforce across the United States, along with client services, implementation & training, and tax and regulatory services [4].