Paylocity tops Q1 profit estimates and raises fiscal 2027 outlook
Adjusted EPS of $2.09 topped the $1.94 consensus estimate, and revenue of $451.7 million was in line with the $451.92 million estimate. The company raised its fiscal 2027 revenue and profitability forecast.
Key takeaways
- Paylocity (PCTY) reported first-quarter fiscal 2027 total revenue of $451.7 million, up 10.7% from a year earlier, and adjusted earnings of $2.09 per share, against a $1.94 consensus estimate. The company raised its fiscal 2027 revenue and profitability guidance. Recurring and other revenue rose 12.0% to $424.5 million.
Paylocity (PCTY) reported first-quarter fiscal 2027 total revenue of $451.7 million, up 10.7% from a year earlier, and raised its full-year forecast. Adjusted earnings of $2.09 per share topped the $1.94 consensus, while revenue was in line with the $451.92 million consensus. Shares rose 1.2% at 9:40 a.m. ET, from a $169.57 close.
Here's how the company did:
- Revenue: $451.7 million vs. $408.2 million a year earlier
- Adjusted EPS: $2.09 per share vs. $1.94 expected
- GAAP net income: $57.6 million, or $1.07 per share, vs. $48.0 million, or $0.86 per share, a year earlier
Recurring and other revenue was $424.5 million, up 12.0% from the first quarter of fiscal 2026. Interest income on funds held for clients made up the rest of total revenue.
Non-GAAP operating income was $133.9 million, compared with $121.2 million a year earlier. Adjusted EBITDA was $159.5 million, up from $146.4 million.
CEO Toby Williams said the strong first quarter and momentum into the heart of selling season are driving a strong increase to fiscal 27 guidance across revenue and profitability.
Guidance for fiscal 2027
For the second quarter, the company expects recurring and other revenue of $423.0 million to $428.0 million, about 10% growth. It expects total revenue of $452.5 million to $457.5 million, about 9% growth, and adjusted EBITDA of $152.5 million to $156.5 million.
For the full fiscal year, the company expects recurring and other revenue of $1.792 billion to $1.807 billion, about 9% growth. It expects total revenue of $1.910 billion to $1.925 billion, about 8% growth, and adjusted EBITDA of $711.5 million to $721.5 million.
Cash and capital returns
The company repurchased $152.5 million, or 1.1 million shares, in the quarter. Since May 2024 it has repurchased $850.2 million, or 5.7 million shares.
It completed its acquisition of Aidora Inc. in July 2026 to expand its AI-powered leave management capabilities. Acquisitions used $10.6 million, net of cash acquired, in the quarter.
Net cash from operating activities was $79.7 million, compared with $86.5 million a year earlier. For the trailing twelve months, free cash flow was $416.7 million, or 23.0% of total revenue. Cash and cash equivalents totaled $194.5 million at Sept. 30, and long-term debt was $131.3 million, all borrowings under its credit facility.