Paylocity Q4 adjusted EBITDA beats estimates, forecasts 2027 revenue growth

Paylocity Holding

04/08/2026 21:27

Overview
US cloud HCM software provider's fiscal Q4 revenue rose 11% yr/yr
Adjusted EBITDA and adjusted operating income for Q4 beat analyst expectations
Company repurchased $398.1 mln of stock in fiscal 2026

Outlook
Paylocity sees Q1 2027 total revenue between $439.5 mln and $444.5 mln
Company expects FY 2027 total revenue of $1.88 bln to $1.895 bln
Paylocity expects FY 2027 adjusted EBITDA of $690 mln to $700 mln

Result Drivers
CLIENT BASE EXPANSION - Co said growth was driven by a roughly 7% increase in its client base and higher average revenue per client
PRODUCT SUITE EXPANSION - Launch of Ignite AI and acquisition of Grayscale Labs expanded product offerings and AI-powered recruiting capabilities
CASH FLOW IMPROVEMENT - Co reported continued growth in cash flows, with higher operating and free cash flow margins

Company press release: ID:nGNX6YNGQQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Income
 
$60.30 mln
 
Q4 Adjusted EBITDA
Beat
$145.50 mln
$131.60 mln (20 Analysts)
Q4 Adjusted operating income
Beat
$120.20 mln
$109.38 mln (19 Analysts)
Q4 Operating income
 
$84.40 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Paylocity Holding Corp is $143.00, about 2.3% above its August 3 closing price of $139.77
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)