Paylocity Aims for 8% Headcount Growth, $1.7B Revenue by 2026, Launches New Finance Platform

Paylocity reported an 8% headcount growth and a $1.7B revenue target for fiscal 2026. The company's new finance platform has been launched, and executive chairman Steven R. Beauchamp stated that the platform's differentiated value proposition has driven recurring revenue growth.

Paylocity Holding Corporation (PCTY) reported robust financial results for the fourth quarter of 2025, with revenue growth driven by a 12% year-over-year increase in total revenue and a 14% growth in recurring and other revenue. The company's adjusted EBITDA for Q4 also exceeded analyst expectations by $130.70 million, compared to the consensus estimate of $121.40 million [1].

Paylocity's strong performance was attributed to a 7% increase in its client base and a rise in average revenue per client. The company's new platform, Paylocity for Finance, was launched to expand the platform's reach into the Office of the CFO, unifying HR and Finance through a single system of record. This strategic move aims to enhance visibility, improve efficiency, and drive value through increased adoption across teams [2].

Looking ahead, Paylocity expects Q1 2026 revenue to range between $397.5 million and $402.5 million, representing a 10% growth over the same period in 2025. The company forecasts FY 2026 recurring revenue to be between $1.597 billion and $1.612 billion, with total revenue expected to range between $1.707 billion and $1.722 billion. Adjusted EBITDA for FY 2026 is anticipated to be between $608.5 million and $618.5 million [2].

Executive Chairman Steven R. Beauchamp stated that the platform's differentiated value proposition has driven recurring revenue growth. Paylocity also repurchased 800,000 shares of common stock for $150 million during FY 2025, further demonstrating the company's commitment to returning value to shareholders [2].

Analysts maintain a positive outlook on Paylocity, with an average rating of "buy" and a median 12-month price target of $220.00, about 16.5% above its August 4 closing price of $183.61 [1].

References:

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX069232:0-hr-software-maker-paylocity-q4-core-profit-beats-estimates/
[2] https://investors.paylocity.com/news-releases/news-release-details/paylocity-announces-fourth-quarter-and-full-fiscal-year-2025