Paylocity

The New York Jets Select Paylocity as its Official HCM Platform

Content Import — Thu, 10 Sep 2026 13:00:41 +0000

The New York Jets Select Paylocity as its Official HCM Platform Content Import Sep 10, 2026

The New York Jets Select Paylocity as its Official HCM Platform

Sep 10, 2026

The Jets will use Paylocity to manage HR, payroll and spend through one platform

SCHAUMBURG, Ill., Sept. 10, 2026 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of HCM, Finance, and IT solutions, today announced the New York Jets selected Paylocity as its HCM solution, naming Paylocity the official HCM platform of the organization.

The New York Jets selected Paylocity for its intuitive user experience, responsive service model, and ability to support its growing workforce during the NFL season. The organization uses Paylocity to manage HR, payroll, and spend management on a single platform.

“We selected Paylocity because we wanted a more connected way to manage HR, payroll and spend across our organization,” said Jeff Fernandez, Senior Vice President, Business Development & Ventures of the New York Jets. “Since implementation, we’ve been able to make large-scale employee updates more easily, prepare for seasonal staffing increases and improve workforce reporting. We’re excited to continue building on that foundation with Paylocity.”

“The New York Jets are an iconic franchise with a strong commitment to their people and organization,” said Allison Windon, Vice President of Marketing for Paylocity. “We're proud they’ve chosen Paylocity and look forward to supporting their team for years to come.”

Paylocity will also serve as an official partner of the New York Jets.

About Paylocity

Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy-to-use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection—with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.

About the New York Jets

The New York Jets are a professional American football team competing in the National Football League’s American Football Conference East division. Established in 1960, the franchise plays its home games at MetLife Stadium in East Rutherford, New Jersey, and operates its headquarters and training facility at the Atlantic Health Jets Training Center in Florham Park, New Jersey. For more information, visit www.newyorkjets.com.

CONTACT: 
Nicole Andergard Reddy
nreddy@paylocity.com
503-855-7385

The Jets will use Paylocity to manage HR, payroll and spend through one platform SCHAUMBURG, Ill., Sept. 10, 2026 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of HCM, Finance, and IT solutions, today announced the New York Jets selected Paylocity as its HCM solution, naming

Justin Donlon

albertjoshua.uy — Fri, 07 Aug 2026 18:10:40 +0000

Justin Donlon albertjoshua.uy Aug 7, 2026

Justin Donlon

Vice President of IT and Enterprise Applications

As Vice President of IT and Enterprise Applications at Paylocity, I lead the teams responsible for the technology platforms that power our internal business operations. I partner closely with leaders across the organization to deliver innovative, scalable solutions that support our employees, enable business growth, and help our teams provide exceptional experiences for our customers.

I bring nearly 20 years of enterprise technology leadership experience across public software and SaaS companies, with expertise in enterprise applications, analytics, and large-scale business transformation. Before joining Paylocity, I served as Vice President of Enterprise Applications and Data at Progress Software, where I led a global organization responsible for enterprise applications, data, and operations. Earlier in my career at CarGurus, I helped modernize the company's lead-to-cash technology ecosystem, creating a scalable foundation to support its continued growth. Throughout my career, I've enjoyed partnering with business leaders to translate strategy into technology solutions that drive efficiency, innovation, and long-term success.

Outside of work, my wife, Kerry, and I enjoy life in the Charleston, South Carolina, area with our two teenagers, Judah and Mykala, along with our three dogs and two cats who keep things entertaining. When I'm not spending time with family, you'll likely find me exploring on two wheels, whether that's on my adventure motorcycle or my dirt bike.

Natalie Abbatacola

albertjoshua.uy — Fri, 07 Aug 2026 18:06:58 +0000

Natalie Abbatacola albertjoshua.uy Aug 7, 2026

Natalie Abbatacola

Vice President of Human Resources

As Vice President of Human Resources at Paylocity, I lead our global HR Partner organization, which includes HR Business Partners and People Relations Partners. My team works closely with leaders across the business to align our people strategy with business priorities, helping build strong teams, develop leaders, and foster a culture where employees can thrive. I'm passionate about creating an exceptional employee experience and ensuring Paylocity remains a place where people feel supported, empowered, and inspired to do their best work.

I bring more than 20 years of HR leadership experience partnering with organizations across the technology industry to drive business transformation, strengthen organizational effectiveness, and develop high-performing teams. Before joining Paylocity, I led the Global People Strategy Partner organization at Proofpoint, supporting employees across 43 countries. Prior to that, I spent 13 years at CDW leading the global HR business partner function. Throughout my career, I've focused on helping organizations navigate growth and change through talent strategy, leadership development, organizational design, change management, and mergers and acquisitions. What I enjoy most is partnering with leaders to unlock the potential of their people and create environments where both employees and the business can succeed.

I earned a bachelor's degree in Communications from Carthage College, where I was a Division III volleyball player. Today, I enjoy mentoring Carthage graduates as they begin their professional careers.

Outside of work, my husband, Matt, and I stay busy with our blended family of five children. Much of our free time is spent cheering from the sidelines at baseball, basketball, and football games. When I have the chance, you'll find me at a cycling class, enjoying the outdoors, or planning our next family adventure.

Paylocity Announces Fourth Quarter and Fiscal 2026 Financial Results

Content Import — Tue, 04 Aug 2026 20:05:36 +0000

Paylocity Announces Fourth Quarter and Fiscal 2026 Financial Results Content Import Aug 4, 2026

Paylocity Announces Fourth Quarter and Fiscal 2026 Financial Results

Aug 4, 2026

General Releases

General

Q4 2026 Recurring & Other Revenue of $415.6 million, up 12.4% year-over-year
Q4 2026 Total Revenue of $444.7 million, up 11.0% year-over-year
FY 2026 Recurring & Other Revenue of $1.651 billion, up 12.2% year-over-year
FY 2026 Total Revenue of $1.771 billion, up 11.0% year-over-year
Continued growth in cash flows in FY 2026 - net cash provided by operating activities margin of 30.1% and free cash flow margin of 24.2%
Repurchased $398.1 million or 2.8 million shares of common stock during FY 2026; $697.8 million or 4.6 million shares repurchased since May 2024

SCHAUMBURG, Ill., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading cloud-based provider of HCM, finance and IT software solutions, today announced financial results for the fourth quarter and fiscal 2026, which ended June 30, 2026.

“Fiscal 26 was a strong year as our differentiated position in the market was reflected in solid sales and operational execution, helping to drive 12.2% recurring and other revenue growth and 11.0% total revenue growth. Our durable growth was driven by the continued expansion of average revenue per client and a roughly 7% increase in our client base – while also increasing profitability across our organization. As we continue to expand our product suite, a critical component of our strategy is driven by the launch of Ignite AI, which is designed to help accelerate productivity for HR, Finance, and IT teams across companies of all sizes and industries. Our approach to AI remains focused on driving value for our clients - Ignite AI is woven directly into core workflows to help clients complete tasks faster and surface insights more quickly. In Fiscal 26 we continued to expand our product suite with the acquisition of Grayscale, which expands our recruiting capabilities with AI-powered automation that helps employers engage with candidates earlier and faster, and the announcement of Paylocity Retirement, which helps employers reduce manual work and provide their employees easier access to their retirement savings. Additionally, we launched Elevate Solutions, which pairs our unified platform with dedicated payroll and HR teams who work directly with clients to lighten their administrative workload, allowing them to focus more time on strategic priorities. We also continue to return capital to shareholders by repurchasing $398.1 million or approximately 2.8 million shares of our stock in Fiscal 26. I would also like to thank all of our employees for their efforts supporting our clients, and congratulate our teams for another successful year,” said Toby Williams, President and Chief Executive Officer of Paylocity.

Key Recent Achievements

FY 2026 Recurring & other revenue of $1.651 billion, up 12.2% year-over-year.
FY 2026 Total revenue of $1.771 billion, up 11.0% year-over-year.
FY 2026 GAAP net income increased 18.8% to $269.7 million from $227.1 million in FY 2025 and $4.92 per diluted share from $4.02 in FY 2025, an increase of 22.4%.
FY 2026 Adjusted EBITDA, a non-GAAP measure, increased 12.3% to $654.9 million from $583.0 million in FY 2025, or 37.0% of Total revenue compared to 36.5% in FY 2025.
FY 2026 Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, increased 16.4% to $534.9 million from $459.6 million in FY 2025, or 32.4% of Recurring and other revenue compared to 31.2% in FY 2025.
Completed acquisition of Grayscale Labs, Inc. in April 2026 to expand AI-powered recruiting capabilities

Fourth Quarter Fiscal 2026 Financial Highlights

Revenue:

Recurring & other revenue was $415.6 million, an increase of 12.4% from the fourth quarter of fiscal 2025.
Total revenue was $444.7 million, an increase of 11.0% from the fourth quarter of fiscal 2025.

Operating Income:

GAAP operating income was $84.4 million and non-GAAP operating income was $120.2 million in the fourth quarter of fiscal 2026, compared to GAAP operating income of $66.2 million and non-GAAP operating income of $105.6 million in the fourth quarter of fiscal 2025.

Net Income:

GAAP net income was $60.3 million or $1.12 per share in the fourth quarter of fiscal 2026 based on 54.0 million diluted weighted average common shares outstanding, compared to $48.6 million or $0.86 per share in the fourth quarter of fiscal 2025 based on 56.3 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

Adjusted EBITDA, a non-GAAP measure, was $145.5 million in the fourth quarter of fiscal 2026 compared to $130.7 million in the fourth quarter of fiscal 2025.
Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $116.4 million in the fourth quarter of fiscal 2026 compared to $99.9 million in the fourth quarter of fiscal 2025.

Fiscal 2026 Financial Highlights

Revenue:

Recurring & other revenue was $1.651 billion, an increase of 12.2% from fiscal 2025.
Total revenue was $1.771 billion, an increase of 11.0% from fiscal 2025.

Operating Income:

GAAP operating income was $386.0 million and non-GAAP operating income was $557.3 million in fiscal 2026, compared to GAAP operating income of $304.0 million and non-GAAP operating income of $484.4 million in fiscal 2025.

Net Income:

GAAP net income was $269.7 million or $4.92 per share for fiscal 2026, based on 54.8 million diluted weighted average common shares outstanding, compared to $227.1 million or $4.02 per share for fiscal 2025 based on 56.6 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

Adjusted EBITDA, a non-GAAP measure, was $654.9 million for fiscal 2026 compared to $583.0 million for fiscal 2025.
Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $534.9 million for fiscal 2026 compared to $459.6 million for fiscal 2025.

Balance Sheet and Cash Flow:

Cash and cash equivalents totaled $271.9 million at the end of fiscal 2026.
Long-term debt totaled $81.3 million as of the end of fiscal 2026, representing borrowings under our credit facility. This reflects approximately $81.3 million repaid on our outstanding balance during fiscal 2026.
Net cash provided by operating activities for fiscal 2026 was $533.3 million or 30.1% of Total revenue compared to $418.2 million or 26.2% of Total revenue for fiscal 2025.
Free cash flow, a non-GAAP measure, was $427.8 million or 24.2% of Total revenue for fiscal 2026 compared to $342.8 million or 21.5% of Total revenue for fiscal 2025.
Free cash flow excluding interest income on funds held for clients, a non-GAAP measure, was $307.8 million or 18.6% of Recurring and other revenue for fiscal 2026 compared to $219.3 million or 14.9% of Recurring and other revenue for fiscal 2025.

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Change in Deferred Contract Costs Benefit Period

Beginning in fiscal 2027 we will amortize deferred contract costs over an 8-year useful life, an increase from our current 7-year convention. This prospective change is expected to increase fiscal 2027 Adjusted EBITDA margins by approximately 120–140 basis points, depending on business performance, and timing and volume of sales and client implementations, and is reflected in the guidance below.

Business Outlook

Based on information available as of August 4, 2026, Paylocity is issuing guidance for the first quarter and full fiscal 2027 as indicated below.

First Quarter 2027:

Recurring and other revenue is expected to be in the range of $414.0 million to $419.0 million, which represents approximately 10% growth over fiscal 2026 first quarter recurring and other revenue.
Total revenue is expected to be in the range of $439.5 million to $444.5 million, which represents approximately 8% growth over fiscal 2026 first quarter total revenue.
Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $152.0 million to $156.0 million.
Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $126.5 million to $130.5 million.

Fiscal 2027:

Recurring and other revenue is expected to be in the range of $1.777 billion to $1.792 billion, which represents approximately 8% growth over fiscal 2026 recurring and other revenue.
Total revenue is expected to be in the range of $1.880 billion to $1.895 billion, which represents approximately 7% growth over fiscal 2026 total revenue.
Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $690.0 million to $700.0 million.
Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $587.0 million to $597.0 million.

We are unable to reconcile forward-looking non-GAAP financial measures included in our guidance to their directly comparable GAAP financial measures because the information which is needed to complete the reconciliations is unavailable at this time without unreasonable effort.

Conference Call Details

Paylocity will host a conference call to discuss its fourth quarter and full fiscal 2026 results today at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through https://investors.paylocity.com/events-and-presentations where you will be provided with dial in details. A replay of the call will be available and archived via webcast at https://investors.paylocity.com/.

About Paylocity

Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy-to-use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection-with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.

Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures when reporting and discussing its financial results, including the financial measures in this release that are designated as being “non-GAAP.” Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance, as they provide investors with the company’s view of its financial performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance, including comparisons of current results to prior periods’ results by excluding items the company does not believe reflect fundamental business performance and are not representative or indicative of its results of operations. Non-GAAP financial measures have limitations as an analytical tool and other companies may define their non-GAAP financial measures differently than we do. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in the accompanying tables to this release, as well as the definitions of those non-GAAP measures following such tables.

Safe Harbor/Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, future financial position and performance, anticipated results of operations, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include statements about management's estimates regarding future revenues and financial performance, and other statements about management’s beliefs, intentions or goals and are expressed in good faith and believed to be reasonable at the time such statements are made. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on such statements. These forward-looking statements involve risks and uncertainties, many of which are beyond Paylocity’s control, that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the general economic conditions in regions in which Paylocity does business, changes in interest rates, business disruptions, reductions in employment and increases in business failures that have occurred or may occur in the future; Paylocity’s ability to leverage forms of artificial intelligence and machine learning in its technology, which may be constrained by current and future laws, regulations, interpretive positions or standards governing new and evolving technologies and ethical considerations that could restrict or impose burdensome and costly requirements on its ability to continue to leverage data in innovative ways; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; challenges related to cybersecurity threats and evolving cybersecurity regulations; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; risks related to acquisitions and investments in other businesses and technologies; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets; Paylocity’s ability to protect and defend its intellectual property and its use of open source software in its products; the risk that Paylocity’s security measures are compromised or a threat actor gains unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; the possibility that Paylocity may be adversely affected by other economic, business, and/or competitive factors; and other risks and potential factors that could affect Paylocity’s business and financial results that are identified in Paylocity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on August 6, 2025, as well as any revisions or supplements to the information in subsequent reports filed or furnished to the SEC. These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and unless legally required, Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.


PAYLOCITY HOLDING CORPORATION Consolidated Balance Sheets (in thousands, except per share data)

	June 30,
	2025		2026
Assets
Current assets:
Cash and cash equivalents	$	398,070	$	271,917
Accounts receivable, net		41,642		50,093
Deferred contract costs		117,177		132,960
Prepaid expenses and other		50,943		57,582
Total current assets before funds held for clients		607,832		512,552
Funds held for clients		2,704,137		3,210,504
Total current assets		3,311,969		3,723,056
Capitalized internal-use software, net		132,317		143,594
Property and equipment, net		54,210		71,403
Operating lease right-of-use assets		35,997		33,137
Intangible assets, net		92,671		86,140
Goodwill		343,100		378,964
Long-term deferred contract costs		393,671		426,226
Long‑term prepaid expenses and other		7,739		10,363
Deferred income tax assets		17,754		11,475
Total assets	$	4,389,428	$	4,884,358

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	17,347	$	10,944
Accrued expenses		193,081		200,279
Total current liabilities before client fund obligations		210,428		211,223
Client fund obligations		2,694,842		3,209,015
Total current liabilities		2,905,270		3,420,238
Long-term debt		162,500		81,250
Long-term operating lease liabilities		46,772		42,200
Other long-term liabilities		8,580		12,930
Deferred income tax liabilities		32,559		106,323
Total liabilities	$	3,155,681	$	3,662,941
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2025 and June 30, 2026	$	—	$	—
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2025 and June 30, 2026; 55,366 shares issued and outstanding at June 30, 2025 and 53,271 shares issued and outstanding at June 30, 2026		55		53
Additional paid-in capital		327,518		52,271
Retained earnings		900,583		1,170,324
Accumulated other comprehensive income (loss)		5,591		(1,231	)
Total stockholders' equity	$	1,233,747	$	1,221,417
Total liabilities and stockholders’ equity	$	4,389,428	$	4,884,358

PAYLOCITY HOLDING CORPORATION Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data)

	Three Months Ended June 30,					Year Ended June 30,
	2025		2026			2025		2026
Revenues:
Recurring and other revenue	$	369,886	$	415,594		$	1,471,801	$	1,651,362
Interest income on funds held for clients		30,851		29,140			123,420		119,964
Total revenues		400,737		444,734			1,595,221		1,771,326
Cost of revenues		128,865		144,350			498,223		545,824
Gross profit		271,872		300,384			1,096,998		1,225,502
Operating expenses:
Sales and marketing		100,878		103,700			374,216		393,878
Research and development		51,040		55,528			205,851		221,389
General and administrative		53,727		56,734			212,907		224,242
Total operating expenses		205,645		215,962			792,974		839,509
Operating income		66,227		84,422			304,024		385,993
Other income		572		753			5,039		1,310
Income before income taxes		66,799		85,175			309,063		387,303
Income tax expense		18,193		24,872			81,936		117,562
Net income	$	48,606	$	60,303		$	227,127	$	269,741
Other comprehensive income (loss), net of tax		1,882		(2,445	)		6,527		(6,822	)
Comprehensive income	$	50,488	$	57,858		$	233,654	$	262,919

Net income per share:
Basic	$	0.88	$	1.13		$	4.08	$	4.99
Diluted	$	0.86	$	1.12		$	4.02	$	4.92

Weighted-average shares used in computing net income per share:
Basic		55,322		53,491			55,649		54,082
Diluted		56,255		53,964			56,550		54,770

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three and twelve months ended June 30 are included in the above line items:


	Three Months Ended June 30,				Year Ended June 30,
	2025		2026		2025		2026
Cost of revenues	$	3,595	$	3,452	$	19,314	$	16,914
Sales and marketing		7,804		6,089		36,897		32,857
Research and development		7,352		5,661		38,667		32,827
General and administrative		13,267		13,035		55,185		61,549
Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises	$	32,018	$	28,237	$	150,063	$	144,147

PAYLOCITY HOLDING CORPORATION Consolidated Statements of Cash Flows (in thousands)

	Year Ended June 30,
	2024			2025			2026
Cash flows from operating activities:
Net income	$	206,766		$	227,127		$	269,741
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation expense		146,032			142,820			138,657
Depreciation and amortization expense		76,426			99,636			111,797
Deferred income tax expense (benefit)		27,835			(3,208	)		82,947
Provision for credit losses		1,565			1,382			1,905
Net amortization of premiums (accretion of discounts) on available-for-sale securities		(4,378	)		(2,025	)		(1,498	)
Other		(962	)		1,045			1,350
Changes in operating assets and liabilities:
Accounts receivable		(8,186	)		(3,557	)		(7,929	)
Deferred contract costs		(70,337	)		(62,922	)		(47,933	)
Prepaid expenses and other		(5,829	)		(7,819	)		(11,205	)
Accounts payable		2,423			7,287			(6,472	)
Accrued expenses and other		13,315			18,460			1,892
Net cash provided by operating activities		384,670			418,226			533,252
Cash flows from investing activities:
Purchases of available-for-sale securities		(304,465	)		(260,997	)		(271,378	)
Proceeds from sales and maturities of available-for-sale securities		294,438			160,067			272,115
Capitalized internal-use software costs		(60,726	)		(62,402	)		(69,302	)
Purchases of property and equipment		(18,028	)		(13,073	)		(36,152	)
Acquisitions of businesses, net of cash and funds held for clients acquired		(12,031	)		(277,851	)		(49,183	)
Other investing activities		(1,079	)		(1,292	)		(893	)
Net cash used in investing activities		(101,891	)		(455,548	)		(154,793	)
Cash flows from financing activities:
Net change in client fund obligations		325,056			(297,923	)		514,173
Borrowings under credit facility		—			325,000			—
Repayment of credit facility		—			(162,500	)		(81,250	)
Repurchases of common shares		(150,000	)		(149,638	)		(398,113	)
Proceeds from employee stock purchase plan		19,143			19,682			18,222
Taxes paid related to net share settlement of equity awards		(52,549	)		(60,034	)		(43,686	)
Other financing activities		(72	)		(408	)		(365	)
Net cash provided by (used in) financing activities		141,578			(325,821	)		8,981
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents		424,357			(363,143	)		387,440
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of year		2,421,312			2,845,669			2,482,526
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of year	$	2,845,669		$	2,482,526		$	2,869,966
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment and internal-use software, accrued but not paid	$	1,118		$	1,833		$	1,328
Liabilities assumed for acquisitions	$	378		$	55,730		$	4,037
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	$	494		$	12,758		$	5,570
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	$	401,811		$	398,070		$	271,917
Funds held for clients' cash and cash equivalents		2,443,858			2,084,456			2,598,049
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$	2,845,669		$	2,482,526		$	2,869,966

Paylocity Holding Corporation Reconciliation of GAAP to non-GAAP Financial Measures (In thousands except per share data)

	Three Months Ended June 30,				Year Ended June 30,
	2025		2026		2025		2026
Reconciliation from Gross profit to Adjusted gross profit:
Gross profit	$	271,872	$	300,384	$	1,096,998	$	1,225,502
Amortization of capitalized internal-use software costs		16,090		18,316		59,948		70,496
Amortization of certain acquired intangibles		4,606		4,990		16,168		18,553
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		3,595		3,452		19,314		16,914
Other items (1)		584		354		1,365		696
Adjusted gross profit	$	296,747	$	327,496	$	1,193,793	$	1,332,161

	Three Months Ended June 30,				Year Ended June 30,
	2025		2026		2025		2026
Reconciliation from Operating income to Non-GAAP Operating income:
Operating income	$	66,227	$	84,422	$	304,024	$	385,993
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		32,018		28,237		150,063		144,147
Amortization of acquired intangibles		5,268		5,797		19,120		21,331
Other items (2)		2,109		1,744		11,182		5,815
Non-GAAP Operating income	$	105,622	$	120,200	$	484,389	$	557,286

	Three Months Ended June 30,					Year Ended June 30,
	2025			2026		2025			2026
Reconciliation from Net income to Non-GAAP Net income:
Net income	$	48,606		$	60,303	$	227,127		$	269,741
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		32,018			28,237		150,063			144,147
Amortization of acquired intangibles		5,268			5,797		19,120			21,331
Other items (2)		2,109			1,744		11,182			5,815
Income tax effect on adjustments (3)		(47	)		3,328		(1,842	)		14,108
Non-GAAP Net income	$	87,954		$	99,409	$	405,650		$	455,142

	Three Months Ended June 30,				Year Ended June 30,
	2025		2026		2025		2026
Calculation of Non-GAAP Net income per share:
Non-GAAP Net income	$	87,954	$	99,409	$	405,650	$	455,142
Diluted weighted-average number of common shares		56,255		53,964		56,550		54,770
Non-GAAP Net income per share	$	1.56	$	1.84	$	7.17	$	8.31

	Three Months Ended June 30,						Year Ended June 30,
	2025			2026			2025			2026
Reconciliation from Net income to Adjusted EBITDA and Adjusted EBITDA excluding interest income on funds held for clients
Net income	$	48,606		$	60,303		$	227,127		$	269,741
Interest expense		3,371			1,130			13,053			5,828
Income tax expense		18,193			24,872			81,936			117,562
Depreciation and amortization expense		26,452			29,243			99,636			111,797
EBITDA		96,622			115,548			421,752			504,928
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		32,018			28,237			150,063			144,147
Other items (2)		2,109			1,744			11,182			5,815
Adjusted EBITDA	$	130,749		$	145,529		$	582,997		$	654,890
Interest income on funds held for clients	$	(30,851	)	$	(29,140	)	$	(123,420	)	$	(119,964	)
Adjusted EBITDA excluding interest income on funds held for clients	$	99,898		$	116,389		$	459,577		$	534,926

	Three Months Ended June 30,				Year Ended June 30,
	2025		2026		2025		2026
Reconciliation of Non-GAAP sales and marketing:
Sales and marketing	$	100,878	$	103,700	$	374,216	$	393,878
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		7,804		6,089		36,897		32,857
Less: Other items (2)		320		258		1,544		760
Non-GAAP sales and marketing	$	92,754	$	97,353	$	335,775	$	360,261

	Three Months Ended June 30,				Year Ended June 30,
	2025		2026		2025		2026
Reconciliation of Non-GAAP total research and development:
Research and development	$	51,040	$	55,528	$	205,851	$	221,389
Add: Capitalized internal-use software costs		16,839		20,201		62,402		69,302
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		7,352		5,661		38,667		32,827
Less: Other items (2)		452		528		2,121		1,720
Non-GAAP total research and development	$	60,075	$	69,540	$	227,465	$	256,144

	Three Months Ended June 30,				Year Ended June 30,
	2025		2026		2025		2026
Reconciliation of Non-GAAP general and administrative:
General and administrative	$	53,727	$	56,734	$	212,907	$	224,242
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		13,267		13,035		55,185		61,549
Less: Amortization of certain acquired intangibles		662		807		2,952		2,778
Less: Other items (2)		753		604		6,152		2,639
Non-GAAP general and administrative	$	39,045	$	42,288	$	148,618	$	157,276

	Year Ended June 30,
	2025			2026
Reconciliation of Free cash flow, Free cash flow excluding interest income on funds held for clients and Adjusted free cash flow excluding interest income on funds held for clients:
Net cash provided by operating activities	$	418,226		$	533,252
Capitalized internal-use software costs		(62,402	)		(69,302	)
Purchases of property and equipment		(13,073	)		(36,152	)
Free cash flow	$	342,751		$	427,798
Less: Interest income on funds held for clients		(123,420	)		(119,964	)
Free cash flow excluding interest income on funds held for clients	$	219,331		$	307,834
Cash paid for other items (4)		8,032			8,297
Adjusted free cash flow excluding interest income on funds held for clients	$	227,363		$	316,131

(1) Represents acquisition-related costs and severance cost adjustments related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.

(2) Represents acquisition and nonrecurring transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.

(3) Includes the income tax effect on non-GAAP net income adjustments related to stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, amortization of acquired intangibles and other items, which include acquisition and nonrecurring transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.

(4) Represents cash paid for acquisition and nonrecurring transaction-related costs and severance costs related to certain roles that have been eliminated.

Definitions of our Non-GAAP Measures

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Excluding Interest Income on Funds Held for Clients, and Adjusted EBITDA Excluding Interest Income on Funds Held for Clients Margin

Adjusted EBITDA is calculated as net income before interest expense, income tax expense, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenues.

Adjusted EBITDA excluding interest income on funds held for clients is calculated in the same manner as Adjusted EBITDA and is further adjusted to eliminate interest income on funds held for clients. Adjusted EBITDA excluding interest income on funds held for clients margin is Adjusted EBITDA excluding interest income on funds held for clients divided by recurring and other revenue.

Adjusted Gross Profit and Adjusted Gross Profit Margin

Adjusted gross profit is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of capitalized internal-use software costs and certain acquired intangibles and other items as described above in this release.

Adjusted gross profit margin is calculated as adjusted gross profit as described in the preceding sentence divided by total revenues.

Non-GAAP Operating Income, Non-GAAP Net Income, and Non-GAAP Income Per Share

Non-GAAP operating income is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described above in this release.

Non-GAAP net income and non-GAAP net income per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described above in this release, including the income tax effect on these items.

Non-GAAP Sales and Marketing Expense, Non-GAAP Sales and Marketing Expense Margin, Non-GAAP Total Research and Development, Non-GAAP Total Research and Development Margin, Non-GAAP General and Administrative Expense, and Non-GAAP General and Administrative Expense Margin

Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Non-GAAP sales and marketing margin is calculated by dividing non-GAAP sales and marketing by total revenues.

Non-GAAP total research and development is adjusted for capitalized internal-use software costs paid and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described above in this release. Non-GAAP total research and development margin is calculated by dividing non-GAAP total research and development by total revenues.

Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of certain acquired intangibles and other items as described above in this release. Non-GAAP general and administrative margin is calculated by dividing non-GAAP general and administrative expense by total revenues.

Free Cash Flow, Free Cash Flow Margin, Free Cash Flow Excluding Interest on Funds Held for Clients, Free Cash Flow Excluding Interest on Funds Held for Clients Margin, Adjusted Free Cash Flow Excluding Interest on Funds Held for Clients and Adjusted Free Cash Flow Excluding Interest on Funds Held for Clients Margin

Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs and purchases of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenues.

Free cash flow excluding interest income on funds held for clients is defined in the same manner as free cash flow but also excludes interest income on funds held for clients. Free cash flow margin excluding interest income on funds held for clients is calculated by dividing free cash flow excluding interest income on funds held for clients by recurring and other revenue.

Adjusted free cash flow excluding interest income on funds held for clients is defined in the same manner as free cash flow excluding interest income on funds held for clients plus cash paid for other items as described above in this release. Adjusted free cash flow margin excluding interest income on funds held for clients is calculated by dividing adjusted free cash flow excluding interest income on funds held for clients by recurring and other revenue.

Q4 2026 Recurring & Other Revenue of $415.6 million, up 12.4% year-over-year Q4 2026 Total Revenue of $444.7 million, up 11.0% year-over-year FY 2026 Recurring & Other Revenue of $1.651 billion, up 12.2% year-over-year FY 2026 Total Revenue of $1.771 billion, up 11.0% year-over-year Continued

Craig Maurer

nathalie.lustanas — Fri, 31 Jul 2026 18:09:03 +0000

Craig Maurer nathalie.lustanas Jul 31, 2026

Craig Maurer

FT Partners

Craig.Maurer@ftpartners.com

Paylocity Launches Ignite AI—Redefining Industry AI Leadership

Content Import — Tue, 21 Jul 2026 13:00:50 +0000

Paylocity Launches Ignite AI—Redefining Industry AI Leadership Content Import Jul 21, 2026

Paylocity Launches Ignite AI—Redefining Industry AI Leadership

Jul 21, 2026

General Releases

General

New agents automate work across the platform, while the centralized Paylocity Ignite AI Hub provides control, measures impact, and manages adoption

SCHAUMBURG, Ill., July 21, 2026 (GLOBE NEWSWIRE) -- Paylocity, a leading provider of HCM, Finance, and IT solutions, today introduced Paylocity Ignite AI, its platform-wide AI with agents that automate manual work, help reduce risk, and enable teams to move faster. Embedded throughout Paylocity’s platform, Ignite AI brings data, insights, and automation into moments where decisions are made and work gets done.

Purpose-Built Agents That Help Teams Take Action

Ignite AI includes new, purpose-built agents that automate tasks across pay, time, recruiting, and other areas where work often slows down.

Answer & Insight Agent

Getting answers from your data today means running reports, exporting spreadsheets, or waiting on someone else to dig them out. And even then, a report shows what happened, not why. Clients told us they need to explore their data on their own terms, because every business asks different questions. The Answer & Insight Agent was built for exactly that: ask a question in natural language and get answers in real time, pulling from your company data across the platform.

Hire faster by understanding exactly where the recruiting funnel breaks down
Proactively manage overtime in real time before it becomes a cost problem
Visualize turnover trends in a clear chart with actionable insights ready to share with senior leaders
Analyze what is driving costs across locations, teams, and shifts
Spot the pay, performance, or retention risks hiding across the workforce
Understand where onboarding stalls and what it's costing in productivity

The real power is in the back-and-forth: ask follow-ups, visualize trends, and go deeper. Because the agent isn’t built around a fixed set of questions, it goes wherever your thinking does. It turns blind spots into real-time, strategic decisions.

Payroll Analysis Agent

Reviewing every anomaly in a large payroll before the deadline takes hours, and errors still slip through. The Payroll Analysis Agent helps payroll teams catch issues before submission by:

Surfacing anomalies based on each organization's historical payroll trends
Explaining what changed and why it matters in plain language
Focusing review on the areas that need attention

Payroll admins spend less time hunting for issues and more time resolving them.

Candidate Fit Agent

High-volume recruiting teams need every advantage to move quickly without sacrificing quality. The Candidate Fit Agent helps recruiters:

Surface candidates for review based on role criteria
Summarize how applicants match role requirements, while flagging criteria that may not be compliant
Reduce time spent sorting and sourcing across large applicant pools

Recruiters stay in control of every hiring decision, spending less time screening and more time engaging candidates.

Ignite AI also includes additional agents that improve data quality and streamline payroll operations, including the Resume Summary Agent, which gives recruiters candidate overviews; the Data Inspection Agent, which detects gaps in employee records and guides resolution before they cause downstream issues; and the Time Correction Agent, which surfaces time errors, requests, and compliance issues so supervisors can resolve them before payroll deadlines. These join a growing set of agentic experiences available today including guided benefits enrollment, expense submission, and accounts payable validation, with additional agents planned across scheduling, candidate engagement, and more.

Managing AI with Confidence

To help organizations scale AI responsibly, Paylocity is introducing the Ignite AI Hub, a centralized dashboard for managing and measuring AI across the organization.

With Ignite AI Hub, leaders can:

Measure business impact and productivity gains
Monitor adoption across teams
Control which agents are active
Identify new opportunities for automation

The Ignite AI Hub provides the visibility and control organizations need to confidently deploy AI while keeping people at the center of decision-making.

Shaped Directly by Clients

Ignite AI was developed alongside clients. Paylocity assembled an advisory group of HR and business leaders to help identify high-impact opportunities, validate real-world use cases, and guide product innovation.

“The way Paylocity is weaving AI across the platform is better than anything I’ve seen in other systems,” said Ryan Zimmerman, VP of Human Resources at POLYWOOD. “I’m so excited by the momentum I’m seeing and to be part of shaping it.”

"It actually feels like I have another team member supporting me," said Genevieve Gonnigan, VP of HR & People and Culture, at Lincoln Park Zoo. "Manual processes are a time suck, and Ignite AI turns things that would be a 5- to 10-minute process into a 30-second question or resolves them on its own."

“Ignite AI is the next evolution of AI at work: embedded across the Paylocity platform, built for every team, and informed by the real-world needs of clients who use it every day,” said Toby Williams, President and CEO of Paylocity. “It brings intelligence and automated action directly into the flow of work, helping organizations move faster, make confident decisions, and unlock greater value from their teams. This is only the beginning of what we're building.”

Learn more about Ignite AI.

About Paylocity

CONTACT: 
Nicole Andergard Reddy
nreddy@paylocity.com

503-855-7385

New agents automate work across the platform, while the centralized Paylocity Ignite AI Hub provides control, measures impact, and manages adoption SCHAUMBURG, Ill., July 21, 2026 (GLOBE NEWSWIRE) -- Paylocity, a leading provider of HCM, Finance, and IT solutions, today introduced Paylocity Ignite

Paylocity announces Q4 FY26 earnings conference call

Content Import — Tue, 14 Jul 2026 20:05:34 +0000

Paylocity announces Q4 FY26 earnings conference call Content Import Jul 14, 2026

Paylocity announces Q4 FY26 earnings conference call

Jul 14, 2026

General Releases

General

SCHAUMBURG, Ill., July 14, 2026 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, Finance, and IT solutions, today announced that it has scheduled a conference call to review its fourth quarter and fiscal 2026 results on Tuesday, August 4^th at 4:00 pm Central Time (5:00 pm Eastern Time).

A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at https://investors.paylocity.com/. To access the call by phone, please click this link, and you will be provided with dial in details.

A replay of the call will be available and archived via webcast at www.paylocity.com. A press release highlighting the Company's results will be issued in advance of the conference call and will be accessible at www.paylocity.com in the investor relations section.

About Paylocity

CONTACT: Ryan Glenn
investors@paylocity.com
www.paylocity.com

Paylocity Acquires AI-Native Aidora to Simplify Leave Management

Content Import — Thu, 09 Jul 2026 13:00:37 +0000

Paylocity Acquires AI-Native Aidora to Simplify Leave Management Content Import Jul 9, 2026

Paylocity Acquires AI-Native Aidora to Simplify Leave Management

Jul 9, 2026

General Releases

General

With Aidora, Paylocity automates one of HR’s most manual and time-consuming compliance processes—giving teams time back and employees a clearer path through leave

SCHAUMBURG, Ill., July 09, 2026 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of HCM, Finance, and IT solutions, today announced the acquisition of Aidora, an AI-native leave management compliance software company built on a natural language interaction model that automates highly regulated leave processes.

Leave policies across federal, state, local, and company levels are getting more complex—driving increased administrative work, higher compliance risk, and rising expectations for timely, personalized support during key life events. Manual HR processes and disconnected systems only add to the problem, creating inefficiencies and inconsistent employee experiences.

Aidora expands Paylocity's leave management capabilities with an AI-native solution that saves HR teams time and provides employees a faster, clearer way to manage leave. For HR teams, AI handles the details—from eligibility to compliance, documentation, and payroll—all in one place. For employees, AI acts as a guide: answering questions, explaining options, and helping them navigate leave step by step. They can engage with it through a natural language interaction model, by voice or text.

“Leave management is one of the most complex and time-consuming processes HR teams deal with today,” said Toby Williams, President and CEO of Paylocity. “Aidora helps take that work off their plate by automating what has traditionally been manual, and giving HR teams more confidence in how they manage leave, while also providing a better employee experience.”

The acquisition reinforces Paylocity’s focus on embedding AI across its platform to create efficiency for HR teams and remove manual work that slows organizations down. It also extends Paylocity's value across its customer base—with particular impact for mid-market and enterprise employers navigating the most complex leave requirements.

Paylocity does not expect the acquisition of Aidora to have a material impact on first quarter or fiscal 2027 financial results. Paylocity will provide financial guidance in the normal course of business in its next earnings release.

About Paylocity

Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy‑to‑use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection—with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.

CONTACT:  
Nicole Andergard Reddy
nreddy@paylocity.com

503-855-7385

With Aidora, Paylocity automates one of HR’s most manual and time-consuming compliance processes—giving teams time back and employees a clearer path through leave SCHAUMBURG, Ill., July 09, 2026 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of HCM, Finance, and IT solutions,

Paylocity Connects Retirement, Payroll, and HR in One Experience

laurie.pedersen — Wed, 10 Jun 2026 13:01:36 +0000

Paylocity Connects Retirement, Payroll, and HR in One Experience laurie.pedersen Jun 10, 2026

Paylocity Connects Retirement, Payroll, and HR in One Experience

Jun 10, 2026

General

Paylocity Retirement brings retirement into the Paylocity suite, helping employers reduce manual work and giving employees easier access to manage their retirement savings

SCHAUMBURG, Ill., June 10, 2026 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of HCM, Finance, and IT solutions, today announced the launch of Paylocity Retirement, a new embedded retirement offering that brings plan administration and employee savings tools directly into the Paylocity HCM suite. Paylocity Retirement embeds Vestwell’s retirement technology seamlessly into the Paylocity platform, combining Vestwell’s industry-leading retirement administration technology with the same Paylocity platform employers already use for payroll and HR. The result is a more streamlined experience for administrators, fewer manual processes, and a simpler way for employees to view and manage their retirement savings.

Retirement benefits are one of the most important parts of an employee’s long-term financial wellbeing, yet many organizations still manage them through disconnected systems, manual file transfers, and separate employee portals. That fragmentation can create extra work for HR teams, increase the risk of errors, and make it harder for employees to engage with their savings.

Paylocity addresses those challenges by embedding retirement into existing payroll and HR workflows. Employers can reduce reconciliation work, help improve contribution accuracy, and give employees self-service access to key retirement actions without sending them to a separate system.

With Paylocity:

Retirement contributions are connected to payroll, helping reduce manual reconciliation and minimize potential errors.
Employers gain centralized visibility into plan activity, contributions, and performance.
Employees can view balances, update contributions, and track progress without leaving Paylocity, making it easier to stay engaged with their savings.
Retirement is accessible in the Paylocity Mobile App, bringing savings tools into the experience employees already use every day.
Employers and employees have access to dedicated retirement specialists for guidance and support.

“Retirement benefits are essential to long-term financial stability, but managing them shouldn’t add complexity to HR’s plate,” said Melissa King, SVP of Products & Technology at Paylocity. “By partnering with Vestwell, we’re giving clients the best of both worlds: the simplicity of managing payroll and retirement in one connected platform, and the confidence of knowing their plan is backed by dedicated retirement expertise.”

“I’m a big believer in everything living in one ecosystem," said Monika Kennedy, HR Director, HydroPeptide. "Being able to manage retirement right inside Paylocity without sending employees to another site is incredibly valuable.”

Paylocity Retirement powered by Vestwell is available now for employers offering defined contribution retirement plans, including 401(k) and 403(b) plans. Learn more about Paylocity Retirement.

"Vestwell’s mission has always been to make savings accessible, simple, and scalable for every employer and saver — regardless of size," said Aaron Schumm, Founder and Chief Executive Officer of Vestwell. "Partnering with Paylocity is a natural extension of that mission. By embedding our retirement infrastructure directly into Paylocity's platform, we are removing the barriers that have historically made retirement administration burdensome, replacing them with a seamless experience that helps more workers build toward a secure financial future."

About Paylocity
Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of HCM, Finance, and IT software solutions. Paylocity offers one unified, easy‑to‑use platform that helps businesses across HR, Finance, and IT streamline operations, manage spend and talent, and build culture and connection—with AI embedded directly into everyday workflows to save time, reduce manual effort, and support better decisions. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.

About Vestwell
Vestwell is the backbone of the modern savings economy. Founded in 2016, Vestwell makes it easier for more Americans to save for life’s most important moments — from retirement to education, emergencies, and disability-related expenses. Vestwell’s platform helps remove traditional barriers to saving, making it more accessible, efficient, and approachable for everyone.

For more information, visit www.vestwell.com.

CONTACT:  
Nicole Andergard Reddy
nreddy@paylocity.com
503-855-7385

Paylocity Retirement brings retirement into the Paylocity suite, helping employers reduce manual work and giving employees easier access to manage their retirement savings SCHAUMBURG, Ill., June 10, 2026 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of HCM, Finance, and IT

Paylocity Announces Third Quarter Fiscal Year 2026 Financial Results

Content Import — Thu, 07 May 2026 20:06:23 +0000

Paylocity Announces Third Quarter Fiscal Year 2026 Financial Results Content Import May 7, 2026

Paylocity Announces Third Quarter Fiscal Year 2026 Financial Results

May 7, 2026

General Releases

General

Q3 2026 Recurring & Other Revenue of $469.9 million, up 11.6% year-over-year
Q3 2026 Total Revenue of $502.3 million, up 10.5% year-over-year
Continued growth in cash flows - trailing twelve months net cash provided by operating activities margin of 29.4% and free cash flow margin of 24.4%
Completed acquisition of Grayscale Labs, Inc. in April 2026 to expand AI-powered recruiting capabilities
Repurchased $50 million or 440,000 shares in Q3 2026 and $350 million or 2.3 million shares in the first nine months of fiscal year 2026
Board of Directors approved a $1.0 billion increase to our share repurchase authorization in April 2026; $1.35 billion authorization available as of May 7, 2026

SCHAUMBERG, Ill., May 07, 2026 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, Finance, and IT solutions, today announced financial results for the third quarter of fiscal year 2026, which ended March 31, 2026.

“Our solid results continued into the third quarter of fiscal 26, with recurring revenue growth of 11.6%, total revenue growth of 10.5% and increased revenue and profitability guidance for the fiscal year. Our multi-year investment in R&D continues to drive innovation across our HCM, Finance and IT offerings, all underpinned by expanded AI capabilities and our core employee record data. To drive further expansion of our AI capabilities, last month we announced the acquisition of Grayscale, an AI-powered recruiting automation company that builds upon our existing recruiting capabilities by helping companies hiring at scale move faster without compromising quality. Additionally, as a result of our increasing cash flows, we continue to return capital to shareholders, with $350 million or 2.3 million shares repurchased through Q3 of this fiscal year,” said Toby Williams, President and Chief Executive Officer of Paylocity.

Third Quarter Fiscal 2026 Financial Highlights

Revenue:

Recurring & other revenue was $469.9 million, an increase of 11.6% from the third quarter of fiscal year 2025.
Total revenue was $502.3 million, an increase of 10.5% from the third quarter of fiscal year 2025.

Operating Income:

GAAP operating income was $157.0 million and non-GAAP operating income was $196.8 million in the third quarter of fiscal year 2026 compared to GAAP operating income of $127.0 million and non-GAAP operating income of $172.7 million in the third quarter of fiscal year 2025.

Net Income:

GAAP net income was $111.3 million or $2.05 per share in the third quarter of fiscal year 2026 based on 54.3 million diluted weighted average common shares outstanding compared to $91.5 million or $1.61 per share in the third quarter of fiscal year 2025 based on 56.8 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

Adjusted EBITDA, a non-GAAP measure, was $220.2 million in the third quarter of fiscal year 2026 compared to $197.1 million in the third quarter of fiscal year 2025.
Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was $187.9 million in the third quarter of fiscal year 2026 as compared to $163.6 million in the third quarter of fiscal year 2025.

Balance Sheet and Cash Flow:

Cash and cash equivalents totaled $299.7 million as of March 31, 2026.
Long-term debt totaled $81.3 million as of March 31, 2026, representing borrowings under our credit facility to fund the acquisition of Airbase Inc. on October 1, 2024. This reflects approximately $81.3 million repaid on our outstanding balance during the first nine months of fiscal year 2026.
Net cash provided by operating activities for the first nine months of fiscal year 2026 was $421.4 million compared to $331.7 million for the first nine months of fiscal year 2025. Net cash from operating activities for the trailing twelve months ended March 31, 2026 was $507.9 million or 29.4% of total revenue as compared to $411.6 million or 26.5% of total revenue for the trailing twelve months ended March 31, 2025.
Free cash flow, a non-GAAP measure, was $421.0 million or 24.4% of total revenue for the trailing twelve months ended March 31, 2026 compared to $335.8 million or 21.6% of total revenue for the trailing twelve months ended March 31, 2025.

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release in the accompanying tables. Additional information regarding these measures can be found below under the headings “Non-GAAP Financial Measures” and “Definitions of our Non-GAAP Measures.”

Business Outlook

Based on information available as of May 7, 2026, Paylocity is issuing guidance for the fourth quarter and full fiscal year 2026 as indicated below.

Fourth Quarter 2026:

Recurring and other revenue is expected to be in the range of $402.2 million to $407.2 million, which represents approximately 9%-10% growth over fiscal year 2025 fourth quarter recurring and other revenue.
Total revenue is expected to be in the range of $428.4 million to $433.4 million, which represents approximately 7%-8% growth over fiscal year 2025 fourth quarter total revenue.
Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $128.6 million to $132.6 million.
Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $102.4 million to $106.4 million.

Fiscal Year 2026:

Recurring and other revenue is expected to be in the range of $1.638 billion to $1.643 billion, which represents approximately 11%-12% growth over fiscal year 2025 recurring and other revenue.
Total revenue is expected to be in the range of $1.755 billion to $1.760 billion, which represents approximately 10% growth over fiscal year 2025 total revenue.
Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $638.0 million to $642.0 million.
Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of $521.0 million to $525.0 million.

We are unable to reconcile the forward-looking non-GAAP measures set forth above to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.

Conference Call Details

Paylocity will host a conference call to discuss its third quarter fiscal year 2026 results at 4:00 p.m. Central Time today (5:00 p.m. Eastern Time). A live audio webcast of the conference call along with detailed financial information can be accessed through https://investors.paylocity.com/events-and-presentations where dial in details are provided. A replay of the call will be available and archived via webcast at https://investors.paylocity.com/.

About Paylocity

Non-GAAP Financial Measures

Safe Harbor/Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, future financial position and performance, anticipated results of operations, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include statements about management's estimates regarding future revenues and financial performance, and other statements about management’s beliefs, intentions or goals and are expressed in good faith and believed to be reasonable at the time such statements are made. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on such statements. These forward-looking statements involve risks and uncertainties, many of which are beyond Paylocity’s control, that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include, but are not limited to, the general economic conditions in regions in which Paylocity does business, changes in interest rates, business disruptions, reductions in employment and increases in business failures that have occurred or may occur in the future; Paylocity’s ability to leverage AI Assist and other forms of artificial intelligence and machine learning in its technology, which may be constrained by current and future laws, regulations, interpretive positions or standards governing new and evolving technologies and ethical considerations that could restrict or impose burdensome and costly requirements on its ability to continue to leverage data in innovative ways; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; challenges related to cybersecurity threats and evolving cybersecurity regulations; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; risks related to acquisitions and investments in other businesses and technologies; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets; Paylocity’s ability to protect and defend its intellectual property and its use of open source software in its products; the risk that Paylocity’s security measures are compromised or a threat actor gains unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; the possibility that Paylocity may be adversely affected by other economic, business, and/or competitive factors; and other risks and potential factors that could affect Paylocity’s business and financial results that are identified in Paylocity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on August 6, 2025, as well as any revisions or supplements to the information in subsequent reports filed or furnished to the SEC. These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and unless legally required, Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Balance Sheets (in thousands, except per share data)
	June 30, 2025		March 31, 2026
Assets
Current assets:
Cash and cash equivalents	$	398,070	$	299,728
Accounts receivable, net		41,642		48,368
Deferred contract costs		117,177		128,478
Prepaid expenses and other		50,943		43,298
Total current assets before funds held for clients		607,832		519,872
Funds held for clients		2,704,137		3,838,468
Total current assets		3,311,969		4,358,340
Capitalized internal-use software, net		132,317		139,972
Property and equipment, net		54,210		56,757
Operating lease right-of-use assets		35,997		34,919
Intangible assets, net		92,671		77,137
Goodwill		343,100		343,158
Long-term deferred contract costs		393,671		413,589
Long‑term prepaid expenses and other		7,739		8,586
Deferred income tax assets		17,754		11,917
Total assets	$	4,389,428	$	5,444,375

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	17,347	$	12,260
Accrued expenses		193,081		191,606
Total current liabilities before client fund obligations		210,428		203,866
Client fund obligations		2,694,842		3,833,941
Total current liabilities		2,905,270		4,037,807
Long-term debt		162,500		81,250
Long-term operating lease liabilities		46,772		43,939
Other long-term liabilities		8,580		12,402
Deferred income tax liabilities		32,559		88,243
Total liabilities	$	3,155,681	$	4,263,641
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2025 and March 31, 2026	$	—	$	—
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2025 and March 31, 2026; 55,366 shares issued and outstanding at June 30, 2025 and 53,537 shares issued and outstanding at March 31, 2026		55		54
Additional paid-in capital		327,518		69,445
Retained earnings		900,583		1,110,021
Accumulated other comprehensive income		5,591		1,214
Total stockholders' equity	$	1,233,747	$	1,180,734
Total liabilities and stockholders’ equity	$	4,389,428	$	5,444,375

PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data)
	Three Months Ended March 31,						Nine Months Ended March 31,
		2025			2026			2025		2026
Revenues:
Recurring and other revenue	$	421,096		$	469,930		$	1,101,915	$	1,235,768
Interest income on funds held for clients		33,452			32,356			92,569		90,824
Total revenues		454,548			502,286			1,194,484		1,326,592
Cost of revenues		129,853			139,098			369,358		401,474
Gross profit		324,695			363,188			825,126		925,118
Operating expenses:
Sales and marketing		91,774			95,732			273,338		290,178
Research and development		51,396			52,515			154,811		165,861
General and administrative		54,495			57,962			159,180		167,508
Total operating expenses		197,665			206,209			587,329		623,547
Operating income		127,030			156,979			237,797		301,571
Other income (expense)		(468	)		59			4,467		557
Income before income taxes		126,562			157,038			242,264		302,128
Income tax expense		35,079			45,788			63,743		92,690
Net income	$	91,483		$	111,250		$	178,521	$	209,438
Other comprehensive income (loss), net of tax		3,492			(5,128	)		4,645		(4,377	)
Comprehensive income	$	94,975		$	106,122		$	183,166	$	205,061

Net income per share:
Basic	$	1.64		$	2.07		$	3.20	$	3.86
Diluted	$	1.61		$	2.05		$	3.15	$	3.81

Weighted-average shares used in computing net income per share:
Basic		55,810			53,721			55,759		54,278
Diluted		56,780			54,274			56,640		55,016

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three and nine months ended March 31 are included in the above line items:

	Three Months Ended March 31,				Nine Months Ended March 31,
		2025		2026		2025		2026
Cost of revenues	$	4,789	$	3,621	$	15,719	$	13,462
Sales and marketing		8,678		7,518		29,093		26,768
Research and development		9,143		6,984		31,315		27,166
General and administrative		14,865		14,679		41,918		48,514
Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises	$	37,475	$	32,802	$	118,045	$	115,910

PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Statements of Cash Flows (in thousands)
	Nine Months Ended March 31,
		2025			2026
Cash flows from operating activities:
Net income	$	178,521		$	209,438
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense		112,538			111,503
Depreciation and amortization expense		73,184			82,554
Deferred income tax expense (benefit)		(1,680	)		62,793
Provision for credit losses		875			1,352
Net accretion of discounts on available-for-sale securities		(1,639	)		(1,159	)
Other		951			1,183
Changes in operating assets and liabilities:
Accounts receivable		(7,814	)		(10,306	)
Deferred contract costs		(42,559	)		(30,774	)
Prepaid expenses and other		2,195			4,120
Accounts payable		(1,886	)		(5,015	)
Accrued expenses and other		18,971			(4,330	)
Net cash provided by operating activities		331,657			421,359
Cash flows from investing activities:
Purchases of available-for-sale securities		(121,777	)		(259,994	)
Proceeds from sales and maturities of available-for-sale securities		122,969			268,676
Capitalized internal-use software costs		(45,563	)		(49,101	)
Purchases of property and equipment		(7,624	)		(15,518	)
Acquisitions of businesses, net of cash and funds held for clients acquired		(277,851	)		—
Other investing activities		1,303			2,228
Net cash used in investing activities		(328,543	)		(53,709	)
Cash flows from financing activities:
Net change in client fund obligations		429,856			1,139,099
Borrowings under credit facility		325,000			—
Repayment of credit facility		(81,250	)		(81,250	)
Repurchases of common shares		(91,080	)		(350,000	)
Proceeds from employee stock purchase plan		10,561			9,534
Taxes paid related to net share settlement of equity awards		(49,121	)		(36,540	)
Other financing activities		(400	)		(360	)
Net cash provided by financing activities		543,566			680,483
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents		546,680			1,048,133
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period		2,845,669			2,482,526
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period	$	3,392,349		$	3,530,659
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment and capitalized internal-use software, accrued but not paid	$	2,372		$	3,362
Liabilities assumed for acquisitions	$	55,730		$	—
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	$	9,548		$	4,508
Cash paid for income taxes, net of refunds received	$	63,963		$	24,557
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	$	477,785		$	299,728
Funds held for clients' cash and cash equivalents		2,914,564			3,230,931
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$	3,392,349		$	3,530,659

Paylocity Holding Corporation
Reconciliation of GAAP to non-GAAP Financial Measures
(In thousands except per share data)

	Three Months Ended March 31,				Nine Months Ended March 31,
		2025		2026		2025		2026
Reconciliation from Gross profit to Adjusted gross profit:
Gross profit	$	324,695	$	363,188	$	825,126	$	925,118
Amortization of capitalized internal-use software costs		15,248		17,212		43,858		52,180
Amortization of certain acquired intangibles		4,749		4,443		11,562		13,563
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		4,789		3,621		15,719		13,462
Other items (1)		641		—		781		342
Adjusted gross profit	$	350,122	$	388,464	$	897,046	$	1,004,665

	Three Months Ended March 31,				Nine Months Ended March 31,
		2025		2026		2025		2026
Reconciliation from Operating income to Non-GAAP Operating income:
Operating income	$	127,030	$	156,979	$	237,797	$	301,571
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		37,475		32,802		118,045		115,910
Amortization of acquired intangibles		5,627		5,098		13,852		15,534
Other items (2)		2,611		1,955		9,073		4,071
Non-GAAP Operating income	$	172,743	$	196,834	$	378,767	$	437,086

	Three Months Ended March 31,				Nine Months Ended March 31,
		2025		2026		2025			2026
Reconciliation from Net income to Non-GAAP Net income:
Net income	$	91,483	$	111,250	$	178,521		$	209,438
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		37,475		32,802		118,045			115,910
Amortization of acquired intangibles		5,627		5,098		13,852			15,534
Other items (2)		2,611		1,955		9,073			4,071
Income tax effect on adjustments (3)		873		5,896		(1,795	)		10,780
Non-GAAP Net income	$	138,069	$	157,001	$	317,696		$	355,733

	Three Months Ended March 31,				Nine Months Ended March 31,
		2025		2026		2025		2026
Calculation of Non-GAAP Net income per share:
Non-GAAP Net income	$	138,069	$	157,001	$	317,696	$	355,733
Diluted weighted-average number of common shares		56,780		54,274		56,640		55,016
Non-GAAP Net income per share	$	2.43	$	2.89	$	5.61	$	6.47

	Three Months Ended March 31,						Nine Months Ended March 31,
		2025			2026			2025			2026
Reconciliation from Net income to Adjusted EBITDA and Adjusted EBITDA excluding interest income on funds held for clients
Net income	$	91,483		$	111,250		$	178,521		$	209,438
Interest expense		4,436			1,128			9,682			4,698
Income tax expense		35,079			45,788			63,743			92,690
Depreciation and amortization expense		25,972			27,298			73,184			82,554
EBITDA		156,970			185,464			325,130			389,380
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		37,475			32,802			118,045			115,910
Other items (2)		2,611			1,955			9,073			4,071
Adjusted EBITDA	$	197,056		$	220,221		$	452,248		$	509,361
Interest income on funds held for clients		(33,452	)		(32,356	)		(92,569	)		(90,824	)
Adjusted EBITDA excluding interest income on funds held for clients	$	163,604		$	187,865		$	359,679		$	418,537

	Three Months Ended March 31,				Nine Months Ended March 31,
		2025		2026		2025		2026
Reconciliation of Non-GAAP sales and marketing:
Sales and marketing	$	91,774	$	95,732	$	273,338	$	290,178
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		8,678		7,518		29,093		26,768
Less: Other items (2)		595		140		1,224		502
Non-GAAP sales and marketing	$	82,501	$	88,074	$	243,021	$	262,908

	Three Months Ended March 31,				Nine Months Ended March 31,
		2025		2026		2025		2026
Reconciliation of Non-GAAP total research and development:
Research and development	$	51,396	$	52,515	$	154,811	$	165,861
Add: Capitalized internal-use software costs		15,966		17,701		45,563		49,101
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		9,143		6,984		31,315		27,166
Less: Other items (2)		658		554		1,669		1,192
Non-GAAP total research and development	$	57,561	$	62,678	$	167,390	$	186,604

	Three Months Ended March 31,				Nine Months Ended March 31,
		2025		2026		2025		2026
Reconciliation of Non-GAAP general and administrative:
General and administrative	$	54,495	$	57,962	$	159,180	$	167,508
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		14,865		14,679		41,918		48,514
Less: Amortization of certain acquired intangibles		878		655		2,290		1,971
Less: Other items (2)		717		1,261		5,399		2,035
Non-GAAP general and administrative	$	38,035	$	41,367	$	109,573	$	114,988

	Nine Months Ended March 31,						Trailing Twelve Months Ended March 31,
		2025			2026			2025			2026
Reconciliation of Free cash flow, Free cash flow excluding interest income on funds held for clients and Adjusted free cash flow excluding interest income on funds held for clients:
Net cash provided by operating activities	$	331,657		$	421,359		$	411,588		$	507,928
Capitalized internal-use software costs		(45,563	)		(49,101	)		(61,788	)		(65,940	)
Purchases of property and equipment		(7,624	)		(15,518	)		(13,951	)		(20,967	)
Free cash flow	$	278,470		$	356,740		$	335,849		$	421,021
Less: Interest income on funds held for clients		(92,569	)		(90,824	)		(125,117	)		(121,675	)
Free cash flow excluding interest income on funds held for clients	$	185,901		$	265,916		$	210,732		$	299,346
Cash paid for other items (4)		6,723			5,797
Adjusted free cash flow excluding interest income on funds held for clients	$	192,624		$	271,713

(2) Represents acquisition and transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.

(3) Includes the income tax effect on non-GAAP net income adjustments related to stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, amortization of acquired intangibles and other items, which include acquisition and transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.

(4) Represents cash paid for acquisition and transaction-related costs and severance costs related to certain roles that have been eliminated.

Definitions of our Non-GAAP Measures

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Excluding Interest Income on Funds Held for Clients, and Adjusted EBITDA Excluding Interest Income on Funds Held for Clients Margin

Adjusted Gross Profit and Adjusted Gross Profit Margin

Adjusted gross profit margin is calculated as adjusted gross profit as described in the preceding sentence divided by total revenues.

Non-GAAP Operating Income, Non-GAAP Net Income, and Non-GAAP Income Per Share

Free Cash Flow, Free Cash Flow Margin, Free Cash Flow Excluding Interest on Funds Held for Clients, Free Cash Flow Excluding Interest on Funds Held for Clients Margin, Adjusted Free Cash Flow Excluding Interest Income on Funds Held for Clients and Adjusted Free Cash Flow Excluding Interest Income on Funds Held for Clients Margin

Q3 2026 Recurring & Other Revenue of $469.9 million, up 11.6% year-over-year Q3 2026 Total Revenue of $502.3 million, up 10.5% year-over-year Continued growth in cash flows - trailing twelve months net cash provided by operating activities margin of 29.4% and free cash flow margin of 24.4%