Paylocity Holding Corp(PCTY)Stock Analysis
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Rank #218 of 2,879 stocksTOP 10%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
PCTY Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Paylocity Holding Corp (PCTY), a Technology sector company. 13F Pro's AI-powered ranking engine scores PCTY at 72.7/100 on a 32-signal composite quality model, placing it at rank #218 of 2,879 stocks — the top 10% of the AI-ranked universe. PCTY scores in the top quartile across free cash flow (88.6), profitability (84.2), balance sheet strength (78.3). Shareholder dilution risk is elevated at 18.2/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), Paylocity Holding Corp reports quarterly revenue of $502.3M, net income of $111.3M, free cash flow of $209.5M. Top institutional holders of PCTY by reported 13-F value include BlackRock,, VANGUARD PORTFOLIO MANAGEMENT, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. PCTY trades on the Nasdaq exchange and files with the SEC under CIK 1591698. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PCTY daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Paylocity Holding Corp directly from SEC EDGAR. Paylocity Holding Corp's 13F Pro composite quality score has ranged between 57 and 78 since 2021, currently 72.7 — an improving long-term trajectory across 30 quarterly and live scoring snapshots.
What's Driving PCTY's Business? Latest 10-Q Breakdown
AI-extracted from Paylocity Holding Corp's 10-Q filed 2026-05-08 — Q3 FY2026 (nine months ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Paylocity grew recurring revenue 12% YoY to $1.24B in nine months; net income rose 17% to $209.4M with gross margin expanding to 70%.
Biggest Revenue Drivers
Total revenue: $1,326.6M+11% YoY
Incremental revenues from new and existing clients due to strong sales team performance.
Negative impact from lower interest rates mostly offset by higher average daily balances from new and existing clients.
Largest Expense Items
$16.6M additional employee-related costs, $8.3M additional amortization of internal-use software, $7.2M additional processing and delivery costs.
$15.9M additional employee-related costs from sales organization expansion.
$12.7M additional employee-related costs for development personnel, net of capitalized software costs.
$6.9M additional stock-based compensation and $5.2M additional employee-related costs.
Margins: Gross margin improved to 70% from 69% YoY, driven by operating leverage as recurring revenue growth outpaced cost increases. Operating margin expanded to 23% from 20% YoY as the company realizes economies of scale across core operations.
Watch Items from the Filing
- Interest income on funds held for clients declined 2% YoY; future rate decreases could further compress this $90.8M revenue stream absent balance growth.
- Illinois Biometric Information Privacy Act litigation dismissed with prejudice in April 2025; plaintiff filed notice of appeal in May 2025, creating ongoing litigation exposure.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q3 2026
$502.3M
Net Income
Q3 2026
$111.3M
Free Cash Flow
Q3 2026
$209.5M
D/E Ratio
Q3 2026
0.07
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+35.8% YoYNet Income
+61.3% YoYOperating Income
+96.1% YoYEPS (Diluted)
+61.4% YoYTotal Assets
+18.8% YoYTotal Debt
Op. Cash Flow
+47.9% YoY| Metric | FY 2025 | FY 2023 | FY 2022 | FY 2021 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|
| Revenue | $1.60B +35.8% | $1.17B +37.8% | $852.7M +34.1% | $635.6M +35.9% | $467.6M +23.9% | $377.5M |
| Net Income | $227.1M +61.3% | $140.8M +55.1% | $90.8M +28.2% | $70.8M +31.6% | $53.8M +39.4% | $38.6M |
| Operating Income | $304.0M +96.1% | $155.0M +83.3% | $84.6M +45.7% | $58.0M +3.2% | $56.2M +252.5% | $15.9M |
| EPS (Diluted) | $4.02 +61.4% | $2.49 +54.7% | $1.61 +27.8% | $1.26 +29.9% | $0.97 +38.6% | $0.70 |
| Total Assets | $4.39B +18.8% | $3.70B -23.2% | $4.81B +99.1% | $2.41B +33.9% | $1.80B +19.7% | $1.51B |
| Total Debt | $162.5M | — | — | — | — | — |
| Operating Cash Flow | $418.2M +47.9% | $282.7M +82.3% | $155.1M +24.2% | $124.8M +8.5% | $115.0M +17.5% | $97.9M |
AI Insight: PCTY Ratio Trends
Q1 2026 profitability surged to multi-period highs — operating margin hit 31.2% and ROIC reached 49.8% — while leverage collapsed to near-zero.
• Operating margin expanded from 28.0% in Q1 2025 to 31.2% in Q1 2026, a 320bp year-over-year improvement on the seasonally strong March quarter.
• ROIC surged from 35.0% in Q1 2025 to 49.8% in Q1 2026, the highest level in the observable data set.
• Debt-to-equity ratio fell sharply from 0.29 in Q3 2024 to 0.07 in Q1 2026, indicating significant balance sheet deleveraging.
• Net profit margin rose to 22.1% in Q1 2026 versus 20.1% in Q1 2025, continuing year-over-year bottom-line improvement.
⚠ Margins are highly seasonal: Q4 2025 operating margin was only 16.9% versus Q1 2026's 31.2% — quarterly comparisons can be misleading.
⚠ ROA in Q4 2025 dropped to 2.9%, matching Q4 2024's trough of 2.8%, suggesting recurring asset-efficiency pressure each December quarter.
⚠ TTM ROIC of 29.1% trails the Q1 2026 single-quarter annualized 49.8% — sustained execution outside peak quarters will determine true capital efficiency.
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Top Institutional Holders of PCTY
BlackRock, Inc.
$474.1M4,387,826 shVANGUARD PORTFOLIO MANAGEMENT LLC
$235.4M2,179,082 shVANGUARD CAPITAL MANAGEMENT LLC
$211.1M1,953,755 shCITADEL ADVISORS LLC
$186.4M1,725,680 shSTATE STREET CORP
$144.8M1,340,122 shMORGAN STANLEY
$144.4M1,336,720 shGEODE CAPITAL MANAGEMENT, LLC
$139.5M1,290,832 shAQR CAPITAL MANAGEMENT LLC
$122.7M1,135,598 shTWO SIGMA INVESTMENTS, LP
$122.4M1,132,673 shPoint72 Asset Management, L.P.
$119.8M1,108,414 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $474.1M | 4,387,826 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $235.4M | 2,179,082 |
| VANGUARD CAPITAL MANAGEMENT LLC | $211.1M | 1,953,755 |
| CITADEL ADVISORS LLC | $186.4M | 1,725,680 |
| STATE STREET CORP | $144.8M | 1,340,122 |
| MORGAN STANLEY | $144.4M | 1,336,720 |
| GEODE CAPITAL MANAGEMENT, LLC | $139.5M | 1,290,832 |
| AQR CAPITAL MANAGEMENT LLC | $122.7M | 1,135,598 |
| TWO SIGMA INVESTMENTS, LP | $122.4M | 1,132,673 |
| Point72 Asset Management, L.P. | $119.8M | 1,108,414 |
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Popular Research
Is PCTY a good stock to buy?
13F Pro's AI-powered analysis of Paylocity Holding Corp (PCTY) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for PCTY are available on the PCTY stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own PCTY?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling PCTY. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Paylocity Holding Corp's investment landscape.