Paylocity Q2 revenue rises on strong sales

Overview

• Cloud-based solutions firm's fiscal Q2 total revenue rose 10.4% yr/yr

• Adjusted EBITDA for fiscal Q2 beat analyst expectations

• Company repurchased $100 mln worth of shares in fiscal Q2

Outlook

• Paylocity expects Q3 2026 revenue between $487 mln and $492 mln

• Company forecasts FY 2026 revenue between $1.732 bln and $1.742 bln

• Paylocity projects Q3 2026 adjusted EBITDA between $200 mln and $204 mln

Result Drivers

• STRONG SALES AND EXECUTION - Paylocity attributed its Q2 results to strong sales and operational execution, as well as product differentiation

• AI AND AUTOMATION INVESTMENTS - Co said investments in AI and automation drove efficiency and productivity, boosting free cash flow and adjusted EBITDA margins

• SHARE REPURCHASE - Paylocity repurchased $100 mln worth of shares in Q2 2026, reflecting strategic financial management

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Paylocity Holding Corp is $180.00, about 42.1% above its February 4 closing price of $126.64

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX4yn47H

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