Paylocity — Q1 Fiscal 2027 Earnings Summary

Financial Performance:

• Recurring & other revenue reached $424.5 million, a 12.0% increase year-over-year from Q1 Fiscal 2026.
• Total revenue was $451.7 million, up 10.7% year-over-year from Q1 Fiscal 2026.
• GAAP operating income was $82.2 million compared to $74.2 million in Q1 Fiscal 2026; non-GAAP operating income was $133.9 million compared to $121.2 million.
• GAAP net income was $57.6 million ($1.07 per diluted share) versus $48.0 million ($0.86 per diluted share) in the prior year period.
• Adjusted EBITDA was $159.5 million compared to $146.4 million in Q1 Fiscal 2026.
• Adjusted EBITDA excluding interest income on funds held for clients was $132.3 million compared to $117.1 million in Q1 Fiscal 2026.
• Net cash provided by operating activities for the quarter was $79.7 million compared to $86.5 million in Q1 Fiscal 2026.
• Free cash flow for the trailing twelve months ended September 30, 2026, was $416.7 million (23.0% of total revenue) compared to $336.0 million (20.5% of total revenue) for the same period in 2025.
• Cash and cash equivalents totaled $194.5 million as of September 30, 2026.
• Long-term debt totaled $131.3 million as of September 30, 2026.

Guidance and Future Outlook:

• Q2 Fiscal 2027 recurring and other revenue is expected to be $423.0 million to $428.0 million (approx. 10% growth over Q2 Fiscal 2026).
• Q2 Fiscal 2027 total revenue is expected to be $452.5 million to $457.5 million (approx. 9% growth over Q2 Fiscal 2026).
• Q2 Fiscal 2027 Adjusted EBITDA is expected to be $152.5 million to $156.5 million.
• Q2 Fiscal 2027 Adjusted EBITDA excluding interest income on funds held for clients is expected to be $123.0 million to $127.0 million.
• Full Fiscal 2027 recurring and other revenue is expected to be $1.792 billion to $1.807 billion (approx. 9% growth over Fiscal 2026).
• Full Fiscal 2027 total revenue is expected to be $1.910 billion to $1.925 billion (approx. 8% growth over Fiscal 2026).
• Full Fiscal 2027 Adjusted EBITDA is expected to be $711.5 million to $721.5 million.
• Full Fiscal 2027 Adjusted EBITDA excluding interest income on funds held for clients is expected to be $593.5 million to $603.5 million.

Business Segments and Product Lines:

• Growth is led by Ignite AI, including the recently announced Recruiting Optimizer.
• Early positive response noted for Elevate Solutions and Paylocity for Retirement offerings.
• Completed acquisition of Aidora Inc. in July 2026 to expand AI-powered leave management capabilities.

Other Key Points:

• Repurchased $152.5 million or 1.1 million shares in Q1 Fiscal 2027.
• Total share repurchases since May 2024 amount to $850.2 million or 5.7 million shares.
• Conference call to discuss results was scheduled for November 5, 2026, at 4:00 p.m. Central Time.