Paylocity Lifts Outlook After Strong Q3 Results

Paylocity (NASDAQ:PCTY), a payroll and HR software provider, reported fiscal 2025 third-quarter revenue of $454.5 million and adjusted earnings per share of $2.43, both exceeding analyst expectations. The company raised its revenue guidance, projecting Q4 revenue between $385.5 million and $390.5 million and full-year revenue of $1.58–$1.59 billion. Recurring revenue grew 15% year-over-year, and operating and free cash flow margins saw significant improvement. Referrals from brokers and advisors contributed over 25% of new business, and Paylocity returned $150 million to shareholders through share repurchases. Despite strong financial performance, the stock declined about 3.7% year-to-date but rose nearly 30% over the past year. Analysts view the company’s consistent earnings outperformance and effective capital reinvestment as indicators of future growth.