Filing Flows › Paylocity Holding (PCTY) › Q1 FY26
Paylocity Holding (PCTY) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Nov 5, 2025
Paylocity Holding (PCTY) reported revenue of $408M for the first quarter fiscal 2026 (Q1 FY26), +12% from a year earlier and +2% from the quarter before. Operating margin was 18.2%, net earnings $48.0M (11.8% of revenue).
Paylocity Holding, Q1 FY26: revenue $408M (+12% year over year), operating margin 18.2%, net earnings $48.0M, operating cash flow $86.5M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $408M | +2% | +12% |
| Gross profit | $280M | +3% | +13% |
| Operating profit | $74.2M | +12% | +16% |
| Net earnings | $48.0M | -1% | -3% |
| Operating cash flow | $86.5M | -0.1% | -5% |
| Free cash flow | $67.2M | — | -9% |
What changed
Revenue was $408.2M in Q1 FY26, up 12% year over year and up 2% from the previous quarter. Recurring fees was the largest line at 89% of revenue. Recurring fees added $45.0M year over year (up 14%), 99% of the total change.
Gross margin was 68.5%, up 0.2 points from a year earlier. Operating profit was $74.2M, a 18.2% margin (up 0.5 points year over year). Of the extra revenue versus a year earlier, 22% reached operating profit, above the 18% margin then. Operating expenses grew 12% against revenue growth of 12%. The fastest-growing cost line was Research & development (+18%). Net earnings were $48.0M, down 3% year over year. The effective tax rate was 35.9%.
Operating cash flow was $86.5M (down 5% year over year), 180% of net earnings. Non-cash charges added back $27.5M of depreciation and amortization and $37.8M of share-based compensation. Working capital and other items used $26.8M. After capitalized internal-use software costs ($15.5M) and purchases of property and equipment ($3.8M), free cash flow as the company reports it was $67.2M.
Questions
What was Paylocity Holding's revenue in the first quarter fiscal 2026?
Paylocity Holding (PCTY) reported revenue of $408M for the first quarter fiscal 2026 (Q1 FY26), +12% from a year earlier and +2% from the quarter before.
Was Paylocity Holding profitable in the first quarter fiscal 2026?
Operating profit was $74.2M (18.2% of revenue) and net earnings $48.0M.
Source: Paylocity Holding 10-Q on SEC EDGAR.