Filing Flows › Paylocity Holding (PCTY) › Q2 FY26
Paylocity Holding (PCTY) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Feb 6, 2026
Paylocity Holding (PCTY) reported revenue of $416M for the second quarter fiscal 2026 (Q2 FY26), +10% from a year earlier and +2% from the quarter before. Operating margin was 16.9%, net earnings $50.2M (12.1% of revenue).
Paylocity Holding, Q2 FY26: revenue $416M (+10% year over year), operating margin 16.9%, net earnings $50.2M, operating cash flow $117M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $416M | +2% | +10% |
| Gross profit | $282M | +0.8% | +12% |
| Operating profit | $70.4M | -5% | +51% |
| Net earnings | $50.2M | +5% | +34% |
| Operating cash flow | $117M | +35% | +116% |
| Free cash flow | $114M | +37% | +122% |
What changed
Revenue was $416.1M in Q2 FY26, up 10% year over year and up 2% from the previous quarter. Recurring fees was the largest line at 89% of revenue. Recurring fees added $38.2M year over year (up 12%), 98% of the total change.
Gross margin was 67.8%, up 0.8 points from a year earlier. Operating profit was $70.4M, a 16.9% margin (up 4.5 points year over year). Of the extra revenue versus a year earlier, 61% reached operating profit, above the 12% margin then. Operating expenses grew 3% against revenue growth of 10%. Net earnings were $50.2M, up 34% year over year. The effective tax rate was 28.5%.
Operating cash flow was $117.0M (up 116% year over year), 233% of net earnings. Non-cash charges added back $27.8M of depreciation and amortization and $42.2M of share-based compensation. Capital expenditures of $3.4M left free cash flow of $113.6M.
Questions
What was Paylocity Holding's revenue in the second quarter fiscal 2026?
Paylocity Holding (PCTY) reported revenue of $416M for the second quarter fiscal 2026 (Q2 FY26), +10% from a year earlier and +2% from the quarter before.
Was Paylocity Holding profitable in the second quarter fiscal 2026?
Operating profit was $70.4M (16.9% of revenue) and net earnings $50.2M.
Source: Paylocity Holding 10-Q on SEC EDGAR.