Filing Flows › Paylocity Holding (PCTY) › Q3 FY25
Paylocity Holding (PCTY) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed May 2, 2025
Paylocity Holding (PCTY) reported revenue of $455M for the third quarter fiscal 2025 (Q3 FY25), +13% from a year earlier and +21% from the quarter before. Operating margin was 27.9%, net earnings $91.5M (20.1% of revenue).
Paylocity Holding, Q3 FY25: revenue $455M (+13% year over year), operating margin 27.9%, net earnings $91.5M, operating cash flow $186M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $455M | +21% | +13% |
| Gross profit | $325M | +29% | +14% |
| Operating profit | $127M | +172% | +20% |
| Net earnings | $91.5M | +144% | +7% |
| Operating cash flow | $186M | +243% | +11% |
| Free cash flow | $184M | +259% | +13% |
What changed
Revenue was $454.5M in Q3 FY25, up 13% year over year and up 21% from the previous quarter. Recurring fees was the largest line at 89% of revenue. Recurring fees added $52.9M year over year (up 15%), 99% of the total change.
Gross margin was 71.4%, up 0.3 points from a year earlier. Operating profit was $127.0M, a 27.9% margin (up 1.5 points year over year). Of the extra revenue versus a year earlier, 39% reached operating profit, above the 26% margin then. Operating expenses grew 10% against revenue growth of 13%. The fastest-growing cost line was Research & development (+18%). Net earnings were $91.5M, up 7% year over year. The effective tax rate was 27.7%.
Operating cash flow was $186.0M (up 11% year over year), 203% of net earnings. Non-cash charges added back $26.0M of depreciation and amortization and $35.3M of share-based compensation. Working capital and other items added $33.2M. Capital expenditures of $2.3M left free cash flow of $183.7M.
Questions
What was Paylocity Holding's revenue in the third quarter fiscal 2025?
Paylocity Holding (PCTY) reported revenue of $455M for the third quarter fiscal 2025 (Q3 FY25), +13% from a year earlier and +21% from the quarter before.
Was Paylocity Holding profitable in the third quarter fiscal 2025?
Operating profit was $127M (27.9% of revenue) and net earnings $91.5M.
Source: Paylocity Holding 10-Q on SEC EDGAR.