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How Paylocity Holding (PCTY) makes money

Paylocity Holding (PCTY) made $452M of revenue in the first quarter fiscal 2027 (Q1 FY27), +11% from a year earlier. Recurring fees brought in $409M (91%); Other revenues brought in $27.2M (6%); Implementation services and other brought in $15.1M (3%). Of every dollar of revenue, 67¢ was left as gross profit, 18¢ was left as operating profit, 13¢ was left as net earnings.

Drawing the Sankey…

Paylocity Holding revenue by segment, Q1 FY27Paylocity Holding revenue by segment, Q1 FY27Recurring fees$409MOther revenues$27.2MImplementation services and other$15.1M
Paylocity Holding: revenue by line, Q3 FY25 to Q1 FY27Paylocity Holding: revenue by line, Q3 FY25 to Q1 FY27Recurring feesOther revenuesImplementation servic…Recurring fees: $409M latest$409MOther revenues: $27.2M latestImplementation services and other: $15.1M latestQ3 FY25Q1 FY26Q2 FY26Q3 FY26Q1 FY27
The mix barely moved between Q3 FY25 and Q1 FY27.
Paylocity Holding revenue by quarterPaylocity Holding revenue by quarter$455MQ3 FY25$401MQ4 FY25$408MQ1 FY26$416MQ2 FY26$502MQ3 FY26$445MQ4 FY26$452MQ1 FY27
Paylocity Holding: where each dollar of revenue goesPaylocity Holding: where each dollar of revenue goesCost of revenue33¢Gross profit67¢Operating expenses49¢Operating profit18¢Income tax6¢Net earnings13¢Operating cash flow18¢Free cash flow12¢

Revenue by segment, Q1 FY27

SegmentRevenueShareQ/QY/Y
Recurring fees$409M90.6%—+12%
Other revenues$27.2M6.0%—-7%
Implementation services and other$15.1M3.4%—+4%

Where each dollar of revenue goes

LineQ1 FY27% of revenue
Revenue$452M100.0%
Cost of revenue$148M32.7%
Gross profit$304M67.3%
Operating expenses$222M49.1%
Operating profit$82.2M18.2%
Income tax$24.9M5.5%
Net earnings$57.6M12.8%
Operating cash flow$79.7M17.6%
Free cash flow$56.1M12.4%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q1 FY27$452M+11%
Q4 FY26$445M+11%
Q3 FY26$502M+10%
Q2 FY26$416M+10%
Q1 FY26$408M+12%
Q4 FY25$401M+12%
Q3 FY25$455M+13%

From Paylocity Holding's 10-Q filed Nov 6, 2026 (on EDGAR).

Questions

How does Paylocity Holding make money?

Paylocity Holding (PCTY) made $452M of revenue in the first quarter fiscal 2027 (Q1 FY27), +11% from a year earlier. Recurring fees brought in $409M (91%); Other revenues brought in $27.2M (6%); Implementation services and other brought in $15.1M (3%). Of every dollar of revenue, 67¢ was left as gross profit, 18¢ was left as operating profit, 13¢ was left as net earnings.

What is Paylocity Holding's biggest business?

Recurring fees: $409M in the first quarter fiscal 2027, 91% of revenue, +12% from a year earlier.

What is Paylocity Holding's profit margin?

Net earnings were $57.6M, 12.8% of revenue, in the first quarter fiscal 2027; the operating margin was 18.2%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.