Paylocity Holding Corporation (PCTY) Stock

Paylocity Holding Corporation (PCTY) is a Technology stock trading at $152.34 (as of 2026-08-20), with a market capitalization of $8.16B and a trailing P/E of 31.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Paylocity Holding Corporation offers cloud-based human capital management and payroll software for workforce operations in the United States. Its platform supports payroll and tax services, time and attendance, recruiting and onboarding, learning and performance management, employee benefits administration, and workforce insights, along with implementation, training, and related tax and regulatory services.

Understand Paylocity Holding Corporation: how it makes money

Paylocity sells cloud-based payroll and human capital management (HCM) software for US workforce needs, including payroll and tax, HR and employee self-service, time and attendance, scheduling, expense management, on-demand payment, and related compliance tools, and it earns money primarily through recurring revenue from its customers.

Paylocity’s profit model is built around recurring revenue from cloud payroll and HCM customers (with Recurring Revenue of 0.37 USD_B out of 0.5 USD_B total revenue), supported by a software-like margin profile (72.3% gross margin).

Business quality (Strong): The company’s disclosed operating metrics emphasize recurring revenue and customer scale, which can support steady economics, but channel and customer concentration risks are suggested by how new business is sourced.

Valuation: Trades at 23× trailing earnings · $6B market cap.

Bull case

Recurring revenue is a large share of total revenue: Recurring Revenue is 0.37 USD_B, and Recurring and Other Revenue is 0.47 USD_B (for the latest reported quarter).
Customer scale is substantial: Paylocity reports 39,050.0 Number of Clients in the provided operating metrics set.
Product coverage spans key workforce workflows: Its solution set includes Payroll and Tax Services, human capital management and employee self-service, expense management, on-demand payment, garnishment, time and attendance, scheduling, and time collection devices (kiosks).

Bear case

New business appears tied to referral and broker channels: Referral Channel Share of New Business is 25.0% and Broker Channel Share of New Business is 25.0%, implying potential sensitivity to channel performance.
Execution risk exists across many compliance and workforce modules: The platform supports payroll, tax compliance, HR self-service, document library, compliance dashboards, and time collection, meaning service quality and compliance effectiveness matter across multiple workflows.

Valuation — source: SEC EDGAR (first-party)
Price	$152.34
Market Cap	$8.16B
P/E Ratio	31.6
EV / EBITDA	10.0
Price / Book	6.91
Price / Sales	4.72
FCF Yield	6.0%
DCF Value (model)	$279.73
DCF Upside vs Price	83.6%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.60B
Net Margin	14.2%
Revenue Growth (YoY)	10.5%
EPS Growth (YoY)	26.2%
FCF Growth (YoY)	14.1%

Financial Health — source: SEC EDGAR
Altman Z-Score	2.59 (grey)
Piotroski F-Score	8/9 (strong)

Valuation vs Sector & Industry
Stock P/E	31.6
Sector P/E (Technology)	33.9
Industry P/E (Business Services)	30.0
vs Sector	-6.8%
vs Industry	5.5%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($634.58M)
Institutional Holders Tracked	10
Congressional Trades (recent)	4

Company
Sector	Technology
Industry	Business Services
CEO	Toby J. Williams
Employees	6,400
Country	US
IPO Date	2014-03-19

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.