Equity Brief · Technology2026-09-16
PCTY·Technology

Last results 4 Aug 2026Next reporting 3 Nov 2026In 3 days

Paylocity Holding Corporation

I · AI Analysis

The brief

Paylocity sells cloud software that handles payroll, HR compliance, time tracking, benefits enrollment, recruiting, and employee experience tools for mid-sized U.S. businesses [Yahoo Finance]. Customers span business services, healthcare, manufacturing, restaurants, retail, and technology sectors [Yahoo Finance].

Paylocity Holding Corporation provides cloud-based payroll, HR, time, talent, and benefits software to U.S. organizations [Yahoo Finance]. The company recently secured a deal with the New York Jets as its official human capital management platform [GlobeNewswire]. Trailing-twelve-month revenue through 30 June 2026 was $1.8B, with an operating margin of 21.8% and a Sentinellis health score of 8.9/10 [Yahoo Finance] [Sentinellis calculation].

Financially healthy with strong cash generation and improving margins, though most trailing earnings came from non-operating income

The brief AI analysisConfidence 8/10

Sentinellis health

Financially healthy

8.9/10

7.5+ strong · 4.5–7.5 moderate · under 4.5 weak

Profitability

17% of score10.0/10
Net margin+15.2%Gross margin+69.3%

Returns on capital

17% of score10.0/10
ROIC+24.8%Return on equity+22.1%

Growth & momentum

22% of score10.0/10
Revenue growth+11.0%Operating margin trend+2.5pp YoY

Balance sheet

28% of score6.0/10
Current ratio1.1x· need > 1.2xNet debt / EBITDA-0.3xInterest coverage—· no dataDebt / equity0.11

Cash generation

17% of score10.0/10
Free cash flow$427.8MCash vs reported profit$533.3M vs $269.7M

Value creation

no data
ROIC vs cost of capital—· no data

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

$8.2B

Revenue (TTM)

$1.8B

Explainers

How we read these numbers

Plain-English guides · no account needed

II · Recent news

What moved

6 stories · ranked by relevance

  • Company2026-09-14

    Paylocity Holding (PCTY) Lands Jets Deal As Fair Value Stays In Focus - simplywall.st

    Simply Wall St

  • Company2026-09-13

    Paylocity Holding Corporation announces Q4 FY26 earnings call - scanx.trade

    scanx.trade

  • Company2026-09-15

    Paylocity stock gains investor attention on Jets deal and solid Q2 figures - ad-hoc-news.de

    ad-hoc-news.de

  • Company2026-09-10

    The New York Jets Select Paylocity as its Official HCM Platform - GlobeNewswire

    GlobeNewswire

  • Company2026-09-09

    Paylocity (NASDAQ: PCTY) SVP sale leaves 44,202 shares under 10b5-1 plan - Stock Titan

    Stock Titan

  • Company2026-09-15

    California State Teachers Retirement System Purchases 5,196,851 Shares of Paylocity Holding Corporation $PCTY

    Americanbankingnews

Premium · Free with any account

Seven insiders sold $8.5M on the open market in the past 90 days, with no open-market purchases; the largest seller was founder Steven Sarowitz at $6.2M across five transactions [SEC Form 4]. While insider sales are often planned or tax-driven, the one-sided selling across multiple executives warrants attention.

1 of 4 risks in this report

Risks

4

Opportunities

5

Leadership

10

8 more findings in the full report — free with any account.

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Produced 16 Sept 2026, 09:04 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated