Core Insights - Paylocity Holding Corporation reported strong financial results for the second quarter of fiscal year 2026, continuing the momentum from Q1 and increasing revenue and profitability guidance for the fiscal year [2][3]. Financial Performance - Total revenue for Q2 2026 was $416.1 million, representing a 10.4% increase year-over-year, while recurring and other revenue was $387.0 million, up 11.3% from the previous year [7][8]. - GAAP operating income reached $70.4 million, compared to $46.6 million in Q2 2025, and non-GAAP operating income was $119.1 million, up from $101.1 million [3][4]. - GAAP net income was $50.2 million or $0.92 per share, an increase from $37.5 million or $0.66 per share in Q2 2025 [4][25]. Cash Flow and Balance Sheet - The company reported a free cash flow margin of 23.6% for the trailing twelve months, with free cash flow totaling $396.9 million, up from $315.1 million the previous year [7][16]. - Cash and cash equivalents stood at $162.5 million as of December 31, 2025, with long-term debt totaling $81.3 million [9][16]. Business Outlook - For Q3 2026, Paylocity expects recurring and other revenue to be in the range of $457.5 million to $462.5 million, indicating approximately 9%-10% growth over the same quarter in fiscal year 2025 [17]. - Total revenue guidance for fiscal year 2026 is projected to be between $1.732 billion and $1.742 billion, reflecting approximately 9% growth compared to fiscal year 2025 [17].

Core Viewpoint - Paylocity Holding Corporation has scheduled a conference call to discuss its second quarter fiscal 2026 results on February 5, 2026, at 4:00 pm Central Time [1]. Group 1: Conference Call Details - A live webcast of the conference call will be available on the Company's "Investor Relations" page [2]. - Dial-in details for the call can be accessed through a provided link [2]. - A replay of the call will be archived via webcast on the Company's website [2]. Group 2: Company Overview - Paylocity is headquartered in Schaumburg, IL, and is a provider of HR, finance, and IT software solutions through a unified platform [3]. - The company was founded in 1997 and has been publicly traded since 2014 [3]. - Paylocity's product suite aims to automate HR and payroll processes, attract and retain talent, and foster workplace culture [3]. - The company is recognized for its unique culture and has been consistently rated as one of the best places to work [3].

Group 1 - Citi analyst Steven Enders raised the price target on Paylocity (PCTY) to $179 from $175 while maintaining a Buy rating on the shares [1] - The firm adjusted models in the application software group after discussions with management, indicating a stable but uncertain demand environment [1] - The reopening of the U.S. government is providing some relief to companies in the sector [1] Group 2 - Citi has named Pegasystems (PEGA) as its new top pick, highlighting the company's leadership in artificial intelligence monetization [1] - The firm also sees growth opportunities at Blackline (BL) and Workiva (WK) [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Paylocity FY Conference Summary Company Overview - **Company**: Paylocity (NasdaqGS:PCTY) - **Event**: FY Conference held on December 10, 2025 - **Speakers**: Sheldon McMeans (Barclays) and Ryan Glenn (CFO of Paylocity) Key Highlights Financial Performance - **Q1 FY26 Results**: - Recurring revenue growth of **14%** - Total revenue growth of **12%** - Raised guidance for revenue and profitability due to strong performance [3][4][8] - **Long-term Targets**: - Increased targets based on significant progress in EBITDA and free cash flow leverage, and strong gross margin leverage [8][9] Market and Demand Environment - **Macro Environment**: - Stable macro and demand environment with slight year-over-year increase in client workforce levels [3][10] - **Client Base**: - Average client has about **150 employees**; successful in moving upmarket to larger clients [17][29] Product and Service Offerings - **HCM Market Growth**: - HCM market continues to grow with mid-to-high single-digit unit growth and increasing average revenue per client [29][30] - **AI and Automation**: - AI embedded in all products; significant year-over-year increase in adoption of AI assistant [46][57] - AI expected to enhance client experience and retention [57][61] Sales and Marketing Strategy - **Sales Headcount**: - Sales headcount increased by **8%** over the last two years; revenue per rep continues to climb [31][34] - **Client Engagement**: - Strong engagement at the Elevate conference with both existing clients and prospects [24][25] Competitive Landscape - **Market Position**: - Continued to take market share in the HCM payroll space; stable win rates against competitors [26][38] - **Defensibility Against AI**: - Complexities in payroll compliance and high-touch service model provide a competitive moat against new entrants [46][49] Future Outlook - **Margin Expansion**: - Optimistic about expanding gross margins through AI efficiencies and maintaining high client satisfaction [92][93] - **Capital Allocation**: - Active share repurchase program with **$500 million** repurchased since May 2024; plans to continue buybacks [109][110] - **International Strategy**: - Focus on serving multinational corporations and adapting to trends of smaller businesses hiring internationally [125][126] Additional Insights - **Integration of Acquisitions**: - Successful integration of Airbase acquisition, with expectations of high adoption rates for new finance products [63][64] - **Client Retention**: - High levels of client retention noted, with a focus on maintaining service quality while leveraging AI for efficiency [91][92] This summary encapsulates the key points discussed during the Paylocity FY Conference, highlighting the company's financial performance, market dynamics, product offerings, and strategic outlook.

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence in investing [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score evaluates stocks based on price trends and earnings estimate changes [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93%, significantly outperforming the S&P 500 [8] - A total of over 800 stocks are rated highly, making it essential for investors to utilize Style Scores to refine their choices [9] Stock Example: Paylocity (PCTY) - Paylocity Holding Corporation, a provider of cloud-based payroll and HCM solutions, is currently rated 3 (Hold) with a VGM Score of B [11] - The stock has a Momentum Style Score of A, with a recent price increase of 3.3% over the past month [11] - Analysts have raised earnings estimates for fiscal 2026, with the consensus now at $7.34 per share, reflecting an average earnings surprise of +13.8% [12]

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1] Zacks Style Scores Overview - Zacks Style Scores rates stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [2] - Stocks are rated from A to F, with A indicating the highest potential for outperforming the market [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, considering projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Company Spotlight: Paylocity (PCTY) - Paylocity is a cloud-based payroll and HCM software provider for medium-sized organizations in the U.S. [11] - Currently rated 3 (Hold) with a VGM Score of B, PCTY shows potential for growth with a projected earnings growth of 2.4% for the current fiscal year [11] - Recent upward revisions in earnings estimates have increased the Zacks Consensus Estimate to $7.34 per share, with an average earnings surprise of +13.8% [12]

Financial Data and Key Metrics Changes - The meeting confirmed that as of October 7, 2025, there were 54,381,598 shares of common stock outstanding, with approximately 88% represented at the meeting [4][5] - The preliminary voting results indicated strong support for the election of directors, with affirmative votes ranging from 91% to 99% for various nominees [11][12] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed in the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed in the meeting Company Strategy and Development Direction and Industry Competition - The company proposed the ratification of KPMG as the independent registered public accounting firm for the fiscal year ending June 30, 2026, indicating a focus on maintaining strong governance and oversight [8][12] - The approval of the amended and restated 2023 Equity Incentive Plan suggests a strategy to align executive compensation with company performance [9][12] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The final results of the voting will be reported in a Form 8-K filing within four business days following the meeting [13] Q&A Session Summary - There were no questions submitted by stockholders during the meeting [15]

Financial Data and Key Metrics Changes - The preliminary report indicates that approximately 88% of shares outstanding were represented at the meeting, confirming a quorum for business [5] - The voting results showed that Steven Beauchamp received an affirmative vote of 98%, while other directors received votes ranging from 91% to 99% [11][12] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company proposed to ratify the appointment of KPMG as the independent registered public accounting firm for the fiscal year ending June 30, 2026, indicating a focus on maintaining strong governance and oversight [7] - The approval of the amended and restated 2023 Equity Incentive Plan suggests a strategy to align executive compensation with company performance [9] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The final results of the voting will be reported in a Form 8-K filing within four business days following the meeting [13] Q&A Session Summary Question: Were there any questions submitted by stockholders? - There were no questions submitted by stockholders during the meeting [14]

Core Insights - Paylocity's shares fell 5.7% following a significant earnings miss in its first-quarter fiscal 2026 results, with earnings per share at $0.86 compared to the forecast of $1.57, representing a miss of over 45% [1][2] - The company's revenue increased by 12% year-over-year to $408 million, but the disappointing earnings led to a negative reaction from analysts, including a price target reduction from Citizens from $270.00 to $245.00, a decrease of more than 9% [2] Company Performance - Paylocity's stock has decreased by 28.3% since the beginning of the year, currently trading at $139.77 per share, which is 35.8% below its 52-week high of $217.86 from February 2025 [6] - An investment of $1,000 in Paylocity's shares five years ago would now be worth $738.23, indicating a decline in long-term value [6] Market Context - Paylocity's shares have shown low volatility, with only four moves greater than 5% over the past year, suggesting that the market views the recent news as significant but not fundamentally altering its perception of the company [4] - The recent acquisition interest in competitor Dayforce by Thoma Bravo, which could value the company at around $8.4 billion, highlights a trend of consolidation in the HR Tech sector, potentially affecting valuations of similar companies like Paylocity [5]