Overview
Cloud-based solutions firm's fiscal Q2 total revenue rose 10.4% yr/yr
Adjusted EBITDA for fiscal Q2 beat analyst expectations
Company repurchased $100 mln worth of shares in fiscal Q2
Outlook
Paylocity expects Q3 2026 revenue between $487 mln and $492 mln
Company forecasts FY 2026 revenue between $1.732 bln and $1.742 bln
Paylocity projects Q3 2026 adjusted EBITDA between $200 mln and $204 mln
Result Drivers
STRONG SALES AND EXECUTION - Paylocity attributed its Q2 results to strong sales and operational execution, as well as product differentiation
AI AND AUTOMATION INVESTMENTS - Co said investments in AI and automation drove efficiency and productivity, boosting free cash flow and adjusted EBITDA margins
SHARE REPURCHASE - Paylocity repurchased $100 mln worth of shares in Q2 2026, reflecting strategic financial management
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income | $50.2 mln | ||
Q2 Adjusted EBITDA | Beat | $142.70 mln | $134.19 mln (20 Analysts) |
Q2 Adjusted operating income | Beat | $119.10 mln | $110.21 mln (20 Analysts) |
Q2 Operating income | $70.4 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Paylocity Holding Corp is $180.00, about 42.1% above its February 4 closing price of $126.64
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nGNX4yn47H
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)