PCTY
TechnologyPaylocity Holding Corporation · Software - Application · $6B
What is Paylocity Holding Corporation?
Paylocity Holding Corporation delivers cloud-based payroll and human capital management software to mid-sized U.S. employers. Founded in 1997 and headquartered in Schaumburg, Illinois, the company serves thousands of for-profit and non-profit organizations across a wide range of industries.
Paylocity generates revenue by selling subscription-based software that consolidates payroll processing, tax compliance, HR administration, and workforce management into a single cloud platform. Clients pay recurring fees for modules covering everything from time tracking to talent acquisition. The company sells directly through an in-house sales force, targeting mid-market businesses that need enterprise-grade functionality without enterprise-grade complexity. Additional revenue comes from implementation services, training, and tax and regulatory support.
Paylocity was founded in 1997 and is headquartered in Schaumburg, Illinois.
- Payroll and tax compliance automation within one unified system
- Human capital management and employee self-service tools
- Time, attendance, and schedule tracking with hardware options
- Talent management covering recruiting, onboarding, and performance
- Employee experience features including surveys, video, and peer recognition
Is PCTY a Good Stock to Buy?
UQS Score rates PCTY as Good overall, reflecting a balanced but mixed picture across its five quality pillars.
Valuation stands out as the most favorable pillar for PCTY, suggesting the stock is priced attractively relative to its fundamentals — a notable characteristic in a sector where software companies often carry elevated multiples. The Quality, Growth, and Risk pillars each land at Neutral, indicating the business operates with reasonable stability and moderate growth characteristics without major red flags.
The Moat pillar registers as Weak, pointing to limited evidence of durable competitive advantages that would clearly differentiate Paylocity from a crowded field of HCM and payroll software providers.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does PCTY pay dividends?
No — Paylocity Holding Corporation does not currently pay a dividend.
Paylocity does not currently pay a dividend. As a growth-oriented software company, Paylocity reinvests available capital into product development, sales expansion, and platform enhancements rather than returning cash to shareholders through distributions. Investors seeking income from this position would need to look elsewhere, while those focused on long-term capital appreciation may find the reinvestment approach consistent with the company's growth strategy.
When does PCTY report earnings?
Paylocity reports earnings on a quarterly cadence, consistent with standard practice for U.S.-listed public companies.
The company's Neutral Growth and Quality pillar ratings suggest revenue and profitability have been progressing at a measured pace — neither accelerating sharply nor declining. Execution has been broadly consistent with expectations for a mid-market SaaS provider navigating a competitive HCM landscape.
For the most recent quarter's results and guidance, visit Paylocity's official investor relations page.
PCTY Price History
-39.0% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Paylocity Holding Corporation?
Based on Paylocity Holding Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
PCTY Long-term Outlook
Paylocity's Neutral Growth pillar suggests the company is expanding at a steady but not exceptional rate. The Attractive Valuation pillar indicates the market may not be fully pricing in future potential, which could provide a margin of safety. The Neutral Risk pillar reflects a business without outsized financial or operational vulnerabilities, though the Weak Moat pillar introduces uncertainty about the company's ability to defend market share over the long term.
Growth drivers
- Continued mid-market penetration as employers modernize legacy payroll systems
- Cross-selling additional HCM modules to the existing client base
- Expansion of employee experience and analytics product lines
Key risks
- Intense competition from larger, better-resourced HCM platforms
- Customer churn risk if switching costs prove lower than expected
- Valuation re-rating if growth decelerates below current expectations
PCTY vs Peers
Paylocity operates in a competitive software landscape alongside companies that serve overlapping but distinct market needs.
Kingsoft Cloud focuses on cloud infrastructure services primarily in China, operating in a fundamentally different geographic and product market than Paylocity's U.S.-centric HCM platform.
JFrog targets software development teams with DevOps and binary management tools, serving a technical buyer profile that contrasts with Paylocity's HR and payroll decision-makers.
AppFolio delivers vertical SaaS solutions for property management companies, sharing Paylocity's mid-market SaaS model but focusing on real estate workflows rather than workforce management.
Frequently Asked Questions
What does Paylocity do?
Paylocity provides cloud-based payroll and human capital management software to mid-sized U.S. businesses. Its platform consolidates payroll processing, tax compliance, HR administration, time tracking, talent management, and employee engagement tools into a single subscription-based system, helping employers manage their workforce without juggling multiple disconnected applications.
Does PCTY pay dividends?
Paylocity does not currently pay a dividend. The company reinvests its capital into product development and growth initiatives rather than distributing cash to shareholders. Investors seeking regular income should factor this into their assessment, as PCTY is structured more as a growth-oriented software business.
When does PCTY report earnings?
Paylocity reports financial results on a quarterly cadence, as is standard for U.S.-listed public companies. For the exact timing of upcoming earnings releases and access to past results, visit Paylocity's investor relations page directly.
Is PCTY a good stock to buy?
UQS Score rates PCTY as Good overall. The Valuation pillar is Attractive, while Quality, Growth, and Risk are each Neutral. The Moat pillar is Weak, suggesting limited competitive differentiation. Whether PCTY fits a portfolio depends on individual goals — the complete pillar breakdown is available to UQS Pro members.
Is PCTY overvalued?
Based on the UQS Valuation pillar, PCTY is currently rated Attractive, meaning the stock does not appear overpriced relative to its fundamentals. That said, valuation is one of five pillars — investors should consider the full picture, including the Weak Moat rating, before drawing conclusions.
How does PCTY compare to its competitors?
Paylocity competes in the mid-market HCM and payroll software space. Compared to peers like AppFolio, JFrog, and Kingsoft Cloud, Paylocity is distinctly focused on U.S. workforce management. Its Attractive Valuation pillar may offer a relative edge, though its Weak Moat suggests it faces meaningful competitive pressure from larger platforms.
What is PCTY's market cap bracket?
Paylocity is classified as a mid-cap company. This places it in a segment of the market that typically offers more growth potential than large-caps but with greater volatility than mega-cap peers. Mid-cap software companies like PCTY can be sensitive to shifts in growth expectations and sector sentiment.
Who founded Paylocity?
Paylocity was founded in 1997. Detailed founding history, including the names of its founders, is widely available through the company's official website and public filings. The company has been headquartered in Schaumburg, Illinois throughout its history.
Is PCTY a long-term quality investment?
As a long-term quality indicator, PCTY's Good UQS Score reflects a mixed profile. The Attractive Valuation and Neutral Risk pillars provide a reasonable foundation, but the Weak Moat pillar raises questions about whether the company can sustain competitive advantages over a multi-year horizon. Pro members can view the full analysis to assess long-term fit.
What is the main competitive advantage of Paylocity?
Paylocity's platform approach — bundling payroll, HR, time tracking, and employee experience tools into one cloud system — creates switching costs for clients who have integrated it deeply into their operations. However, the UQS Moat pillar rates this advantage as Weak, suggesting these barriers may not be as durable as those of larger, more entrenched HCM providers.
What sector does PCTY belong to?
Paylocity operates in the Technology sector, specifically within the human capital management and payroll software segment. It is part of a broader group of [cloud software companies](/sector/technology) that deliver subscription-based enterprise tools, competing for mid-market customers across industries including healthcare, retail, and financial services.
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Pro Analysis
PCTY — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 54.2 | 57.4 | 38.0 | 42.4 | 58.8 | 86.8 | +0.1 |
| May 21, 2026 | 54.1 | 57.3 | 38.0 | 42.4 | 58.8 | 86.7 | 0.0 |
| May 19, 2026 | 54.1 | 57.2 | 38.0 | 42.4 | 58.8 | 86.6 | +1.5 |
| May 7, 2026 | 52.6 | 55.7 | 38.0 | 41.9 | 51.3 | 87.1 | +0.3 |
| May 3, 2026 | 52.3 | 55.7 | 38.0 | 41.9 | 51.3 | 85.0 | -0.3 |
| Apr 26, 2026 | 52.6 | 55.7 | 38.0 | 41.9 | 51.3 | 87.3 | -0.1 |
| Apr 19, 2026 | 52.7 | 55.7 | 38.0 | 42.0 | 51.3 | 88.0 | -0.1 |
| Apr 18, 2026 | 52.8 | 55.7 | 38.0 | 42.0 | 51.3 | 88.5 | -0.3 |
| Apr 14, 2026 | 53.1 | 55.7 | 38.0 | 42.0 | 51.3 | 90.5 | -0.2 |
| Apr 12, 2026 | 53.3 | 55.7 | 38.0 | 42.0 | 51.3 | 92.2 | +0.6 |
PCTY — Pillar Breakdown
Quality
— 57.2/100 (25%)Paylocity Holding Corporation shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 42.4/100 (20%)Paylocity Holding Corporation shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 58.8/100 (15%)Paylocity Holding Corporation maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 86.4/100 (15%)Paylocity Holding Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 38/100 (25%)Paylocity Holding Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for PCTY.
Score Composition
Financial Data
More Stock Analysis
How is the PCTY UQS Score Calculated?
The UQS (Unified Quality Score) for Paylocity Holding Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Paylocity Holding Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Paylocity Holding Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.