Cluenex
Log inStart free
All stocks · Technology · Application Software

Paylocity PCTY

Paylocity scores excellent on business quality (7.8 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$153.96Oct 10, 2026
Business qualityExcellent
Next earningsOct 29, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Paylocity does

    Paylocity Holding Corp provides cloud-based payroll and human capital management software solutions. Employers pay recurring subscription fees to manage workforce tasks from a single platform. The company is scaling its marketplace ecosystem via offerings like EasySource to deepen platform integration and customer retention.

  2. What it does best

    Paylocity locks in clients through a deeply integrated software suite that yields a 69.2% gross margin, outperforming ADP's 46.5% and approaching PAYX's 91.3%. Switching payroll and HR systems creates massive operational friction for mid-sized employers.

  3. The main risk

    Platform expansion introduces execution risk as Paylocity depends on marketplace adoption like EasySource to sustain software differentiation against entrenched competitors.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin sits at 21.8% with an FCF margin of 24.2%, showing reliable cash conversion as the top line scales past $1.7 billion.

MoatStrong

Switching costs protect its enterprise software base, supported by a gross margin of 69.2% ranking in the sector's top quartile.

GrowthSteady

Revenue grew 11.0% to $1.8B, expanding steadily from $636M in 2021 though slowing from historical hyper-growth rates.

Financial healthStrong

Debt-to-equity of 0.07 and interest coverage of 66x mean debt is a non-issue. Free cash flow reached $428M, up steadily from prior years. Getting stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $637K outside pre-planned sales.

Our sealed record on PCTY

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is PCTY a good business?

Paylocity scores excellent on the Cluenex quality check (7.8 of 10), measured against its own industry. Profitability is strong, moat strong, growth steady and financial health strong.

Are insiders buying PCTY?

In the last 90 days of SEC Form 4 filings: 3 sold $637K outside pre-planned sales.

When does PCTY report earnings?

Oct 29, 2026.

For members

See PCTY today

  • Today's verdict on PCTY, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
Open in Cluenex Free to start. First month of Core free.

Cite this page: Cluenex, “Paylocity (PCTY)”, https://cluenex.com/stocks/pcty/, data as of Oct 10, 2026.