Paylocity Holding Corp (NASDAQ: PCTY) is a cloud-based human capital management (HCM), payroll, and spend management software company that sells subscription solutions to mid-market businesses. Revenue comes primarily from recurring subscription fees structured as a base fee plus per-employee, per-product charges, supplemented by interest income earned on funds held for clients during payroll processing. In FY2025 (year ended June 30, 2025), recurring and other revenue was $1,471.8 million (92% of total revenue), up 15% year-over-year, while interest income on funds held for clients was $123.4 million (8% of total revenue). The company's average client size was over 150 employees as of the FY2025 10-K filing. Paylocity expanded into spend management through the October 2024 acquisition of Airbase Inc., adding accounts payable automation, corporate cards, and procurement capabilities. The company does not pay dividends. Its platform serves more than 41,650 clients, according to the FY2025 10-K filed August 6, 2025.

Revenue model

Subscription fees (recurring and other revenue, 92% of total in FY2025) structured as a base fee plus per-employee and per-product charges. Additional revenue from W-2 preparation, annual required filings, and implementation fees. Interest income on client payroll funds held in transit (8% of total revenue in FY2025). Agreements are generally cancellable on 60 days' notice; term agreements are typically two years.

Products and services

Cloud-based HCM and payroll platform including: payroll processing, HR administration, recruiting, onboarding, scheduling, compensation management, benefit enrollment and administration, third-party administrative (TPA) solutions, expense management, accounts payable automation (via Airbase acquisition, October 2024), corporate cards, procurement, recognition and rewards, employee voice and sentiment tools, and the Modern Workforce Index (AI-based HR intelligence dashboard). Mobile-friendly interface with AI-powered features including Benefit Decision Support and AI-generated sentiment summaries.

Customers and end markets

Mid-market businesses with an average client size of over 150 employees (as of FY2025 10-K). Platform data covers more than 41,650 clients. End markets span all industries requiring HR, payroll, and workforce management. No customer concentration data disclosed in the filing excerpts.

Value-chain role

Software vendor and payroll processor sitting between employer clients and downstream providers (401(k), benefits, insurance, background check vendors, tax authorities). Acts as intermediary holding client payroll funds in transit, generating float income. Integrates with hundreds of third-party partner systems via automated data connections.

Geographic exposure

No geographic revenue breakdown disclosed in the filing excerpts.

Source: SEC 10-K, filed 2025-08-06

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