Paylocity Holding Corp. (PCTY) Q1 FY2026 Summary (Ended Sept 30, 2025)
PCTY reported strong top-line growth offset by increased expenses, leading to lower net income and EPS for the quarter. Total Revenues grew 12% YoY to $408.2M, driven by Recurring Revenue of $378.9M (up 14%). Despite a Gross Margin improvement to 69%, Net Income decreased to $48.0M (vs. $49.6M YoY), resulting in Diluted EPS falling to $0.86 (vs. $0.88). The sharp rise in Income Tax Expense (to $26.9M, up from $19.3M) drove the Effective Tax Rate up substantially from 28.0% to 35.9%.
Operating e
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