Key Highlights

  • Total Revenue was $451.7 million, an increase of 10.7 percent.
  • Recurring and other revenue rose 12.0 percent to $424.5 million.
  • Adjusted EBITDA reached $159.5 million, compared with $146.4 million a year earlier.
  • Second quarter fiscal 2027 Recurring Revenue is expected between $423.0 million and $428.0 million.

Paylocity Holding Corporation (NASDAQ:PCTY), a provider of cloud-based Human Capital management, finance and IT solutions, reported results for the first quarter of fiscal 2027, which ended September 30, 2026. Total revenue was $451.7 million, an increase of 10.7 percent from the first quarter of fiscal 2026. Recurring and other revenue rose 12.0 percent to $424.5 million, and adjusted EBITDA reached $159.5 million, compared with $146.4 million a year earlier. The company also raised its fiscal 2027 guidance for revenue and profitability.

Recurring Revenue and Growth Drivers

Recurring and other revenue grew faster than total revenue, which means the subscription-based portion of the Business is expanding at a higher rate than the company as a whole. The release credits go-to-market execution, revenue retention and new AI-driven product offerings, which management described as creating differentiation in the market.

Because recurring revenue makes up most of the company's total, its growth rate is the most direct indicator of underlying demand. A 12.0 percent increase in recurring revenue against a 10.7 percent rise in total revenue points to a continued expansion of the subscription base relative to other revenue lines.

Profitability and Guidance

Adjusted EBITDA of $159.5 million was about 9 percent higher than the prior-year level, a slower pace than the revenue increase. That gap indicates that operating costs grew somewhat faster than revenue over the period, even as profit increased in absolute terms.

For the second quarter of fiscal 2027, the company expects recurring and other revenue of $423.0 million to $428.0 million, representing approximately 10 percent growth over the fiscal 2026 second quarter. The company said the first quarter's results and momentum into the selling season supported its decision to raise guidance across both revenue and profitability.

Sector Context and What to Watch

Cloud-based Payroll and human capital software is a competitive category in which growth depends on customer retention, pricing and the ability to add products.

Final Takeaways

Paylocity opened fiscal 2027 with total revenue of $451.7 million, recurring revenue growth of 12.0 percent and higher adjusted EBITDA, and it raised its full-year guidance. The second quarter recurring revenue range points to steady growth. The company's upcoming results will show whether revenue expansion and profit growth continue on a similar trajectory.