Paylocity Holding (PCTY) Q1 2025 Earnings Report

Revenue: $362.956 million in Q1 2025, up 14.3% YoY; gross profit: $247.996 million, gross margin 68.33%; adjusted gross profit margin: 74% (vs 72.4% in Q1 2024); operating income: $64.144 million; operating income margin: 17.67%; EBITDA: $64.144 million, EBITDA margin 17.67%; adjusted EBITDA: $129.0 million, 35.5% margin; net income: $49.573 million; net income margin: 13.66%; basic/diluted EPS: $0.89 / $0.88; weighted-average shares: ~55.64 million; operating cash flow: $91.455 million; free cash flow: $89.127 million; cash & equivalents: $778.549 million; average daily client funds: ~$2.6 billion in Q1, guided to ~$2.65 billion in Q2; expected average yield on client funds: ~400 bps (Q2) and ~390 bps (FY2025); total debt: $378.33 million; net debt: -$400.22 million (net cash); cash at end of period: $2.605 billion; guidance highlights: Q2 revenue $364–$369 million (12.3% growth vs Q2 FY24); recurring and other revenue guidance for FY2025: $1.427–$1.442 billion (~12% growth); total revenue FY2025: $1.535–$1.550 billion; adjusted EBITDA FY2025: $530–$540 million (ex. interest income on funds held for clients: $422–$432 million).