Paylocity Holding Corp (PCTY) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Total Revenue Growth (Q4): 12% increase.
Total Revenue (Fiscal '25): $1.6 billion.
Average Revenue per Client (Fiscal '25): $35,300, an 8% increase from fiscal '24.
Client Base Growth: 7% increase to 41,650 clients.
Adjusted EBITDA (Q4): $130.7 million, 32.6% margin.
Adjusted EBITDA (Fiscal '25): $583 million, 36.5% margin.
Free Cash Flow Margin (Fiscal '25): 21.5%, a 12% increase on a dollar basis from fiscal '24.
R&D Investment (Fiscal '25): 14.3% of revenue, a 14% increase from fiscal '24.
Sales and Marketing Expenses (Fiscal '25): 21% of revenue.
Net Income (Q4): $48.6 million.
Net Income (Fiscal '25): $227.1 million.
Cash and Equivalents (End of Fiscal '25): $398.1 million.
Share Repurchase (Fiscal '25): 800,000 shares at an average price of $190.16 per share, totaling $150 million.
Warning! GuruFocus has detected 4 Warning Signs with CHGG.
Release Date: August 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Paylocity Holding Corp (NASDAQ:PCTY) reported a recurring revenue growth of 14% and total revenue growth of 12% in Q4, with fiscal year '25 recurring revenue growth at 15% and total revenue growth at 14%.
The company launched Paylocity for Finance, expanding its platform into the office of the CFO, which is expected to drive further growth in average revenue per client.
Paylocity Holding Corp (NASDAQ:PCTY) expanded its sales force by 8% to 952 sales reps, positioning the company for continued durable recurring revenue growth.
The company achieved a free cash flow margin of 21.5% for fiscal '25, representing a 12% increase on a dollar basis from fiscal '24.
Paylocity Holding Corp (NASDAQ:PCTY) maintained a strong revenue retention rate of over 92% in fiscal '25, indicating consistent client satisfaction and loyalty.
Negative Points
The integration of Airbase is still ongoing, with further phases planned, indicating potential future resource allocation and integration challenges.
Sales and marketing expenses saw a significant jump quarter over quarter, attributed to year-end timing and hiring, which could impact short-term profitability.
The company's guidance for fiscal '26 includes assumptions of 100 basis point interest rate cuts, which may not materialize as expected, potentially affecting financial outcomes.
The adoption of Paylocity for Finance is expected to take longer than typical HCM modules due to its higher price point and larger organizational commitment.
The company's growth in fiscal '26 is projected to slow slightly, with recurring revenue expected to grow by approximately 9%, compared to 15% in fiscal '25.
Q & A Highlights
Q: How should we view the demand environment and customer acquisition for fiscal '26? A: Toby Williams, President and CEO, noted that the demand environment remained stable throughout fiscal '25, with consistent growth in both units and average revenue per user (ARPU). The company is pleased with its sales execution and expects similar stability in fiscal '26.
Q: Can you provide insights into the integration of Airbase and the focus on Paylocity for Finance? A: Steven Beauchamp, Executive Chairman, explained that the integration of Airbase is being done in phases, with the first phase completed. The company is now focusing on training its sales force to promote the integrated product offering, which is expected to enhance cross-selling opportunities.
Q: What are the expectations for free cash flow in fiscal '26? A: Ryan Glenn, CFO, expressed confidence in expanding free cash flow margins, noting potential tailwinds from new tax legislation that could reduce federal taxes. The company aims to continue expanding free cash flow margins in fiscal '26 and beyond.
Q: What is the expected impact of Paylocity for Finance on client penetration and pricing? A: Steven Beauchamp mentioned that while it may take longer to achieve penetration rates similar to other HCM modules, the revenue per client is expected to be higher. The goal is to reach 10% to 20% penetration over time, with pricing based on a per-employee, per-user model.
Q: How is Paylocity leveraging AI in its operations and product offerings? A: Steven Beauchamp highlighted that AI is increasingly part of client conversations and is embedded across various modules. The company is focused on expanding AI capabilities to enhance client experiences and drive operational efficiencies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
Atlas Air Worldwide Expands Commitment to Workforce Development with University of Alaska Anchorage
Company Affirms Support of Efforts by President Trump and Secretary Duffy to Modernize U.S. Airspace Atlas Air Worldwide Expands Commitment to Workforce Development with University of Alaska Anchorage WHITE PLAINS, N.Y., Aug. 12, 2025 (GLOBE NEWSWIRE) -- Atlas Air Worldwide Holdings, Inc. ('Atlas'), the leading global provider of outsourced aviation logistics solutions, today reaffirmed its partnership with the University of Alaska Anchorage (UAA). Leaders from Atlas and UAA, along with faculty and students, were joined by United States Secretary of Transportation Sean Duffy at Merrill Field in Anchorage. The Secretary is spearheading the Trump Administration's efforts to invest in the aviation workforce, modernize the air traffic control system, enhance safety, and address nationwide shortages of pilots, controllers, and mechanics. 'President Trump and I are on a mission to make our airspace the envy of the world. We will build a brand-new air traffic control system and address a chronic shortage of controllers and pilots,' said U.S. Transportation Secretary Sean P. Duffy. 'President Trump's One Big, Beautiful Bill delivered over $100 million into the Don Young Alaska Aviation Safety Initiative to deploy state of the art technology and train the next generation of aviation talent. I applaud Atlas Air Worldwide for doing their part to contribute to this mission.' Aviation is essential to Alaska's economy, with Ted Stevens Anchorage International Airport (ANC) ranking among the world's top five busiest cargo hubs. The University of Alaska Anchorage is widely recognized for its top-tier aerospace program, which ensures students are equipped with the expertise needed to fill these critical roles. To further support Alaska's aviation workforce development, Atlas has also announced the renewal of its scholarship program, which helps students offset educational costs as they prepare for careers in aviation. 'We are proud to continue our partnership with the University of Alaska Anchorage by creating opportunities to advance aviation education,' said Michael Steen, Atlas Air Worldwide Chief Executive Officer. 'By investing in workforce development locally, we are advancing our commitment to aviation in Alaska, and to the resilience of the broader aerospace industry. We are fully dedicated to supporting the efforts led by President Trump and Secretary Duffy to make our airspace the global gold standard.' The new round of funding builds on Atlas-sponsored scholarships announced in 2024—four for maintenance technician students and three for aspiring pilots—and aims to develop a robust pipeline of talent for the sector. 'We are grateful to Atlas Air Worldwide for its continued investment in UAA and our students,' said Ray Weber, Dean of UAA's Community & Technical College. 'This generous donation is transformative, helping us build a more qualified workforce that is vital to Alaska's economic future and the broader industry. Thanks to Atlas, our students are gaining the training and credentials needed to pursue fulfilling careers, securing brighter prospects for the state's workforce and beyond.' Atlas Air Worldwide in Alaska Anchorage's proximity, within 9.5 hours by plane of 90% of the industrial world, positions it as a vital hub for global commerce, training and talent development, and it plays a key role in Atlas' operations. Annual Atlas departures at Ted Stevens Anchorage International Airport (ANC) have grown to more than 7,500 in 2024, supported by over 700 Anchorage based Pilots and ground staff. About Atlas Air Worldwide Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Titan Aviation Holdings, Inc., and Polar Air Cargo Worldwide, Inc. Our companies operate the world's largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, and 767 aircraft for domestic, regional and international cargo and passenger operations. About The University of Alaska Anchorage The University of Alaska Anchorage is Alaska's largest university, educating nearly 12,000 students annually. UAA transforms lives through teaching, research, community engagement and creative expression in a diverse and inclusive environment. As the state's largest university, UAA is a driving force in Alaska's economy, producing over 1,600 graduates each year, with a large percentage entering the Alaska workforce. UAA has programs in professional piloting, aviation management, aviation maintenance technology and air traffic control. In 2022, UAA graduated 273 students to the aviation sector. Learn more at Contacts: Media: CorpCommunications@ A photo accompanying this announcement is available at
Yahoo
16 minutes ago
- Yahoo
CuriosityStream Announces Pricing of Secondary Public Offering of Common Stock
SILVER SPRING, Md., August 13, 2025--(BUSINESS WIRE)--CuriosityStream, Inc. (the "Company") (Nasdaq: CURI), a leading global factual media company, has announced today the pricing of an underwritten secondary offering by a selling stockholder of 7,000,000 shares of the Company's common stock, par value $0.0001 per share (the "Common Stock"), at a price to the public of $3.50 per share. The offering is expected to close on August 14, 2025, subject to the satisfaction of customary closing conditions. The offering includes an option for the underwriters to purchase 1,050,000 additional shares within 30 days at the public offering price, less underwriting discounts and commissions. Needham & Company and Craig-Hallum are serving as joint book-running managers for the offering. Roth Capital Partners is serving as co-manager for the offering. The selling stockholder will receive all the net proceeds from the offering. The Company is not selling any shares of Common Stock in the offering and will not receive any proceeds from the offering. The offering is being conducted through a shelf registration statement on Form S-3 that was declared effective on May 3, 2022. Before you invest, you should read the prospectus supplement and accompanying prospectus forming a part of that registration statement and other documents the Company has filed with the Securities and Exchange Commission ("SEC") for more complete information about the Company and the offering. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the offering that has been filed with the SEC, as well as copies of the final prospectus supplement, once available, may be obtained for free on the SEC's website at or from Needham & Company, LLC, 250 Park Avenue, 10th Floor, New York, NY 10177, Attn: Prospectus Department, prospectus@ or by telephone at (800) 903-3268 or from Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 323 North Washington Ave., Minneapolis, MN 55401, by telephone at (612) 334-6300 or by email at prospectus@ This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Cautionary Statements Regarding Forward-Looking Information Certain statements in this press release may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, including statements regarding the size, terms, conditions, timing and use of proceeds of the offering. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "predicts" or "intends" or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed under "Risk Factors" in CuriosityStream's Annual Report on Form 10-K for the year ended December 31, 2024, that we filed with the Securities and Exchange Commission (the "SEC") on March 25, 2025, and in CuriosityStream's other SEC filings. These risk factors are important to consider in determining future results and should be reviewed in their entirety. Forward-looking statements are based on the current belief of the management of CuriosityStream, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and CuriosityStream is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC. In addition to factors previously disclosed in CuriosityStream's reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks related to CuriosityStream's ability to maintain and develop new and existing revenue-generating relationships and partnerships or to significantly increase CuriosityStream's subscriber base and retain customers; (ii) the effects of pending and future legislation; (iii) risks of the internet, online commerce and media industry; (iv) the highly competitive nature of the internet, online commerce and media industry and CuriosityStream's ability to compete therein; (v) litigation, complaints, and/or adverse publicity; (vi) privacy and data protection laws, privacy or data breaches, or the loss of data; and (vii) the ability to license content for purposes of training generative artificial intelligence models. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC. About CuriosityStream Inc. CuriosityStream Inc. is the entertainment brand for people who want to know more. The global media company is home to award-winning original and curated factual films, shows, and series covering science, nature, history, technology, society, and lifestyle. With millions of subscribers worldwide and thousands of titles, the company operates the flagship Curiosity Stream SVOD service, available in more than 175 countries worldwide; Curiosity Channel, the linear television channel available via global distribution partners; Curiosity University, featuring talks from the best professors at the world's most renowned universities as well as courses, short and long-form videos, and podcasts; Curiosity Now, Curiosity Explora, and other free, ad-supported channels; Curiosity Audio Network, with original content and podcasts; and Curiosity Studios, which oversees original programming. Curiosity Inc. is a wholly owned subsidiary of CuriosityStream Inc. (Nasdaq: CURI). View source version on Contacts CuriosityStream Investor Relations Brett Maas IR@
Business Wire
17 minutes ago
- Business Wire
CuriosityStream Announces Pricing of Secondary Public Offering of Common Stock
SILVER SPRING, Md.--(BUSINESS WIRE)--CuriosityStream, Inc. (the 'Company') (Nasdaq: CURI), a leading global factual media company, has announced today the pricing of an underwritten secondary offering by a selling stockholder of 7,000,000 shares of the Company's common stock, par value $0.0001 per share (the 'Common Stock'), at a price to the public of $3.50 per share. The offering is expected to close on August 14, 2025, subject to the satisfaction of customary closing conditions. The offering includes an option for the underwriters to purchase 1,050,000 additional shares within 30 days at the public offering price, less underwriting discounts and commissions. Needham & Company and Craig-Hallum are serving as joint book-running managers for the offering. Roth Capital Partners is serving as co-manager for the offering. The selling stockholder will receive all the net proceeds from the offering. The Company is not selling any shares of Common Stock in the offering and will not receive any proceeds from the offering. The offering is being conducted through a shelf registration statement on Form S-3 that was declared effective on May 3, 2022. Before you invest, you should read the prospectus supplement and accompanying prospectus forming a part of that registration statement and other documents the Company has filed with the Securities and Exchange Commission ('SEC') for more complete information about the Company and the offering. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the offering that has been filed with the SEC, as well as copies of the final prospectus supplement, once available, may be obtained for free on the SEC's website at or from Needham & Company, LLC, 250 Park Avenue, 10th Floor, New York, NY 10177, Attn: Prospectus Department, prospectus@ or by telephone at (800) 903-3268 or from Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 323 North Washington Ave., Minneapolis, MN 55401, by telephone at (612) 334-6300 or by email at prospectus@ This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Cautionary Statements Regarding Forward-Looking Information Certain statements in this press release may be considered 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, including statements regarding the size, terms, conditions, timing and use of proceeds of the offering. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words 'believes,' 'estimates,' 'expects,' 'projects,' 'forecasts,' 'may,' 'will,' 'should,' 'seeks,' 'plans,' 'scheduled,' 'anticipates,' 'predicts' or 'intends' or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed under 'Risk Factors' in CuriosityStream's Annual Report on Form 10-K for the year ended December 31, 2024, that we filed with the Securities and Exchange Commission (the 'SEC') on March 25, 2025, and in CuriosityStream's other SEC filings. These risk factors are important to consider in determining future results and should be reviewed in their entirety. Forward-looking statements are based on the current belief of the management of CuriosityStream, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and CuriosityStream is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC. In addition to factors previously disclosed in CuriosityStream's reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks related to CuriosityStream's ability to maintain and develop new and existing revenue-generating relationships and partnerships or to significantly increase CuriosityStream's subscriber base and retain customers; (ii) the effects of pending and future legislation; (iii) risks of the internet, online commerce and media industry; (iv) the highly competitive nature of the internet, online commerce and media industry and CuriosityStream's ability to compete therein; (v) litigation, complaints, and/or adverse publicity; (vi) privacy and data protection laws, privacy or data breaches, or the loss of data; and (vii) the ability to license content for purposes of training generative artificial intelligence models. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC. About CuriosityStream Inc. CuriosityStream Inc. is the entertainment brand for people who want to know more. The global media company is home to award-winning original and curated factual films, shows, and series covering science, nature, history, technology, society, and lifestyle. With millions of subscribers worldwide and thousands of titles, the company operates the flagship Curiosity Stream SVOD service, available in more than 175 countries worldwide; Curiosity Channel, the linear television channel available via global distribution partners; Curiosity University, featuring talks from the best professors at the world's most renowned universities as well as courses, short and long-form videos, and podcasts; Curiosity Now, Curiosity Explora, and other free, ad-supported channels; Curiosity Audio Network, with original content and podcasts; and Curiosity Studios, which oversees original programming. Curiosity Inc. is a wholly owned subsidiary of CuriosityStream Inc. (Nasdaq: CURI).
