What To Expect From Paylocity's (PCTY) Q2 Earnings

Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) will be announcing earnings results this Tuesday after the bell. Here’s what to expect.

Paylocity beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $454.5 million, up 13.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Is Paylocity a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Paylocity’s revenue to grow 8.8% year on year to $388.6 million, slowing from the 15.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paylocity has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.7% on average.

Looking at Paylocity’s peers in the finance and hr software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Asure delivered year-on-year revenue growth of 7.4%, missing analysts’ expectations by 3.2%, and Paychex reported revenues up 10.2%, falling short of estimates by 1.1%. Asure traded down 13.6% following the results while Paychex was also down 7.4%.

Read our full analysis of Asure’s results here and Paychex’s results here.

The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the finance and hr software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Paylocity is down 1.3% during the same time and is heading into earnings with an average analyst price target of $219.94 (compared to the current share price of $181.43).

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