
Paylocity Hlds (PCTY) Stock Forecast & Price Target
Paylocity Hlds (PCTY) Analyst Ratings
Bulls say
Paylocity Holding demonstrated strong growth in fiscal 2025, achieving a 7% increase in client count, reaching 41,650 clients, which reflects a compound annual growth rate (CAGR) of 11% from fiscal 2020 to fiscal 2025. The company’s recurring revenue surged by 14% year-over-year to $379 million, supported by elevated client workforce levels and improved productivity, while adjusted average revenue per user (ARPU) increased by 8% to $35,337. Additionally, Paylocity's adjusted free cash flow margins have shown significant improvement, rising from 11.9% in fiscal 2023 to 14.5% in fiscal 2025, indicating strong financial health and operational efficiency.
Bears say
Paylocity Holding's revenue growth has shown a decline, with Recurring and Other Revenue increasing by only 14.8% in FY25, a decrease from the 16.7% growth rate observed in FY24. Additionally, negative trends in net job additions, particularly among smaller organizations, could pose significant challenges to Paylocity's future growth as these declining employment figures may reduce the demand for its services. Furthermore, while the broader market has seen significant growth, Paylocity's performance has not kept pace, further highlighting the potential for ongoing difficulties in attracting and retaining clients amidst a softening job market.
This aggregate rating is based on analysts' research of Paylocity Hlds and is not a guaranteed prediction by Public.com or investment advice.
Paylocity Hlds (PCTY) Analyst Forecast & Price Prediction
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