PCTY (Paylocity Holding) Operating Income: $368 Mil (TTM As of Mar. 2026)


PCTY Paylocity Holding Corp PCTY
75 GF Score
Price $118.52
GF Value $226.40
Valuation Possible Value Trap
! 3 Warning Signs
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What is Paylocity Holding Operating Income?

Paylocity Holding PCTY +1.61% 75 Operating Income is $368 Mil as of Mar. 2026. GuruFocus rates PCTY with a GF Score™ of 75/100 and a GF Value™ of $226.40 (Possible Value Trap). The stock has 3 warning signs investors should review.

Paylocity Holding's Operating Income for the three months ended in Mar. 2026 was $157 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $368 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Paylocity Holding's Operating Income for the three months ended in Mar. 2026 was $157 Mil. Paylocity Holding's Revenue for the three months ended in Mar. 2026 was $502 Mil. Therefore, Paylocity Holding's Operating Margin % for the quarter that ended in Mar. 2026 was 31.25%.

Good Sign:

Paylocity Holding Corp operating margin is expanding. Margin expansion is usually a good sign.

Paylocity Holding's 5-Year average Growth Rate for Operating Margin % was 14.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Paylocity Holding's annualized ROC % for the quarter that ended in Mar. 2026 was 7.62%. Paylocity Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 457.22%.

Paylocity Holding  (NAS:PCTY) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Paylocity Holding's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=627.916 * ( 1 - 29.16% )/( (6683.025 + 4989.123)/ 2 )
=444.8156944/5836.074
=7.62 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6972.784 - 127.264 - ( 162.495 - max(0, 5678.054 - 5893.928+162.495))
=6683.025

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5444.375 - 155.524 - ( 299.728 - max(0, 4037.807 - 4358.34+299.728))
=4989.123

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Paylocity Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=627.916/( ( (88.244 + max(61.564, 0)) + (91.676 + max(33.181000000001, 0)) )/ 2 )
=627.916/( ( 149.808 + 124.857 )/ 2 )
=627.916/137.3325
=457.22 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(44.014 + 0 + 5687.419) - (127.264 + 43.423 + 5499.182)
=61.564

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(51.373 + 0 + 4010.244) - (155.524 + 38.971 + 3833.941)
=33.181000000001

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Paylocity Holding's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=156.979/502.286
=31.25 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Paylocity Holding Operating Income Related Terms

Paylocity Holding Operating Income Historical Data

* Premium members only.

The historical data trend for Paylocity Holding's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Paylocity Holding Operating Income Chart

Paylocity Holding Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.04 84.59 155.03 260.09 304.02

Paylocity Holding Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 127.03 66.23 74.21 70.38 156.98
PCTY
75GF Score
Paylocity Holding Corp PCTY
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Paylocity Holding Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $368 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $368 Mil mean?
Paylocity Holding (PCTY) has a Operating Income of $368 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Paylocity Holding and its competitors.
Is Paylocity Holding's Operating Income too high?
Paylocity Holding's current Operating Income is $368 Mil. Overall, Paylocity Holding has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Paylocity Holding's Operating Income compare to DUOL and NAVN?
Paylocity Holding's Operating Income of $368 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Paylocity Holding and its competitors. Paylocity Holding's current Operating Income is $368 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paylocity Holding stock overvalued right now?
Based on GuruFocus' analysis, Paylocity Holding (PCTY) is currently considered Possible Value Trap. The stock's GF Value™ is $226.40, compared to a current price of $118.52 — trading 47.7% below its estimated fair value. The current Operating Income is $368 Mil. Paylocity Holding's overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current Operating Income is $368 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Paylocity Holding (PCTY) Overvalued in 2026?

Based on GuruFocus' analysis, Paylocity Holding stock appears to be undervalued. The current stock price of $118.52 is trading 47.7% below its estimated GF Value™ of $226.40. GuruFocus considers Paylocity Holding to be Possible Value Trap.

Key valuation signals for PCTY:

  • Operating Income: $368 Mil
  • GF Value™: $226.40 vs. price of $118.52 (47.7% below fair value)
  • GF Score™: 75/100 with 3 warning signs

No single metric tells the full story. See the PCTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Paylocity Holding Business Description

Address 1400 American Lane, Schaumburg, IL, USA, 60173
Paylocity is a cloud-based human capital management provider offering payroll, compliance, and human resources management solutions. With the addition of expense and IT management modules, Paylocity unifies back-office operations spanning HR, finance, and IT on a single platform and bills customers on a subscription basis. The firm's customer base skews toward the midmarket and is primarily based in the US. As of fiscal 2025, Paylocity has nearly 42,000 customers.
75GF Score

Get the complete analysis for PCTY

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$118.52
Price
$226.40
GF Value