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Forensic Analysis · Software & SaaS · as of Nov 9, 2026

Paylocity Holding Corp (PCTY)

A forensic read on Paylocity Holding Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

B · Sound & dependable
Forensic grade
Grey Zone
Financial health
2.1
Distress distance
Clean
Earnings quality
1
Forensic signals
22.0%
ROE
11.0%
Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Paylocity Holding Corp earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 2.1, placing it in the Grey zone. 1 forensic signal was flagged in its latest SEC filings, led by shareholder returns.

What the filings flag

93% of FCF
FY2026
Shareholder returns. Returned $398M to shareholders (buybacks + dividends) in FY2026 — 93% of free cash flow. Right at the limit of what free cash flow covers — little room before it's funded by debt or the balance sheet. That ratio has been CLIMBING toward the limit — 49% of free cash flow two years back — not just sitting there. Counting the $139M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 125%.

Key fundamentals

Latest Revenue$1.77B
Revenue Growth YoY+11.0%
Revenue CAGR (2yr)+12.4%
Net Margin15.2%
Free Cash Flow$427.8M
Return on Equity22.0%
Debt / Equity0.07x

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Data from SEC EDGAR public filings · metrics as of Nov 9, 2026. Forensic signals flag probability, not certainty.

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