Paylocity Holdng (PCTY)

Gross profit margin

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Gross profit (ttm) US$ in thousands 1,096,998 1,065,489 1,023,294 989,821 957,944 929,328 890,971 854,941 807,559 747,365 673,654 615,938 565,649 522,497 480,792 448,363 416,329 392,642 387,480 381,643
Revenue (ttm) US$ in thousands 1,595,221 1,551,771 1,498,504 1,447,885 1,402,515 1,353,681 1,292,257 1,238,904 1,174,598 1,095,092 1,001,205 924,234 852,651 791,155 731,238 681,530 635,627 598,765 584,358 570,403
Gross profit margin 68.77% 68.66% 68.29% 68.36% 68.30% 68.65% 68.95% 69.01% 68.75% 68.25% 67.28% 66.64% 66.34% 66.04% 65.75% 65.79% 65.50% 65.58% 66.31% 66.91%

June 30, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,096,998K ÷ $1,595,221K
= 68.77%

The gross profit margin of Paylocity Holding has demonstrated a relatively stable yet gradually increasing trend over the observed period from September 30, 2020, through June 30, 2025. Initially, the gross profit margin was approximately 66.91% at the end of September 2020, experiencing minor fluctuations over the subsequent quarters. By December 31, 2020, it slightly declined to 66.31% but then remained within a narrow range through mid-2021, oscillating between approximately 65.50% and 65.79%.

From late 2021 onward, the gross profit margin exhibited a modest upward trajectory, crossing the 66% threshold by March 31, 2022, at 66.04% and continuing to ascend, reaching approximately 66.64% by September 30, 2022. The upward trend persisted into 2023, with the margin surpassing 68% during this year, attaining 68.25% in March 2023 and further increasing to 68.75% by June 30, 2023.

This consistent increase reflects an improvement in gross profitability, potentially attributable to higher revenue efficiency, better cost management, or favorable changes in the company's sales mix. The gross profit margin stabilized around 68.36% as of September 30, 2024, maintaining a relatively steady level through the subsequent quarters, with minor variations observed up to June 2025, where it reached approximately 68.77%.

Overall, the data indicates a positive trend towards higher gross profit margins, suggesting enhanced operational efficiency or margin expansion strategies over the analyzed period. The incremental gains over time point to a sustained improvement in the company's ability to maintain or increase profitability relative to its revenue base.