Paylocity Holdng (PCTY)
Pretax margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 309,063 | 277,015 | 158,614 | 83,597 | 57,104 |
| Revenue | US$ in thousands | 1,595,220 | 1,402,520 | 1,174,600 | 852,651 | 635,627 |
| Pretax margin | 19.37% | 19.75% | 13.50% | 9.80% | 8.98% |
June 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $309,063K ÷ $1,595,220K
= 19.37%
The pretax margin of Paylocity Holding has demonstrated a consistent upward trajectory over the examined period from June 30, 2021, to June 30, 2025. Specifically, the pretax margin increased from 8.98% in 2021 to 19.75% in 2024, representing a notable expansion in profitability before taxes. During this interval, there was a steady year-over-year improvement, with margins rising by approximately 0.82 percentage points from 2021 to 2022, followed by a more pronounced increase of 3.7 percentage points from 2022 to 2023, and further growth of 5.25 percentage points to reach the peak in 2024.
This acceleration suggests that the company has been increasingly effective at managing its operating costs relative to its revenues or has experienced a rise in gross margins contributing to higher pretax profitability. Slightly, the margin saw a marginal decline to 19.37% in 2025, indicating a potential stabilization or minor compression in profitability at the pretax level. Overall, the trend reflects a significant improvement in Paylocity Holding’s ability to generate profit before taxes over the analyzed period, which may be indicative of operational efficiencies, revenue growth, or a combination of both.
Peer comparison
Jun 30, 2025