Paylocity Holdng (PCTY)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	309,063	310,746	294,797	301,487	277,015	260,502	231,405	196,102	158,614	125,274	90,825	80,388	83,597	73,972	65,841	64,047	57,104	54,169	63,409	63,836
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
Pretax margin		19.37%	20.03%	19.67%	20.82%	19.75%	19.24%	17.91%	15.83%	13.50%	11.44%	9.07%	8.70%	9.80%	9.35%	9.00%	9.40%	8.98%	9.05%	10.85%	11.19%

June 30, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $309,063K ÷ $1,595,221K
= 19.37%

The pretax margin for Paylocity Holding demonstrates a generally upward trend over the analyzed period from September 30, 2020, through June 30, 2025. Initially, the pretax margin stood at 11.19% as of September 30, 2020, and experienced a gradual decline during the subsequent year, reaching approximately 8.98% by June 30, 2021. This decline was followed by a modest fluctuation between approximately 8.7% and 9.4% throughout the remainder of 2021 and into the first half of 2022.

Starting in the second quarter of 2022, the pretax margin resumed an upward trajectory, reaching approximately 9.8% by June 30, 2022. This positive momentum accelerated into 2023, with the margin increasing significantly to 11.44% by March 31, 2023, and further rising to 13.50% by June 30, 2023. The most notable improvement is observed in the second half of 2023, with the pretax margin ascending to 15.83% in September 2023 and continuing upward to 17.91% by December 31, 2023.

The upward movement persisted into early 2024, with the pretax margin reaching 19.24% at the end of the first quarter and slightly increasing to 19.75% by June 30, 2024. The trend continued into the third quarter of 2024, where the margin peaked at 20.82%, though it slightly declined to 19.67% by the end of December 2024. In 2025, the pretax margin remained relatively stable, with values of 20.03% as of the first quarter and 19.37% as of June 30, 2025.

Overall, the pretax margin indicates an initial period of decline followed by a consistent and significant recovery, reflecting improved profitability relative to earnings before taxes starting in 2023 and continuing into 2024 and mid-2025.