Paylocity delivered a solid QQ3 2025 performance, underpinned by durable recurring revenue growth and meaningful product differentiation. Recurring and other revenue rose 15% year over year to $421.1 million, while total revenue increased 13% to $454.5 million, driven by a strong go-to-market cadence and continued investment in R&D. The quarter featured notable progress in product momentum, including AI-enabled capabilities embedded across the platform, and the Airbase acquisition moving toward deeper integration with Paylocity’s existing HCM and financial workflows. Management lifted the full-year guidance again, reflecting visibility into continued demand and operating leverage, with FY2025 recurring revenue guidance raised to $1.46–$1.465 billion and total revenue to $1.58–$1.585 billion. Cash generation remained robust, supported by positive free cash flow generation ($183.69 million in Q3) and ongoing share repurchases (~$84.9 million in Q3). The company also highlighted a resilient broker channel and a growing contribution from Airbase, with plans to expand cross-sell as the CFOOffice (Office of the CFO) expansion progresses. Near-term macro signals suggest steady demand with pockets of caution in larger, enterprise deals, but overall momentum remains favorable. In sum, Paylocity is advancing its product ecosystem (HCM plus CFO-focused solutions), driving higher average revenue per client, and leveraging scale to improve profitability while funding strategic investments.