Is Paylocity (PCTY) Using Sports Partnerships to Strengthen Its Competitive Position in Cloud HR Solutions?

• Recently, the Vegas Golden Knights announced a multi-year partnership with Paylocity, naming the company as their Official Human Capital Management Partner and adopting its suite of HR technology to streamline operations and enhance employee experience.
• This collaboration amplifies Paylocity’s brand visibility across a major sports franchise’s platforms, highlighting the growing role of cloud-based HR solutions in high-profile organizational settings.
• We'll examine how this high-profile NHL partnership reinforces Paylocity's efforts to broaden its reach within the sports and entertainment sector.

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Paylocity Holding Investment Narrative Recap

For investors, the key thesis around Paylocity is belief in the company’s ability to expand its recurring-revenue SaaS platform in HR and adjacent markets, responding to rising digital and automation needs across organizations of all sizes. While the new partnership with the Vegas Golden Knights showcases Paylocity’s product and may boost brand exposure, it does not appear to materially change the company's most important near-term catalyst, driving adoption of its broader financial suite, or alleviate the main risk of slowing revenue growth highlighted in fiscal 2026 guidance.

Among recent announcements, Paylocity’s July 2025 launch of Paylocity for Finance is particularly relevant, as it ties directly to current revenue and cross-sell catalysts, but also represents execution risk since management has noted slower than expected adoption due to the product's complexity and higher price point.

However, investors should be aware that despite promising new logos and partnerships, the biggest risk may still be the potential for...

Read the full narrative on Paylocity Holding (it's free!)

Paylocity Holding's outlook projects $2.1 billion in revenue and $380.9 million in earnings by 2028. This scenario assumes a 9.6% annual revenue growth and a $153.8 million increase in earnings from the current $227.1 million level.

Uncover how Paylocity Holding's forecasts yield a $220.16 fair value, a 45% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Paylocity range from US$190 to nearly US$235 per share, with all suggesting significant potential undervaluation. Yet as recent guidance points to moderating top-line growth, it is clear opinions on the company's longer-term earnings trajectory can sharply diverge.

Explore 3 other fair value estimates on Paylocity Holding - why the stock might be worth as much as 55% more than the current price!

Build Your Own Paylocity Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Paylocity Holding research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Paylocity Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Paylocity Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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