PCTY — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-08-05

• We are a leading cloud-based provider of human capital management (“HCM”), finance and IT software solutions. Our unified, easy-to-use platform helps businesses streamline HR, finance, and IT operations, manage spend and talent, and build culture and connection with artificial intelligence (“AI”) em…

• •Our platform automates processes across the employee lifecycle in one place, so organizations save time, reduce administrative burden, and create a more seamless experience for employees and managers alike. From recruiting and onboarding to benefits, payroll, and performance management, our solutio…

• •Our Finance and IT tools support higher efficiency and compliance across the organization. Our Finance tools centralize payroll and non-payroll spend, including expense management, accounts payable, corporate cards and procurement. Our IT tools automate provisioning, access, and updates to software…

• •Our platform is built on a single employee record with workflows and integrations designed to automate work across teams and systems. Employees can access their information and tools through a unified web and mobile experience. Analytics and reporting capabilities are embedded throughout the platfo…

• •Ignite AI, our platform-wide AI with agents, is embedded throughout our platform bringing data, insights, and automation into moments where decisions are made and work gets done. Purpose-built agents automate tasks across pay, time, recruiting, and other places where work often slows down. We also …

Text removed vs the prior filing · source: 10-K · 2025-08-06

• We are a leading cloud-based provider of human capital management, or HCM, payroll and spend management software solutions that deliver a comprehensive platform for the modern workforce. Our platform offers an intuitive, easy-to-use product suite that helps businesses streamline and automate HR, pay…

• •Single Platform with Flexible Data – The foundation of our platform is a single employee system of record and end-to-end capabilities to support the employee lifecycle, ensuring efficiency and compliance from recruitment to retirement.

• •Employee Experience – We embed employee-focused features like native video, collaboration, recognition and rewards, chat, automated surveys and more throughout the platform that enable employers to engage with and retain top talent. Our platform provides tools to communicate, connect to organizatio…

• •Insights, Recommendations & AI – Our clients have access to their data for reporting and compliance needs, but we also provide actionable insights powered by artificial intelligence (“AI”) based on best practices across our client base. AI is woven intentionally throughout the platform to deliver v…

• •Leading Customer Service – We supplement our comprehensive software solutions with an integrated implementation and client service organization, all of which are designed to meet the needs of our clients and prospects.

Text added vs the prior filing · source: 10-K · 2026-08-05

• Several of our competitors are larger and have greater name recognition, longer operating histories and significantly greater resources than we do. Many of these competitors are able to devote greater resources to the

• development, promotion and sale of their products and services. Furthermore, our current or potential competitors may be acquired by third parties with greater available resources and the ability to initiate or withstand substantial price competition, which may include price concessions, delayed pay…

• We use multiple cloud hosting and third-party data center providers to host our solutions, including data centers in Franklin Park, Illinois and Kenosha, Wisconsin (for backup and disaster recovery). We also may decide to employ additional offsite data centers in the future to accommodate growth. Pr…

• contract, or with the systems by which our telecommunications providers allocate capacity among their clients, including us, could adversely affect the availability and processing of our solutions and related services and the experience of our clients. In addition, our data center providers may be u…

• We typically pay client employees, taxing authorities and vendors before a client’s electronic funds transfers are finally settled to our account. If client payments are rejected by banking institutions or otherwise fail to clear into our accounts, we may require additional sources of short-term liq…

Text removed vs the prior filing · source: 10-K · 2025-08-06

• accountants, which represent a significant source of referrals of potential clients for our products and implementation services. Failure to effectively manage our growth could adversely impact our business and results of operations. We could also suffer operational mistakes, a loss of business oppo…

• Several of our competitors are larger and have greater name recognition, longer operating histories and significantly greater resources than we do. Many of these competitors are able to devote greater resources to the development, promotion and sale of their products and services. Furthermore, our c…

• In the event of a catastrophic event with respect to one or more of our systems, we may experience an extended period of system unavailability, which could negatively impact our relationship with clients.

• We use multiple cloud hosting and third-party data center providers to host our solutions, including data centers in Franklin Park, Illinois and Kenosha, Wisconsin (for backup and disaster recovery). We also may decide to employ additional offsite data centers in the future to accommodate growth. Pr…

• We typically pay client employees and may pay taxing authorities amounts due for a payroll period before a client’s electronic funds transfers are finally settled to our account. If client payments are rejected by banking institutions or otherwise fail to clear into our accounts, we may require addi…

Text added vs the prior filing · source: 10-K · 2026-08-05

• We are a leading cloud-based provider of HCM, finance and IT software solutions that deliver a comprehensive platform for the modern workforce. Our platform offers an intuitive, easy-to-use product suite that helps businesses automate and streamline HR, finance and IT processes, attract and retain t…

• expensed as incurred. We capitalize implementation costs related to our proprietary products. For the year ended June 30, 2026 and earlier, such capitalized costs were generally amortized over a period of 7 years. At the end of fiscal 2026, we reassessed the expected period of benefit and, effective…

• General and administrative expenses consist primarily of employee-related costs, including wages, stock-based compensation, bonuses and benefits for our finance and accounting, legal, information systems, human resources and other

• administrative departments. Additional expenses include consulting and professional fees, occupancy costs, insurance and other corporate expenses. While we expect our general and administrative expenses to continue to increase in absolute dollars as our company continues to grow, we expect to realiz…

• largely driven by executive award forfeitures during the year ended June 30, 2025 and $6.5 million in additional employee-related costs.

Text removed vs the prior filing · source: 10-K · 2025-08-06

• We are a leading cloud-based provider of human capital management, or HCM, payroll and spend management software solutions that deliver a comprehensive platform for the modern workforce. Our platform offers an intuitive, easy-to-use product suite that helps businesses streamline and automate HR, pay…

• acquired intangibles and bank fees associated with client fund transfers. Costs related to recurring support are generally expensed as incurred. Implementation costs related to our proprietary products are capitalized and generally amortized over a period of 7 years. Our cost of revenues is expected…

• General and administrative expenses consist primarily of employee-related costs, including wages, stock-based compensation, bonuses and benefits for our finance and accounting, legal, information systems, human resources and other administrative departments. Additional expenses include consulting an…

• was primarily due to $14.3 million of additional employee-related costs and a $4.3 million gain related to lease exit activity during the year ended June 30, 2024.

• Our effective tax rates were 25.4% and 26.5% for the years ended June 30, 2024 and 2025, respectively. Our effective tax rates for the years ended June 30, 2024 and 2025 were higher than the federal statutory rate of 21% primarily due to state income taxes.

Text added vs the prior filing · source: 10-K · 2026-08-05

• as available-for-sale, no gains or losses are recognized due to changes in interest rates until such securities are sold or decreases in fair value are deemed due to expected credit losses. We have not recorded any credit impairment losses on our portfolio to date.

• Based upon a sensitivity model that measures market value changes caused by interest rate fluctuations, an immediate 100-basis point increase in interest rates would have resulted in a decrease in the market value of our available-for-sale securities by $16.0 million as of June 30, 2026. An immediat…

• Additionally, as described in Note 12 of the Notes to the Consolidated Financial Statements included in Part II, Item 8: “Financial Statements and Supplementary Data”, we entered into a first amendment to our credit agreement that provides for a revolving credit facility (“credit facility”) in the a…

Text removed vs the prior filing · source: 10-K · 2025-08-06

• Based upon a sensitivity model that measures market value changes caused by interest rate fluctuations, an immediate 100-basis point increase in interest rates would have resulted in a decrease in the market value of our available-for-sale securities by $12.0 million as of June 30, 2025. An immediat…

• Additionally, as described in Note 12 of the Notes to the Consolidated Financial Statements included in Part II, Item 8: “Financial Statements and Supplementary Data”, we entered into a first amendment to our credit agreement that provides for a revolving credit facility (“credit facility”) in the a…