Paylocity vs Upwork
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KIRA’s take AI analyst
I put Paylocity and Upwork side by side, using each one’s latest annual report. Here is what stands out:
- Paylocity is the larger business, with $1.8B of revenue in fiscal 2026 against $788M for Upwork, about 2.2 times as much.
- Paylocity grew revenue faster (11.0%, against 2.4%).
- Paylocity kept more of each dollar of sales as operating profit (21.8% operating margin, against 16.4%).
- Upwork turned more of its sales into free cash flow (30.8% FCF margin, against 28.1%).
- Upwork earned a higher return on the capital invested in it (31.0%, against 26.5%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Paylocity
PCTY
7/11
Revenue growth5-year growthOperating marginNet marginReturn on equityPiotroski F-scoreShare count change
Upwork
UPWK
4/11
Gross marginFCF marginReturn on capitalNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | PCTY FY26 | UPWK FY25 |
|---|---|---|
| Size | ||
| Market cap | $9.7B | $1.2B |
| Revenue | $1.8B | $788M |
| Free cash flow | $497M | $242M |
| Net income | $270M | $115M |
| Growth | ||
| Revenue growth | 11.0% | 2.4% |
| 5-year growth | 22.8% | 16.1% |
| Share count change | −3.2% | −1.7% |
| Profitability | ||
| Gross margin | 69.2% | 77.8% |
| Operating margin | 21.8% | 16.4% |
| Net margin | 15.2% | 14.7% |
| FCF margin | 28.1% | 30.8% |
| Return on capital | 26.5% | 31.0% |
| Return on equity | 22.0% | 19.2% |
| Balance sheet | ||
| Net debt | −$191M | −$313M |
| Net debt / EBITDA | −0.4x | −2.0x |
| Dividends and buybacks | $398M | $136M |
| Valuation & quality | ||
| P/E | — | 12.4x |
| Piotroski F-score | 8 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.