Paylocity Holding Corporation

and thank you for standing by. Welcome to the Paylocity Holding Corporation first quarter 2026 fiscal results conference call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ryan Glenn, Chief Financial Officer. Please go ahead.

Good afternoon, and welcome to Paylocity's earnings results call for the first quarter of fiscal 26, which ended on September 30, 2025. I'm Ryan Glenn, Chief Financial Officer, and joining me on the call today are Steve Beauchamp, Executive Chairman, and Toby Williams, President and CEO of Paylocity. Today, we will be discussing the results announced in our press release issued after the market closed. A webcast replay of this call will be available for the next 45 days on our website under the Investor Relations tab. During the call, we will use certain non-GAAP financial measures as defined in Regulation G. You can find the related reconciliations to GAAP in our press release, which is located on our website at paylocity.com under the Investor Relations tab. We will also make forward-looking statements. Actual events or results could differ materially from those projected in our forward-looking statements. Please refer to our press release and SEC filings, including our most recent 10-K, which contains important factors that could cause actual results to differ materially from the forward-looking statements. We do not undertake any due date to update any forward-looking statements. In regard to our upcoming conference schedule, we will be attending the annual Needham Tech Week, the Callen Virtual Human Capital Management Summit, the Barclays Global Tech Conference, the Raymond James Tech Conference, and the Needham Growth Conference. Please let me know if you'd like to schedule time with us at any of these events. With that, let me turn the call over to Steve.

Thank you, Ryan, and thanks to all of you for joining us on our first quarter fiscal 26 earnings call. We started off fiscal 26 with strong financial results, with Q1 recurring and other revenue growth of 14%, as our differentiated value proposition of providing the most modern software in the industry continues to see success in the marketplace. Total revenue was $408.2 million, or 12% growth over Q1 of last year. Our growth continues to be led by our ongoing commitment to driving innovation and providing the most modern AI-driven platform for business, highlighted by the recent launch of Paylocity for Finance, which expanded our market-leading workforce platform for HCM into the Office of the CFO, which we have further expanded across IT. We are very pleased with the early response from both existing clients and prospects to the value proposition of managing all spend and key business workflows in a single AI-driven platform across critical company functions, HR, finance, and IT, all driven by employee data, which contributed to our strong results in the quarter and the increased confidence reflected in our updated fiscal 26 guidance. Our AI strategy is also setting us apart in the market and contributing to our strong financial results and increased guidance as we expand and deepen AI capabilities throughout our platform to deliver the next level of business impact and user experience. For example, at HR Tech in September, we announced the next generation of our AI Assistant, which now turns everyday questions into instant action by providing users the answer, data, or the workflow needed across both desktop and mobile. With our AI Assistant, users can now ask, how many vacation days do I have left this year, and immediately see their up-to-the-minute vacation balance with a direct link to submit a new request. Or a manager may say, show me open headcount for my department, and the AI Assistant will show real-time openings for their specific teams or department and provide direct links for planning new hires, backfills, or role transfers. We believe these enhancements will help to further increase the value proposition of our platform and is beginning to drive wider product adoption across our client base by enabling an even more simplified user experience with direct access to answers and actions. To this point, in the past year, usage of our AI-powered features has more than doubled, including over 1.2 million questions answered by our AI assistant. Our innovation also continues to be recognized by third parties, as Paylocity was recently named as an overall leader across 10 HCM product categories in the latest G2 Fall 2025 grid reports. I would now like to pass the call to Toby to provide further color on the quarter.