The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how hr software stocks fared in Q4, starting with Asure Software (NASDAQ:ASUR).
Modern HR software has two powerful benefits: cost savings and ease of use. For cost savings, businesses large and small much prefer the flexibility of cloud-based, web-browser-delivered software paid for on a subscription basis rather than the hassle and complexity of purchasing and managing on-premise enterprise software. On the usability side, the consumerization of business software creates seamless experiences whereby multiple standalone processes like payroll processing and compliance are aggregated into a single, easy-to-use platform.
The 4 HR software stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.
While some hr software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.
Best Q4: Asure Software (NASDAQ:ASUR)
Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ:ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.
Asure Software reported revenues of $39.31 million, up 27.7% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
“We are excited to report a strong fourth quarter to finish 2025. Our fourth quarter revenues were up an impressive 28% to $39.3 million versus a year ago and for the year our revenues totaled $140.5 million up 17% year over year. We continued to experience improved attach rates with our products and we believe the recent launch of our Asure Central™ client portal will further accelerate this activity.”
Asure Software achieved the fastest revenue growth and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 15.2% since reporting and currently trades at $8.94.
Is now the time to buy Asure Software? Access our full analysis of the earnings results here, it’s free.
Paylocity (NASDAQ:PCTY)
Operating in a field where companies traditionally juggled multiple disconnected systems, Paylocity (NASDAQ:PCTY) provides cloud-based human capital management and payroll software solutions that help businesses manage their workforce and HR processes.
Paylocity reported revenues of $416.1 million, up 10.4% year on year, outperforming analysts’ expectations by 1.9%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
Paylocity scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.9% since reporting. It currently trades at $109.40.
Is now the time to buy Paylocity? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Paycom (NYSE:PAYC)
Pioneering the concept of employees doing their own payroll with its "Beti" technology, Paycom (NYSE:PAYC) provides cloud-based human capital management software that helps businesses manage the entire employment lifecycle from recruitment to retirement.
Paycom reported revenues of $544.3 million, up 10.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year guidance of slowing revenue growth.
Paycom delivered the slowest revenue growth and weakest full-year guidance update in the group. Interestingly, the stock is up 5.9% since the results and currently trades at $125.72.
Read our full analysis of Paycom’s results here.
Paychex (NASDAQ:PAYX)
Once known as the go-to service for small business payroll needs, Paychex (NASDAQ:PAYX) provides payroll processing, HR services, employee benefits administration, and insurance solutions to small and medium-sized businesses.
Paychex reported revenues of $1.56 billion, up 18.3% year on year. This print met analysts’ expectations. Aside from that, it was a mixed quarter as it also logged revenue in line with analysts’ estimates but a slight miss of analysts’ EBITDA estimates.
Paychex had the weakest performance against analyst estimates among its peers. The stock is down 18.9% since reporting and currently trades at $92.65.
Read our full, actionable report on Paychex here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.