Payroll and HR software company Gusto announced in 2026 that it surpassed $1 billion in revenue, a figure representing money actually earned over the previous 12 months rather than an annualized estimate of future contract value.
The milestone puts the 14-year-old company in a strong financial position relative to its valuation. Gusto was last valued at $9.3 billion in June 2025, when it launched a $200 million tender offer for employees — roughly the same valuation it carried in early 2022. By comparison, rivals Deel and Rippling, both of which recently reported $1 billion in ARR, carry valuations of $17.3 billion and $16.8 billion respectively.
Gusto focuses on payroll and HR services for small businesses. Beyond the revenue milestone, the company completed the acquisition of retirement plan provider Guideline for approximately $600 million last year. It has also reported significant operational changes following the December board appointment of Anthropic CTO Rahul Patil, with the company stating that AI now handles 50% of new code generation and an equal share of customer support cases.
The revenue figure and relatively modest valuation could position Gusto for a higher-valuation fundraising round or a future IPO. However, a public debut in 2026 appears uncertain given current IPO market conditions. CEO and co-founder Josh Reeves, speaking to TechCrunch in December, said he does not spend much time thinking about an IPO, preferring to focus on customers and scaling the business. When asked whether the revenue milestone changed that stance, a company spokesperson said: “Nothing to share on the IPO timeline front.”
Gusto has also avoided the legal turbulence facing its competitors. Deel and Rippling are currently involved in a high-profile corporate espionage lawsuit, a dispute that has not drawn in Gusto.
Source: TechCrunch