Payroll and HR software company Gusto has surpassed $1 billion in annual revenue, marking a major financial milestone for the startup as several companies in the HR technology sector continue expanding despite broader concerns about AI disruption across enterprise software.
The 14-year-old company said the revenue figure reflects actual revenue generated during the previous 12 months rather than annualized recurring revenue projections commonly reported by software startups.
Gusto chief executive and co-founder Josh Reeves told TechCrunch that the company’s revenue growth has accelerated during each of the last five quarters.
The company also said it has remained cash flow positive for several years.
Gusto was most recently valued at $9.3 billion during a $200 million employee tender offer completed in June 2025, according to Fortune.
That valuation roughly matched the company’s valuation from early 2022.
Gusto Trails Rivals In Valuation Despite Revenue Scale
Gusto’s valuation remains lower than several competing HR software companies despite reaching the $1 billion revenue mark.
Deel, which focuses on international workforce management, surpassed $1 billion in annual recurring revenue last year and was valued at $17.3 billion during a $300 million funding round in October led by Ribbit Capital and Andreessen Horowitz.
Its rival Rippling also recently reported reaching $1 billion in annual recurring revenue and was valued at $16.8 billion following a $450 million funding round in May 2025.
Unlike Gusto’s reported revenue figure, both Deel and Rippling cited ARR rather than realized annual revenue.
AI Expands Across Operations
Gusto has also increased its use of artificial intelligence internally following the appointment of Rahul Patil to the company’s board in December.
According to the company, AI systems now generate approximately 50% of new code written internally and also handle half of customer support interactions.
The company has continued expanding through acquisitions as well.
Last year, Gusto acquired retirement planning startup Guideline in a deal reportedly valued at about $600 million.
Guideline provides retirement services for small and medium-sized businesses.
IPO Timeline Remains Unclear
Gusto has frequently been viewed as a potential IPO candidate, particularly given its profitability and revenue scale.
However, uncertainty around the broader public offering market continues affecting many late-stage technology companies.
When Reeves spoke with TechCrunch in December, he said he remained focused on scaling the business and serving customers rather than planning a public market debut.
Following the latest revenue milestone, the company declined to provide additional guidance regarding IPO timing.
A Gusto spokesperson told TechCrunch, “Nothing to share on the IPO timeline front.”
The company’s position also contrasts with rivals Deel and Rippling, which remain involved in an ongoing corporate espionage lawsuit that has generated significant public attention within the HR software industry.
Featured image credits: Wikimedia Commons
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