Gusto hits $1B revenue, a figure that brings it closer to public markets

While AI disruption looms over many legacy SaaS companies, several HR tech startups seem to be thriving.

One of these companies is small-business payroll provider Gusto. The 14-year-old company, last valued at over $9 billion, just announced that it surpassed $1 billion in revenue earlier this year. Unlike many startups that report annualized recurring revenue (ARR) — an estimate of the value of their contracts in the upcoming 12 months — Gusto’s figure represents actual revenue earned over the previous 12 months.

Gusto was last valued at at $9.3 billion, Fortune reported, when it launched a $200 million tender offer for its employees in June, 2025. The deal valued the company about where it was valued in early 2022.

That’s a bargain for Gusto investors compared to its decacorn competitors. For instance, Deel, which serves large international businesses, crossed $1 billion in ARRlast year. The company was...

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