Gusto surpasses $1bn in actual revenue, edging closer to public markets
Updated
Updated · TechCrunch · May 7
Gusto surpasses $1bn in actual revenue, edging closer to public markets
5 articles · Updated · TechCrunch · May 7
The 14-year-old small-business payroll provider said the figure reflects revenue earned over the past 12 months, not ARR, and that it has been cash-flow positive for several years.
CEO Josh Reeves said growth has accelerated in each of the last five quarters, while Gusto reported AI now generates 50% of new code and handles half of support cases.
Last valued at $9.3bn in a 2025 tender offer, Gusto also bought retirement-plan startup Guideline for about $600m, though it said it had nothing to share on any IPO timeline.
After hitting $1B in revenue, what is the real reason behind Gusto’s hesitation for a 2026 IPO?
As AI drives Gusto's growth, can it solve the customer support issues that plague its online reviews?
Gusto bets AI will spark an SMB boom. What hidden challenges could derail this optimistic future of work?
Gusto’s $1B Revenue Milestone: AI-Driven Growth and SMB Market Disruption
Overview
In February 2026, Gusto achieved a major milestone by surpassing $1 billion in actual revenue, driven by its focus on serving over 500,000 small and medium-sized businesses with an all-in-one HR and financial platform. This success was accelerated by the late 2025 acquisition of Guideline, which enhanced its benefits offerings, and significant investments in AI-driven automation that improved payroll, compliance, and financial management. Supported by a transparent pricing model and global contractor payment capabilities, Gusto’s platform empowered SMBs with sophisticated yet accessible tools. Despite this growth, the company remains cautious about an IPO, prioritizing sustainable scaling while addressing future challenges like regulatory complexity and customer retention.