Gusto Surpasses $1 Billion Revenue, Gears Up for IPO in Booming HR Tech Sector

Gusto has officially surpassed $1 billion in trailing 12-month revenue, a milestone achieved in February 2026.

This achievement underscores the company's robust growth and positions it nearer to potential public markets at its current $9.3 billion valuation.

Gusto's Edge in a Competitive Landscape

While rivals like Rippling and Deel recently hit similar revenue marks with valuations exceeding $16 billion, Gusto maintains focus on U.S. small and medium-sized businesses.

The company's acquisition of retirement provider Guideline for around $600 million last year expands its offerings into comprehensive HR solutions.

AI Powers Sustainable Scaling

Gusto leverages AI for 50% of new code generation and 50% of customer support cases, driving efficiency gains without the scandals that have hit competitors.

This tech-forward approach allows Gusto to serve over 500,000 customers while keeping operations lean amid economic pressures.

Leadership Prioritizes Customers Over Hype

CEO Josh Reeves emphasizes serving customers and scaling the business over rushing into an IPO.

A spokesperson confirmed no specific timeline for going public, reflecting a measured strategy in a volatile market.

Impact on Small Businesses and Beyond

For everyday small business owners, Gusto simplifies payroll, taxes, and benefits, saving precious time and reducing errors.

In an era of inflation and uncertainty, such tools become lifelines, helping SMBs compete and retain talent.

The milestone signals a maturing HR tech industry, potentially unlocking more innovation tailored to non-enterprise users.

Looking ahead, Gusto could command a higher valuation in a recovering IPO market by 2027, benefiting investors and users alike.