Gusto hits $1 billion in revenue, moves closer to public markets

While AI disruption is sweeping many legacy SaaS companies, several HR technology startups seem to be thriving.

One of those companies is small business payroll provider Gusto. The 14-year-old company, last valued at more than $9 billion, just announced that it surpassed $1 billion in revenue earlier this year. Unlike many startups that report annual recurring revenue (ARR) — an estimate of the value of their contracts over the next 12 months — Gusto’s number represents actual revenue earned over the previous 12 months. Moreover, the startup was positive cash flow for several years. Its revenue growth has also accelerated in each of the past five quarters, Gusto CEO and co-founder Josh Reeves told TechCrunch.

Gusto was last rated to $9.3 billionFortune 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 decor rivals. For example, Deel, which serves large international enterprises, surpassed $1 billion in ARR last year. The company’s last valuation was $17.3 billion when it raised a $300 million round led by Ribbit Capital and Andreessen Horowitz in October.

Meanwhile, Deel’s main rival Rippling, which last month announced it had also reached $1 billion in ARR, was last valued at $16.8 billion after raising $450 million in May 2025.

Crossing the $1 billion revenue mark, Gusto clearly demonstrates its financial strength against its peers.

The company has made other big moves. Last year he completed it guideline acquisitiona startup that offers retirement plans to small and medium-sized businesses, for about $600 million, as we reported.

Following the December board appointment of Anthropic CTO Rahul PatilGusto is already reporting huge performance gains. According to the company, AI now accounts for 50% of new code generation and handles an equal share of customer support cases.

Given its relatively modest valuation compared to its revenue, Gusto is well-positioned for another fundraising, or even an IPO, at a higher valuation. The company has one more key factor in its favor. While rivals Deel and Rippling remain embroiled in a high-profile corporate espionage lawsuit, Gusto has stayed out of the headlines and focused on his business.

Gusto has long been considered an IPO candidate. Even so, a public debut seems unlikely in 2026 while the IPO market is still so frozen.

When TechCrunch interviewed Reeves in December, he insisted he’s not spending much time thinking about an IPO, preferring instead to focus on serving customers and scaling the business.

As for whether that has changed given the revenue milestone, the company won’t say. A Gusto spokesperson tells us, “There is nothing to share on the IPO timeline front.”

Note: This story has been updated to include more details on financial health from CEO Josh Reeves.