Gusto vs Rippling: Revenue, Profit and Business Model
Gusto reported $1B of revenue in FY2026 and — of net income. Rippling reported $1B of revenue in FY2026 and — of net income.
Latest financial snapshot
Financial summary
Gusto
Gusto does not publish audited financials, but it has disclosed several milestones. CNBC reported more than $500 million of annualized revenue as of 2023. In May 2026 the company told TechCrunch it had surpassed $1 billion in revenue over the trailing twelve months, a recognized-revenue figure rather than ARR, that growth had accelerated for five consecutive quarters, and that it had been cash-flow positive for several years. Gusto has raised roughly $700 million in primary equity, including a $175 million Series E in 2021 at about $9.5 billion. A $200 million-plus employee tender offer led by Ontario Teachers' Pension Plan in June 2025 valued it at $9.3 billion, close to its early-2022 level. Its largest deal, the 2025 Guideline purchase, cost about $600 million according to TechCrunch sources.
Rippling
Rippling is private and does not publish audited financials. Sacra estimates annualized revenue of about $850 million at the end of 2025 and $1 billion by March 2026. CNBC reported that Rippling crossed $1 billion in ARR in 2025. In April 2026 Parker Conrad said revenue was growing 78% year over year, and that growth had sped up for three straight quarters. Rippling has raised about $1.8 billion in equity, most recently a $450 million Series G in May 2025 at a $16.8 billion valuation, along with a $200 million employee tender offer.
Revenue and profit by year
Gusto
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $1B | — | 0.0% | — | Source |
| FY2023 | $500M | — | 0.0% | — | Source |
Rippling
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $1B | — | 0.0% | +17.6% | Source |
| FY2025 | $850M | — | 0.0% | — | Source |
Where the revenue comes from
Gusto
- SaaS Platform Subscriptions & PEPM Fees
Not disclosed
Monthly base software fees plus per-employee-per-month (PEPM) charges paid by small business employers for automated payroll and HR tools.
- Benefits Brokerage, Workers' Comp & 401(k) Fees
Not disclosed
Recurring commissions and administrative fees earned from health insurance carriers, 401(k) retirement providers, and workers' compensation policies.
- Embedded Payroll API Licensing
Not disclosed
Revenue-sharing agreements and API licensing fees paid by vertical SaaS software providers integrating Gusto's payroll engine.
- Float Interest & Gusto Wallet Interchange
Not disclosed
Interest yield earned on custodial funds held in transit during payroll tax settlement cycles, plus debit card interchange fees.
Rippling
- HR and payroll subscriptions
Per-employee monthly fees for payroll, benefits administration, time tracking and recruiting.
- IT subscriptions
Fees for app provisioning, single sign-on, password management and device management.
- Finance and global products
Spend management, bill pay, card interchange, plus employer-of-record and global payroll fees.
Business model and strategy
Gusto
How it makes money
Gusto earns most of its money from recurring software subscriptions: each customer pays a monthly base fee plus a per-employee fee, with higher tiers (Simple, Plus, Premium) adding HR, time tracking and advisory features.
Growth strategy
Gusto grows by adding small business customers through accountants, partners and self-serve sign-up, then raising revenue per customer with benefits, workers' comp, HR tiers and 401(k) plans. The 2025 Guideline acquisition brought about 65,000 retirement plan customers and roughly $140M in ARR.
Competitive advantage
Gusto's edge is a self-serve product that a non-specialist owner can set up and run without an implementation team, backed by in-house payroll tax technology (it bought tax-engine maker Symmetry in 2021) that files federal, state and local payroll taxes automatically.
Rippling
How it makes money
Rippling sells subscription software, mostly priced per employee per month. Customers start with a core platform (the employee record, org chart and permissions) and add modules: payroll, benefits, time tracking and recruiting in HR; app provisioning, single sign-on and device management in IT; corporate cards, expenses and bill pay in finance; and employer-of-record and global payroll for staff abroad.
Growth strategy
Rippling grows by adding products to the same platform and selling them to existing customers, a strategy Conrad calls the 'compound startup'. Its current focus is on Rippling AI, which turns plain-language requests into actions across HR, IT and finance, on global payroll and employer-of-record services for companies hiring abroad, and on moving upmarket to larger employers.
Competitive advantage
Rippling built its HR, IT and finance products itself instead of buying them, so they all run on one data model. When an employee is hired, promoted or let go, that one change can update payroll, software access, the laptop and the card limit automatically. Competitors that grew through acquisitions or that only do one of these things usually need integrations to do the same work.
Questions about Gusto vs Rippling
Which company has higher revenue — Gusto (ZenPayroll, Inc.) or Rippling (People Center, Inc.)?
Gusto (ZenPayroll, Inc.) reported $1.0B (FY2026), while Rippling (People Center, Inc.) reported $1.0B (FY2026). By last reported revenue, Gusto (ZenPayroll, Inc.) is the larger business, with Rippling (People Center, Inc.) reporting a smaller revenue base.
Which is more financially efficient — Gusto (ZenPayroll, Inc.) or Rippling (People Center, Inc.)?
Gusto (ZenPayroll, Inc.) generates $313k / employee in revenue per employee. A comparable figure for Rippling (People Center, Inc.) requires matching employee and revenue data from the same reporting period.
How do Gusto (ZenPayroll, Inc.) and Rippling (People Center, Inc.) make money?
Gusto (ZenPayroll, Inc.) and Rippling (People Center, Inc.) generate revenue in fundamentally different ways. Gusto (ZenPayroll, Inc.): Gusto earns most of its money from recurring software subscriptions: each customer pays a monthly base fee plus a per-employee fee, with higher tiers (Simple, Plus, Premium) adding HR, time tracking and advisory features. Rippling (People Center, Inc.): Rippling sells subscription software, mostly priced per employee per month.
Is Gusto (ZenPayroll, Inc.) bigger than Rippling (People Center, Inc.)?
By last reported revenue, Gusto (ZenPayroll, Inc.) ($1.0B (FY2026)) is the larger company compared to Rippling (People Center, Inc.) ($1.0B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Gusto vs Rippling overview