Gusto Hits $1B Revenue Milestone, Thriving Despite AI Disruption
As legacy SaaS companies face disruption from AI, Gusto, a small-business payroll provider, continues to thrive with over $9 billion in valuation. Learn how the company is staying ahead of the game.
Admin User
While artificial intelligence (AI) disruption looms large over many traditional software-as-a-service (SaaS) companies, several HR tech startups are showing remarkable resilience and growth. One such standout is Gusto, a small-business payroll provider that has recently crossed the $1 billion revenue milestone.
Gusto, which celebrated its 14th year in business, reported hitting this significant figure earlier this year. Unlike many startups that report annualized recurring revenue (ARR), Gusto’s revenue represents actual earnings over the past 12 months. The company has been cash flow positive for several years and is reporting accelerated growth in each of the last five quarters.
The startup was valued at $9.3 billion when it launched a $200 million tender offer for its employees in June 2025, as reported by Fortune. This valuation is significantly lower compared to its competitors like Deel and Rippling, which have reached $17.3 billion and $16.8 billion valuations respectively.
Gusto’s robust financial health has been driven by strategic moves such as the acquisition of Guideline, a retirement plans provider for small and medium businesses, in 2025 for approximately $600 million. Moreover, Gusto is already reaping significant benefits from AI integration, with 50% of new code generation and an equal share of customer support cases now handled by AI.
Even as rivals like Deel and Rippling are embroiled in high-profile corporate espionage lawsuits, Gusto has managed to stay out of the headlines. This focus on core business operations is a key factor in its continued success.
Gusto's CEO and co-founder Josh Reeves told TechCrunch that while an initial public offering (IPO) remains a possibility, there are no specific timelines being shared at this moment. The company continues to prioritize serving customers and scaling the business.
Register for TechCrunch Disrupt 2026
Dive into the world of tech innovation with TechCrunch Disrupt 2026, where you can connect with 10,000+ founders, investors, and tech leaders. Enjoy three days packed with 250+ tactical sessions, powerful introductions, and market-defining innovations. Get a second pass at 50% off when you buy one. Don’t miss out – register now before May 8!
Location:
San Francisco, CA
Date:
October 13-15, 2026
