Gusto Reaches $1 Billion in Annual Revenue as Valuation Remains Flat Since 2022

Gusto surpassed $1 billion in actual revenue earned over the previous 12 months earlier in 2026, the company said. Unlike many peers that report annualized recurring revenue as a forward-looking estimate, Gusto’s figure reflects cash actually received. The 14-year-old company has been cash flow positive for several years.

Its revenue growth has accelerated in each of the last five quarters, Gusto CEO and co-founder Josh Reeves told TechCrunch. Gusto was last valued at over $9 billion. 3 billion when it launched a $200 million tender offer for its employees in June 2025, according to Fortune.

That valuation was about the same as the company’s valuation in early 2022. @techcrunch reported that the relatively modest valuation compared with Gusto’s revenue leaves it well-positioned for potential future fundraising or an IPO at a higher multiple.

The company completed the acquisition of Guideline, a startup offering retirement plans to small and medium businesses, for about $600 million last year.

Deel crossed $1 billion in ARR last year. 3 billion when it raised a $300 million round co-led by Ribbit Capital and Andreessen Horowitz in October. Rippling announced that it hit $1 billion in ARR last month.

8 billion after raising $450 million in May 2025. Following the December board appointment of Rahul Patil, AI now accounts for 50% of all new code generation at Gusto. AI also handles 50% of customer support cases at Gusto.

When TechCrunch interviewed Reeves in December, he insisted he doesn’t spend much time thinking about an IPO. ” Gusto has long been considered an IPO candidate. Even so, a public debut appears iffy in 2026 while the IPO market still remains so frosty, @techcrunch reported.