Gusto hits $1B revenue, a figure that brings it closer to public markets

Source: TechCrunch

Gusto’s $1 Billion Revenue Milestone

The 14‑year‑old small‑business payroll provider Gusto announced that it surpassed $1 billion in revenue earlier this year. Unlike many startups that report annualized recurring revenue (ARR—an estimate of contract value over the next 12 months), Gusto’s figure represents actual revenue earned over the previous 12 months.

Valuation Context

• Gusto was last valued at $9.3 billion (Fortune) when it launched a $200 million tender offer for its employees in June 2025. This valuation is comparable to its early‑2022 level.
• Competitor Deel crossed $1 billion in ARR last year and was valued at $17.3 billion after a $300 million round co‑led by Ribbit Capital and Andreessen Horowitz (Oct 2025).
• Rival Rippling also hit $1 billion in ARR and was valued at $16.8 billion after raising $450 million in May 2025.

By crossing the $1 billion revenue threshold, Gusto demonstrates strong financial might relative to its peers.

Recent Strategic Moves

• Acquisition of Guideline – Last year Gusto completed the acquisition of Guideline, a startup offering retirement plans to small and medium businesses, for about $600 million.
• AI Integration – Following the December board appointment of Anthropic CTO Rahul Patil, Gusto reports that AI now accounts for 50 % of all new code generation and handles an equal share of customer‑support cases.

IPO Prospects

Gusto has long been considered an IPO candidate (TechCrunch, Mar 2023). However, a public debut appears uncertain in 2026 while the IPO market remains frosty.

When TechCrunch interviewed Gusto CEO and co‑founder Josh Reeves in December, he emphasized focusing on serving customers and scaling the business rather than an IPO timeline. A Gusto spokesperson declined to comment on any upcoming IPO plans.

Competitive Landscape

While rivals Deel and Rippling are entangled in a high‑profile corporate espionage lawsuit, Gusto has stayed out of such headlines and remained focused on its core business.

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