Points North, a leading provider of certified payroll reporting and prevailing wage compliance software, today announced record-breaking results for the first half of 2025, driven by surging demand in the construction compliance segment. The company also revealed major strategic developments, including the relocation of its corporate headquarters to Minneapolis and the upcoming launch of its next generation payroll compliance platform.
Unprecedented Growth in H1 2025
Points North reported a 36% increase in new customer sales and a 37% increase in recurring revenue, continuing the strong momentum from 2024. The company’s strategy to diversify demand through both direct and partner channels outperformed expectations in the first of 2025, with partner-driven demand surging by 45% and partner revenue also showing strong double-digit growth. Direct demand from marketing efforts, including SEO, also soared by over 15% compared to the previous 6-month period. The company achieved its Rule of 40 target, reflecting a healthy balance of growth and profitability.
Another major contributor to this growth was the expansion of the company’s Managed Services offering, which provides turnkey compliance support including reporting, rate sourcing, and rate management. This service has proven especially valuable to clients seeking end-to-end compliance solutions.
“Our 2025 results continue to reflect our ability to address pains in the midmarket and upmarket segments across the US construction and compliance markets,” said Keith Pelatowski, CEO of Points North.”
Strategic Relocation to Minneapolis
To support its expansion, Points North has relocated its headquarters from Duluth to a larger, modern office in the Minneapolis-St Paul metro. The move places the company in a dynamic business hub, offering improved access to transportation, talent, and strategic partners.
“This new headquarters isn’t just about space, it’s about scaling with purpose,” said Pelatowski. “Minneapolis gives us the connectivity and energy we need to deepen client relationships and accelerate innovation, and provide our team with a collaborative, future-ready environment to grow the business together.”
Product Innovation and Market Expansion
Points North is preparing for its most ambitious product rollout to date, with three major go-to-market launches between summer and fall 2025. Leading the charge is the next generation payroll compliance platform, currently in beta with select clients. Designed to handle the most complex union and multistate payroll scenarios, the platform is built with a user-centered design approach to meet the evolving needs of the construction and specialty trade sectors.
“As excited as our Leadership Team is about our continued growth, we are even more bullish about our next generation launch in the back half of 2025,” said Pelatowski. “This enhancement to our leading Certified Payroll Compliance product will increase our ability to address the most complex of construction payroll calculations and management in the union and multistate segments. Our current beta clients are driving user-centered design as we prepare to launch to the broader construction and specialty trade segments this fall. Our ability to drive innovation continues.”
Building a Future-Ready Team
To support its growth, Points North has added ten new hires across sales and implementation and expanded its leadership team with three new Vice Presidents in Product, Engineering, and Marketing.
“Our strong focus on attracting top management talent across our expanding company structure helped plan and scale to meet record demand from the market,” said Pelatowski. “Our focus on executive level leadership is a key part of our future planning and sustained execution.”
About Points North
Established in 1994, Points North has provided compliance solutions across all 50 states. Our solutions function as a bridge between payroll and benefit systems by streamlining the transfer of data. Our compliance, reporting, and time and attendance solutions are designed to help payroll and human resource leaders solve complex data issues, with the goal of improving workflows, saving time, and keeping clients focused on their strategic initiatives.
