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Paymentus Holdings (PAY)
NYSE:PAY
Earnings Data
Report Date
May 11, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.17Last Year’s EPS
0.14Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveys a positive overall picture: record revenue (> $1B) and strong profitability and cash generation in 2025, meaningful enterprise momentum, and a sizable backlog provide clear upside. The company is investing to convert a large pipeline and expand into new verticals, and management is prudently conservative in 2026 guidance because of limited full-quarter experience with recent large enterprise ramps and planned incremental spending. While guidance shows a deceleration in top-line growth and there is some margin/metric variability and higher near-term operating spend, the balance of evidence — strong growth, high adjusted EBITDA expansion, improved cash flow and a healthy balance sheet — suggests confidence in continued long-term progress.Company Guidance
Record Revenue and Rapid Growth
Fiscal 2025 revenue reached $1.2 billion (first time > $1B), up 37.3% year-over-year. Fourth quarter revenue was a record $330.5 million, up 28.1% year-over-year. Management highlighted multi-year compounding (100% growth over recent multi-year periods).
Strong Profitability and Adjusted EBITDA Expansion
Fourth quarter adjusted EBITDA was $39.9 million, up 46.3% year-over-year, with a 37.3% adjusted EBITDA margin. Full year adjusted EBITDA was $137.4 million, up 45.9% year-over-year with a 35.6% margin. Non-GAAP net income for FY 2025 was $84.9 million, up 51.2%, and diluted EPS grew 50% to $0.66.
Robust Free Cash Flow and Balance Sheet Strength
Free cash flow for FY 2025 was $125 million (growth >360% year-over-year). Total cash at year-end was $324.5 million (up $115.1 million year-over-year). The company has no debt and generated $35.7 million of free cash flow in Q4.
Improving Operational Metrics
Fourth quarter transactions processed were 192.7 million, up 16.1% year-over-year. Average price per transaction rose to $1.72, an increase of ~11% YoY (from $1.55). Contribution profit per transaction increased to $0.55 (up from $0.52 prior year). Days sales outstanding improved to 28 days from 43 days year-over-year (down ~35%).
Strong Bookings, Backlog and Enterprise Momentum
Management reported strong bookings and a sizable backlog exiting 2025, and noted outsized revenue benefit from recently launched large enterprise billers. Company stated it can deliver the top end of 2026 revenue guidance without signing new clients.
Rule of 40 and Operating Leverage
Fourth quarter Rule of 40 came in at 61% (versus 59% last quarter and 62% prior year quarter). Management highlighted significant operating leverage: FY incremental adjusted EBITDA margin was ~58.2% of contribution profit growth flowed to adjusted EBITDA.
Customer and Vertical Diversification
Continued expansion across utilities, telecommunications, government, education, banking, property management, healthcare and insurance. New channel partners added in consumer finance and utilities verticals, supporting diversified growth vectors.
Proactive Positioning on AI
Management expressed optimism about AI-driven opportunities, positioning the platform to leverage AI for customer experience and operational advantages; views AI as a tailwind and strategic differentiator.
PAY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PAY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 23, 2026 | $24.40 | $24.67 | +1.11% |
Nov 03, 2025 | $28.61 | $36.10 | +26.18% |
Aug 04, 2025 | $29.33 | $32.85 | +12.00% |
May 05, 2025 | $34.13 | $35.08 | +2.78% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Paymentus Holdings (PAY) report earnings?
Paymentus Holdings (PAY) is schdueled to report earning on May 11, 2026, After Close (Confirmed).
What is Paymentus Holdings (PAY) earnings time?
Paymentus Holdings (PAY) earnings time is at May 11, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PAY EPS forecast?
PAY EPS forecast for the fiscal quarter 2026 (Q1) is 0.17.
