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Paymentus Holdings
(NYSE:PAY)
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Rating:75Outperform
Price Target:
$32.00
▲(11.93% Upside)
Action:Reiterated
Date:06/27/26
The score is driven primarily by strong financial fundamentals (rapid scale with improving profitability and a very low-debt balance sheet) and a constructive earnings update with raised guidance and strong operational metrics. These positives are tempered by weaker longer-term technical trend signals (below key moving averages with negative MACD) and a premium valuation (P/E ~39.7) alongside some margin and cash-flow timing pressure.
Positive Factors
Sustained Revenue Scale
Paymentus has grown revenue from roughly $396M in 2021 to ~$1.28B TTM and raised full‑year guidance near ~20% growth. Durable platform demand and network-driven payment volume support multi-quarter visibility and recurring transaction revenue as a structural growth engine.
Negative Factors
Gross and Contribution Margin Pressure
Gross margin erosion and contribution margin compression from mix shifts toward large, low-margin enterprise billers reduce per-transaction profitability. If mix or interchange cost trends persist, margin headroom for reinvestment and ROE improvement could be constrained over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Scale
Paymentus has grown revenue from roughly $396M in 2021 to ~$1.28B TTM and raised full‑year guidance near ~20% growth. Durable platform demand and network-driven payment volume support multi-quarter visibility and recurring transaction revenue as a structural growth engine.
Read all positive factors
Paymentus Holdings Key Performance Indicators (KPIs)
Any
Revenue by Geography
How revenue is distributed across regions (domestic vs. international or by country), indicating where demand, regulatory exposure, or competitive strength lies. Helps assess concentration risk, growth opportunities in new markets, and the impact of local economic conditions on future revenue.
How revenue is distributed across regions (domestic vs. international or by country), indicating where demand, regulatory exposure, or competitive strength lies. Helps assess concentration risk, growth opportunities in new markets, and the impact of local economic conditions on future revenue.
Data provided by:
The Fly
The FlyPaymentus Holdings (PAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.52B
Dividend YieldN/A
Average Volume (3M)1.27M
Price to Earnings (P/E)47.9
Beta (1Y)1.23
Revenue Growth33.01%
EPS Growth44.89%
CountryUS
Employees1,307
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.59
Shares Outstanding62,936,500
10 Day Avg. Volume2,004,193
30 Day Avg. Volume1,273,543
Financial Highlights & Ratios
PEG Ratio1.26
Price to Book (P/B)7.29
Price to Sales (P/S)3.42
P/FCF Ratio25.26
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue1.79
Enterprise Value/Gross Profit7.24
Enterprise Value/Ebitda16.75
Forecast
1Y Price Target
$35.25Price Target Upside23.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.78
Revenue Forecast (FY)$1.40B
Paymentus Holdings Business Overview & Revenue Model
Company Description
Paymentus Holdings, Inc. delivers cloud-native technological solutions aimed at streamlining bill payments. Through its Software-as-a-Service (SaaS) platform, the company equips organizations (referred to as "billers") with services for electronic...
How the Company Makes Money
Paymentus primarily makes money by enabling billers (and, in some cases, their financial institution partners) to accept and process customer payments through its proprietary, cloud-based platform. Revenue is generally tied to payment activity and...
Paymentus Holdings Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based operational and financial outperformance: record revenue, accelerating transaction growth, materially higher adjusted EBITDA, improved per-transaction economics, raised full-year guidance, a healthy balance sheet with no debt, and the launch of a potentially transformative, patented AI-native product (Billio/Bill Wallet) with early organic traction. Near-term challenges include contribution margin compression from mix shifts, higher operating expenses as the company invests in growth, temporary free cash flow pressure due to working-capital timing, modest Q2 conservatism tied to seasonality and onboarding timelines, and ongoing interchange expense exposure that management aims to monetize over time. Overall, the positives substantially outweigh the manageable near-term headwinds.Positive Updates
Record Revenue and Strong Top-Line Growth
Q1 revenue of $358.4M, up 30.2% year-over-year, a company record and above prior expectations.
Negative Updates
Contribution Margin Compression
Contribution margin declined to 30.6% from 31.8% YoY, driven by mix shifts toward large, high-volume enterprise billers.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Q1 revenue of $358.4M, up 30.2% year-over-year, a company record and above prior expectations.
Read all positive updates
Company Guidance
Management raised guidance after a strong Q1 beat and provided detailed metrics: Q1 revenue $358.4M (+30.2% YoY), contribution profit $109.7M (+25.2%), adjusted EBITDA $42.4M (+41.5%) with an adjusted EBITDA margin of 38.7% (adjusted EBITDA was 38.7% of contribution profit, +450 bps YoY), transactions 203.4M (+17.4%), average revenue per transaction $1.76 (vs $1.59, ≈+11%), contribution profit per transaction $0.54 (vs $0.51), adjusted gross profit $92.4M (+27.3%), non‑GAAP OpEx $53.0M (+16.3%), non‑GAAP net income $26.9M ($0.21/sh, +50% EPS YoY), cash $342.1M, free cash flow $20.9M, DSO 29 days, working capital $365.4M, no debt and 129.3M diluted shares. Guidance: Q2 revenue $340M–$350M, contribution profit $108M–$111M, adjusted EBITDA $38M–$40M (Q2 Rule of 40 implication 51–55); full‑year 2026 revenue $1.425B–$1.440B (midpoint ≈+19.7% YoY), contribution profit $450M–$457M (midpoint ≈+17.4%), adjusted EBITDA $165M–$172M (midpoint ≈+22.6%), full‑year Rule of 40 53–56, non‑GAAP tax rate 25%—management emphasized prudence around seasonality and onboarding despite strong bookings, backlog and pipeline and reiterated long‑term targets of ~20% revenue growth and 20–30% adjusted EBITDA growth.Paymentus Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.28B | 1.20B | 871.75M | 614.49M | 497.00M | 395.52M |
| Gross Profit | 316.55M | 296.34M | 238.17M | 182.34M | 149.68M | 121.38M |
| EBITDA | 136.77M | 126.33M | 90.43M | 55.72M | 8.05M | 23.67M |
| Net Income | 74.03M | 66.94M | 44.17M | 22.32M | -513.00K | 9.30M |
Balance Sheet | ||||||
| Total Assets | 698.60M | 667.88M | 576.25M | 504.86M | 461.54M | 472.94M |
| Cash, Cash Equivalents and Short-Term Investments | 342.13M | 324.54M | 205.90M | 179.36M | 147.33M | 168.39M |
| Total Debt | 6.63M | 11.41M | 8.41M | 10.51M | 12.63M | 11.18M |
| Total Liabilities | 115.11M | 107.50M | 90.65M | 75.25M | 64.36M | 86.81M |
| Stockholders Equity | 583.49M | 560.39M | 485.60M | 429.62M | 397.18M | 386.13M |
Cash Flow | ||||||
| Free Cash Flow | 132.30M | 161.77M | 63.18M | 34.53M | -11.43M | -916.00K |
| Operating Cash Flow | 142.14M | 162.13M | 63.63M | 68.83M | 19.87M | 19.49M |
| Investing Cash Flow | -37.67M | -36.52M | -36.76M | -34.30M | -34.56M | -77.81M |
| Financing Cash Flow | -11.97M | -10.58M | -207.00K | -1.20M | -37.28M | 213.49M |
Paymentus Holdings Technical Analysis
Positive
28.59
Price Trends
24.17
Positive
24.82
Positive
28.00
Positive
Market Momentum
1.36
Negative
72.07
Negative
91.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAY, the sentiment is Positive. The current price of 28.59 is above the 20-day moving average (MA) of 23.43, above the 50-day MA of 24.17, and above the 200-day MA of 28.00, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 72.07 is Negative, neither overbought nor oversold. The STOCH value of 91.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAY.
Paymentus Holdings Risk Analysis
Paymentus Holdings disclosed 47 risk factors in its most recent earnings report. Paymentus Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Paymentus Holdings Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.52B | 47.92 | 13.47% | ― | 33.01% | 44.89% | |
75 Outperform | $2.18B | 74.52 | 3.65% | ― | 32.49% | 539.48% | |
59 Neutral | $319.20M | 18.53 | 25.27% | ― | -12.59% | 33.81% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | $398.23M | -2.24 | -28.61% | ― | 3.26% | -39594.38% | |
47 Neutral | $237.30M | -1.46 | -19.59% | ― | -5.40% | -172.56% |
* General Sector Average
PAY
Paymentus Holdings
28.27
-1.03
-3.52%
CNDT
Conduent
1.50
-1.24
-45.26%
TSSI
TSS
11.43
-11.49
-50.13%
PSFE
Paysafe
7.90
-5.81
-42.38%
FLYW
Flywire
18.02
6.39
54.94%
Paymentus Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Paymentus Shareholders Back Board, Auditor and Executive Pay
Positive
Jun 8, 2026
On June 5, 2026, Paymentus Holdings, Inc. held its 2026 Annual Meeting of Stockholders, at which investors elected three Class II directors to the board to serve until the 2029 annual meeting, reinforcing the company’s existing governance st...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.