Paymentus Holdings, Inc. (PAY)
NYSE:PAY
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Paymentus Holdings
(NYSE:PAY)
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Rating:75Outperform
Price Target:
$26.00
▼(-9.06% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial performance (rapid scaling, improving profitability, and a conservative balance sheet) and a bullish earnings update with raised guidance. These positives are partially offset by a premium valuation (P/E ~38) and a mixed technical picture with the stock still well below its 200-day average.
Positive Factors
Revenue Growth & Profitability
Multi-year revenue expansion (from ~$396M in 2021 to $1.28B TTM) and a record Q1 (+30% YoY) indicate durable demand and a scalable payments platform. Improving operating and net margins reflect operating leverage, supporting sustained profitability as transaction volumes grow.
Negative Factors
Margin Compression
Contribution and gross margins have trended lower (gross margin drift roughly from ~30% to ~25%), driven partly by mix toward large, high-volume billers. Persistent margin pressure from mix or pricing could constrain ROE and the durability of recent margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Profitability
Multi-year revenue expansion (from ~$396M in 2021 to $1.28B TTM) and a record Q1 (+30% YoY) indicate durable demand and a scalable payments platform. Improving operating and net margins reflect operating leverage, supporting sustained profitability as transaction volumes grow.
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
$2.95B
Dividend YieldN/A
Average Volume (3M)551.17K
Price to Earnings (P/E)38.2
Beta (1Y)1.20
Revenue Growth33.01%
EPS Growth44.89%
CountryUS
Employees1,307
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.59
Shares Outstanding62,936,500
10 Day Avg. Volume647,100
30 Day Avg. Volume551,167
Financial Highlights & Ratios
PEG Ratio1.29
Price to Book (P/B)7.29
Price to Sales (P/S)3.42
P/FCF Ratio25.26
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.04
Enterprise Value/Gross Profit8.23
Enterprise Value/Ebitda19.77
Forecast
1Y Price Target
$34.67Price Target Upside21.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.78
Revenue Forecast (FY)$1.40B
Paymentus Holdings Business Overview & Revenue Model
Company Description
Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a s...
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 | 131.79M | 116.60M | 81.34M | 48.69M | 6.39M | 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
Negative
28.59
Price Trends
25.92
Negative
26.40
Negative
30.03
Negative
Market Momentum
-0.80
Positive
34.28
Neutral
13.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAY, the sentiment is Negative. The current price of 28.59 is above the 20-day moving average (MA) of 26.15, above the 50-day MA of 25.92, and below the 200-day MA of 30.03, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 34.28 is Neutral, neither overbought nor oversold. The STOCH value of 13.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.99B | 28.40 | 0.01% | ― | 32.49% | 539.48% | |
75 Outperform | $2.95B | 38.22 | 13.47% | ― | 33.01% | 44.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $337.17M | 33.44 | 25.27% | ― | -12.59% | 33.81% | |
52 Neutral | $382.86M | -2.39 | -28.61% | ― | 3.26% | -39594.38% | |
51 Neutral | $291.58M | -1.37 | -19.59% | ― | -5.40% | -172.56% |
* Technology Sector Average
PAY
Paymentus Holdings
23.45
-14.00
-37.38%
CNDT
Conduent
1.88
-0.28
-12.96%
TSSI
TSS
12.01
-0.80
-6.25%
PSFE
Paysafe
7.47
-4.98
-40.00%
FLYW
Flywire
16.12
5.09
46.15%
Paymentus Holdings Corporate Events
Executive/Board Changes
Paymentus Grants CEO Time-Based Restricted Stock Units
Neutral
Apr 8, 2026
On April 7, 2026, the board of Paymentus Holdings, Inc. approved a time-based restricted stock unit grant under its 2021 Equity Incentive Plan to President and CEO Dushyant Sharma. The decision followed a review by the compensation committee, with...
Executive/Board Changes
Paymentus General Counsel Andrew Gerber Announces Upcoming Departure
Neutral
Mar 26, 2026
Paymentus Holdings, Inc. announced that its General Counsel and Corporate Secretary, Andrew Gerber, has notified the company that he will depart to take a role at a business outside the firm’s industry. The company stated that his decision, ...
Business Operations and StrategyExecutive/Board Changes
Paymentus Adopts 2026 Executive Incentive and RSU Program
Positive
Mar 13, 2026
On March 9, 2026, the board of Paymentus Holdings, Inc. approved a 2026 Executive Incentive Compensation Program under its existing executive incentive framework, setting base salaries for top executives with 3% increases over 2025 and establishin...
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.