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Paymentus Holdings
(NYSE:PAY)
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Rating:80Outperform
Price Target:
$40.00
▲(38.55% Upside)
Action:Reiterated
Date:08/04/26
PAY scores well primarily due to strong financial performance (rapid revenue scaling, improved profitability, robust free cash flow, and minimal leverage) and a very positive earnings update with raised 2026 guidance and significant EBITDA expansion. Technicals are supportive with a strong uptrend, though momentum is somewhat overbought. The main offset is valuation, with a high P/E and no dividend yield to support the price.
Positive Factors
Multi-year Revenue Growth & Improving Profitability
Sustained, multi-year revenue expansion with rising net income reflects durable product-market fit across billers and strong platform adoption. Growing scale should support fixed-cost absorption and longer-term margin improvement, underpinning predictable contribution as transaction volumes and ARPU continue expanding.
Negative Factors
Contribution Margin Compression
A shift toward large, high-volume billers can structurally lower per-transaction economics if pricing or take-rates are reduced to win scale. Sustained mix-driven margin pressure would require persistent efficiency gains or pricing power to preserve long-term profitability and could slow margin expansion even as revenue grows.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year Revenue Growth & Improving Profitability
Sustained, multi-year revenue expansion with rising net income reflects durable product-market fit across billers and strong platform adoption. Growing scale should support fixed-cost absorption and longer-term margin improvement, underpinning predictable contribution as transaction volumes and ARPU continue expanding.
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
$4.29B
Dividend YieldN/A
Average Volume (3M)1.23M
Price to Earnings (P/E)57.8
Beta (1Y)1.28
Revenue Growth33.01%
EPS Growth44.89%
CountryUS
Employees1,340
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.67
Shares Outstanding62,936,500
10 Day Avg. Volume740,564
30 Day Avg. Volume1,229,260
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$38.50Price Target Upside33.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.83
Revenue Forecast (FY)$1.43B
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 charging billers for the use of its platform to present bills and process payments across multiple channels. Its revenue model is largely transaction-driven: as end customers make bill payments through Paymentus-...
Paymentus Holdings Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call highlighted strong, broad-based growth with record revenue, substantial adjusted EBITDA expansion, healthy transaction growth, robust cash generation, and raised full‑year guidance. Management emphasized durable operating leverage, faster onboarding, a sizable backlog and positive early traction for AI offerings (Billeo/BillWallet). Areas of caution included modest contribution margin compression due to customer mix, an increase in operating expenses to support sales and marketing, quarter-to-quarter variability in revenue-per-transaction, and potential margin effects from volume discounts for large enterprise deals. On balance, the positives (record financials, margin expansion, cash flow, raised guidance, diversified bookings and product innovation) materially outweighed the limited operational and mix-related headwinds.Positive Updates
Record Revenue Growth
Q2 2026 revenue of $360.7M, up 28.8% year-over-year and a record for the company.
Negative Updates
Contribution Margin Compression
Contribution margin declined to 32.7% in Q2 from 33.4% in the prior year period, reflecting customer mix shifts toward larger, higher-volume enterprise billers.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue Growth
Q2 2026 revenue of $360.7M, up 28.8% year-over-year and a record for the company.
Read all positive updates
Company Guidance
Paymentus raised its 2026 outlook after a strong Q2, guiding Q3 revenue of $353M–$363M (≈15.2% YoY at the midpoint, 16.8% at the high end), contribution profit of $112M–$115M (≈15.5% YoY midpoint, 17% high end) and adjusted EBITDA of $40M–$45M (≈18.5% YoY midpoint, 25.5% high end) implying adjusted EBITDA margins of ~37.4%–39.1%. For full-year 2026 it now expects revenue of $1.443B–$1.458B (≈21.2% YoY midpoint, 21.9% high end), contribution profit of $460M–$465M (≈19.7% YoY midpoint, 20.4% high end) and adjusted EBITDA of $175M–$185M (≈31.0% YoY midpoint, 34.6% high end), which implies contribution‑profit margins of ~38.9%–39.8%, a non‑GAAP tax rate of 25% and a Rule of 40 around 59%–60% at the midpoint/high end. Management cited strong bookings, a substantial backlog and disciplined, high‑confidence guidance.
Paymentus Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.36B | 1.20B | 871.75M | 614.49M | 497.00M | 395.52M |
| Gross Profit | 339.38M | 296.34M | 238.17M | 182.34M | 149.68M | 121.38M |
| EBITDA | 133.69M | 126.33M | 90.43M | 55.72M | 8.05M | 23.67M |
| Net Income | 84.88M | 66.94M | 44.17M | 22.32M | -513.00K | 9.30M |
Balance Sheet | ||||||
| Total Assets | 725.37M | 667.88M | 576.25M | 504.86M | 461.54M | 472.94M |
| Cash, Cash Equivalents and Short-Term Investments | 379.70M | 324.54M | 205.90M | 179.36M | 147.33M | 168.39M |
| Total Debt | 8.83M | 11.41M | 8.41M | 10.51M | 12.63M | 11.18M |
| Total Liabilities | 111.95M | 107.50M | 90.65M | 75.25M | 64.36M | 86.81M |
| Stockholders Equity | 613.42M | 560.39M | 485.60M | 429.62M | 397.18M | 386.13M |
Cash Flow | ||||||
| Free Cash Flow | 149.68M | 161.77M | 63.18M | 34.53M | -11.43M | -916.00K |
| Operating Cash Flow | 159.52M | 162.13M | 63.63M | 68.83M | 19.87M | 19.49M |
| Investing Cash Flow | -37.34M | -36.52M | -36.76M | -34.30M | -34.56M | -77.81M |
| Financing Cash Flow | -12.29M | -10.58M | -207.00K | -1.20M | -37.28M | 213.49M |
Paymentus Holdings Technical Analysis
Positive
28.87
Price Trends
25.72
Positive
25.85
Positive
27.96
Positive
Market Momentum
2.51
Negative
70.22
Negative
73.97
Neutral
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 28.87 is below the 20-day moving average (MA) of 30.52, above the 50-day MA of 25.72, and above the 200-day MA of 27.96, indicating a bullish trend. The MACD of 2.51 indicates Negative momentum. The RSI at 70.22 is Negative, neither overbought nor oversold. The STOCH value of 73.97 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.29B | 57.80 | 13.47% | ― | 33.01% | 44.89% | |
75 Outperform | $1.95B | 66.21 | 3.65% | ― | 32.49% | 539.48% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | $278.49M | 16.09 | 25.27% | ― | -12.59% | 33.81% | |
51 Neutral | $414.12M | -2.29 | -28.61% | ― | 3.26% | -39594.38% | |
47 Neutral | $243.50M | -1.52 | -19.59% | ― | -5.40% | -172.56% |
* General Sector Average
PAY
Paymentus Holdings
34.52
5.19
17.70%
CNDT
Conduent
1.73
-0.78
-31.08%
TSSI
TSS
10.72
-18.54
-63.36%
PSFE
Paysafe
7.84
-4.02
-33.90%
FLYW
Flywire
16.63
6.30
60.99%
Paymentus Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Paymentus Holdings appoints new Accel-KKR board representative
Neutral
Jul 23, 2026
On July 22, 2026, Paymentus Holdings disclosed that director Adam Malinowski, originally nominated by private equity firm Accel-KKR, notified the board of his intention to resign, effective July 23, 2026, with the company stating his departure did...
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.