Paymentus Holdings (PAY)
NYSE:PAY
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Paymentus Holdings
(NYSE:PAY)
Select Model
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Rating:70Outperform
Price Target:
$27.00
▲(5.51% Upside)
Action:ReiteratedDate:03/14/26
The score is driven primarily by strong financial performance (profitability improvement, strong recent free cash flow, and a very low-debt balance sheet). This is partially offset by weak technical momentum and a high valuation, while the earnings call adds support via solid execution and guidance that remains growth-positive but shows clear deceleration and some margin variability risk.
Positive Factors
Conservative balance sheet
Near-zero leverage and a rising equity base provide durable financial flexibility. This reduces refinancing and solvency risk, lets management fund enterprise ramps or acquisitions from internal resources, and preserves optionality to invest through downturns without materially increasing financial stress.
Negative Factors
Guided growth deceleration
A meaningful step-down in growth rate reduces the margin for execution error and raises pressure to convert backlog and enterprise ramps. Sustaining prior growth will require material new client wins or faster monetization, making multi-year growth assumptions more challenging to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Near-zero leverage and a rising equity base provide durable financial flexibility. This reduces refinancing and solvency risk, lets management fund enterprise ramps or acquisitions from internal resources, and preserves optionality to invest through downturns without materially increasing financial stress.
Read all positive factors
Paymentus Holdings (PAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.06B
Dividend YieldN/A
Average Volume (3M)508.11K
Price to Earnings (P/E)61.0
Beta (1Y)1.11
Revenue Growth44.34%
EPS Growth45.96%
CountryUS
Employees1,307
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding62,862,267
10 Day Avg. Volume329,781
30 Day Avg. Volume508,108
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 Cap0.95
Enterprise Value/Revenue2.43
Enterprise Value/Gross Profit9.82
Enterprise Value/Ebitda26.20
Forecast
1Y Price Target
$32.25Price Target Upside26.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.76
Revenue Forecast (FY)$1.43B
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 charging fees for facilitating and processing bill payments on behalf of billers (e.g., utilities and other service providers) and, in some cases, financial institutions that use its platform. Its revenue model i...
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 Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
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.Positive Updates
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).
Negative Updates
Guidance Deceleration for 2026
Full year 2026 revenue guidance of $1.39–1.41 billion implies ~17% year-over-year growth at the midpoint, significantly lower than FY 2025 growth of 37.3%. Q1 2026 revenue guide implies ~22% YoY growth at midpoint, reflecting a more conservative growth profile.
Read all updates
Q4-2025 Updates
Positive
Negative
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).
Read all positive updates
Company Guidance
Paymentus guided 1Q26 revenue of $330–340M (≈22% YoY at the midpoint, ≈24% at the high end), contribution profit of $103–105M (≈19–20% YoY), and adjusted EBITDA of $36–38M (≈23–27% YoY), implying adjusted EBITDA margins of ~35.6% (mid) to 36.2% (high) and a Rule of 40 of 52–56%; the guide assumes a 25% non‑GAAP tax rate. For full‑year 2026 the company expects revenue of $1.39–1.41B (≈17% YoY at the midpoint), contribution profit of $442–452M (≈15.7–17% YoY), and adjusted EBITDA of $157–167M (≈17.9–21.5% YoY) with margins of ~36.2–36.9% and an implied Rule of 40 of 50–54%; management noted the high end of the revenue range can be achieved without signing new clients.Paymentus Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
90
Very Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.20B | 871.75M | 614.49M | 497.00M | 395.52M |
| Gross Profit | 296.34M | 238.17M | 182.34M | 149.68M | 121.38M |
| EBITDA | 126.33M | 81.34M | 48.69M | 6.39M | 23.67M |
| Net Income | 66.96M | 44.17M | 22.32M | -513.00K | 9.30M |
Balance Sheet | |||||
| Total Assets | 667.88M | 576.25M | 504.86M | 461.54M | 472.94M |
| Cash, Cash Equivalents and Short-Term Investments | 324.54M | 205.90M | 179.36M | 147.33M | 168.39M |
| Total Debt | 11.41M | 8.41M | 10.51M | 12.63M | 11.18M |
| Total Liabilities | 107.50M | 90.65M | 75.25M | 64.36M | 86.81M |
| Stockholders Equity | 560.39M | 485.60M | 429.62M | 397.18M | 386.13M |
Cash Flow | |||||
| Free Cash Flow | 161.77M | 63.18M | 34.53M | -11.43M | -916.00K |
| Operating Cash Flow | 162.13M | 63.63M | 68.83M | 19.87M | 19.49M |
| Investing Cash Flow | -36.52M | -36.76M | -34.30M | -34.56M | -77.81M |
| Financing Cash Flow | -10.58M | -207.00K | -1.20M | -37.28M | 213.49M |
Paymentus Holdings Technical Analysis
Positive
25.59
Price Trends
24.91
Positive
28.30
Negative
30.53
Negative
Market Momentum
-0.07
Negative
54.45
Neutral
46.63
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 25.59 is above the 20-day moving average (MA) of 24.91, above the 50-day MA of 24.91, and below the 200-day MA of 30.53, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.06B | 61.03 | 12.67% | ― | 44.34% | 45.96% | |
67 Neutral | $802.08M | -2,802.95 | 21.85% | ― | 12.94% | 356.32% | |
66 Neutral | $1.40B | 128.39 | 1.67% | ― | 22.71% | -111.24% | |
66 Neutral | $344.95M | 10.94 | 38.06% | ― | 91.66% | 7.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $293.60M | -2.58 | -24.06% | ― | -0.95% | -456.64% | |
44 Neutral | $216.59M | -1.68 | -20.84% | ― | -12.45% | -142.77% |
* Technology Sector Average
PAY
Paymentus Holdings
25.59
-4.48
-14.90%
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Paymentus Holdings Corporate Events
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.