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PaySign Inc Class B (PAYS)
:PAYS
US Market
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PaySign (PAYS) AI Stock Analysis

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PAYS

PaySign

(NASDAQ:PAYS)

Rating:69Neutral
Price Target:
$6.00
▲(15.83% Upside)
PaySign's overall stock score reflects strong financial performance and positive earnings call insights, particularly in revenue growth and operational expansion. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The company's strategic initiatives and raised guidance provide optimism, but challenges in the plasma business and industry headwinds warrant caution.
Positive Factors
Business expansion
The Plasma segment recently announced a significant business win with the award of 132 established plasma donation centers through an expansion of a long-standing relationship with a major plasma collection company.
Financial performance
Paysign reported Q2/25 financial results that included a revenue increase of 33.1% to $19.1 million with a 101.8% increase in adjusted EBITDA to $4.51 million.
Market positioning
With the addition of these centers, Paysign will be providing donor compensation programs to more than 615 plasma centers across 18 plasma collection companies, increasing the number of centers the company supports by 27% and bringing its U.S. market share to approximately 50%.
Negative Factors
Industry challenges
Copay accumulators/maximizers, used by PBMs, attempt to disallow copay assistance funds from counting toward a patient’s deductible, affecting over 40% of commercially insured patients.
Revenue challenges
Plasma revenue declined 9.2% to $9.4 million due to reduced revenue per plasma center, reduced plasma donations and lower dollars loaded to cards.

PaySign (PAYS) vs. SPDR S&P 500 ETF (SPY)

PaySign Business Overview & Revenue Model

Company DescriptionPaySign, Inc. provides prepaid card products and processing services under the PaySign brand for corporate, consumer, and government applications. It offers various services, such as transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through PaySign, a proprietary card-processing platform. The company also develops prepaid card programs for corporate incentive and rewards, including consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments, and pharmaceutical payment assistance; and payroll or general purpose reloadable cards, as well as gift or incentive cards. In addition, it offers and Per Diem/Corporate Expense Payments that allows businesses, and non–profits and government agencies the ability to control employee spending while reducing administration costs by eliminating the need for traditional expense reports. Further, the company provides payment claims processing and other administrative services; pharmacy-based voucher and copay, and medical claims and debit-based affordability programs; PaySign Premier, a demand deposit account debit card; and payment solution for source plasma collection centers, as well as customer service center and PaySign Communications Suite services. Its principal target markets for processing services comprise prepaid card issuers, retail and private-label issuers, small third-party processors, and small and mid-size financial institutions in the United States and Mexico. The company was formerly known as 3PEA International, Inc. and changed its name to PaySign, Inc. in April 2019. PaySign, Inc. was incorporated in 1995 and is based in Henderson, Nevada.
How the Company Makes MoneyPaySign generates revenue through multiple streams, primarily from transaction fees associated with the use of its prepaid card programs and payment processing services. The company earns a percentage of each transaction processed, which varies based on the type of service provided. Additionally, PaySign charges fees for card issuance, monthly maintenance, and other ancillary services related to its prepaid card offerings. Strategic partnerships with healthcare providers, businesses, and financial institutions significantly contribute to its earnings by expanding its customer base and enhancing service offerings. Furthermore, the company may also generate revenue from interest earned on stored funds and other financial services related to its payment solutions.

PaySign Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Paysign's strong revenue growth, particularly in the patient affordability business, and successful expansion of plasma centers. However, challenges in the plasma compensation business and industry headwinds were noted.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
Paysign reported record revenue of $19.1 million for Q2 2025, a 33% increase compared to Q2 2024, with gross margins improving by 870 basis points to 61.6%.
Significant Growth in Patient Affordability Business
The patient affordability business saw a 190% year-over-year revenue growth to $7.75 million, with revenue per program rising over 83%.
Expansion of Plasma Centers
Paysign onboarded 123 transitioning plasma centers late in the quarter, increasing their market share to approximately 50%.
Introduction of New Software Solutions
Paysign introduced a Software-as-a-Service engagement platform, including a donor app and plasma-specific CRM, receiving positive feedback from the industry.
Negative Updates
Decline in Plasma Compensation Business Revenue
Revenue from the plasma compensation business declined by 4.7% year-over-year to $10.7 million.
Challenges with Plasma Industry Trends
The plasma business continues to face headwinds due to an oversupply of sourced plasma and increased collection efficiencies at centers.
Company Guidance
During the Paysign, Inc. Second Quarter 2025 Earnings Conference Call, the company reported a record revenue of $19.1 million, marking a 33% increase from the same quarter last year. The gross margin improved by 870 basis points to 61.6%, despite $300,000 in one-time expenses for onboarding 123 new plasma centers. Adjusted EBITDA doubled to $4.5 million, a 102% increase year-over-year, with net income nearly doubling to $1.4 million. The patient affordability segment saw a remarkable 190% increase in revenue to $7.75 million, driven by an over 80% rise in claims processed. The company launched 7 new programs this quarter, with a total of 21 in the first half of the year, surpassing last year's pace. The plasma compensation business, however, saw a 4.7% year-over-year decrease in revenue to $10.7 million but experienced a 14.2% sequential increase. The company exited the quarter with 607 centers and plans to onboard 10 to 13 more by year-end. Paysign also announced plans to open a new contact center in the third quarter to support growing demand. The company raised its 2025 revenue guidance to $76.5 million to $78.5 million, reflecting a 32.7% growth at the midpoint, and expects adjusted EBITDA to be between $18 million and $20 million.

PaySign Financial Statement Overview

Summary
PaySign demonstrates strong revenue growth and improving operational efficiency. Despite some pressure on net profitability, the company maintains a healthy balance sheet with low leverage and strong cash flows, positioning it well for future growth and stability. However, the relatively low net profit margin and stockholders' equity warrant careful monitoring to ensure long-term financial health.
Income Statement
75
Positive
PaySign showed a strong revenue growth of 23.5% over the past year, indicating a positive trajectory. The gross profit margin stands at 55.1%, which is solid for the industry. However, the net profit margin has decreased to 6.5% from 13.7% last year, indicating some profitability pressure. The EBIT margin has improved to 1.7%, recovering from negative figures in prior years, showing signs of operational improvement.
Balance Sheet
70
Positive
The debt-to-equity ratio is low at 0.1, indicating minimal leverage, which is beneficial for financial stability. Return on equity is 12.5%, showing reasonable profitability relative to shareholder equity. The equity ratio is 17%, which is moderate and suggests a balanced capital structure. However, the stockholders' equity is relatively low compared to total liabilities, indicating potential risk if liabilities increase.
Cash Flow
80
Positive
Operating cash flow increased to $22.9 million, showcasing robust cash generation capabilities. Free cash flow also showed growth, which is a positive sign for future investments and debt servicing. The operating cash flow to net income ratio is high at 6.0, indicating strong cash conversion efficiency. The free cash flow to net income ratio is 5.9, reinforcing the company's strong cash position relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue68.54M58.38M47.27M38.03M29.46M24.12M
Gross Profit39.00M32.20M24.14M20.95M14.71M9.30M
EBITDA12.88M7.02M3.86M3.25M-213.22K-5.79M
Net Income6.78M3.82M6.46M1.03M-2.72M-9.14M
Balance Sheet
Total Assets193.90M179.03M146.60M108.24M84.05M67.83M
Cash, Cash Equivalents and Short-Term Investments113.91M10.77M16.99M9.71M7.39M7.83M
Total Debt2.72M2.93M3.31M3.67M4.01M4.33M
Total Liabilities151.69M148.59M122.11M91.95M71.06M54.60M
Stockholders Equity42.21M30.44M24.49M16.29M12.99M13.24M
Cash Flow
Free Cash Flow-14.97M13.46M20.57M21.23M12.55M10.43M
Operating Cash Flow-8.24M22.95M27.62M25.32M15.23M13.78M
Investing Cash Flow-11.10M-9.49M-7.05M-4.09M-2.68M-3.34M
Financing Cash Flow-274.50K-466.25K-1.12M0.00192.14K-72.86K

PaySign Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.18
Price Trends
50DMA
6.75
Negative
100DMA
5.04
Positive
200DMA
3.95
Positive
Market Momentum
MACD
-0.42
Negative
RSI
34.25
Neutral
STOCH
37.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAYS, the sentiment is Negative. The current price of 5.18 is below the 20-day moving average (MA) of 5.57, below the 50-day MA of 6.75, and above the 200-day MA of 3.95, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 34.25 is Neutral, neither overbought nor oversold. The STOCH value of 37.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAYS.

PaySign Risk Analysis

PaySign disclosed 28 risk factors in its most recent earnings report. PaySign 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 1 New Risks
1.
Global and regional economic conditions could harm our business. Q4, 2023

PaySign Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$2.50B26.4013.86%13.02%-2.57%
69
Neutral
$282.06M42.7419.65%27.84%-13.78%
69
Neutral
$430.42M8.8536.15%-4.19%-3.52%
65
Neutral
$668.91M32.1757.39%12.86%
61
Neutral
$35.42B7.71-10.08%1.88%8.71%-9.18%
55
Neutral
$68.54M86.76%13.23%-1.78%
43
Neutral
$189.00M-70.04%111.83%73.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PAYS
PaySign
5.18
0.55
11.88%
IMXI
International Money Express
14.50
-3.63
-20.02%
PRTH
Priority Technology Holdings
8.37
2.50
42.59%
KPLT
Katapult Holdings
15.00
2.75
22.45%
PAYO
Payoneer
6.95
-0.26
-3.61%
BKKT
Bakkt Holdings, Inc. Class A
8.77
-4.27
-32.75%

PaySign Corporate Events

Executive/Board ChangesShareholder Meetings
PaySign Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 13, 2025

On May 7, 2025, PaySign held its annual meeting of stockholders to vote on several key proposals. The stockholders elected seven directors to the board, approved executive compensation on a non-binding advisory basis, and decided to hold advisory votes on executive compensation every three years. Additionally, Moss Adams LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (PAYS) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on PaySign stock, see the PAYS Stock Forecast page.

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.Date of analysis: Aug 28, 2025