PaySign (PAYS) AI Stock Analysis

• Market Cap: $203.66M
• Dividend Yield: N/A
• Average Volume (3M): 273.70K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.78
• Revenue Growth: 32.61%
• EPS Growth: -8.26%
• Country: US
• Employees: 173
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.04
• Shares Outstanding: 55,042,890
• 10 Day Avg. Volume: 337,432
• 30 Day Avg. Volume: 273,704
• PEG Ratio: -1.05
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 2.75
• P/FCF Ratio: 11.94
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 14.06
• 1Y Price Target: $9.00
• Price Target Upside: 143.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $4.00 ▲(8.11% Upside)

The score is supported by improving financial performance and a strong, guidance-raising earnings call (accelerating YoY growth and record profitability). These positives are tempered by a clearly bearish technical trend (price below all key moving averages with negative MACD) and a key fundamental watch item: sharply weaker TTM free cash flow despite remaining positive. Valuation is reasonable but not cheap given the 28.821 P/E and no dividend yield provided.

Positive Factors

Revenue & profitability momentum

Sustained high-single to double-digit revenue growth and large EBITDA expansion show the business scaling profitably. Improving operating leverage and record quarterly profits indicate durable margin recovery and stronger earnings power over the next several quarters.

Patient affordability program expansion

Rapidly growing patient-affordability revenue and a rising program count reflect a scalable, sticky B2B product that diversifies revenue away from volatile segments. Program expansion and larger support capacity suggest durable recurring fees and deeper client integration.

Conservative balance sheet and ROE

Low leverage and solid ROE provide financial flexibility to invest in product expansion and absorb industry cycles. A conservative capital structure reduces refinancing risk and supports multi-quarter investments in growth without stressing solvency.

Negative Factors

Free cash flow deterioration

Although cash generation remains positive, the sharp TTM decline in free cash flow signals worsening cash conversion or rising working-capital/resource spending. If sustained, this can limit reinvestment, slow organic growth, and pressure liquidity over several quarters.

Plasma industry oversupply & center productivity drop

PaySign's payments tied to plasma donor centers face structural demand headwinds while per-center revenue is down. Prolonged oversupply or slow center maturation could compress a meaningful revenue segment and reduce predictability of recurring volumes.

Regulatory delay for BECCS and rising operating costs

Regulatory delays postpone new-product revenue and extend payback on investments. Concurrently rising compensation and equity spend can keep operating margin pressure elevated; together they lengthen the timeline for new revenue to offset higher structural costs.

PaySign Business Overview & Revenue Model

Company Description

PaySign, 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 Money

PaySign generates revenue through multiple streams, primarily by charging fees for its prepaid card programs and transaction processing services. The company's revenue model includes card issuance fees, transaction fees for point-of-sale purchases, and monthly service fees for ongoing account management. Additionally, PaySign benefits from interchange fees received from card transactions. The company has established strategic partnerships with various organizations, including healthcare providers and payment processors, which contribute to its earnings by expanding its customer base and enhancing its service offerings. These partnerships enable PaySign to deliver tailored solutions that meet the specific needs of its clients, thereby driving additional revenue growth.

PaySign Financial Statement Overview

Summary

Fundamentals are solid with improved profitability and low leverage: TTM revenue is up 9.25%, margins are healthy (~57% gross, ~10% net), and EBIT margin improved meaningfully versus 2024 (~1.7% to ~9.7%). Balance sheet strength is notable (TTM debt-to-equity ~0.13; TTM ROE ~19%). The key risk is cash flow trajectory: while operating cash flow (~$18.7M) and free cash flow (~$9.8M) remain positive, free cash flow deteriorated sharply in the TTM period, signaling weaker cash conversion versus recent history.

Income Statement

Profitability and scale have improved materially versus earlier years. TTM (Trailing-Twelve-Months) revenue is up 9.25% with healthy profitability (about 57% gross margin and ~10% net margin), and operating profitability has expanded meaningfully versus 2024 (EBIT margin rose from ~1.7% to ~9.7%). Strength: consistent multi-year revenue growth and strong margin structure for the business model. Weakness: growth has decelerated from the very high rates seen in 2022–2024, and historical earnings were volatile (losses in 2020–2021 and a negative EBIT in 2023), which lowers confidence in smooth earnings durability.

Balance Sheet

Balance sheet appears conservatively levered with low debt relative to equity (TTM debt-to-equity ~0.13) and rising equity over time. Returns on equity are solid (TTM ~19%), reflecting improved profitability on a growing capital base. Strength: low leverage and improving equity cushion support financial flexibility. Weakness: total assets have grown quickly, and while returns are healthy now, prior-year return volatility (negative in 2020–2021, then elevated in 2023) suggests performance can swing meaningfully with operating conditions.

Cash Flow

Cash generation remains positive, with TTM (Trailing-Twelve-Months) operating cash flow of ~$18.7M and free cash flow of ~$9.8M, and free cash flow is broadly aligned with earnings (free cash flow is ~0.84x net income). Strength: the business is producing positive operating and free cash flow across periods provided. Weakness: free cash flow has deteriorated sharply in the TTM period (very large negative free-cash-flow growth) and is below prior annual levels, indicating weaker cash conversion/working-capital dynamics or higher spending versus recent history.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.88M	58.38M	47.27M	38.03M	29.46M	24.12M
Gross Profit	44.80M	32.20M	24.14M	20.95M	14.71M	9.30M
EBITDA	14.38M	7.02M	3.86M	2.79M	-1.12M	-5.79M
Net Income	7.56M	3.82M	6.46M	1.03M	-2.72M	-9.14M
Balance Sheet
Total Assets	209.51M	179.03M	146.60M	108.24M	84.05M	67.83M
Cash, Cash Equivalents and Short-Term Investments	7.53M	10.77M	16.99M	9.71M	7.39M	7.83M
Total Debt	6.08M	2.93M	3.31M	3.67M	4.01M	4.33M
Total Liabilities	163.75M	148.59M	122.11M	91.95M	71.06M	54.60M
Stockholders Equity	45.76M	30.44M	24.49M	16.29M	12.99M	13.24M
Cash Flow
Free Cash Flow	9.84M	13.46M	20.57M	21.23M	12.55M	10.43M
Operating Cash Flow	18.67M	22.95M	27.62M	25.32M	15.23M	13.78M
Investing Cash Flow	-10.84M	-9.49M	-7.05M	-4.09M	-2.68M	-3.34M
Financing Cash Flow	150.32K	-466.25K	-1.12M	0.00	192.14K	-72.86K

PaySign Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 3.7 is below the 20-day moving average (MA) of 4.47, below the 50-day MA of 4.93, and below the 200-day MA of 5.27, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 18.60 is Positive, neither overbought nor oversold. The STOCH value of 8.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAYS.

PaySign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMXI	68 Neutral	$460.94M	12.15	26.84%	―	-6.57%	-29.62%
PAYO	67 Neutral	$2.15B	31.84	9.79%	―	10.58%	-45.52%
AVPT	65 Neutral	$2.27B	-1,157.14	0.58%	―	24.71%	99.52%
PAYS	63 Neutral	$203.66M	28.14	20.36%	―	32.61%	-8.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BKKT	53 Neutral	$379.69M	-2.29	-48.63%	―	101.97%	58.61%
RPAY	51 Neutral	$561.25M	-2.52	-17.60%	―	-0.58%	-57.43%