Paymentus Reports Fourth Quarter and Full Year 2025 Financial Results

CHARLOTTE, N.C.--( BUSINESS WIRE)--Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading provider of cloud-based bill payment technology and solutions, today announced its unaudited financial results for its fourth quarter and full year ended December 31, 2025.

“Paymentus ended 2025 on a firm footing as we continued to execute on our long-term strategy, with fourth quarter and full year results that again surpassed our expectations. This included fourth quarter revenue that increased 28.1% year-over-year, with contribution profit and adjusted EBITDA increasing 24.0% and 46.3% year-over-year, respectively. We ended the year with a substantial backlog, giving us considerable visibility as we head into 2026 and beyond,” said Dushyant Sharma, Founder and CEO.

Fourth Quarter 2025 Financial and Business Highlights

Full Year 2025 Financial and Business Highlights

(1) Descriptions of the non-GAAP financial measures adjusted gross profit, contribution profit, non-GAAP net income, non-GAAP earnings per share, adjusted EBITDA, and adjusted EBITDA margin are provided below under “Use and Definitions of Non-GAAP Financial Measures,” and reconciliations are provided in the tables at the end of this release.

(2) Non-GAAP net income and Non-GAAP earnings per share are adjusted for an assumed provision for income taxes based on our long-term projected non-GAAP tax rate of 25%. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information regarding Non-GAAP net income and Non-GAAP earnings per share.

Financial Guidance

The statements in this section are forward-looking statements. For additional information regarding the use and limitations of such statements, refer to “Forward-Looking Statements” below and the “Risk Factors” section of Paymentus’ most recent Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission, or SEC, on March 11, 2025, subsequent Forms 10-Q filed with the SEC in 2025, and Form 10-K for the fiscal year ended December 31, 2025, expected to be filed with the SEC shortly after the date of this release.

First Quarter 2026

Fiscal Year 2026

Revenue

$330 million to $340 million

$1,390 million to $1,410 million

Contribution Profit

$103 million to $105 million

$442 million to $452 million

Adjusted EBITDA

$36 million to $38 million

$157 million to $167 million

Paymentus does not reconcile its forward-looking guidance for non-GAAP measures because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated due to potential variability, complexity and uncertainty as to the items that would be excluded from the GAAP measure in the relevant future period. Refer to “Use of Forward-Looking Non-GAAP Measures” below for additional explanation.

Conference Call Information

In conjunction with this announcement, Paymentus will host a conference call for investors today at 5:00 p.m. ET (2:00 p.m. PT) to discuss its fourth quarter and full year 2025 results and its financial guidance for 2026. The live webcast and replay will be available at the Investor Relations section of Paymentus’ website at ir.paymentus.com or click here. To participate via telephone, dial 1-833-470-1428 (US Toll-Free) or 1-646-844-6383 (International), access code 933764. A replay will be available after 5:00 p.m. PT on the same website.

About Paymentus

Paymentus is a leading provider of cloud-based bill payment technology and solutions for billers and financial institutions across North America. Our omni-channel platform provides consumers with easy-to-use, flexible and secure electronic bill payment experiences through their preferred payment channel and type. Paymentus’ proprietary Instant Payment Network TM, or IPN, extends our reach by connecting our IPN partners’ platforms and tens of thousands of billers to our integrated billing, payment and reconciliation capabilities. For more information, please visit www.paymentus.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding bookings and backlog, visibility into 2026 and beyond, our ability to deliver near and longer-term growth and strategic objectives, future financial performance and our first quarter and full year 2026 financial guidance. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements.

These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to our ability to effectively manage our growth and expand our operations, including into new channels and industry verticals across different markets; our ability to expand and retain our biller, financial institution, partner and consumer base; our ability to timely implement new bookings and recognize anticipated revenue therefrom; our ability to manage economic challenges, including inflation; the impact of future widespread health issues on our operating results, liquidity and financial condition and on our employees, billers, financial institutions, partners, consumers and other key stakeholders; our ability to remain competitive; our ability to develop new product features and enhance our platform and brand; our use of artificial intelligence and machine learning; our future acquisitions and strategic investments; our ability to hire and retain experienced and talented employees; the impact of any cybersecurity incidents; the impact of evolving regulations and our ability to maintain regulatory compliance; and other risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings with the SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 11, 2025, subsequent Quarterly Reports on Form 10-Q filed with the SEC in 2025, and our Annual Report on Form 10-K for the year ended December 31, 2025, which we expect to file with the SEC shortly after the date of this release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Use of Forward-Looking Non-GAAP Measures

We do not meaningfully reconcile guidance for adjusted EBITDA and adjusted EBITDA margin because we cannot provide guidance for the more significant reconciling items between net income and adjusted EBITDA without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the supplemental financial information for reconciliation of reported GAAP results to non-GAAP results. Such items include acquisition-related amortization expense for acquired intangibles, foreign exchange gains and losses, adjustments to our income tax provision and certain other items we believe to be non-indicative of our ongoing operations. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual or unanticipated charges, expenses or gains/losses or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant. In addition, we do not meaningfully reconcile guidance for contribution profit because the determination of contribution profit is subject to variables outside our control, such as an increase in the average payment amount, changes in the payment mix, or the payment channel used by consumers that can influence contribution profit, and cannot be determined without unreasonable effort, if at all.

Use and Definitions of Non-GAAP Financial Measures

In addition to disclosing financial measures in accordance with accounting principles generally accepted in the United States, or GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures, including adjusted gross profit, contribution profit, non-GAAP net income (including those amounts as a percentage of revenue), non-GAAP earnings per share, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating expense and free cash flow. We use non-GAAP measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management and our board of directors to more fully understand our consolidated financial performance from period to period and helps management project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures.

Adjusted gross profit is defined as gross profit adjusted for certain non-cash items, primarily stock-based compensation and amortization of acquisition-related intangible assets and capitalized software development costs.

Contribution profit is defined as gross profit plus other cost of revenue. Other cost of revenue equals cost of revenue less interchange, assessment and other network fees paid by us to our payment processors. Interchange, assessment and other network fees paid by us to our payment processors are excluded from contribution profit because we believe inclusion is less directly reflective of our operating performance as we do not control the payment channel used by consumers, which is the primary determinant of the amount of interchange, assessment and other network fees. We use contribution profit to measure the amount available to fund our operations after interchange, assessment and other network fees, which are directly linked to the number of transactions we process and thus our revenue and gross profit.

Adjusted EBITDA is defined as net income before interest income (expense), net, other income (expense), depreciation and amortization of acquisition-related intangible assets and capitalized software development costs, and income taxes, adjusted to exclude foreign exchange gain (loss), the effects of stock-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations.

Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of contribution profit.

Non-GAAP operating expense is defined as total operating expense excluding amortization of acquisition-related intangibles, stock-based compensation and other nonrecurring expenses. Management believes that the adjustment of acquisition-related intangibles amortization supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. Although we exclude amortization of acquisition-related intangible assets from our non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.

Non-GAAP net income and non-GAAP EPS are defined as the applicable GAAP measure, adjusted for (1) stock-based compensation, (2) amortization of acquisition-related intangibles, (3) certain nonrecurring items such as discrete tax items, one-time expenses or other non-cash items, and (4) an assumed provision for income taxes based on our long-term projected non-GAAP tax rate. Our long-term projected non-GAAP tax rate is subject to change for a variety of reasons, including significant changes in our earnings, tax adjustments and potential future changes to business operations. We will re-evaluate our long-term projected tax rate as appropriate.

We believe non-GAAP net income and non-GAAP EPS enhance the understanding of our operating performance and enable more meaningful period-to-period comparisons.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software development costs.

We believe these non-GAAP measures provide our investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons.

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance and liquidity, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance and liquidity. There are limitations to the use of the non-GAAP measures presented in this press release. Our non-GAAP measures may not be comparable to similarly titled measures of other companies; other companies, including companies in our industry, may calculate non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes. These non-GAAP measures should not be considered in isolation from or as a substitute for financial measures prepared in accordance with GAAP.

We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view our non-GAAP measures in conjunction with GAAP financial measures. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables for the reconciliation of GAAP to non-GAAP results included at the end of this release.

PAYMENTUS HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

Three Months Ended December 31,

Year Ended

December 31,

2025

2024

2025

2024

Revenue

330,458

257,877

1,196,507

871,745

Cost of revenue

246,466

191,848

900,165

633,575

Gross profit

83,992

66,029

296,342

238,170

Operating expenses

Research and development

15,923

13,561

61,474

51,334

Sales and marketing

30,789

28,596

111,928

105,052

General and administrative

13,212

9,682

47,400

36,927

Total operating expenses

59,924

51,839

220,802

193,313

Income from operations

24,068

14,190

75,540

44,857

Interest income

2,530

2,020

9,506

8,742

Other (expense) income

(95

)

229

345

Income before income taxes

26,503

16,280

85,275

53,944

Provision for income taxes

5,830

3,131

18,338

9,775

Net income

20,673

13,149

66,937

44,169

Net income per share

Basic

0.16

0.11

0.53

0.36

Diluted

0.16

0.10

0.52

0.35

Weighted-average number of shares used to compute net income per share

Basic

125,503,703

124,732,054

125,246,892

124,372,031

Diluted

129,308,186

128,714,996

129,113,684

127,714,622

PAYMENTUS HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

December 31,

2025

2024

Assets

Current assets

Cash and cash equivalents

320,908

205,900

Restricted cash and cash equivalents

3,630

3,511

Accounts and other receivables, net of allowance for expected credit losses of $452 and $257, respectively

102,338

119,816

Income tax receivable

1,207

3,356

Prepaid expenses and other assets

13,248

13,058

Total current assets

441,331

345,641

Property and equipment, net

877

1,157

Capitalized internal-use software development costs, net

70,920

67,375

Intangible assets, net

11,987

19,076

Goodwill

131,815

Operating lease right-of-use assets

6,380

7,801

Deferred tax asset

314

367

Prepaid expenses and other assets, less current portion

4,261

3,015

Total assets

667,885

576,247

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

63,972

49,871

Accrued and other liabilities

27,671

26,462

Current portion of operating lease liabilities

2,294

2,090

Contract liabilities

3,496

2,937

Income tax payable

1,416

190

Total current liabilities

98,849

81,550

Operating lease liabilities, less current portion

4,560

6,318

Contract liabilities, less current portion

3,404

2,783

Accrued and other liabilities, less current portion

683

—

Total liabilities

107,496

90,651

Stockholders’ equity

Class A common stock, $0.0001 par value per share, 883,950,000 shares authorized as of December 31, 2025 and December 31, 2024; 62,459,587 and 32,136,989 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively

Class B common stock, $0.0001 par value per share, 111,050,000 shares authorized as of December 31, 2025 and December 31, 2024; 63,121,661 and 92,699,294 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively

Additional paid-in capital

397,954

389,904

Accumulated other comprehensive loss

(427

)

(233

)

Retained earnings

162,850

95,913

Total stockholders’ equity

560,389

485,596

Total liabilities and stockholders' equity

667,885

576,247

PAYMENTUS HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Cash flows from operating activities

Net income

20,673

13,149

66,937

44,169

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization

9,567

9,657

41,058

36,484

Deferred income taxes

(2,993

)

(15

)

(1,348

)

Stock-based compensation

5,698

3,000

18,627

10,990

Amortization of capitalized warrants cost

571

572

2,267

2,006

Non-cash lease expense

596

583

2,354

2,389

Amortization of capitalized contract acquisition cost

726

356

2,110

1,751

Provision for expected credit losses

215

(48

)

268

Other non-cash adjustments

—

(213

)

Change in operating assets and liabilities

Accounts and other receivables

2,334

(8,701

)

17,141

(43,618

)

Prepaid expenses and other assets

1,093

1,162

(6,420

)

(3,417

)

Accounts payable

(524

)

13,980

13,825

Accrued and other liabilities

1,802

7,356

1,689

7,159

Operating lease liabilities

(633

)

(597

)

(2,494

)

(2,253

)

Contract liabilities

457

786

1,178

(1,097

)

Income taxes receivable, net of payable

4,979

1,177

3,382

(3,259

)

Net cash provided by operating activities

45,131

27,913

162,127

63,634

Cash flows from investing activities

Purchases of property and equipment

(82

)

(81

)

(361

)

(457

)

Purchases of interest-bearing deposits

(889

)

(1,122

)

(2,522

)

(3,691

)

Proceeds from matured interest-bearing deposits

1,555

940

3,102

3,506

Capitalized internal-use software development costs

(9,323

)

(8,881

)

(36,737

)

(36,119

)

Net cash used in investing activities

(8,739

)

(9,144

)

(36,518

)

(36,761

)

Cash flows from financing activities

Proceeds from exercise of stock-based awards

182

162

338

Payments of taxes withheld on net settled vesting of restricted stock units

(3,564

)

—

(10,739

)

—

Settlement of holdback liability related to prior acquisitions

—

(545

)

Net cash used in financing activities

(3,499

)

182

(10,577

)

(207

)

Effect of exchange rate changes on Cash and cash equivalents and Restricted cash

171

(325

)

(450

)

Net increase in cash, cash equivalents and Restricted cash

33,064

18,626

115,127

26,216

Cash and cash equivalents and Restricted cash at the beginning of period

291,474

190,785

209,411

183,195

Cash and cash equivalents and Restricted cash at the end of period

324,538

209,411

324,538

209,411

Reconciliation of Cash and cash equivalents and Restricted Cash:

Cash and cash equivalents at the beginning of period

287,908

187,542

205,900

179,361

Restricted cash at the beginning of period

3,566

3,243

3,511

3,834

Cash and cash equivalents and Restricted cash at the beginning of period

291,474

190,785

209,411

183,195

Cash and cash equivalents at the end of period

320,908

205,900

320,908

205,900

Restricted cash at the end of period

3,630

3,511

3,630

3,511

Cash and cash equivalents and Restricted cash at the end of period

324,538

209,411

324,538

209,411

PAYMENTUS HOLDINGS, INC.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

The following tables set forth our non-GAAP financial measures with reconciliations to the most directly comparable GAAP financial measures.

Adjusted Gross Profit

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Gross profit

83,992

66,029

296,342

238,170

Stock-based compensation

287

251

Amortization of capitalized software development costs

5,723

4,889

22,520

17,911

Amortization of acquisition-related intangibles

—

828

2,209

3,313

Adjusted gross profit

89,790

71,813

321,358

259,645

Contribution Profit

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Gross profit

83,992

66,029

296,342

238,170

Plus: other cost of revenue

22,881

20,187

89,967

73,898

Contribution profit

106,873

86,216

386,309

312,068

Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Net income — GAAP

20,673

13,149

66,937

44,169

Interest income

(2,530

)

(2,020

)

(9,506

)

(8,742

)

Other income (1)

—

(213

)

Provision for income taxes

5,830

3,131

18,338

9,775

Amortization of capitalized software development costs

8,354

7,439

33,304

27,586

Amortization of acquisition-related intangibles

1,051

2,020

7,088

8,081

Depreciation

162

198

666

817

EBITDA

33,540

23,917

116,827

81,473

Adjustments

Foreign exchange gain

(70

)

(229

)

(132

)

Stock-based compensation

6,265

3,431

20,821

12,855

Adjusted EBITDA

39,900

27,278

137,419

94,196

Adjusted EBITDA margin

37.3

31.6

35.6

30.2

PAYMENTUS HOLDINGS, INC.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Non-GAAP Operating Expense

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Operating expenses — GAAP

59,924

51,839

220,802

193,313

Stock-based compensation

(6,190

)

(3,364

)

(20,534

)

(12,604

)

Amortization of acquisition-related intangibles

(1,051

)

(1,192

)

(4,879

)

(4,768

)

Non-GAAP operating expense

52,683

47,283

195,389

175,941

Non-GAAP Net Income & Non-GAAP EPS (1)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Net income — GAAP

20,673

13,149

66,937

44,169

Add: Provision for income taxes — GAAP

5,830

3,131

18,338

9,775

Income before taxes — GAAP

26,503

16,280

85,275

53,944

Add:

Stock-based compensation

6,265

3,431

20,821

12,855

Amortization of acquisition-related intangibles

1,051

2,020

7,088

8,081

Income before taxes — non-GAAP

33,819

21,731

113,184

74,880

Provision for income taxes — non-GAAP

8,455

5,433

28,296

18,720

Net income — non-GAAP

25,364

16,298

84,888

56,160

Weighted-average shares of common stock — diluted

129,308,186

128,714,996

129,113,684

127,714,622

Earnings per share — diluted (GAAP)

0.16

0.10

0.52

0.35

Earnings per share — diluted (non-GAAP)

0.20

0.13

0.66

0.44

(1) Non-GAAP financial information for the periods shown reflects an assumed provision for income taxes based on our long-term projected tax rate of 25%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our long-term projected tax rate on non-GAAP net income may differ from our GAAP tax rate and from our actual tax liabilities.

Free Cash Flow

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Net cash provided by operating activities

45,131

27,913

162,127

63,634

Purchases of property and equipment

(82

)

(81

)

(361

)

(457

)

Capitalized internal-use software development costs

(9,323

)

(8,881

)

(36,737

)

(36,119

)

Free cash flow

35,726

18,951

125,029

27,058

CATEGORY: EARNINGS