Paysign's Q3 2025 Earnings Call: Contradictions Emerge on Plasma Growth, FDA Timelines, and Pharma Revenue Mix

Date of Call: November 12, 2025

Financials Results

• Revenue: $21.6M, up 41.6% YOY
• EPS: $0.04 per fully diluted share, versus $0.03 in the prior-year quarter (net income up 54% YOY)
• Gross Margin: 56.3%, improved 72 basis points year-over-year

Guidance:

• 2025 revenue raised to $80.5M–$81.5M (midpoint ≈ +38.7% YOY)
• Net income now expected $7M–$8M, or $0.12–$0.13 per diluted share
• Adjusted EBITDA expected $19M–$20M, or $0.32–$0.34 per diluted share
• Full-year gross profit margin ~60%
• Revenue mix: plasma ~57% of total, pharma patient affordability ~41% (~>155% YOY growth)
• Operating expenses $41.5M–$42.5M; D&A ≈ $8.4M; stock comp ≈ $4.3M
• Fully diluted share count ~59.76M; tax rate ~18.7%

Business Commentary:

* Paysign's Financial Performance Growth: - Paysign reported record revenue of $21.6 million for Q3 2025, up 41.6% year over year. - The growth was driven by increased activity in both patient affordability and plasma donor compensation businesses.

• Patient Affordability Program Expansion:
• Paysign's patient affordability business generated $7.9 million in revenue, up 142% from the prior year's quarter, and ended the quarter with 105 active programs.

• This expansion was attributed to new relationships bringing multiple programs, existing customers adding programs, and the opening of a new patient support center.

• Plasma Donor Compensation Revenue Growth:

• Plasma revenue grew 12.4% year over year to a record $12.9 million, despite a net loss of 12 centers.

• The growth was due to an increase in average donor compensation per donation and positive client discussions, despite the industry-wide oversupply of plasma.

• Innovative Technology and Strategic Investments:

• Paysign is expanding its role in the blood and plasma ecosystem by evolving from a trusted payments provider to a technology partner.

• Investments in software as a service and FDA 510(k) BECCS clearance are expected to generate strong interest domestically and internationally, driving long-term growth and opportunities.

• Operational Efficiencies and Margin Improvements:

• Consolidated gross profit margins improved on a year-over-year basis, with a 72 basis point increase to 56.3%.
• Operational efficiencies and strategic investments are anticipated to continue improving operating margins and adjusted EBITDA margins, demonstrating the business's operating leverage.

Sentiment Analysis:

Overall Tone: Positive

• "record revenue of $21.6 million, up 41.6% year over year"; "Adjusted EBITDA reached a record $5 million, an increase of 78%"; management said they are "raising our revenue guidance" and called Q3 "a stellar quarter," highlighting program additions, a new support center and product momentum.

Q&A:

• Question from Jacob Stephan (Lake Street Capital Markets): Could you help us think through retail versus specialty mix and pipeline? Do you have a current mix number or pipeline mix between the two? Can you elaborate on why retail yields higher claims volumes than specialty? Also, Jeff, you mentioned gross profit margins expanding as the patient success center ramps — what is current capacity utilization and how should we think about the impact of newly added centers maturing? Finally, why does implied Q4 pharma revenue show a sequential step-down per program versus last year where Q4 rose?
  Response: No exact mix number provided; pipeline is shifting toward retail which drives higher patient counts and claim frequency (retail = more fills per patient vs specialty). The new patient support center ramp and program maturation (90+ days) should improve gross margins; sequential Q4 swings are mix/seasonality effects — compare on a year‑over‑year basis, not sequentially.

• Question from Gary Prestopino (Barrington Research): What does a mature pharma program do on average (per quarter) versus newer programs? Is there a difference between specialty and retail in average revenue? And can you explain the BECCS product and how it helps going forward?
  Response: Program revenue is highly variable; specialty programs (especially with Dynamic Business Rules) tend to be higher value per program while retail yields higher claim volumes; BECCS is a donor management/Blood Establishment Computer System (donor app, CRM) positioned as a SaaS product—FDA 510(k) clearance pending—representing a nascent additional business line.

• Question from Peter Heckmann (D.A. Davidson): Have you seen any donor uptick related to SNAP/ shutdown or any headwind from increased ICE activity (immigration enforcement) affecting donors? Separately, timing for BECCS approval and how should we think about customer count and deal size for that platform?
  Response: No observed donor impact from shutdown or immigration enforcement (donors require ID); donor compensation per donation is increasing and expected to continue over the next 6–12 months. BECCS FDA timing delayed by the government shutdown (now likely early 2026); go‑to‑market will be center‑by‑center licensing, early stage, not a large hundreds‑customer immediate ramp.

Contradiction Point 1

Plasma Business Growth and Program Expectations

It involves differing expectations for the growth of the plasma business and the number of programs expected to be onboarded, which could impact investor expectations and financial planning.

What is the average quarterly revenue of a mature program compared to the current $75,000 figure, and how do newly added programs affect this metric? - Gary Prestopino (Barrington Research)

2025Q3: Looking ahead to the fourth quarter, we expect to bring on approximately 75 to 100 new plasma programs. - Jeff Baker(CFO)

You expect to add 10–14 plasma centers this year. Do these include the 9 onboarded after June 30th, or are they in addition to the full 132? - Jacob Michael Stephan (Lake Street Capital Markets)

2025Q2: For the remainder of this year, we expect to onboard 10 to 14 new programs. - Mark R. Newcomer(President, CEO)

Contradiction Point 2

FDA Approval Timeline for Donor Management System

It involves differing timelines for FDA approval of the donor management system, which could impact the company's ability to expand its offerings and revenue potential.

Can you provide insights into the timing for approval of the donor management CRM engagement platform? How should we think about the potential market size—hundreds of customers with each system valued at hundreds of thousands of dollars? - Peter Heckmann (D.A. Davidson)

2025Q3: We expect FDA approval in Q1 or Q2 2026. - Jeff Baker(CFO)

Can you provide an update on the donor management system timeline and FDA approval, including any key milestones to watch for? - Jacob Michael Stephan (Lake Street Capital Markets)

2025Q2: We're targeting currently towards the end of this year. We're expecting that we will be granted approval around that time frame. - Mark R. Newcomer(President, CEO)

Contradiction Point 3

Impact of Government Shutdown on Plasma Donors

It involves differing perspectives on the impact of the government shutdown on plasma donors, which could affect the stability and growth of the plasma business.

Have you observed any increase in plasma donors due to the government shutdown impacting SNAP benefits, and what headwinds are you experiencing from increased ICE immigration detention and deportation activities? Do these factors offset each other? - Peter Heckmann (D.A. Davidson)

2025Q3: We haven't seen any change related to immigration impacts. Regarding the government shutdown, it's been a short period, and we haven't seen any notable changes in donors. - Jeff Baker(CFO)

Have we seen any impact to our plasma donors from the current government shutdown? Have you observed any effects from increased ICE activity related to immigrant detention and deportation? - Peter James Heckmann (D.A. Davidson)

2025Q2: We haven't seen any downturn in donations across any of those markets in relation to the government shutdown. - Mark R. Newcomer(President, CEO)

Contradiction Point 4

Pharma Revenue Growth and Program Mix

It reflects differing perspectives on the growth trajectory and mix of pharma revenue, which are critical for understanding the company's financial performance and strategy.

Jeff, you mentioned gross profit margins expanding as patient support centers expand. Can you clarify current capacity utilization and expected capacity with 22 new centers online in the second half of this year or by the end of the quarter? - Jacob Stephan(Lake Street Capital Markets)

2025Q3: Last year, we had more newer programs with fewer claims. This year, we have more mature programs with more claims, which will fall off in the second half of the year due to seasonal factors. The mix is more geared towards claims versus initial launch fees. - Jeff Baker(CFO)

Can you clarify the strength in Q4 and 2025 from existing vs. new pharma patient affordability programs? - Jacob Stephan(Lake Street Capital Markets)

2024Q4: We've launched a number of new programs already this year, 14, and added 10 in the fourth quarter. Some of these are fairly large pharmaceutical partners. - Jeff Baker(CFO)

Contradiction Point 5

Plasma Business Performance

It involves changes in the plasma business performance, which affects revenue and profitability expectations.

Can you clarify Mark's comments on retail versus specialty pharmacy? - Jacob Stephan (Lake Street Capital Markets)

2025Q3: Our plasma business grew 14% to $12.1 million, driven by a 16% increase in centers compared to the same quarter last year. - Jeff Baker(CFO)

How is the plasma business performing relative to your expectations today? - Matt Swanson (Rosenblatt Securities)

2025Q1: Our plasma business declined 9.2% to $9.4 million, and our revenue per plasma center declined to $6,517. - Jeffery Baker(CFO)