Q3 2025 Earnings Call: Contradictions Emerge On Fda Approval Delays, Plasma Revenue Discrepancies, And Expansion Challenges

Date of Call: November 12, 2025

Financials Results

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

Guidance:

• Revenue for 2025 raised to $80.5M–$81.5M (≈38.7% Y/Y at midpoint)
• Plasma expected to be ~57% of revenue (modest Y/Y growth); pharma patient affordability ~41% of revenue (pharma Y/Y growth >155%)
• Full-year gross profit margin expected ≈60%
• Operating expenses $41.5M–$42.5M; depreciation & amortization ≈$8.4M; stock-based compensation ≈$4.3M
• Interest income ≈$2.6M; full-year tax rate ≈18.7%; fully diluted share count ≈59.76M
• Net income $7M–$8M ($0.12–$0.13 per diluted share); Adjusted EBITDA $19M–$20M ($0.32–$0.34 per diluted share)

Business Commentary:

* Patient Affordability Revenue Growth: - Paysign reported $7.9 million in Patient Affordability revenue for Q3 2025, up 142% year-over-year, accounting for 36.7% of total revenue. - Growth was driven by an increase in active programs and claims processed, highlighting the segment's strong momentum and future potential.

• Plasma Donor Compensation Revenue:
• The company's Plasma revenue reached $12.9 million, up 12.4% year-over-year, despite closing down 12 centers.

• The increase was supported by higher average donor compensation and positive client discussions, suggesting potential for future growth.

• Operational and Financial Efficiency:

• Paysign's adjusted EBITDA increased by 78% year-over-year, reaching a record $5 million.

• Efficiency improvements were driven by operational synergies post-Gamma acquisition, reduced SG&A expenses, and increased gross profit margins.

• Plasma Industry Dynamics:

• Average donor compensation per donation increased during the quarter, indicating a positive trend in the industry.
• The company anticipates oversupply of sourced plasma to normalize in the first half of 2026, potentially leading to organic growth at the center level.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management described a "record revenue of $21.6 million, up 41.6% year-over-year" and "Adjusted EBITDA reached a record $5 million, an increase of 78%." They raised revenue and profitability guidance and called Q3 "a stellar quarter" while noting operational investments and margin improvement.

Q&A:

• Question from Jacob Stephan (Lake Street Capital Markets, LLC, Research Division): Do you have a current mix number for retail versus specialty pharmacy, or can you discuss pipeline mix between the two?
  Response: Matt: No exact mix on hand and will follow up; pipeline is shifting toward a higher percentage of retail programs next year, implying higher claims volumes.

• Question from Jacob Stephan (Lake Street Capital Markets, LLC, Research Division): Can you elaborate on why retail is a bigger opportunity and drives higher claim volumes versus specialty?
  Response: Matt: Retail yields higher patient counts and more frequent claims (e.g., chronic inhalers) even though per-claim value is lower; specialty has fewer patients but higher per-claim value—retail produces more claims per patient annually.

• Question from Jacob Stephan (Lake Street Capital Markets, LLC, Research Division): Can you help us think through current capacity utilization at the patient success center and expectations as the ~20–30 new pharma programs ramp?
  Response: Jeff: Clarified 20–30 refers to pharma programs (not plasma centers); new programs/centers take ~90+ days to mature before full fee capture, and margins should improve as these mature.

• Question from Jacob Stephan (Lake Street Capital Markets, LLC, Research Division): Q4 pharma revenue implies a sequential step-down in average quarterly revenue per program versus last year; why the difference versus prior-year sequential step-up?
  Response: Jeff: Difference is mix and seasonality—this year more claim-heavy programs versus prior-year launch fees; focus on year-over-year comparisons rather than sequential metrics.

• Question from Gary Prestopino (Barrington Research Associates, Inc., Research Division): What does a mature program do on an average revenue basis per quarter?
  Response: Jeff: No single average—performance is highly variable (examples range from ~$2k/month to ~20x that) depending on the drug and patient population.

• Question from Gary Prestopino (Barrington Research Associates, Inc., Research Division): Is there a difference between specialty versus retail programs in average revenues?
  Response: Matt: Specialty programs can be more valuable per patient when indications and patient cohorts align and when dynamic business rules are used; retail brings higher claim volume but lower per-claim value—overall profitability depends on drug-specific cohorts and program structure.

• Question from Gary Prestopino (Barrington Research Associates, Inc., Research Division): Can you explain the BECS product and how it will help going forward?
  Response: Mark: BECS is a donor-management Blood Establishment Computer System (donor app, plasma CRM, BECS) offered as SaaS to the plasma/blood market; it requires FDA 510(k) clearance and will create an additional software revenue line once approved.

• Question from Peter Heckmann (D.A. Davidson & Co., Research Division): Have you seen any donor uptick from the SNAP benefit issues or any headwind from increased immigration enforcement?
  Response: Jeff/Mark: No observed donor-volume impact from the shutdown or immigration enforcement to date; donors must present ID; average donor compensation per donation rose during Q3 and payments are expected to increase into Q4 and next 6–12 months.

• Question from Peter Heckmann (D.A. Davidson & Co., Research Division): Timing for BECS FDA approval and how should we think about the sizing/opportunity (number of customers and pricing)?
  Response: Mark: FDA 510(k) timing pushed by the government shutdown from a Q4 expectation into likely Q1–Q2; licensing will be on a center-by-center basis, opportunity early-stage in the U.S. market and management declined to provide a detailed commercialization model.

Contradiction Point 1

FDA Approval Timeline for Blood Establishment Computer System (BECS)

It involves a critical timeline for regulatory approval of a new platform, which could impact the company's expansion into the blood and plasma industry and consequently affect investor expectations.

What is the timeline for FDA approval of the BECS platform, and what is the size of the market opportunity? - Peter Heckmann(D.A. Davidson)

2025Q3: FDA approval is expected in Q1 or Q2 of 2026. - Mark Newcomer(CEO)

Can you provide an update on the donor management system timeline and FDA approval status, including key milestones to watch for? - Jacob 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 Newcomer(CEO)

Contradiction Point 2

Potential Impact on Plasma Donations Due to Government Shutdown

It involves the potential impact of external factors on the company's plasma donation business, which could influence revenue projections and operational strategies.

Have you seen any impact on plasma donations due to government shutdown impacts on SNAP and ICE activities? - Peter Heckmann(D.A. Davidson)

2025Q3: We haven't seen any impact. - Jeffery Baker(CFO)

Has the national changes to the food stamp program impacted your plasma centers? - Gary Prestopino(Barrington Research Associates)

2025Q2: The shutdown did result in less demand than we had anticipated. - Mark Newcomer(CEO)

Contradiction Point 3

Plasma Revenue and Market Share

It involves contrasting statements about the plasma revenue performance, which can impact investor perceptions of the company's financial health.

How will you execute the roadmap with the Ultra launch next year and the Rubin transition in 2026, given supply chain constraints? - Toshiya Hari (Goldman Sachs)

2025Q3: Revenue in the plasma donor compensation segment decreased 7.6% to $11.1 million. - Jeffery Baker(CFO)

What does Blackwell's full production imply about shipments and delivery timelines, and when will customers receive it? - Stacy Rasgon (AllianceBernstein)

2025Q1: Revenue in the plasma donor compensation segment came in at $9.4 million, down 9.2% from $10.3 million in Q1 2024. - Mark Newcomer(CEO)

Contradiction Point 4

Revenue Visibility and Trends in Patient Affordability Programs

It involves differing explanations of revenue trends and visibility in the patient affordability programs, which could impact investor expectations and financial planning.

What caused the expected decline in average revenue per program in Q4? - Jacob Stephan(Lake Street Capital Markets)

2025Q3: Revenue visibility in patient affordability is high due to historical programs and first-quarter performance. Revenue contribution from this business is higher in the first half as people haven't met their out-of-pocket maximums yet. As they do, copay payments stop, but management fees and other ancillary fees continue. - Jeff Baker(CFO)

Can you explain the performance difference between existing and new pharma patient affordability programs in Q4 and early 2025? - Jacob Stephan(Lake Street Capital Markets)

2024Q4: The first half of the year typically shows higher revenue from patient affordability due to existing programs' historical data and new programs launched in Q4. As patients meet their out-of-pocket maximums, the revenue stream shifts towards management fees and other ancillaries. - Jeff Baker(CFO)

Contradiction Point 5

Plasma Business Expansion Plans and Challenges

It involves differing statements about the expansion plans and challenges in the plasma business, which could impact strategic decision-making and investor confidence.

Has plasma donation been impacted by the government shutdown's effect on SNAP benefits and ICE activities? - Peter Heckmann(D.A. Davidson)

2025Q3: We haven't seen any impact. Donors must present identification, and illegal immigrants do not have proper IDs. - Jeffery Baker(CFO)

Can you elaborate on the challenges in the plasma business and the 2025 expansion plans? - Gary Prestopino(Barrington Research)

2024Q4: The plasma industry consists of fractionators and independents. The oversupply issue is due to production post-COVID and upgrades in plasmapheresis processes. This has led to lower demand and reduced donor compensation. - Mark Newcomer(CEO)