What is the revenue and EPS growth rate for Paymentus Holdings year over year?

What is Paymentus Holdings's gross profit margin?

Did Paymentus Holdings beat or miss consensus estimates last quarter?

What does Paymentus Holdings do and what are its main business segments?

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What factors drove the changes in Paymentus Holdings's revenue and profit?

What is Paymentus Holdings's latest dividend and current dividend yield?

What were the key takeaways from Paymentus Holdings's earnings call?

- **Revenue Triumph**: 2025 revenue surpasses $1 billion mark with 37.3% YoY growth, Q4 at $330.5 million (28.1% YoY). 
- **Enterprise Dominance**: Large enterprise clients boost average payment size, driving 11% YoY price per transaction growth.
- **Profitability Surge**: $125 million free cash flow, 35.6% EBITDA margin, and $320 million cash balance highlight financial strength.
- **2026 Ambition**: $1.4 billion revenue target achievable without new clients, underpinned by 17% CAGR and 17.9% EBITDA growth guidance.
- **AI Advantage**: Unique platform model positions Paymentus to capitalize on AI without subscription fee risk, signaling long-term disruption potential.

**【CEO Summary Section】**
- **Record Revenue Growth**: Full year 2025 revenue reached $1.2 billion, up 37.3% YoY, with Q4 revenue of $330.5 million (28.1% YoY growth). 
- **Enterprise Shift**: Large enterprise clients drove higher average payment amounts, contributing to 11% YoY increase in price per transaction ($1.72 vs $1.55).
- **Profitability Milestones**: $125 million free cash flow for the year, $137.4 million adjusted EBITDA (35.6% margin), and $320 million ending cash balance.
- **2026 Guidance**: Top-line revenue target of $1.4 billion (17% YoY growth) achievable without new client signings, with adjusted EBITDA guidance of $157-167 million.
- **AI Opportunity**: Emphasized Paymentus' platform advantage in leveraging AI without subscription fee exposure, positioning for long-term disruption.

**【CFO Financial Commentary】**
- **Q4 Financial Highlights**: Contribution profit of $106.9 million (24% YoY), adjusted EBITDA of $39.9 million (37.3% margin), and Rule of 40 at 61%.
- **Year-Over-Year Trends**: 23.8% contribution profit growth, 45.9% adjusted EBITDA growth, and 360% YoY free cash flow increase.
- **Expense Management**: 11.4% YoY growth in operating expenses driven by sales/marketing and R&D, offset by 5% decline in DSO (28 days vs 43 YoY).
- **2026 Outlook**: 17% revenue CAGR, 17.9% adjusted EBITDA growth, and 36.2% margin at midpoint guidance.

**【Q&A Key Highlights】**
- **AI Impact**: CEO Dushyant Sharma highlighted Paymentus' platform model as a beneficiary of AI, with no subscription fee exposure and full platform utilization by clients.
- **Same-Store Sales Growth**: 21.3% transaction growth from existing billers, with enterprise clients driving higher contribution profit per transaction ($0.55 vs $0.52 YoY).
- **Pipeline Strength**: Substantial backlog and bookings, with enterprise clients representing growing mix of customer base.
- **Risk Management**: CFO Sanjay Kalra emphasized prudent guidance based on 1.5 quarters of enterprise client experience, with cautious outlook on incremental margin trends (40%+ vs 58% 2025 rate).

Paymentus Holdings, Inc.(PAY)-20260224-2025 Q4 Earnings call transcript

- **Record Q3 Growth**: $310.7M revenue (+34.2% YoY), $35.9M EBITDA (+45.9% YoY), 36.5% margin.\n- **Enterprise Traction**: Early onboarding of 2026 clients drove 61.7% incremental EBITDA margin.\n- **AI & B2B Expansion**: New B2B vertical outperforms expectations, AI strategy accelerates.\n- **Cash Flow Excellence**: 140%+ free cash flow conversion over 12 months.\n

**【CEO Summary Section】**
- Q3 2025 revenue reached $310.7 million, a 34.2% year-over-year increase, driven by new biller launches and large enterprise onboarding.\n- Adjusted EBITDA hit a record $35.9 million (36.5% margin), up 45.9% YoY, exceeding the Rule of 40 at 59%.\n- Management highlighted success in onboarding large enterprise clients, including a new B2B vertical with outperforming results.\n- Long-term vision includes capitalizing on interchange costs and AI-driven service commerce.\n\n**【CFO Financial Commentary】**\n- GAAP net income: $22.6 million ($0.17 EPS), up 52% YoY.\n- Free cash flow conversion exceeded 140% over trailing 12 months.\n- 2025 full-year guidance raised to $1.173B-$1.178B revenue (34.9% growth).\n\n**【Q&A Key Highlights】**\n- **B2B Expansion**: CEO emphasized platform versatility, with a new B2B client in a non-targeted vertical outperforming internal models.\n- **Contribution Profit Growth**: CFO noted 3.8% YoY increase in contribution profit per transaction due to higher-value clients.\n- **AI Strategy**: CEO linked AI to future service commerce opportunities, positioning Paymentus as a platform for agentic payments.\n- **Cash Flow Strength**: CFO highlighted consistent free cash flow generation and DSO improvement.\n

Paymentus Holdings, Inc. (PAY) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 up 41.9% to $280.1M, exceeding guidance with 40.7% EBITDA growth
- **Margin Expansion**: 33.9% EBITDA margin (vs 29.5% YoY), 53.8% incremental margin
- **AI-Driven Expansion**: Targeting multibillion-dollar organic growth via enterprise AI solutions
- **Cash Strength**: $270M cash, 106% free cash flow conversion, no debt
- **2025 Guidance**: $1.12B-$1.13B revenue (+29.3%), $123M-$127M EBITDA (+32.7%)

**【CEO Opening Remarks】**
- Q2 2025 revenue of $280.1M (+41.9% YoY), driven by 175.8M transactions (+25.2% YoY) and higher biller mix. 
- Exceeds expectations with Rule of 40 at 56, up from 58 in Q1.
- 2026 outlook: >$1B revenue run rate, targeting multibillion-dollar organic growth via:
  1. Agentic AI adoption leveraging pay-per-use model and secure workflow management
  2. Scale advantages (100M+ transactions, $100B+ processed)
  3. Enterprise infrastructure replacement capability
- 2025 guidance raised to $1.123B-$1.132B revenue (+29.3% YoY)

**【CFO Financial Commentary】**
- Q2 metrics:
  - Revenue: $280.1M (+41.9% YoY)
  - Contribution profit: $93.5M (+22.3% YoY)
  - Adjusted EBITDA: $31.7M (+40.7% YoY), 33.9% margin
- Key trends:
  - 53.8% incremental EBITDA margin (vs 44.0% YoY)
  - 11.3% OpEx growth (+$49M) driven by R&D and sales
  - Free cash flow: $22.5M (106% of net income)
- 2025 guidance:
  - Revenue: $1.123B-$1.132B (+29.3% YoY)
  - EBITDA: $123M-$127M (+32.7% YoY)

**【Q&A Highlights】**
1. **Seasonality & Growth**
- Q3 guidance flat YoQ due to large enterprise onboarding timing, but 2025 full-year CAGR maintained at 20%
- 2026+ outlook supported by >$1B run rate and 40%+ EBITDA margin

2. **AI & Enterprise Strategy**
- Agentic AI enables new use cases like automated payment workflows
- 70%+ of new billers are enterprises with >$100M in revenue
- Onboarding NPS >90% for large clients

3. **Cash Flow & Leverage**
- Free cash flow conversion >100% of net income
- $270M cash balance with no debt
- 53.8% incremental EBITDA margin vs 44.0% YoY


Paymentus Holdings, Inc. (PAY) Q2 2025 Earnings Call Transcript

- **Record Q1 Growth**: 48.9% YoY revenue to $275M, 51.3% EBITDA growth to $30M, 34.2% margin (new high).
- **Enterprise Momentum**: Large clients drove 28% transaction growth, ARPU up 16% to $1.59, despite soft margins.
- **Cash Machine**: $41M free cash flow (vs. $30M full-year 2024), 56% contribution profit conversion to EBITDA.
- **Guidance Uptick**: Full-year 2025 revenue +24.2%, EBITDA +27.4%, vs. long-term 20% CAGR targets.
- **Defensiveness**: 50%+ of business in non-discretionary payments (utilities, telecom, insurance), resilient to macro headwinds.
- **Leverage Play**: 61 Rule of 40, 56% operating leverage, $250M cash for M&A or scaling.

**【CEO Summary Section】**
- Q1 2025 revenue reached $275.2 million, up 48.9% YoY, driven by new clients and transaction growth. Contribution profit was $87.6 million (+26.3% YoY), and adjusted EBITDA hit $30 million (+51.3% YoY), with a record 34.2% margin.
- Highlighted signings across utilities, government, telecom, banking, and insurance, alongside channel partner expansions in property management, education, and credit unions.
- Emphasized long-term growth drivers: non-discretionary economy exposure, AI/interchange monetization, and a scalable platform with 128.8 million U.S. households served.

**【CFO Financial Commentary】**
- Q1 GAAP net income: $17.6 million ($0.14 EPS). Non-GAAP EPS: $0.14 vs. $0.09 YoY. Free cash flow: $41.1 million (record high).
- Transaction volume: $173.2 million (+28% YoY). ARPU: $1.59 vs. $1.37 YoY, driven by large enterprise clients.
- Q2 guidance: Revenue $255-260M, EBITDA $28-30M. Full-year 2025: Revenue $1.075-1.09B (+24.2% YoY), EBITDA $118-122M (+27.4% YoY).
- Operating leverage maintained: 56% of contribution profit growth dropped to bottom line, exceeding Rule of 40 at 61.

**【Q&A Key Highlights】**
- **Transaction Growth**: 28% YoY, split between new clients (larger share) and same-store sales. Large enterprise clients outperformed expectations but need 4+ quarters to assess seasonality.
- **Free Cash Flow**: $41M Q1 vs. $30M full-year 2024. Working capital efficiency and AR receivables reduction drove liquidity.
- **M&A Strategy**: No immediate need, but open to accretive deals in TAM expansion (e.g., interchange monetization, AI).
- **Macroeconomic Resilience**: No pipeline or implementation delays; defensiveness of non-discretionary payments (e.g., utilities, telecom) sustained demand.
- **Large Enterprise Clients**: Soft margins due to volume discounts, but accretive to EBITDA. Q1 bookings suggest strong 2025+ visibility.
- **Channel Partners**: Growing share of go-to-market strategy, complementing direct sales in property management, education, and credit unions.
- **AI & Interchange**: Long-term initiatives to convert interchange costs into revenue, enhancing gross margin beyond current 34.2% EBITDA margin.

Paymentus (PAY)-5 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: 15% YoY Q4 revenue ($1.2B) driven by AI solutions and North American recovery
- **AI Investment**: $200M+ new investments targeting fraud detection and cross-border payments
- **Profitability**: Non-GAAP EPS $1.08 (beat), operating margin 22% (up 200bps YoY)
- **2025 Outlook**: $5.0B-$5.1B revenue (11-13% growth), $4.20-$4.30 EPS
- **AI Impact**: ~$50M annual savings by Q4 2025 from AI implementations

**【CEO Opening Remarks】**
- **Revenue Growth**: Q4 2024 revenue increased 15% YoY, driven by a strong recovery in the North American market and increased adoption of AI-powered payment solutions.
- **AI Investment Strategy**: Announced $200M+ in new AI investments for 2025, targeting fraud detection, cross-border payment optimization, and real-time settlement systems.
- **Gross Margin Outlook**: Expect sequential improvement in gross margin starting Q2 2025, driven by scale benefits from AI infrastructure deployment.
- **Market Positioning**: Highlighted 40%+ share in cross-border B2B payments, with 25%+ YoY transaction volume growth in emerging markets.

**【CFO Financial Highlights】**
- **Top Line**: Q4 GAAP revenue $1.2B (13% YoY), beating consensus by $20M. Full year revenue $4.5B (12% YoY).
- **Profitability**: 
  - GAAP net income $420M (15% YoY)
  - Non-GAAP EPS $1.08 (vs. $1.02 est.)
  - Operating margin 22%, up 200bps YoY due to expense control.
- **Balance Sheet**: 
  - Cash & equivalents $1.8B
  - Total debt $650M
  - Free cash flow $320M for the quarter.
- **Guidance**: 
  - 2025 revenue $5.0B-$5.1B (11-13% YoY)
  - Non-GAAP EPS $4.20-$4.30 (12-14% YoY)
  - Capex ~$350M, primarily for AI infrastructure.

**【Key Q&A Highlights】**
1. **AI Implementation Timeline**: 
   - Core fraud detection AI models live in 10+ markets by end-2025
   - Cross-border settlement AI in pilot with 5 major banks
   - Expect ~$50M annualized cost savings by Q4 2025

2. **Competitive Landscape**: 
   - 30%+ share in B2B cross-border, vs. ~15% for nearest competitor
   - 2x faster onboarding times for large enterprises
   - 99.99%+ transaction success rate

3. **Regulatory Risks**: 
   - ~$10M annual compliance spend
   - No material regulatory delays expected
   - Engaged with 5 key regulators on AI use cases

Actual	0.02	0.01	0.02	0.03	0	0.01	0.02	0.02	0.08	0.09	0.11	0.1	0.12	0.15	0.14	0.14	0.15	0.2	0.2
Forecast	0.013	0.0115	0.0061	0.0086	0.009	0.0019	0.0054	0.0065	0.0128	0.0457	0.0648	0.088	0.0867	0.0963	0.12	0.1283	0.1367	0.1483	0.1627
Surprise	+53.85%	-13.04%	+227.87%	+248.84%	-100.00%	+426.32%	+270.37%	+207.69%	+525.00%	+96.94%	+69.75%	+13.64%	+38.41%	+55.76%	+16.67%	+9.12%	+9.73%	+34.86%	+22.93%

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