Paysign (NASDAQ:PAYS) Posts Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Paysign beat quarterly estimates, reporting $0.11 EPS versus the $0.06 consensus and revenue of $28.25 million versus $26.36 million. Revenue rose 48% year over year, while adjusted EBITDA more than doubled to $9.6 million.
• Patient Affordability drove growth, with revenue up 89% to $14.6 million and active programs increasing to 148. The plasma business also recovered, with revenue rising 21.4% to $13 million.
• The company raised its 2026 outlook to $114 million-$117 million in revenue and $35 million-$38 million in adjusted EBITDA, though management expects weaker fourth-quarter profitability due to seasonality, higher taxes and planned hiring.

Paysign (NASDAQ:PAYS - Get Free Report) announced its earnings results on Wednesday. The company reported $0.11 EPS for the quarter, beating analysts' consensus estimates of $0.06 by $0.05, FiscalAI reports. The company had revenue of $28.25 million during the quarter, compared to the consensus estimate of $26.36 million. Paysign had a return on equity of 21.74% and a net margin of 11.38%. Paysign updated its FY 2026 guidance to 0.350-0.370 EPS and its Q3 2026 guidance to 0.090-0.100 EPS.

Here are the key takeaways from Paysign's conference call:

• Record second-quarter results included revenue of $28.3 million, up 48% year over year, net income of $6.8 million, and adjusted EBITDA of $9.6 million, up 113%; gross margin expanded to 63.3%.
• Patient Affordability remained the primary growth engine, with revenue rising 89% to $14.6 million, claims increasing approximately 54%, and active programs reaching 148, up from 97 a year ago. Management expects to match or exceed 55 net program additions in 2026 and sees a substantial addressable market.
• The plasma business showed recovery, with revenue up 21.4% to $13 million and monthly revenue per center reaching $7,699, its highest level since the third quarter of 2024. Management said the prior inventory overhang has largely normalized, although the center count declined to 561 after closures.
• Paysign raised its full-year 2026 outlook to revenue of $114 million-$117 million, gross margin of 62%-63%, GAAP net income of $21.5 million-$23 million, and adjusted EBITDA of $35 million-$38 million. The company ended the quarter with $27.4 million in unrestricted cash and no bank debt.
• Management expects fourth-quarter profitability to be weaker than the third quarter because of seasonal mix, holiday-related software capitalization effects, higher expected taxes, and planned hiring to support continued Patient Affordability growth. Full-year GAAP earnings also include a one-time, non-cash $990,000 benefit tied to the Gamma acquisition earn-out liability.

Paysign Stock Up 3.3%

Shares of PAYS stock traded up $0.31 during mid-day trading on Wednesday, reaching $9.59. 787,208 shares of the company's stock traded hands, compared to its average volume of 502,807. The company's 50-day moving average price is $8.09 and its 200-day moving average price is $6.00. The company has a market cap of $536.18 million, a P/E ratio of 54.59 and a beta of 0.74. Paysign has a 12 month low of $3.08 and a 12 month high of $9.60.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on PAYS. Wall Street Zen downgraded shares of Paysign from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 13th. DA Davidson reiterated a "buy" rating and set a $9.00 price target on shares of Paysign in a research report on Wednesday, May 13th. Barrington Research set a $11.00 price target on shares of Paysign in a research note on Monday. Finally, Weiss Ratings upgraded shares of Paysign from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, July 29th. Three equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Paysign has a consensus rating of "Buy" and an average target price of $10.33.

Insider Activity at Paysign

In related news, EVP Joan M. Herman sold 100,000 shares of the business's stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $8.01, for a total transaction of $801,000.00. Following the sale, the executive vice president owned 707,009 shares of the company's stock, valued at $5,663,142.09. The trade was a 12.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bruce A. Mina sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $7.09, for a total transaction of $70,900.00. Following the transaction, the director directly owned 258,500 shares of the company's stock, valued at $1,832,765. This represents a 3.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 221,736 shares of company stock valued at $1,803,479 in the last three months. Company insiders own 24.50% of the company's stock.

Hedge Funds Weigh In On Paysign

Several institutional investors and hedge funds have recently modified their holdings of PAYS. Invesco Ltd. boosted its stake in Paysign by 44.7% in the 4th quarter. Invesco Ltd. now owns 24,412 shares of the company's stock worth $126,000 after purchasing an additional 7,537 shares in the last quarter. Engineers Gate Manager LP lifted its stake in shares of Paysign by 138.3% in the fourth quarter. Engineers Gate Manager LP now owns 34,063 shares of the company's stock worth $175,000 after buying an additional 19,769 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in shares of Paysign by 11.2% during the fourth quarter. Russell Investments Group Ltd. now owns 53,345 shares of the company's stock valued at $275,000 after buying an additional 5,359 shares during the last quarter. State of Wisconsin Investment Board increased its position in shares of Paysign by 41.8% during the fourth quarter. State of Wisconsin Investment Board now owns 84,055 shares of the company's stock valued at $433,000 after acquiring an additional 24,772 shares in the last quarter. Finally, ExodusPoint Capital Management LP purchased a new position in Paysign in the 4th quarter worth approximately $82,000. 25.89% of the stock is currently owned by institutional investors.

Paysign Company Profile

Paysign, Inc NASDAQ: PAYS is a U.S.-based financial technology company specializing in prepaid payment solutions. Through its cloud-based platform, the company enables corporations, government agencies and payroll providers to issue and manage stored-value cards, digital wallets and disbursement programs. Paysign's offerings span gift and incentive cards, payroll and earned-wage access cards, government benefit distribution, tax refund solutions and health savings account disbursements.

The company's flagship Paysign Experience Platform provides configurable card programs with real-time transaction reporting, fraud monitoring and regulatory compliance tools.

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