Paysign NASDAQ: PAYS reported record second-quarter revenue, net income and adjusted EBITDA for 2026, driven primarily by continued expansion in its Patient Affordability business and improving utilization in its plasma donor compensation operations.
Revenue rose 48.1% from a year earlier to $28.3 million, exceeding the high end of the company’s guidance range of $26.2 million to $26.7 million. GAAP net income increased to $6.8 million, or $0.11 per diluted share, from $1.4 million, or $0.02 per diluted share, in the prior-year quarter. Adjusted EBITDA more than doubled to $9.6 million from $4.5 million.
“Earlier today, we reported second quarter results setting new records for revenue, net income, and adjusted EBITDA,” President and CEO Mark Newcomer said. “In fact, it was our second consecutive quarter of exceeding our quarterly guidance.”
Patient Affordability Drives Growth
Patient Affordability revenue increased 88.9% year over year to $14.6 million, surpassing plasma revenue for the quarter. Processed claims rose about 54% from the second quarter of 2025, while the company exited the period with 148 active programs, compared with 97 a year earlier.
Paysign launched 13 new Patient Affordability programs during the quarter. As of the earnings announcement, the company had 157 active programs and expects to finish the third quarter with 165 to 170 programs.
Newcomer said the platform had distributed more than $900 million in financial assistance to patients during the first half of 2026, approaching the nearly $1 billion it deployed during all of 2025. He also said Paysign’s dynamic business rules technology protected clients from more than $300 million in costs during the first six months that could otherwise have been diverted by copay maximizer and accumulator programs.
Chief Financial Officer Jeff Baker said patient affordability revenue growth reflected higher management, setup and claim-processing fees, contact-center support and other billable services, including dynamic business rules.
During the question-and-answer session, Baker said new programs remain the principal source of Patient Affordability growth, though certain established programs can grow as clients add services, products or drug indications. Matt Turner, President of Patient Affordability, said the company seeks to launch programs with dynamic business rules where appropriate, particularly for specialty products affected by maximizer programs.
Turner said Paysign’s request-for-proposal and request-for-information win rate was above 80%, although he did not provide a precise figure. He added that about 75% of wins currently come through RFPs and RFIs, with the remainder coming through word-of-mouth referrals or direct awards.
Plasma Business Shows Recovery
Plasma revenue rose 21.4% to $13 million. Average monthly revenue per center increased more than 5% to $7,699, from $7,098 a year earlier, while average loads per center also increased year over year.
The company ended the second quarter serving 561 centers, reflecting 19 center closures previously disclosed by the company, partially offset by seven additions. Newcomer said the performance suggested that closed centers were strategic and that donors had moved to nearby locations in the same network rather than leaving the system.
Baker said the company believes the high plasma inventory levels that affected results during 2025 have “largely normalized.” He said the quarter’s improvement was driven mainly by greater utilization at existing centers rather than an expanded footprint.
Margins Expand and Balance Sheet Remains Debt-Free
Gross margin expanded to 63.3% from 61.6% a year earlier, aided by a greater mix of higher-margin Patient Affordability revenue. Operating expenses rose 5.5% to $10.9 million, including a nonrecurring, non-cash $990,000 benefit related to the carrying value of the Gamma acquisition earn-out liability.
Excluding that one-time benefit, operating expenses would have increased 15.1%, below the company’s revenue growth rate. Baker said adjusted operating margin, excluding the Gamma benefit, expanded to 21.3% from 7.5% a year earlier.
- Adjusted EBITDA margin rose to 34% from 23.7%.
- Income before taxes increased to $7.9 million from $2 million.
- The effective tax rate was 14.5%, compared with 32.1% a year earlier.
- Unrestricted cash totaled $27.4 million at quarter-end, with zero bank debt.
- Restricted cash increased to $149 million, largely due to customer program deposits and higher funds-on-card balances.
Company Raises Full-Year Outlook
Based on first-half results, program launches and expected seasonal trends, Paysign raised its full-year 2026 guidance. The company now expects revenue of $114 million to $117 million, representing year-over-year growth of 39% to 43% and an approximately $7 million increase at the midpoint from prior guidance.
Paysign forecast full-year gross margins of 62% to 63%, GAAP net income of $21.5 million to $23 million, or $0.35 to $0.37 per diluted share, and adjusted EBITDA of $35 million to $38 million, or $0.57 to $0.61 per diluted share.
For the third quarter, the company expects revenue of $28.5 million to $30 million, gross margin of 61% to 63%, GAAP net income of $5.7 million to $6 million and adjusted EBITDA of $9.5 million to $10 million.
Paysign also said its Apherion life sciences technology platform remains under regulatory review for its blood establishment computer software donor-management system. Turner said the company could not provide a timeline for regulatory approval, but noted continued domestic and international interest. The company has established Apherion Technologies Limited in Ireland as a European sales, development and client-support hub.
About Paysign (NASDAQ:PAYS)
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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