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Paysign, Inc. (PAYS)·Q1 2025 Earnings Summary

Executive Summary

  • Paysign delivered a record quarter: revenue $18.60M (+41.0% YoY), diluted EPS $0.05, gross margin 62.9%, and Adjusted EBITDA $4.96M (+193.3% YoY) .
  • Results beat Wall Street consensus on revenue and EPS (Revenue: $18.60M vs $17.49M; EPS: $0.05 vs $0.02), while EBITDA was slightly below consensus ($4.29M vs $4.42M); guidance for FY25 was raised materially across revenue, net income, and Adjusted EBITDA, and OpEx was lowered, a positive catalyst * *.
  • Mix shift continued: pharma patient affordability revenue +260.8% YoY to $8.62M (46.3% of total), offsetting plasma headwinds (-9.2% YoY to $9.41M); plasma center count rose to 484 and revenue per center fell to $6,517 .
  • Management highlighted early Gamma Innovation synergies ($4–$5M annual cash cost savings run-rate by end of Q2) and revised FY25 guidance upward (revenue $72–$74M, net income $6–$7M, Adjusted EBITDA $16–$17M), setting up margin expansion and estimate revisions .

What Went Well and What Went Wrong

What Went Well

  • Pharma patient affordability outperformance: revenue +260.8% YoY to $8.62M with claims processed +160%, 14 net new programs, and gross margin expansion of ~10 pts to 62.9%; “Q1 2025 was another exceptional quarter … record revenue, operating income and Adjusted EBITDA” — Mark Newcomer .
  • Raised FY25 outlook and lowered OpEx: FY25 revenue $72–$74M (midpoint +25% YoY), net income $6–$7M ($0.10–$0.12), Adjusted EBITDA $16–$17M; OpEx guided down to $41–$43M as Gamma efficiencies come through — Jeff Baker .
  • Strong balance sheet and cash discipline: $6.85M unrestricted cash, zero debt, 100,000 shares repurchased for ~$376K; company maintains flexibility amid growth .

What Went Wrong

  • Plasma headwinds: segment revenue -9.2% YoY to $9.41M; revenue per center decreased to $6,517; gross dollar load and gross spend volumes down 4.5% and 9.4%, respectively, with industry-wide plasma oversupply cited .
  • Higher cost pressure in cost of revenues: customer care (+$379K), third-party program management (+$366K), and sales commissions (+$255K) increased, partially offset by lower network fees, rebates, postage and other costs .
  • SG&A investment: SG&A +25.2% YoY (+$1.49M) to support growth and platform security, with D&A +40.0% (+$515K), reflecting scaling costs; management expects Gamma to reduce reliance on third-party services over time .

Financial Results

Consolidated Financials

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD)$15,256,431 $15,606,448 $18,598,149
Net Income ($USD)$1,436,837 $1,372,872 $2,586,100
Diluted EPS ($USD)$0.03 $0.02 $0.05
Gross Profit Margin %55.5% 58.9% 62.9%
EBITDA ($USD)$2,255,470 $2,167,672 $4,290,069
Adjusted EBITDA ($USD)$2,828,969 $2,864,673 $4,962,387

Segment Revenue

SegmentQ3 2024Q4 2024Q1 2025
Plasma ($USD)$11,439,534 $10,798,678 $9,409,880
Pharma Patient Affordability ($USD)$3,274,888 $4,313,979 $8,618,653
Other ($USD)$542,009 $493,791 $569,616
Total ($USD)$15,256,431 $15,606,448 $18,598,149

KPIs

KPIQ3 2024Q4 2024Q1 2025
Plasma Centers (count)478 480 484
Revenue per Plasma Center ($/month)$7,991 $7,510 $6,517
Patient Affordability Programs (count)66 76 90
Patient Affordability Claims Volume YoY (%)+429.6% +176.2% +160%+
Gross Dollar Load Volume YoY (%)+1.8% -6.4% -4.5%
Gross Spend Volume YoY (%)+0.4% -7.8% -9.4%
Cardholders (approx., million)7.1 7.3 7.6
Total Programs (approx. count)~640 ~600 ~630

Estimates vs Actual (Q1 2025)

MetricConsensus (Q1 2025)Actual (Q1 2025)Beat/Miss
Revenue ($USD)$17,488,600*$18,598,149 Beat
EPS ($)$0.02*$0.05 Beat
EBITDA ($USD)$4,424,600*$4,290,069 Miss

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD)FY 2025$68.5M–$70.0M $72.0M–$74.0M Raised
Gross Profit Margin (%)FY 202562%–64% 62%–64% Maintained
Operating Expenses ($USD)FY 2025$47.5M–$50.0M $41.0M–$43.0M Lowered
Depreciation & Amortization ($USD)FY 2025$10.5M–$11.5M ~$8.0M Lowered
Stock-Based Compensation ($USD)FY 2025~$6.0M ~$3.8M Lowered
Interest Income ($USD)FY 2025~$2.8M ~$2.9M Raised
Net Income ($USD)FY 2025≈$0 (breakeven) $6.0M–$7.0M ($0.10–$0.12) Raised
Adjusted EBITDA ($USD)FY 2025$12.5M–$13.5M $16.0M–$17.0M Raised
Diluted Share Count (shares)FY 2025~56.5M ~56.0M Lowered
Total Revenue ($USD)Q2 2025N/A$18.5M–$19.0M New
Gross Profit Margin (%)Q2 2025N/A63%–64% New
Operating Expenses ($USD)Q2 2025N/A$10.0M–$11.0M New
Depreciation & Amortization ($USD)Q2 2025N/A~$2.0M New
Stock-Based Compensation ($USD)Q2 2025N/A~$1.0M New
Adjusted EBITDA ($USD)Q2 2025N/A$4.5M–$5.0M New
Mix: Plasma (% revenue)Q2 2025N/A~54%–55% New
Mix: Patient Affordability (% revenue)Q2 2025N/A~41%–42% New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q3 2024)Previous Mentions (Q-1: Q4 2024)Current Period (Q1 2025)Trend
Plasma market dynamicsSlight growth; center closures from weather/employment; revenue per center ~$7,991 Industry-wide oversupply; improved yields reduce donor compensation; anticipate slowdown through 2025 Plasma revenue -9.2% YoY; revenue per center $6,517; oversupply persists Worsening/Persistent
Patient affordability growth+219.1% YoY revenue; pipeline “highly robust”; 66 programs +212% FY revenue; 33 programs added; expect at least double in 2025 +260.8% YoY revenue; 14 programs added; 90 active; expect >2x in 2025 Improving
Gross margin trajectory55.5% (+440 bps YoY) 58.9% (+463 bps YoY) 62.9% (+~10 pts YoY) Improving
Gamma Innovation strategyN/AAcquisition announced; entry into SaaS, engagement tools Integration underway; $4–$5M annual cash cost savings targeted by end of Q2 Executing
Seasonality (pharma claims)N/A in PRFirst half stronger due to out-of-pocket maximum dynamics First half stronger; FY revenue slightly higher H1 vs H2 Stable
Legal/settlementsQ4 expected legal fees (class action/derivative) Discussed in 10-Q context No new updates in Q1 release/call Fading

Management Commentary

  • “Q1 2025 was another exceptional quarter for Paysign, as we achieved record revenue, operating income and Adjusted EBITDA… Our patient affordability business once again outperformed expectations, delivering an impressive 260.8% revenue increase” — Mark Newcomer, CEO .
  • “By the end of our second quarter, we expect to be on an annual run rate for cash cost savings of $4.0 million to $5.0 million” — Jeff Baker, CFO .
  • “We are revising our full-year 2025 estimated results upward… total revenues $72.0 million to $74.0 million… net income $6.0 million to $7.0 million… Adjusted EBITDA $16.0 million to $17.0 million” — Jeff Baker, CFO .
  • “We believe this enhanced offering [Gamma engagement platform] positions us to unlock additional revenue streams… and strengthen our competitive differentiation in the plasma space” — Mark Newcomer, CEO .

Q&A Highlights

  • No analyst Q&A took place on the Q1 2025 call (“no questions in the queue”) .
  • For context from prior quarter: management detailed plasma oversupply drivers and expected persistence in 2025; Gamma contribution to guidance minimal (~$1M annual at deal close) and earnout tied to revenue; patient affordability mix/seasonality and program pipeline (50/50 transitions vs launches) .

Estimates Context

  • Q1 2025 revenue and EPS beat consensus; EBITDA modestly missed. Raised FY25 guidance likely drives upward revisions for revenue, EPS, and Adjusted EBITDA; OpEx and D&A guide-downs improve margin visibility *.
  • Consensus details: Revenue $17.49M vs actual $18.60M; EPS $0.02 vs $0.05; EBITDA $4.42M vs $4.29M *.

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Momentum pivot: Mix shift toward higher-margin pharma patient affordability is expanding gross margins (62.9%) and dampening plasma headwinds; expect continued strength through 2025 .
  • Guidance reset is a catalyst: FY25 revenue, net income, and Adjusted EBITDA raised; OpEx lowered; expect consensus upgrades and improved earnings quality via cost synergies from Gamma .
  • Near-term watch items: Plasma revenue per center declining and cardholder spending softness; monitor volumes and center adds vs oversupply backdrop .
  • Cash discipline: Zero debt, share repurchases, and rising unrestricted cash provide flexibility for scaling patient services and tech investments .
  • Q2 setup: Revenue $18.5–$19.0M with 63–64% gross margin and $4.5–$5.0M Adjusted EBITDA; patient affordability ~41–42% of revenue offsets plasma ~54–55% .
  • Medium-term thesis: Execution on SaaS engagement tools (donor app/CRM/DMS) can expand TAM and introduce recurring high-margin revenue streams; early customer response is positive .
  • Trading lens: Positive estimate revisions and margin expansion underpin a constructive near-term view; monitor plasma normalization and claims seasonality into H2 to gauge durability of EPS trajectory .

Notes: All figures and statements are sourced from Paysign’s Q1 2025 8-K/press release and earnings call materials; consensus values indicated with an asterisk are from S&P Global.