PAYS Q1 2025 Revenue Jumps 41%; Pharma Business Surges 261%
- Robust Revenue and Profit Momentum: The company posted 41% year-over-year revenue growth to $18.6 million and a significant surge in net income (over 737% increase YoY) in Q1 2025, reflecting strong operational performance and a solid growth trajectory.
- Accelerating Pharma Patient Affordability Business: The pharma segment grew by 261% YoY to $8.6 million, now representing 46.3% of quarterly revenues, which signals a high-growth, higher-margin revenue stream poised for further expansion in 2025.
- Strategic Operational Synergies and Innovation: The acquisition of Gamma Innovation is already translating into operational efficiencies, with expected annual cash cost savings of $4–$5 million and positioning the company for new revenue streams across plasma and broader healthcare sectors.
- Concerns over the plasma business performance: Revenues declined by 9.2% year-over-year with a reduction in revenue per plasma center to $6,517, indicating potential sustained headwinds from industry-wide supply surpluses and efficiency gains that may pressure future growth.
- Rising operational expenses amid aggressive investments: SG&A expenses increased by 28.2% and total operating expenses by 27.8% due to substantial investments in IT and employee growth (increasing headcount from 132 to 190), which could pressure margins if revenue growth does not keep pace.
- Integration risks from the Gamma acquisition: Although the acquisition is expected to save $4–$5 million in annual cash flow, early integration efforts and the challenge of aligning new technology with existing operations could temporarily disrupt efficiencies and add execution risk.
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | Increased from $13.19M to $18.60M (41% YoY increase) | The overall increase is primarily driven by a substantial surge in Pharma Industry revenue, which more than offset declines in other segments. Higher utilization of new patient affordability programs and increased claim processing in Q1 2025 contributed to this growth. |
Pharma Industry Revenue | Increased from $2.389M to $8.62M (over 261% YoY increase) | A major expansion in pharma programs—both from full-year impacts of initiatives launched previously and new program rollouts in Q1 2025—resulted in a significant increase in revenue. Increased claims processing and higher fee collections played key roles. |
Plasma Industry Revenue | Decreased from $10.368M to $9.41M (9% decrease) | Plasma revenue declined due to an industry-wide oversupply of plasma inventories leading to reduced plasma donations and lower performance per center when compared to the previous period. This decline contrasts with prior growth in plasma centers, highlighting market normalization. |
Other Revenue | Increased from $0.433M to $0.57M | Modest growth in Other revenue was observed, stemming from increased usage and growth in retail, payroll, and prepaid disbursement programs compared to the previous period. The incremental increase reflects continued but slower adoption relative to pharma initiatives. |
Net Income | Increased from $309,096 to $2,586,100 (approximately 740% YoY increase) | The dramatic rise in net income is linked to the robust growth in Pharma revenue, improved operating income, and significant scaling in fee and claim processing revenue—factors that starkly contrast with the modest performance in Q1 2024.. |
Operating Income | Turned from a loss of $258,352 in Q1 2024 to a positive $2,489,066 in Q1 2025 | Operating income improved significantly due to the operational turnaround driven by a surge in pharma-related revenues and better cost management, shifting the margin from negative to positive compared to the previous period.. |
Operating Cash Flow | Turned negative at –$6,033,177 in Q1 2025 | **Despite strong earnings, the negative operating cash flow reflects changes in working capital, including increases in accounts receivable and adjustments related to the timing of cash inflows from pharma programs versus end-of-period invoicing by third-party providers, contrasting previous positive flows. ** |
Total Assets | Increased from $179.03M to $205.12M (approximately 15% increase) | Total assets grew due to higher accounts receivable and significant increases in intangible assets, indicating an expansion in revenue-generating activities and investments in proprietary technology relative to the previous period.. |
Intangible Assets | Increased from $12.24M to $25.15M (a 105% YoY increase) | **The near doubling of intangible assets is attributable to major technology acquisitions (such as "Acquired tech" for $11,679,000 and a new non-compete asset for $567,000) and continued investments in the platform, marking a significant change from the previous period. ** |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Total Revenue | FY 2025 | no prior guidance | Expected to be in the range of $68.5 million to $70 million, reflecting year-over-year growth of 17.5% to 20% | no prior guidance |
Plasma Revenue | FY 2025 | no prior guidance | Estimated to make up approximately 57.5% of total revenue | no prior guidance |
Pharma Revenue | FY 2025 | no prior guidance | Expected to continue its growth of at least 100% year-over-year | no prior guidance |
Gross Profit Margins | FY 2025 | no prior guidance | Expected to be between 62% and 64% | no prior guidance |
Operating Expenses | FY 2025 | no prior guidance | Expected to be between $47.5 million and $50 million | no prior guidance |
Depreciation and Amortization Exp. | FY 2025 | no prior guidance | Expected to be between $10.5 million and $11.5 million | no prior guidance |
Stock-Based Compensation | FY 2025 | no prior guidance | Expected to be approximately $6 million | no prior guidance |
Interest Income | FY 2025 | no prior guidance | Expected to be approximately $2.8 million | no prior guidance |
Net Income | FY 2025 | no prior guidance | Expected to be approximately breakeven for the year | no prior guidance |
Adjusted EBITDA | FY 2025 | no prior guidance | Expected to be in the range of $12.5 million to $13.5 million or $0.22 to $0.24 per diluted share | no prior guidance |
Diluted Share Count | FY 2025 | no prior guidance | Estimated to be 56.5 million shares | no prior guidance |
Total Revenue | Q1 2025 | no prior guidance | Expected to be in the range of $17.5 million to $18 million | no prior guidance |
Patient Affordability Revenues | Q1 2025 | no prior guidance | Expected to be 40% to 45% of revenue for the quarter | no prior guidance |
Gross Profit Margins | Q1 2025 | no prior guidance | Expected to be between 63% and 64% | no prior guidance |
Operating Expenses | Q1 2025 | no prior guidance | Expected to be between $10.5 million and $11 million | no prior guidance |
Depreciation and Amortization | Q1 2025 | no prior guidance | Expected to be approximately $1.9 million | no prior guidance |
Stock-Based Compensation | Q1 2025 | no prior guidance | Expected to be approximately $2.1 million | no prior guidance |
Adjusted EBITDA | Q1 2025 | no prior guidance | Expected to be in the range of $4 million to $5 million or 21.7% to 27.2% of revenue | no prior guidance |
| Metric | Period | Guidance | Actual | Performance |
|---|---|---|---|---|
Total Revenue | Q1 2025 | $17.5 million to $18 million | $18.60 million | Beat |
Patient Affordability Revenues | Q1 2025 | 40% to 45% of total revenue | 46.3% (8.62 ÷ 18.60) | Beat |
Gross Profit Margin | Q1 2025 | 63% to 64% | 62.9% ((18,598,149 − 6,907,321) ÷ 18,598,149) | Missed |
Operating Expenses | Q1 2025 | $10.5 million to $11 million | $9.20 million | Beat |
Depreciation & Amortization | Q1 2025 | Approximately $1.9 million | $1.80 million | Met |