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Paysign (PAYS)

PAYS Q1 2025 Revenue Jumps 41%; Pharma Business Surges 261%

Reported on May 8, 2025 (After Market Close)
Pre-Earnings Price$2.71Last close (May 8, 2025)
Post-Earnings Price$2.82Open (May 9, 2025)
Price Change
$0.11(+4.06%)
  • 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.
MetricYoY ChangeReason

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. **

MetricPeriodPrevious GuidanceCurrent GuidanceChange

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

MetricPeriodGuidanceActualPerformance
Total Revenue
Q1 2025
$17.5 million to $18 million
$18.60 million
Beat
Gross Profit Margin
Q1 2025
63% to 64%
~63% (calculated from $18,598,149 revenue and $6,907,321 cost of revenue)
Met
Operating Expenses
Q1 2025
$10.5 million to $11 million
$9.20 million (total operating expenses)
Beat
Depreciation & Amort.
Q1 2025
~$1.9 million
$1.80 million
Beat
Stock-Based Compensation
Q1 2025
~$2.1 million
$672,318
Beat
Adjusted EBITDA
Q1 2025
$4 million to $5 million (21.7% to 27.2% of revenue)
~$4.96 million (derived from $2,489,066 op. income+ $1,801,003 D&A+ $672,318)
Met

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