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Paysign, Inc. (PAYS)·Q3 2025 Earnings Summary

Executive Summary

  • Record Q3 revenue of $21.60M (+41.6% YoY) and diluted EPS of $0.04; pharma patient affordability revenue rose 141.9% to $7.92M while plasma returned to YoY growth at +12.4% to $12.86M .
  • Results beat Wall Street consensus on revenue and EPS; revenue beat by ~$1.7M and EPS beat by $0.02; EBITDA was below consensus as the company focuses on Adjusted EBITDA ($5.04M, +78.1% YoY) rather than GAAP EBITDA ; Q3 consensus: EPS $0.02*, revenue $19.92M*, EBITDA $4.60M*; actual: EPS $0.04, revenue $21.60M, EBITDA $3.77M* (Values retrieved from S&P Global).
  • FY25 guidance raised: revenue $80.5–$81.5M (prior $76.5–$78.5M), net income $7.0–$8.0M (prior $6.0–$7.0M), Adjusted EBITDA $19.0–$20.0M (prior $18.0–$20.0M); GP margin ~60%, plasma ~57% and pharma ~41% of mix .
  • Execution catalysts: rapid expansion in patient affordability programs (105 in Q3; 118 by end of Oct), new 30,000 sq ft support center quadrupling capacity, and a SaaS plasma platform (donor app/CRM/BECCS) pending FDA 510(k) clearance .

What Went Well and What Went Wrong

What Went Well

  • Pharma patient affordability remains the growth engine: revenue +141.9% YoY to $7.92M, programs up to 105, and claims processed +60% YoY; CFO highlighted margins’ structural expansion from mix shift .
  • Plasma resumed YoY growth (+12.4%) to $12.86M despite industry oversupply; average donor compensation per donation rose and carried into Q4 per CEO commentary .
  • Infrastructure scale-up: new 30,000 sq ft support center lifted support capacity 4x, underpinning program wins and margin leverage over time .
  • Quote: “Adjusted EBITDA reached a new high of $5.0 million, up 78.1%, while net income improved… These results underscore… improving operational efficiencies” — Mark Newcomer .

What Went Wrong

  • Gross margin compression to 56.3% (from 61.6% in Q2) due to immature new plasma centers and incremental support center costs; GAAP EBITDA below consensus despite strong Adjusted EBITDA .
  • Average monthly plasma revenue per center declined to $7,122 (vs $7,991 YoY); center count fell sequentially to 595 on planned closures of underperforming centers .
  • Seasonality: management flagged lower claims activity in Q4, implying sequential step-down in average quarterly revenue per program despite strong YoY growth; “Sequential numbers are absolutely meaningless” for pharma programs — CFO .

Financial Results

Quarterly Summary (actuals)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$18,598,149 $19,078,353 $21,596,478
Diluted EPS ($)$0.05 $0.02 $0.04
Gross Margin %62.9% 61.6% 56.3%
Net Income Margin %13.9% 7.3% 10.3%
Adjusted EBITDA ($USD)$4,962,387 $4,512,104 $5,037,962
Adjusted EBITDA Margin %26.7% 23.7% 23.3%

Segment Breakdown

Segment Revenue ($USD)Q1 2025Q2 2025Q3 2025
Plasma$9,409,880 $10,743,924 $12,860,478
Pharma Patient Affordability$8,618,653 $7,753,906 $7,920,604
Other$569,616 $580,523 $815,396

KPIs

KPIQ1 2025Q2 2025Q3 2025
Active pharma programs (period-end)90 97 105
Plasma centers (period-end)484 607 595
Avg quarterly revenue per pharma program ($)—$79,937 $75,434
Avg monthly revenue per plasma center ($)—$7,098 $7,122
Gross dollar load volume YoY-4.5% -3.7% +21.0%
Gross spend volume YoY-9.4% -6.3% +19.2%

Q3 vs Consensus and Forward Look

MetricQ3 2025 EstimateQ3 2025 ActualQ4 2025 Estimate
Revenue ($USD)$19,915,600*$21,596,478 $21,476,500*
Diluted EPS ($)$0.02*$0.04 $0.02*
EBITDA ($USD)$4,596,200*$3,772,371 $4,756,750*
# of Estimates (EPS/Revenue)4 / 5*—3 / 4*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenues ($M)FY 2025$76.5–$78.5 $80.5–$81.5 Raised
Plasma % of RevenueFY 2025~56% ~57% Maintained/slight ↑
Pharma % of RevenueFY 2025~40.5% ~41% Maintained/slight ↑
Gross Profit Margin %FY 202561–62% ~60% Lowered
Operating Expenses ($M)FY 2025$41–$43 $41.5–$42.5 Narrowed
Depreciation & Amort. ($M)FY 2025~$8.4 ~$8.4 Maintained
Stock-based Comp ($M)FY 2025~$4.4 ~$4.3 Lowered
Interest Income ($M)FY 2025~$2.5 ~$2.6 Raised
Tax Rate %FY 2025—18.7% New
Diluted Shares (M)FY 202557.5 59.76 Raised
Net Income ($M)FY 2025$6.0–$7.0 $7.0–$8.0 Raised
Adj. EBITDA ($M)FY 2025$18.0–$20.0 $19.0–$20.0 Raised (midpoint)
Adj. EBITDA Margin %FY 202525.1% (1H illustrative) 24.1% midpoint vs 16.5% LY Provided

Earnings Call Themes & Trends

TopicQ1 2025 (Previous Mentions)Q2 2025 (Previous Mentions)Q3 2025 (Current Period)Trend
Dynamic Business Rules (DBR)Highlighted savings >$100M in 2024; core differentiator Reinforced as add-on revenue driver with claims Key value driver; used across specialty; expanding into retail Expanding adoption
Plasma oversupply/normalizationOversupply persisting through 2025 Headwinds; centers added, closures planned Expect normalization 1H26; donor compensation uptick Gradual improvement expected
SaaS plasma platform (donor app/CRM/BECCS)Introduced with Gamma acquisition Positive industry reception (Warsaw IPPC) Awaiting FDA 510(k); strong interest domestically/internationally Regulatory progress pending
Support center expansionPlanned opening in Q3 Costs to ramp; margin impact Opened; capacity 4x to meet demand Scaling operations
Pharma program growth/mix+14 programs; robust pipeline +7 programs; 97 active; 30–40 expected by YE 105 active in Q3; 118 by Oct; 20–30 more by YE Accelerating
Seasonality in claimsH1 stronger claims; H2 moderation H2 growth forecast despite seasonality Q4 similar to Q3 but lower claims activity; YoY per-program up Seasonal reset

Management Commentary

  • Strategic message: “We’re redefining how financial support is delivered across healthcare… removing cost barriers to treatment and generating measurable savings…” — CEO .
  • Margin leverage: “Our operating margin improved by 280 bps… net margin improved by 90 bps… Adjusted EBITDA margin improved by 480 bps… demonstrating the operating leverage inherent in our business model” — CFO .
  • Platform evolution: “We are executing on our strategy to expand our role… evolving from a trusted payments provider to a technology partner… awaiting FDA 510(k) clearance for the BECCS” — CEO .
  • Program scale and pipeline: “We ended the quarter with 105 active programs and expect to add 20–30 more by year-end… sales cycle ~90 days” — CEO .

Q&A Highlights

  • Retail vs specialty mix: Management indicated growing retail presence with higher claim volumes and different economics versus specialty; profitability varies by product and patient cohort, with DBR lifting specialty program economics .
  • Margin trajectory and center maturity: Gross margins expected to improve as new plasma centers mature and support center scales; certain plasma fee benefits take 90+ days to kick in .
  • Seasonality in pharma per-program: Sequential averages step down in Q4 due to claim resets; analysis should be on a YoY basis; “Sequential numbers are absolutely meaningless” — CFO .
  • BECCS timing and opportunity: FDA approval likely pushed into early 2026 due to shutdown; licensing is center-based; U.S. market not “hundreds of clients” — CFO .
  • Macro donor dynamics: No observed impact from immigration enforcement; no material change from government shutdown on donors; payments to donors trending up into Q4 and next 6–12 months .

Estimates Context

  • Q3 beat: EPS $0.04 vs $0.02*; revenue $21.60M vs $19.92M*; EBITDA $3.77M vs $4.60M* (note company emphasizes Adjusted EBITDA at $5.04M) .
  • Q4 outlook (consensus): EPS $0.02*, revenue $21.48M*, EBITDA $4.76M*; management guides Q4 similar to Q3 with flat plasma, more program launches, and seasonally lower claims .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Pharma patient affordability is the structural growth driver (program additions, claims momentum, DBR monetization) with continued mix-driven margin leverage; monitor Q4 seasonality and H1 reset dynamics .
  • Plasma growth stabilized; center-level economics should improve as new centers mature and donor compensation trends up; normalization expected in 1H26 — a medium-term tailwind .
  • FY25 guidance raised across revenue, net income, and Adjusted EBITDA; slight GP margin reset reflects near-term scaling costs and plasma mix; confirms confidence in growth trajectory .
  • Near-term trading setup: Clear headline beat on revenue and EPS and a guidance raise; watch street focus on GAAP EBITDA vs management’s Adjusted EBITDA and margin composition .
  • Medium-term thesis: Platform evolution to SaaS in plasma (BECCS) and scaled support center enhance moat; DBR remains a differentiated lever for pharma economics .
  • Liquidity: Unrestricted cash $7.53M at quarter-end impacted by timing of pass-through pharma receivables/payables; CFO cited adjusted unrestricted cash of $16.9M and zero debt .
  • Watchlist: FDA 510(k) timing for BECCS, pace of retail program wins, and Q4 per-program metrics versus YoY to validate momentum despite seasonality .