PAY

Let’s dig into the relative performance of Paymentus (NYSE:PAY) and its peers as we unravel the now-completed Q1 diversified financial services earnings season. Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings. The 10 diversified financial services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.6% since the latest earnings results. Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes. Paymentus reported revenues of $358.4 million, up 30.2% year on year. This print exceeded analysts’ expectations by 6.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA and EPS estimates. “Paymentus had a very strong start to 2026 with record revenue in the first quarter up 30.2% year-over-year, reflecting increased billers and transactions. This helped drive contribution profit growth and adjusted EBITDA growth of 25.2% and 41.5% year-over-year, respectively. These results, combined with our strong bookings and backlog at quarter-end, support our positive outlook for 2026 and beyond,” said Dushyant Sharma, Founder and CEO. Paymentus scored the highest guidance raise, fastest revenue growth, and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 14.7% since reporting and currently trades at $24.40. Read why we think that Paymentus is one of the best diversified financial services stocks...

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Paymentus Holdings (PAY) has drawn investor attention after recent share performance, with the stock up 2.1% over the past day but down over the past month and past 3 months. See our latest analysis for Paymentus Holdings. That share price gain over the past day sits against a weaker backdrop, with the 30 day share price return down 13.01% and the year to date share price return down 25.82%, while the 3 year total shareholder return is up 100.57%. If Paymentus has you thinking about where recurring revenue and digital payments might go next, it can be useful to scan 20 top founder-led companies So with Paymentus shares under pressure this year despite annual revenue and net income growth, is the current valuation lagging behind the business, or is the market already baking in the company’s next leg of growth? At a last close of $21.12 against a narrative fair value of $34.29, Paymentus is framed as materially undervalued, with that gap built on detailed earnings and margin assumptions. Read the complete narrative. Want to see what kind of revenue run rate, margin lift, and future earnings multiple are baked into that $34.29 figure? The narrative leans on fast compounding earnings, richer profitability, and a premium valuation usually reserved for category leaders, all wired together into one long term forecast. Result: Fair Value of $34.29 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that optimistic setup can unravel if large clients keep pushing for discounts that squeeze margins, or if tighter payment regulations increase compliance costs more quickly than revenue grows. Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page. The narrative fair value paints Paymentus as undervalued, but the current P/E of 35.9x tells a very different story. That is more than double the US Diversified Financial industry at 15.1x, above the peer average of 28.3x, and well above the fair ratio of 18.2x that the market could eventually move toward. For...

The United States market has experienced a notable upswing, climbing 1.6% in the last week and up 28% over the past year, with earnings projected to grow by 17% annually. In this environment, growth companies with high insider ownership stand out as potentially attractive investments due to their alignment of interests between management and shareholders and their potential for significant earnings expansion. Click here to see the full list of 176 stocks from our Fast Growing US Companies With High Insider Ownership screener. Let's uncover some gems from our specialized screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: AIRO Group Holdings, Inc. is a multi-faceted advanced Aerospace and Defense company operating in the United States, Europe, and internationally, with a market cap of $282.38 million. Operations: The company's revenue segments consist of Drones at $77.13 million, Avionics at $6.38 million, and Training at $4.51 million. Insider Ownership: 12.6% Earnings Growth Forecast: 67.2% p.a. AIRO Group Holdings is poised for growth with expected revenue expansion of 28.5% annually, outpacing the US market. Despite a volatile share price, insider transactions show more buying than selling recently. The company is exploring acquisitions to enhance its drone and avionics platforms while planning share repurchases to boost shareholder value. Recent product unveilings highlight AIRO's focus on defense and government applications, with promising advancements in autonomous aircraft technology aimed at commercialization by 2027. Click to explore a detailed breakdown of our findings in AIRO Group Holdings' earnings growth report. In light of our recent valuation report, it seems possible that AIRO Group Holdings is trading behind its estimated value. Simply Wall St Growth Rating: ★★★★★★ Overview: Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure with a market cap of $58.77 billion. Operations: The company's revenue primarily comes from its semiconductor segment, amounting to $1.00 billion. Insider Ownership: 10.3% Earnings Growth Forecast: 31.5% p.a. Astera Labs is experiencing rapid growth, with earnings projected to increase significantly at 31.5% annually, surpassing the US market average. Despite recent insider selling, the company’s revenue is expected to grow 26.4% per year, d...

With a forward P/E ratio of 22.92, Paymentus Holdings, Inc. (NYSE:PAY) is among the 10 Best Growth Stocks to Buy with Low P/E Ratios. On May 5, Wedbush analyst Daniel Ives raised the firm’s price target on Paymentus Holdings, Inc. (NYSE:PAY) to $36 from $32 while maintaining an Outperform rating on the shares. The firm stated that Paymentus delivered first-quarter results that exceeded expectations across key metrics and also raised its fiscal 2026 guidance. Wedbush noted that the company continues to benefit from the ongoing digitization of bill payment systems, supported by increasing transaction volumes across its broad and diversified customer base. On the same day, Baird increased its price target on Paymentus Holdings, Inc. (NYSE:PAY) to $34 from $30 while reiterating an Outperform rating on the stock. The firm updated its financial model following the company’s stronger-than-expected first-quarter performance, reflecting growing confidence in Paymentus’ operational momentum and long-term growth trajectory. Paymentus Holdings, Inc. (NYSE:PAY) operates within the fintech and software-as-a-service (SaaS) industry, providing cloud-based electronic bill presentment and payment (EBPP) solutions that enable consumers and businesses to securely manage and pay bills through multiple digital channels. Founded in 2004, the company is headquartered in Charlotte. While we acknowledge the potential of PAY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Future Stocks to Buy Right Now and 9 Best Space Stocks to Buy According to Reddit and Social Media. Disclosure: None. Follow Insider Monkey on Google News.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Paymentus Holdings (PAY) has drawn fresh attention after reporting first quarter 2026 results, updating its guidance, and unveiling new AI driven billing and payment products alongside plans to present at a major technology conference. See our latest analysis for Paymentus Holdings. Despite strong first quarter earnings, raised full year revenue guidance, and the launch of its AI driven Service Commerce platform, Paymentus Holdings’ share price has come under pressure recently. The 30 day share price return is down 15.08%, while the 3 year total shareholder return is 145%. If Paymentus’ AI driven push has caught your attention, it could be a good moment to broaden your watchlist with other payment and fintech enablers by checking out 19 top founder-led companies With the stock down sharply over the past year despite higher revenue guidance, a discount to analyst targets, and new AI driven products already in market, is there still a buying opportunity here, or is future growth already priced in? With Paymentus trading at $24.28 against a narrative fair value estimate of $32.29, the current price sits well below that implied level. Read the complete narrative. Curious what kind of revenue build, margin profile, and future earnings multiple sit behind that valuation gap? The narrative stitches these assumptions into one clear pricing framework. Result: Fair Value of $32.29 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the narrative hinges on margins holding up as large clients seek discounts and on Paymentus keeping pace with regulatory and technology shifts that could pressure growth. Find out about the key risks to this Paymentus Holdings narrative. Analysts see a fair value around $32.29, yet on simple pricing metrics Paymentus looks expensive. The stock trades on a P/E of 41.3x, compared with 34.5x for peers, 16.9x for the wider US Diversified Financial industry, and a fair ratio of 18.7x that the market could move toward over time. That gap represents real valuation risk if sentiment cools. Before you lean too heavily on one narrative or price target, it can help to check what the hard numbers are saying about today’s multiple ve...

Paymentus delivered a robust first quarter, exceeding Wall Street’s expectations for both revenue and non-GAAP profitability. Management attributed the outperformance to higher transaction activity from both new and existing billers, as well as a notable increase in average revenue per transaction. CEO Dushyant Sharma highlighted the benefits of vertical diversification and an enhanced pricing strategy, which have reduced the impact of volatile energy prices. Additionally, the successful onboarding of large enterprise clients and solid execution in converting backlog to bookings contributed to the favorable results. Is now the time to buy PAY? Find out in our full research report (it’s free). Revenue: $358.4 million vs analyst estimates of $336.9 million (30.2% year-on-year growth, 6.4% beat) Adjusted EPS: $0.21 vs analyst estimates of $0.18 (19.8% beat) Adjusted EBITDA: $42.42 million vs analyst estimates of $37.3 million (11.8% margin, 13.7% beat) The company lifted its revenue guidance for the full year to $1.43 billion at the midpoint from $1.4 billion, a 2.3% increase EBITDA guidance for the full year is $168.5 million at the midpoint, above analyst estimates of $164.4 million Operating Margin: 7.4%, up from 5.7% in the same quarter last year Market Capitalization: $3.35 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Madison Suhr (Raymond James) asked about anticipated changes to contribution per transaction from the new AI product. CEO Dushyant Sharma stated that the company would maintain its pay-per-use model and expects future opportunities to monetize interchange as Bill Wallet adoption grows. Dave Koning (Baird) questioned the flatness in contribution profit guidance for Q2 and the impact of energy prices. CFO Sanjay Kalra explained that prudent forecasting, seasonality in government billers, and reduced energy price exposure informed the outlook. Analyst (Wedbush Securities) sought detail on the AI-native product pipeline and revenue contribution timing. Sharma emphasized that while momentum is building, material revenue from these products is expected beyond 2026, with bookings and market captu...

In early May 2026, Paymentus reported first-quarter 2026 results showing higher sales of US$358.44 million and net income of US$20.88 million, raised its full-year revenue and contribution profit guidance, and beat analyst earnings and revenue expectations. At the same time, the company launched its patented Billeo™ and BillWallet® products and AI360 framework, defining a new “AI-native Service Commerce” category that turns bills into interactive, AI-powered service experiences across multiple industries. Now we'll examine how these stronger earnings and raised full-year guidance may influence Paymentus’ existing investment narrative and future outlook. AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Paymentus, you need to believe its cloud platform can keep winning billers, growing transaction volumes, and monetizing new services, while preserving margins despite pricing pressure from large enterprise clients. The Q1 2026 beat and higher full year guidance support that near term growth catalyst, but also heighten attention on whether rising volume discounts and customer concentration could eventually squeeze contribution profit and net income. The launch of Billeo, BillWallet, and the AI360 framework is most relevant here because it speaks directly to differentiation risk in an increasingly commoditized bill payment market. If these AI native services deepen customer relationships and make Paymentus harder to replace, they could help offset pricing pressure and reduce the risk that bill payment becomes a low margin utility business. Yet, even with strong reported numbers, investors should be aware that growing dependence on large clients could quickly matter if... Read the full narrative on Paymentus Holdings (it's free!) Paymentus Holdings’ narrative projects $1.9 billion revenue and $151.1 million earnings by 2029. This requires 17.5% yearly revenue growth and an $84.2 million earnings increase from $66.9 million today. Uncover how Paymentus Holdings' forecasts yield a $32.29 fair value, a 19% upside to its current price. Four members of the Simply Wall St Community value Paymentus anywhere between US$5.16 and US$228.15, highlighting very different expectations. You should weigh those view...

Record revenue of $358.4 million, up 30.2% year-over-year Contribution Profit up 25.2% year-over-year Adjusted EBITDA up 41.5% year-over-year, reflecting a record 38.7% adjusted EBITDA margin CHARLOTTE, N.C., May 04, 2026--(BUSINESS WIRE)--Paymentus Holdings, Inc. ("Paymentus") (NYSE: PAY), a leading provider of cloud-based bill payment technology and solutions, today announced its unaudited financial results for the quarter ended March 31, 2026. "Paymentus had a very strong start to 2026 with record revenue in the first quarter up 30.2% year-over-year, reflecting increased billers and transactions. This helped drive contribution profit growth and adjusted EBITDA growth of 25.2% and 41.5% year-over-year, respectively. These results, combined with our strong bookings and backlog at quarter-end, support our positive outlook for 2026 and beyond," said Dushyant Sharma, Founder and CEO. First Quarter 2026 Financial and Business Highlights Revenue was $358.4 million, a year-over-year increase of 30.2%, driven largely by increased billers and transactions. Gross profit was $86.2 million, an increase of 30.6% year-over-year. Adjusted gross profit(1) was $92.4 million, up 27.3% year-over-year. Contribution profit(1) was $109.7 million, a year-over-year increase of 25.2%. Net income was $20.9 million, compared to $13.8 million in the prior period, and diluted GAAP earnings per share was $0.16, compared to $0.11 in the prior period. Non-GAAP net income(1, 2) was $26.9 million, compared to $17.6 million in the prior period, and diluted non-GAAP earnings per share(1, 2) was $0.21, compared to $0.14 in the prior period. Adjusted EBITDA(1) was $42.4 million, a 41.5% increase year-over-year, representing a 38.7% adjusted EBITDA margin(1). The Company processed 203.4 million transactions during the first quarter of 2026, an increase of 17.4% year-over-year. (1) Descriptions of the non-GAAP financial measures adjusted gross profit, contribution profit, non-GAAP net income, non-GAAP earnings per share, adjusted EBITDA, and adjusted EBITDA margin are provided below under "Use and Definitions of Non-GAAP Financial Measures," and reconciliations are provided in the tables at the end of this release. (2) Non-GAAP net income and Non-GAAP earnings per share are adjusted for an assumed provision for income taxes based on our long-term projected non-GAAP tax rate of 25%. See "Use and...

Paymentus (PAY) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.53%. A quarter ago, it was expected that this electronic bill payment services would post earnings of $0.18 per share when it actually produced earnings of $0.2, delivering a surprise of +11.11%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Paymentus, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $358.44 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.88%. This compares to year-ago revenues of $275.23 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Paymentus shares have lost about 12.1% since the beginning of the year versus the S&P 500's gain of 5.6%. While Paymentus has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Paymentus was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Za...

Paymentus reported record Q1 revenue of $358.4 million (up 30.2% YoY) and record adjusted EBITDA of $42.4 million (up 41.5%), posting a company‑record Rule of 40 of 64, ending the quarter with $342.1 million cash and no debt. Management said bookings, onboarding backlog and pipeline were strong, prompting raised Q2 and full‑year 2026 guidance (Q2 revenue $340–350M; FY revenue $1.425–1.44B) while emphasizing a deliberately prudent guidance approach. Paymentus launched an “AI‑native Service Commerce” suite — including BillWallet and Billeo — positioning for longer‑term monetization; BillWallet has seen early organic adoption (~100,000 users across 1,000+ cities) with a platform reach of ~53 million users. Interested in Paymentus Holdings, Inc.? Here are five stocks we like better. 3 Stocks That Benefit if Companies Cut Costs in 2026 Paymentus (NYSE:PAY) reported what management described as a “tremendous start” to fiscal 2026, delivering record first-quarter revenue and adjusted EBITDA while pointing to strong momentum in bookings and pipeline activity. The company also used the call to announce a new product initiative centered on what it is calling “AI-native Service Commerce,” including products branded BillWallet and Billeo. Founder and CEO Dushyant Sharma said the quarter’s performance reflected “the durability and long-term growth potential of our business model,” citing platform scale, service quality, and an “innovation framework.” → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook 3 Explosive Tech Stocks Breaking Out Right Now Paymentus posted first-quarter revenue of $358.4 million, up 30.2% year-over-year. Contribution profit rose to $109.7 million, up 25.2%, and adjusted EBITDA increased to a record $42.4 million, up 41.5%, representing a 38.7% margin, according to CFO Sanjay Kalra. Sharma and Kalra both highlighted that the company exceeded the “Rule of 40,” with Kalra calling the 64 result a company record. Sharma said the performance also reflected reduced sensitivity to energy price impacts due to “vertical diversification and our enhanced pricing strategy over the years.” → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches PayPal’s User Decline Won’t Stop Its Double-Digit Upside Kalra said results came in “much stronger than we had anticipated,” driven by “higher transaction activity from both new and exi...

CHARLOTTE, N.C. (AP) — CHARLOTTE, N.C. (AP) — Paymentus Holdings Inc. (PAY) on Monday reported first-quarter profit of $20.9 million. The Charlotte, North Carolina-based company said it had profit of 16 cents per share. Earnings, adjusted for stock option expense and amortization costs, came to 21 cents per share. The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 17 cents per share. The electronic bill payment services posted revenue of $358.4 million in the period, also surpassing Street forecasts. Six analysts surveyed by Zacks expected $335.4 million. For the current quarter ending in June, Paymentus said it expects revenue in the range of $340 million to $350 million. The company expects full-year revenue in the range of $1.43 billion to $1.44 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PAY at https://www.zacks.com/ap/PAY

Record Q1 performance was driven by a combination of robust transaction activity from new billers launched in late 2025 and increased same-store sales from existing clients. Management attributes the 30.2% revenue growth to successful vertical diversification and an enhanced pricing strategy that has materially reduced the company's exposure to energy price fluctuations. The average revenue per transaction increased approximately 11% to $1.76, primarily due to a shift in biller mix toward large enterprise accounts with higher average payment amounts. Operational leverage was demonstrated as adjusted EBITDA grew 41.5%, significantly outpacing contribution profit growth, with 56% of incremental contribution profit falling to the bottom line. The company is pivoting from a retail-centric commerce model to a 'service-native' paradigm, arguing that service commerce is relational rather than transactional and requires a purpose-built AI stack. Strategic positioning is now centered on a 'moat' of patented AI technologies designed to automate complex service interactions and secure a direct link between providers and customers. Full-year 2026 guidance was raised to reflect the expected achievement of long-term targets, including approximately 20% revenue growth and 20% to 30% adjusted EBITDA growth. Management maintains a 'prudent' approach to Q2 guidance, assuming modest softness due to the seasonality of government billers and the need to observe full-year cycles for recently onboarded large enterprises. The company operates on a two-fiscal-year horizon, stating that current outperformance and backlog provide high visibility into 2027 performance. A primary long-term strategic goal is to convert interchange from a major expense into a revenue stream by scaling the Bill Wallet and its native funding capabilities. Future investments will focus on aggressively converting the substantial sales pipeline into bookings, with operating expenses expected to scale alongside contribution profit expansion. Launched 'Billio,' a new AI-native category featuring a purpose-built digital wallet (Bill Wallet) and interactive service documents designed to reduce payment time by 75%. Reported a record Rule of 40 score of 64, up from 61 in the previous quarter, signaling high efficiency in balancing growth and profitability. Management noted that while energy price volatility remains...