PAY

Paymentus delivered a quarter that exceeded Wall Street’s expectations, prompting a significant positive market reaction. Management pointed to broad-based growth across both large enterprise and smaller customers as the foundation for this performance, emphasizing the impact of new client signings across a diversified set of industry verticals. CEO Dushyant Sharma highlighted that the company’s growth was not isolated to any single segment, noting strong onboarding momentum and contributions from both new and existing billers. CFO Sanjay Kalra added that the quarter’s profitability gains reflected operational leverage and an improved customer mix. Is now the time to buy PAY? Find out in our full research report (it’s free). Revenue: $360.7 million vs analyst estimates of $345.7 million (28.8% year-on-year growth, 4.3% beat) Adjusted EPS: $0.25 vs analyst estimates of $0.19 (32.9% beat) Revenue Guidance for Q3 CY2026 is $358 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: 9%, up from 5.7% in the same quarter last year Market Capitalization: $4.86 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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 the drivers of accelerating contribution profit growth and whether results were concentrated in large customers or broad-based. CFO Sanjay Kalra confirmed that growth was broad-based across all customer segments and verticals, not just driven by large enterprise clients. Madison Suhr (Raymond James): Inquired about user adoption and investment needs for the new AI suite. CEO Dushyant Sharma said client engagement has been strong, and while investments will continue, Paymentus aims for innovations to be additive to margins over time. David Koning (Baird): Questioned the strong sequential transaction growth and seasonality changes. Kalra explained that diversification across verticals and customer sizes is muting historical seasonality, making trends harder to predict but generally positive as scale increases. Steven Wahrhaftig (Wedbush Securities): Sought details on bookings composition and deployment timelines. Kalra noted that bookings are diversified, all from new customers, and both large and small clients are now being onboarded faster, improving backlog conversion. Tien-Tsin Huang (JPMorgan): Asked about changes in enterprise sales momentum and sourcing. Sharma attributed increased enterprise wins to Paymentus’ platform capabilities, reputation, and expanded partner ecosystem, resulting in a mix of inbound and outbound opportunities. In the coming quarters, the StockStory team will monitor (1) the adoption rate and monetization impact of the Billeo AI Commerce Suite, (2) continued onboarding efficiency and expansion in large enterprise customers, and (3) the company’s ability to sustain margin gains while scaling across new verticals. Progress on these fronts will be key for evaluating Paymentus’ execution against its long-term growth model. Paymentus currently trades at $38.97, up from $34.52 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Paymentus (PAY) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. Analysts' growing optimism on the earnings prospects of this electronic bill payment services is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Paymentus, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.22 per share, which is a change of +29.4% from the year-ago reported number. Over the last 30 days, the Zacks Consensus Estimate for Paymentus has increased 7.84% because two estimates have moved higher compared to no negative revisions. For the full year, the company is expected to earn $0.92 per share, representing a year-over-year change of +39.4%. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Paymentus. Over the past month, two estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 15.77%. The promising estimate revisions have helped Paymentus earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Paymentus shares have added 36.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Paymentus Holdings, Inc. (PAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Record $360.7 million, up 28.8% year-over-year. Contribution Profit: $118.1 million, up 26.3% year-over-year. Adjusted EBITDA: $48.8 million, up 54% year-over-year, with a record margin of 41.3%. Transactions Processed: 213.4 million, up 21.4% year-over-year. Average Price per Transaction: Increased from $1.59 to $1.69 year-over-year. Contribution Profit per Transaction: $0.55, up from $0.53 in the prior year period. Adjusted Gross Profit: $100.2 million, up 28.6% year-over-year. Non-GAAP Operating Expenses: $54.2 million, up 10.5% year-over-year. Non-GAAP Net Income: $32.4 million, or $0.25 per share, up 66.7% year-over-year. Free Cash Flow: $39 million generated in the quarter. Cash and Cash Equivalents: $379.7 million at end of Q2, up from $342.1 million sequentially. Rule of 40: 68, up from 56 in Q2 of last year. Warning! GuruFocus has detected 2 Warning Sign with PAY. Is PAY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 2026 revenue of $360.7 million, up 28.8% year-over-year, exceeding guidance. Adjusted EBITDA grew 54% year-over-year to $48.8 million, with a record margin of 41.3%. Strong bookings and a substantial backlog provide solid visibility for the remainder of 2026 and into 2027. Rule of 40 score improved to 68, up from 56 in the prior year, reflecting strong growth and profitability. Innovative AI products like Billeo and BillWallet are gaining positive client feedback, positioning the company for future growth. Contribution margin declined to 32.7% from 33.4% in the prior year due to a shift toward larger, higher-volume enterprise clients. Third-quarter 2026 revenue guidance implies a slowdown to 15.2% year-over-year growth at the midpoint, down from 28.8% in Q2. Non-GAAP operating expenses increased 10.5% year-over-year, driven by higher sales and marketing costs. The company faces potential AI disintermediation risk, which it is actively trying to mitigate with its product suite. Quarterly variability in revenue per transaction and contribution profit per transaction persists due to customer mix changes. Q: Can you provide more color on the drivers behind the fourth consecutive quarter of accelerating contribution profit dollar growth? Is it driven by a few large customers or is it broad-based, and are there any specific verticals that were particularly strong?A: Sanjay Kalra (CFO) stated that the growth is broad-based and not limited to just large enterprise customers, although they contribute significantly. The entire biller baselarge, small, and mid-size customersis contributing, and growth is not concentrated in any particular vertical. He attributed the strong performance to phenomenal bookings over the past few quarters, which have reached a full-quarter run rate, and to the company's ability to secure good pricing from highly profitable, household-name customers that value the platform. Q: How is user enrollment progressing for the new AI product suite (Billeo), when will it start to impact revenue, and do you foresee a meaningful investment ramp that could impact incremental margins?A: Dushyant Sharma (CEO) noted a very positive reaction from clients and prospects since the announcement. He emphasized that the platform addresses the entire service commerce spectrum, not just billing and payments, and that BillWallet user numbers are growing. Regarding investment, he stated the goal remains to be a prudent operator, delivering growth alongside incremental margins. He expects the top-line results from these AI products to start showing in the next few years, noting that the investments have not heavily impacted the expense side of the P&L. Q: Historically, Q2 was the low point for sequential transaction growth, averaging around 2%, but this quarter it was up 5% sequentially, the strongest since 2019. Why was it so good, and has the seasonal pattern changed?A: Sanjay Kalra (CFO) explained that the company is still learning how new large customers and vertical diversification affect trends. He suggested that historical trends were driven by a few verticals, but as diversification increases, seasonality may change. He advised that the best way to model is to use the company's guidance and average revenue per transaction from recent quarters, as the trends are evolving. Q: Can you break down the bookings composition, including how much is tied to new versus expansion deals, and whether large billers are seeing faster deployment timelines?A: Sanjay Kalra (CFO) said the company does not disclose booking details but provided color that bookings are broad-based across many verticals, including utilities, insurance, telecom, property management, and mortgage, and are not concentrated. All bookings are from new customers, as expansions are not counted. He confirmed that implementation timelines are improving across the board due to more efficient processes and economies of scale, with teams implementing on time or ahead of schedule. Q: Revenue per transaction declined quarter-over-quarter while contribution profit per transaction increased. What is driving the strength in contribution profit, and how should we interpret the back-half guidance?A: Sanjay Kalra (CFO) clarified that revenue per transaction is an output of the business, not an input, and variability is expected. The increase in contribution profit per transaction to $0.55 is driven by the mix of billers. He emphasized that the long-term model remains intact, with incremental EBITDA margins reaching almost 70%. Regarding guidance, he stressed that the company follows a disciplined approach, reflecting only what can be delivered with high confidence, and cautioned against overreading any single quarter's guidance in isolation. Q: Can you provide more detail on the enterprise momentum? Is there a shift in how business is sourced, are win rates improving, and is the mix of sole-sourced deals increasing?A: Dushyant Sharma (CEO) attributed the momentum to years of hard work paying off, including building a great franchise and platform. He explained that enterprise customers now recognize Paymentus is not just a processing company but a platform that handles tremendous workflows, data, and business rules. This has shifted CIOs and CTOs from being on the opposite side of the table to the same side. The momentum is driven by a combination of outbound outreach, inbound calls from prospects who are existing users, and a sophisticated partnership ecosystem, all underpinned by the platform's superior capabilities. Q: The network fee growth as a percent of gross revenue was the smallest it's been in a long time. Can you describe this dynamic and whether contribution profit and gross revenue growth will converge?A: Sanjay Kalra (CFO) stated that the short answer is customer mix, which drives contribution margins and evolves over time. He noted that the scale of customers is overtaking seasonality impacts. The company is achieving good pricing and attracting customers who see significant value in the product, which is the primary driver of the trend. Q: Given the strong Q2 results and raised guidance, can you elaborate on the confidence in meeting the long-term CAGR model and the significance of being ahead of schedule?A: Dushyant Sharma (CEO) highlighted that the company is pacing well ahead of its original CAGR model targets for 2026. The top end of revised guidance implies 21.9% growth over 2025, which is already 9.5% ahead of the 20% CAGR model. Similarly, the top end of adjusted EBITDA guidance implies 34.6% growth, which is 38.4% ahead of the 25% CAGR model midpoint. He noted that the midpoint of 2026 revenue guidance is over 65% higher than 2024 revenue, and adjusted EBITDA is over 90% higher, far outpacing most premium software and SaaS companies. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management reported achieving a decade's worth of 20% compounded annual growth in just seven years, effectively reaching 2029 targets by 2026. Performance was driven by the successful onboarding of large enterprise billers launched during the third quarter of 2025, with this period marking the third complete quarter of realizing their full benefits. The company is pivoting from a billing and payments provider to a premium AI and software infrastructure partner to mitigate 'AI disintermediation risk' for billers. Strategic research indicates that billing is becoming the primary 'brand experience' for consumers, particularly younger cohorts who delay payments when dissatisfied with the interface. Growth is characterized as broad-based across all verticals, including utilities, government, and telecommunications, rather than being concentrated in a single sector. Operational efficiency improved as onboarding times for new billers declined even as the average customer size and complexity increased. The 'BillWallet' and 'Billeo' suites are positioned as defensive moats that preserve service provider identity and data sovereignty against third-party AI agents. Full-year 2026 guidance was raised across all metrics, reflecting high visibility into a substantial exit backlog and strong booking momentum into 2027. Management maintains a 'prudent and disciplined' guidance philosophy, only including results they can deliver with high confidence based on current visibility. The company expects to continue exceeding its long-term CAGR model of 20% top-line and 25% adjusted EBITDA growth through the end of the decade. Future revenue growth is expected to be augmented by the Billeo AI suite, with material P&L impacts anticipated over the next few years. Guidance assumes that volume discounts for large enterprise clients will be more than offset by the company's inherent operating leverage and incremental margins. The company reported a record Rule of 40 score of 68, up from 56 in the prior year, driven by significant operating leverage. Average price per transaction increased to $1.69 from $1.59, primarily due to a shift in biller mix toward large enterprises with higher average payment amounts. Management noted that while they are open to volume discounts for large enterprise deals, they can 'recalibrate' operating expenses to maintain desired EBITDA targets. The company remains debt-free with $379.7 million in cash, providing flexibility for potential M&A to expand growth strategies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that growth is broad-based across all biller sizes and verticals, not just a few large customers. Recent bookings consist of 'household names' that value the technology platform enough to support favorable pricing and high profitability. The Billeo AI suite is receiving positive feedback for its ability to maintain data sovereignty within the Paymentus cloud infrastructure. Management intends to remain a 'prudent operator,' stating that AI investments are already embedded in current spending and will be additive to margins over time. Q2 saw an unusual 5% sequential transaction growth, which management attributed to the scale of new customer additions overtaking historical seasonal trends. Management suggested that historical seasonality may become 'muted' as the business diversifies into more varied industry verticals. The sales process has shifted as CIOs and CTOs now view Paymentus as a workflow automation platform rather than just a payment processor. Momentum is being driven by a mix of direct outreach, inbound interest from the 53 million unique users on the platform, and a sophisticated partner ecosystem.

Interested in Paymentus Holdings, Inc.? Here are five stocks we like better. Record Q2 performance: Paymentus reported revenue of $360.7 million, up 28.8% year over year, while adjusted EBITDA rose 54% to $48.8 million. Transaction volume increased 21.4% to 213.4 million. 2026 outlook raised: Management increased its full-year revenue guidance to $1.443 billion–$1.458 billion and adjusted EBITDA guidance to $175 million–$185 million, citing strong bookings, backlog and broad-based customer growth. Enterprise and AI expansion: Growth was supported by large enterprise billers across multiple industries, while Paymentus continues developing its Billeo AI service-commerce suite to expand beyond payments into workflow, data-security and customer-service solutions. 3 Stocks That Benefit if Companies Cut Costs in 2026 Paymentus (NYSE:PAY) reported record second-quarter revenue of $360.7 million, up 28.8% from a year earlier, as higher transaction volumes, new biller launches and growth from existing customers helped the billing and payments company exceed its prior guidance. Founder and CEO Dushyant Sharma said the company’s second-quarter results included contribution profit of $118.1 million, up 26.3% year over year, and adjusted EBITDA of $48.8 million, a 54% increase. Paymentus processed 213.4 million transactions during the quarter, up 21.4% from the prior-year period. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now 3 Explosive Tech Stocks Breaking Out Right Now “Paymentus delivered another strong quarter,” Sharma said, pointing to record revenue and what he described as substantial bookings and backlog. Management said it believes those factors provide visibility for the remainder of 2026 and into 2027. CFO Sanjay Kalra said second-quarter revenue growth was driven primarily by increased transactions across the business, including newly launched billers and same-store sales from existing customers. Average revenue per transaction rose to $1.69 from $1.59 a year earlier, which Kalra attributed mainly to biller mix, including large enterprise customers launched in the third quarter of 2025 that carry higher average payment amounts. → MarketBeat Week in Review – 07/27- 07/31 PayPal’s User Decline Won’t Stop Its Double-Digit Upside Contribution profit per transaction increased to $0.55 from $0.53 a year earlier. Contribution margin was 32.7%, compared with 33.4% in the prior-year quarter, reflecting the addition of larger, higher-volume enterprise billers. Kalra said that margin change was substantially offset by a year-over-year reduction in operating-expense margin. Non-GAAP operating expenses rose 10.5% to $54.2 million, primarily due to sales and marketing hiring and agency fees related to resellers and partners. Still, the company reported adjusted EBITDA equal to 41.3% of contribution profit, compared with 33.9% a year earlier, and an incremental adjusted EBITDA margin of 69.6%. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Paymentus generated $39 million in free cash flow during the quarter. It ended the period with $379.7 million in cash and cash equivalents, up from $342.1 million at the end of the first quarter, and reported no debt. Management said demand was particularly strong among large enterprise customers, though Kalra emphasized during the question-and-answer session that contribution-profit growth was broad-based across large, midsize and smaller customers rather than concentrated in a single customer type or vertical. The company cited activity across utilities, government agencies, telecommunications, property management, insurance, banking, education, business-to-business, consumer finance and other sectors. Kalra also said implementation timelines have continued to improve as Paymentus gains efficiencies in its processes and as average customer sizes increase. Based on first-half performance, bookings and expectations for the rest of the year, Paymentus raised its full-year 2026 outlook for revenue, contribution profit and adjusted EBITDA. Revenue is now expected to be $1.443 billion to $1.458 billion, representing 21.2% growth at the midpoint and 21.9% at the high end. Contribution profit is projected at $460 million to $465 million, or 19.7% growth at the midpoint and 20.4% at the high end. Adjusted EBITDA is forecast at $175 million to $185 million, representing 31% growth at the midpoint and 34.6% at the high end. The revised midpoint revenue outlook represents an approximately $18 million increase from prior guidance, while the midpoint adjusted EBITDA outlook increased by about $11.5 million. For the third quarter, Paymentus expects revenue of $353 million to $363 million, contribution profit of $112 million to $115 million, and adjusted EBITDA of $40 million to $45 million. Kalra said larger enterprise clients can seek volume discounts, but Paymentus is willing to offer them when the economics support the arrangement. He said those discounts can be more than offset by incremental adjusted EBITDA because of operating leverage, declining onboarding time per biller and increasing average customer size. Sharma also discussed the company’s Billeo artificial intelligence-native service-commerce suite, which Paymentus announced during the prior quarter. He said the company sees an opportunity to provide clients with additional AI infrastructure, workflow and data-security capabilities beyond billing and payments. Among the capabilities cited were the Billeo AI360 intelligence engine, an agentic service suite intended to augment the company’s human service center, an intelligent data vault, and a transactional billing and reconciliation engine. Sharma said Paymentus is receiving positive feedback from clients, prospective clients and partners on the AI-related offerings. He said Paymentus expects its AI investments to begin contributing to the income statement over the next several years, while maintaining a focus on growth and incremental margins. The company did not provide enrollment figures for BillWallet, but Sharma said the number of users has increased and that Paymentus may provide a broader update annually. Sharma said Paymentus believes its platform’s ability to handle workflows, business rules, data and intelligence layers is helping it gain enterprise traction. He said enterprise customers increasingly view the company as more than a payment-processing provider, with the potential to consolidate multiple applications through a single platform integration. Paymentus is a U.S.-based financial technology company that specializes in cloud-native bill payment and presentment solutions. Its platform enables businesses and government entities to manage the entire payment lifecycle, from electronic bill presentment and real-time payment processing to reconciliation and reporting. Through web portals, mobile applications, interactive voice response (IVR) systems and in-person channels, Paymentus helps clients streamline accounts receivable operations, enhance customer engagement and reduce operational costs. Founded in 2004 and headquartered in Wilmington, Delaware, Paymentus has built a modular suite of services that can be tailored to the needs of various industries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Paymentus Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Revenue up 28.8% year-over-year Contribution Profit up 26.3% year-over-year Adjusted EBITDA up 54.0% year-over-year, with a record adjusted EBITDA margin 41.3% ADDISON, Texas, August 03, 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 June 30, 2026. "Paymentus' strong business momentum in 2026 continued into the second quarter, with financial results that included record revenue that increased 28.8% year-over-year. This in turn drove healthy year-over-year contribution profit and adjusted EBITDA growth of 26.3% and 54.0%, respectively. Our year-to-date results, combined with our robust bookings and substantial backlog, position us well to meet our 2026 financial goals," said Dushyant Sharma, Founder and CEO. Second Quarter 2026 Financial and Business Highlights Revenue was $360.7 million, a year-over-year increase of 28.8%, driven largely by increased billers and transactions. Gross profit was $94.3 million, an increase of 31.9% year-over-year. Adjusted gross profit(1) was $100.2 million, up 28.6% year-over-year. Contribution profit(1) was $118.1 million, a year-over-year increase of 26.3%. Net income was $25.6 million, compared with $14.7 million in the same period in 2025, and diluted GAAP earnings per share was $0.20, compared to $0.11 in the same period in 2025. Non-GAAP net income(1, 2) was $32.4 million, compared with $19.3 million in the same period in 2025, and diluted non-GAAP earnings per share(1, 2) was $0.25, compared with $0.15 in the same period in 2025. Adjusted EBITDA(1) was $48.8 million, a 54.0% increase year-over-year, representing a 41.3% adjusted EBITDA margin(1). The Company processed 213.4 million transactions during the second quarter of 2026, an increase of 21.4% 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 Definitions of Non-GAAP Financial Measures" below for additional information regarding non-GAAP net income and non-GAAP earnings per share. Financial Guidance The statements in this section are forward-looking statements. For additional information regarding the use and limitations of such statements, refer to "Forward-Looking Statements" below and the "Risk Factors" section of Paymentus’ most recent Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission, or SEC, on February 24, 2026. Paymentus does not reconcile its forward-looking guidance for non-GAAP measures because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated due to potential variability, complexity and uncertainty as to the items that would be excluded from the GAAP measure in the relevant future period. Refer to "Use of Forward-Looking Non-GAAP Measures" below for additional explanation. Conference Call Information In conjunction with this announcement, Paymentus will host a conference call for investors today at 5:00 p.m. ET (2:00 p.m. PT) to discuss second quarter 2026 results and its financial guidance for the remainder of 2026. The live webcast and replay will be available at the Investor Relations section of Paymentus’ website at ir.paymentus.com or click here. To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BI89de8c3c7430402e8f5ded9002badf9b. Upon registration, telephone participants will receive a confirmation email detailing how to join the audio version of the webcast, including the dial-in number and a unique registrant ID. A replay of the webcast will be available for one year following its conclusion and will be accessible on Paymentus' website. About Paymentus Paymentus is a leading provider of cloud-based bill payment technology and solutions for billers and financial institutions across North America. Our omni-channel platform provides consumers with easy-to-use, flexible and secure electronic bill payment experiences through their preferred payment channel and payment type. Paymentus’ proprietary Instant Payment NetworkTM, or IPN, extends our reach by connecting our IPN partners’ platforms and tens of thousands of billers to our integrated billing, payment and reconciliation capabilities. For more information, please visit www.paymentus.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements included in this press release, other than statements of historical or current fact, are forward-looking statements, including but not limited to statements regarding bookings, backlog and pipeline, visibility into 2026 and beyond, our ability to deliver near-term and longer-term growth and strategic objectives, future financial performance and our third-quarter and full year 2026 financial guidance. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Paymentus' current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including, without limitation, risks related to our ability to effectively manage our growth and expand our operations, including into new channels and industry verticals across different markets; our ability to expand and retain our base of billers, financial institutions, partners and consumers; our ability to implement new bookings in a timely manner and recognize anticipated revenue therefrom; our ability to manage economic challenges, including inflation; the impact of future widespread health issues on our operating results, liquidity and financial condition and on our employees, billers, financial institutions, partners, consumers and other key stakeholders; our ability to remain competitive; our ability to develop new product features and enhance our platform and brand; our use of artificial intelligence and machine learning; our future acquisitions and strategic investments; our ability to hire and retain experienced and talented employees; the impact of any cybersecurity incidents; the impact of evolving regulations and our ability to maintain regulatory compliance; and other risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 24, 2026, and subsequent Quarterly Reports on Form 10-Q, including our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which we expect to file with the SEC shortly after the date of this release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and speak only as of the date hereof, and Paymentus undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law. Use of Forward-Looking Non-GAAP Measures Paymentus does not meaningfully reconcile guidance for adjusted EBITDA and adjusted EBITDA margin because we cannot provide guidance for the more significant reconciling items between net income and adjusted EBITDA without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of Paymentus' core operations, which may include, without limitation, items included in the supplemental financial information for reconciliation of reported GAAP results to non-GAAP results. Such items include acquisition-related amortization expense for acquired intangibles, foreign exchange gains and losses, adjustments to our income tax provision and certain other items we believe to be non-indicative of our ongoing operations. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual or unanticipated charges, expenses or gains/losses or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant. In addition, Paymentus does not meaningfully reconcile guidance for contribution profit because the determination of contribution profit is subject to variables outside our control, such as an increase in the average payment amount, changes in the payment mix, or the payment channel used by consumers that can influence contribution profit, and cannot be determined without unreasonable effort, if at all. Use and Definitions of Non-GAAP Financial Measures In addition to disclosing financial measures in accordance with accounting principles generally accepted in the United States, or GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures, including adjusted gross profit, contribution profit, non-GAAP net income (including those amounts as a percentage of revenue), non-GAAP earnings per share, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating expense and free cash flow. Paymentus uses non-GAAP measures to supplement financial information presented on a GAAP basis. Paymentus believes that excluding certain items from GAAP results allows management and our board of directors to more fully understand our consolidated financial performance from period to period and helps management project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Adjusted gross profit is defined as gross profit adjusted for certain non-cash items, primarily stock-based compensation and amortization of acquisition-related intangible assets and capitalized software development costs. Contribution profit is defined as gross profit plus other cost of revenue. Other cost of revenue equals cost of revenue less interchange, assessment and other network fees paid by us to our payment processors. Interchange, assessment and other network fees paid by us to our payment processors are excluded from contribution profit because we believe inclusion is less directly reflective of our operating performance as we do not control the payment channel used by consumers, which is the primary determinant of the amount of interchange, assessment and other network fees. We use contribution profit to measure the amount available to fund our operations after interchange, assessment and other network fees, which are directly linked to the number of transactions we process and thus our revenue and gross profit. Adjusted EBITDA is defined as net income before interest income (expense), net, other income (expense), depreciation and amortization of acquisition-related intangible assets and capitalized software development costs, and income taxes, adjusted to exclude foreign exchange gain (loss), the effects of stock-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of contribution profit. Non-GAAP operating expense is defined as total operating expense excluding amortization of acquisition-related intangibles, stock-based compensation and other nonrecurring expenses. Management believes that the adjustment of acquisition-related intangibles amortization supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. Although we exclude amortization of acquisition-related intangible assets from our non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Non-GAAP net income and non-GAAP EPS are defined as the applicable GAAP measures, adjusted for (1) stock-based compensation, (2) amortization of acquisition-related intangibles, (3) certain nonrecurring items such as discrete tax items, one-time expenses or other non-cash items, and (4) an assumed provision for income taxes based on our long-term projected non-GAAP tax rate. Our long-term projected non-GAAP tax rate is subject to change for a variety of reasons, including significant changes in our earnings, tax adjustments and potential future changes to business operations. We will re-evaluate our long-term projected tax rate as appropriate. We believe non-GAAP net income and non-GAAP EPS enhance the understanding of our operating performance and enable more meaningful period-to-period comparisons. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software development costs. Paymentus believes these non-GAAP measures provide our investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. Paymentus uses these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance and liquidity, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance and liquidity. There are limitations to the use of the non-GAAP measures presented in this press release. Our non-GAAP measures may not be comparable to similarly titled measures of other companies; other companies, including companies in our industry, may calculate non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes. These non-GAAP measures should not be considered in isolation from or as a substitute for financial measures prepared in accordance with GAAP. Paymentus encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view our non-GAAP measures in conjunction with GAAP financial measures. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables for the reconciliation of GAAP to non-GAAP results included at the end of this release. CATEGORY: EARNINGS NEWS View source version on businesswire.com: https://www.businesswire.com/news/home/20260803184559/en/ Contacts At the Company Sanjay KalraChief Financial OfficerPaymentus Holdings, [email protected] Investor RelationsDavid [email protected] Media RelationsTony [email protected]

Paymentus (PAY) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.00%. A quarter ago, it was expected that this electronic bill payment services would post earnings of $0.17 per share when it actually produced earnings of $0.21, delivering a surprise of +23.53%. 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 $360.74 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.45%. This compares to year-ago revenues of $280.08 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 added about 8% since the beginning of the year versus the S&P 500's gain of 9.4%. 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 Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $356.61 million in revenues for the coming quarter and $0.85 on $1.43 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. RB Global (RBA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This heavy equipment auctioneer is expected to post quarterly earnings of $1.09 per share in its upcoming report, which represents a year-over-year change of +1.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. RB Global's revenues are expected to be $1.25 billion, up 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Paymentus Holdings, Inc. (PAY) : Free Stock Analysis Report RB Global, Inc. (RBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research