PAYS

This article first appeared on GuruFocus. Revenue: Total revenue grew 48.1% year-over-year to $28.3 million. Pharma Revenue: Increased 88.9% year-over-year to $14.6 million. Plasma Revenue: Increased 21.4% year-over-year to $13 million. Gross Margin: Expanded 170 basis points to 63.3%. Net Income: Totaled $6.8 million, or $0.11 per fully diluted share, up from $1.4 million, or $0.02 per share, in the prior year quarter. Adjusted EBITDA: Increased 113% to $9.6 million, or $0.16 per fully diluted share. Operating Expenses: Totaled $10.9 million, an increase of 5.5% year-over-year. Cash Position: Exited the quarter with $27.4 million in unrestricted cash and zero bank debt. Active Programs: Exited the quarter with 148 active patient affordability programs, up from 97 a year ago. Plasma Centers: Provided services to 561 centers, reflecting 19 closures partially offset by seven new additions. Warning! GuruFocus has detected 9 Warning Signs with PAYS. Is PAYS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PaySign Inc (NASDAQ:PAYS) delivered record second-quarter results with revenue up 48% year-over-year to $28.3 million, net income nearly five-fold higher at $6.8 million, and adjusted EBITDA up 113% to $9.6 million. Patient Affordability revenue surged 89% year-over-year to $14.6 million, driven by a 54% increase in claim volume and the launch of 13 new programs, bringing the total to 148 active programs. The company raised its full-year 2026 guidance, now expecting revenue of $114-$117 million (39%-43% growth) and adjusted EBITDA of $35-$38 million, reflecting strong momentum and visibility. Gross margin expanded 170 basis points to 63.3%, with adjusted operating margin improving to 21.3% from 7.5% a year ago, demonstrating significant operating leverage. Plasma business showed recovery, with revenue up 21.4% to $13 million and monthly revenue per center reaching $7,699, the highest since Q3 2024, indicating normalized donor activity. The company's dynamic business rules technology shielded clients from over $300 million in costs in the first half of 2026, nearly matching the full-year 2025 total, enhancing client value. PaySign Inc (NASDAQ:PAYS) maintains a strong balance sheet with $27.4 million in cash and zero bank debt, supporting future growth initiatives. The pipeline for new programs remains robust, with expectations to match or surpass the 55 net additions in 2025, and the company has established a European hub in Ireland to pursue international growth. The company's growth is heavily dependent on the Patient Affordability segment, which could expose it to concentration risk if pharmaceutical partnerships face regulatory or market changes. Plasma center count declined to 561 due to 19 center closures, partially offset by only 7 new additions, indicating ongoing consolidation in that segment. The Apherion BECS donor management system is still awaiting FDA regulatory approval, with no clear timeline for launch, delaying potential revenue from this high-growth opportunity. Operating expenses increased 15.1% (excluding one-time benefits), driven by hiring and investments to support growth, which could pressure margins if revenue growth slows. The effective tax rate is expected to rise in Q4 to around 27% from 17% in Q3, due to lower stock-based compensation deductions, potentially impacting net income. Seasonal patterns show pharma revenue typically moderates in the second half of the year, which could lead to slower sequential growth despite strong full-year guidance. The company's reliance on RFP wins (over 80% win rate) may face competitive pressure as the market for patient affordability solutions becomes more crowded. International expansion through Apherion Technologies Limited carries execution risks, including regulatory, cultural, and operational challenges in new markets. Q: Can you discuss the total addressable market (TAM) for your Patient Affordability solutions, and is the previously mentioned figure of 850-900 potential pharmaceutical programs still accurate?A: Matthew Turner, President of Patient Affordability, stated that the TAM is significantly larger than the 850 drugs currently impacted by maximizer and accumulator programs. He noted that the total number of drugs with copay programs is in the tens of thousands, including branded products, biosimilars, medical devices, and infused products, indicating the company is still in the "first inning" of market penetration. Q: What is the company's win rate for new program RFPs and RFIs, and how does this compare to the broader market?A: Matthew Turner reported that approximately 75% of wins come from RFPs/RFIs, with a win rate north of 80%. He emphasized that the company's growth is leading the industry, noting that no other market player is launching 50-60 programs a year, and that his previous employer did not set up more than one program a month on average. Q: Can you provide more detail on the regulatory approval process for the Apherion BECS donor management system and its market potential?A: Matthew Turner confirmed the company is awaiting FDA approval for the blood establishment computer software (BECS) system, though he could not provide a specific timeline. Jeff Baker, CFO, added that the global TAM for blood and plasma software is currently $3.5 billion, with third-party estimates projecting growth to $7 billion over the next decade. Q: What is driving the strong sequential growth in new program launches expected in Q3, given that Q3 is typically a slower quarter?A: Matthew Turner clarified that Q1 is actually the weakest quarter for launches due to insurance resets, not Q3. He explained that the Q3 activity reflects sales work initiated in Q1 and deals closed at the Asembia conference, with the 90-day sales cycle for smaller pharmas naturally pushing launches into Q3. He also noted that Q4 tends to be strong as companies rush to launch programs before the Q1 "blizzard" of insurance deductible resets. Q: How does first-year revenue per program compare to more seasoned programs, and do you typically land new clients with Dynamic Business Rules (DBR) as an add-on?A: Matthew Turner explained that DBR is the standard go-to for specialty products impacted by maximizers, but program performance varies widely. He cited examples of programs with 15% claim increases due to new drug indications and others with 7% decreases due to cannibalization by newer drugs, emphasizing that there is no average program profile due to the disparity between products like aspirin and gene therapy. Q: On a same-store basis, what is the organic growth rate for programs that have been in place for 12 months or more?A: Jeff Baker stated that mature programs would typically see flattish revenue growth year-over-year if nothing changed. However, the company is seeing growth in existing programs by adding more features, services, and additional drug indications, which expands their opportunity and drives incremental revenue. Q: Can you explain the expected margin dynamics between Q3 and Q4, as Q4 appears to show a significant step-down in adjusted EBITDA?A: Jeff Baker attributed the Q4 step-down to several factors: a more even distribution of program launches throughout the year versus the "fire hose" of Q4 launches last year, lower software development capitalization rates during the holiday season, a higher expected tax rate of 27% in Q4 versus 17% in Q3 due to fewer RSU vestings, and planned hiring of additional account managers and claims personnel to prepare for the Q1 "floodgates." Q: Is 15% year-over-year a good growth rate for operating expenses going forward?A: Jeff Baker indicated that 15% might be slightly light, suggesting a 15%-20% range is more realistic. He noted that most hiring growth is coming from the Patient Affordability business as they add more programs, and he recommended looking at SG&A excluding stock comp and D&A to derive better estimates based on the expected 55-60 program additions this year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Paysign, Inc.? Here are five stocks we like better. Record Q2 performance: Revenue rose 48.1% year over year to $28.3 million, while net income reached $6.8 million and adjusted EBITDA more than doubled to $9.6 million, exceeding guidance. Patient Affordability led growth: Revenue surged 88.9% to $14.6 million, supported by 148 active programs at quarter-end and 13 launches during the quarter. Plasma revenue also improved 21.4% as center utilization recovered. Outlook raised: Paysign increased its 2026 revenue guidance to $114 million–$117 million and adjusted EBITDA guidance to $35 million–$38 million; the company ended the quarter with $27.4 million in unrestricted cash and no bank debt. Paysign (NASDAQ:PAYS) reported record second-quarter revenue, net income and adjusted EBITDA for 2026, driven primarily by continued expansion in its Patient Affordability business and improving utilization in its plasma donor compensation operations. Revenue rose 48.1% from a year earlier to $28.3 million, exceeding the high end of the company’s guidance range of $26.2 million to $26.7 million. GAAP net income increased to $6.8 million, or $0.11 per diluted share, from $1.4 million, or $0.02 per diluted share, in the prior-year quarter. Adjusted EBITDA more than doubled to $9.6 million from $4.5 million. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Earlier today, we reported second quarter results setting new records for revenue, net income, and adjusted EBITDA,” President and CEO Mark Newcomer said. “In fact, it was our second consecutive quarter of exceeding our quarterly guidance.” Patient Affordability revenue increased 88.9% year over year to $14.6 million, surpassing plasma revenue for the quarter. Processed claims rose about 54% from the second quarter of 2025, while the company exited the period with 148 active programs, compared with 97 a year earlier. → 3 Drone Stocks That Should Soar After the Summer Slump Paysign launched 13 new Patient Affordability programs during the quarter. As of the earnings announcement, the company had 157 active programs and expects to finish the third quarter with 165 to 170 programs. Newcomer said the platform had distributed more than $900 million in financial assistance to patients during the first half of 2026, approaching the nearly $1 billion it deployed during all of 2025. He also said Paysign’s dynamic business rules technology protected clients from more than $300 million in costs during the first six months that could otherwise have been diverted by copay maximizer and accumulator programs. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Chief Financial Officer Jeff Baker said patient affordability revenue growth reflected higher management, setup and claim-processing fees, contact-center support and other billable services, including dynamic business rules. During the question-and-answer session, Baker said new programs remain the principal source of Patient Affordability growth, though certain established programs can grow as clients add services, products or drug indications. Matt Turner, President of Patient Affordability, said the company seeks to launch programs with dynamic business rules where appropriate, particularly for specialty products affected by maximizer programs. Turner said Paysign’s request-for-proposal and request-for-information win rate was above 80%, although he did not provide a precise figure. He added that about 75% of wins currently come through RFPs and RFIs, with the remainder coming through word-of-mouth referrals or direct awards. Plasma revenue rose 21.4% to $13 million. Average monthly revenue per center increased more than 5% to $7,699, from $7,098 a year earlier, while average loads per center also increased year over year. The company ended the second quarter serving 561 centers, reflecting 19 center closures previously disclosed by the company, partially offset by seven additions. Newcomer said the performance suggested that closed centers were strategic and that donors had moved to nearby locations in the same network rather than leaving the system. Baker said the company believes the high plasma inventory levels that affected results during 2025 have “largely normalized.” He said the quarter’s improvement was driven mainly by greater utilization at existing centers rather than an expanded footprint. Gross margin expanded to 63.3% from 61.6% a year earlier, aided by a greater mix of higher-margin Patient Affordability revenue. Operating expenses rose 5.5% to $10.9 million, including a nonrecurring, non-cash $990,000 benefit related to the carrying value of the Gamma acquisition earn-out liability. Excluding that one-time benefit, operating expenses would have increased 15.1%, below the company’s revenue growth rate. Baker said adjusted operating margin, excluding the Gamma benefit, expanded to 21.3% from 7.5% a year earlier. Adjusted EBITDA margin rose to 34% from 23.7%. Income before taxes increased to $7.9 million from $2 million. The effective tax rate was 14.5%, compared with 32.1% a year earlier. Unrestricted cash totaled $27.4 million at quarter-end, with zero bank debt. Restricted cash increased to $149 million, largely due to customer program deposits and higher funds-on-card balances. Based on first-half results, program launches and expected seasonal trends, Paysign raised its full-year 2026 guidance. The company now expects revenue of $114 million to $117 million, representing year-over-year growth of 39% to 43% and an approximately $7 million increase at the midpoint from prior guidance. Paysign forecast full-year gross margins of 62% to 63%, GAAP net income of $21.5 million to $23 million, or $0.35 to $0.37 per diluted share, and adjusted EBITDA of $35 million to $38 million, or $0.57 to $0.61 per diluted share. For the third quarter, the company expects revenue of $28.5 million to $30 million, gross margin of 61% to 63%, GAAP net income of $5.7 million to $6 million and adjusted EBITDA of $9.5 million to $10 million. Paysign also said its Apherion life sciences technology platform remains under regulatory review for its blood establishment computer software donor-management system. Turner said the company could not provide a timeline for regulatory approval, but noted continued domestic and international interest. The company has established Apherion Technologies Limited in Ireland as a European sales, development and client-support hub. Paysign, Inc (NASDAQ:PAYS) is a U.S.-based financial technology company specializing in prepaid payment solutions. Through its cloud-based platform, the company enables corporations, government agencies and payroll providers to issue and manage stored-value cards, digital wallets and disbursement programs. Paysign's offerings span gift and incentive cards, payroll and earned-wage access cards, government benefit distribution, tax refund solutions and health savings account disbursements. The company's flagship Paysign Experience Platform provides configurable card programs with real-time transaction reporting, fraud monitoring and regulatory compliance tools. 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 "Paysign Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Revenues of $28.25 million in Q2’26, up 48.1% from Q2’25 Pharma revenue increased to $14.65 million, an increase of 88.9% versus Q2’25; added 51 net patient affordability programs during the past 12 months, exiting the quarter with 148 active programs Plasma revenue increased to $13.04 million in Q2’26, an increase of 21.4% versus Q2’25; total net plasma center count decreased by 46 during the past 12 months, exiting the quarter with 561 centers Gross profit margin was 63.3% compared to 61.6% in Q2’25 Operating margin increased to 24.8% in Q2’26, up from 7.5% from Q2’25; excluding the fair value gain on contingent consideration, operating margin increased to 21.3%1 GAAP net income of $6.76 million, or $0.11 per fully diluted share, in Q2’26 versus GAAP net income of $1.39 million, or $0.02 per fully diluted share in Q2’25 Adjusted EBITDA of $9.61 million in Q2’26, up 113.0% from $4.51 million for Q2’25; diluted Adjusted EBITDA per share of $0.16 versus $0.08 for Q2’251 Exited the quarter with $27.37 million of unrestricted cash and zero bank debt Second quarter 2026 gross dollar load volume was up 24.3% versus second quarter 2025 Second quarter 2026 gross spend volume was up 24.2% versus second quarter 2025 Raising full-year 2026 outlook – revenue $114.0 million to $117.0 million; Adjusted EBITDA $35.0 million to $38.0 million 1 Adjusted EBITDA, Adjusted EBITDA per share, and Adjusted operating margin are non-GAAP metrics used by management to gauge the operating performance of the business – see reconciliation of net income to Adjusted EBITDA and operating income margin to Adjusted operating margin at the end of the press release. HENDERSON, Nev., August 05, 2026--(BUSINESS WIRE)--Paysign, Inc. (NASDAQ: PAYS), a leading provider of prepaid card programs, comprehensive pharma patient affordability offerings, financial technology products and integrated payment processing, today announced financial results for the second quarter 2026. "Paysign delivered a strong second quarter, achieving record revenue, net income, and adjusted EBITDA while continuing to expand margins," said Mark Newcomer, President and CEO of Paysign. "Strong growth in our patient affordability business, steady performance in plasma donor compensation, and disciplined execution across the company drove meaningful operating leverage and profitability, reinforcing the multiyear strategy we have been building. With momentum across the business and a robust pipeline of opportunities, we intend to remain focused on sustainable growth, continued margin expansion, and creating long-term value for shareholders." 2026 Second Quarter Results Total revenues increased 48.1%, or $9.17 million, to $28.25 million, up from $19.08 million in the second quarter of 2025. Pharma industry revenue increased 88.9% to $14.65 million from $7.75 million due to the financial benefit of 51 net pharma patient affordability programs launched during the past 12 months, and a corresponding increase in monthly management fees, setup fees, claim processing fees and other billable services such as dynamic business rules and customer service contact center support. Processed claims increased by approximately 54% compared to the second quarter of 2025. Plasma revenue increased 21.4% to $13.04 million, up from $10.74 million, primarily due to an increase in plasma donations and dollars loaded to cards, offset by the reduction of 46 net plasma centers during the past 12 months. The decline in net plasma centers reflected customer center closures and the sale of certain customer centers to a company that uses another provider. The average monthly revenue per center increased to $7,699 versus $7,098 and the average number of loads per center increased, representing stronger utilization at existing centers. We exited the quarter with 561 centers versus 607 centers in the second quarter of 2025. Cost of revenues increased 41.4% to $10.36 million due to related costs associated with the growth in our businesses including network and related costs, call center support costs, a new customer service contact center that went live in November 2025 and higher employee costs. Gross profit margin improved to 63.3% compared to 61.6% in the second quarter of 2025 as we experienced a greater mix of pharma revenue. Total operating expenses were $10.89 million compared to $10.32 million in the second quarter of 2025, an increase of 5.5%. During the quarter, we recorded as a reduction to selling, general and administrative expense a one-time, non-cash fair value adjustment on contingent consideration of $990,000 related to our Gamma acquisition. Excluding this benefit, total operating expenses would have been $11.9 million, an increase of 15.1% over the prior year. Selling, general and administrative expenses increased by 4.3% to $8.55 million. Of that amount, stock compensation expense increased 31.2% to $1.25 million. Depreciation and amortization increased by $219 thousand, or 10.4%, due mainly to the amortization of intangible assets from our Gamma acquisition and continued capitalization of new software development costs and equipment purchases related to the enhancement to our processing platform. Operating margin was 24.8% compared to 7.5% in the second quarter of 2025. Excluding the gain on contingent consideration, operating margins would have been 21.3%. The company recorded an income tax provision of $1.15 million, resulting in an effective tax rate of 14.5%. This was an increase from the $655 thousand provision recorded during the same period last year where the effective tax rate was 32.1%. The effective tax rates reflect adjustments for discrete quarterly items and tax benefits from stock-based compensation. The significant driver in the discrete item adjustment in the second quarter of 2026 was primarily related to the increase in stock price at June 30, 2026, when compared to the same period in the prior year. Net income for the quarter totaled $6.76 million, or $0.11 per fully diluted share, an increase of 386.9% from $1.39 million, or $0.02 per fully diluted share, reported in the second quarter of 2025. On a non-GAAP basis, EBITDA, defined as earnings before interest, taxes, depreciation and amortization, increased by $5.79 million, or 162.8%, to $9.35 million. Adjusted EBITDA, which excludes stock-based compensation and change in fair value of contingent consideration from EBITDA and is used by management to evaluate core operating performance, rose $5.10 million, or 113.0%, to $9.61 million, or $0.16 per fully diluted share. Balance Sheet at June 30, 2026 The company’s unrestricted and restricted cash balances increased by a combined $11.50 million from December 31, 2025, largely related to the improvement in our operating results, growth of existing customer programs and the launch of new customer programs. During the six months ended June 30, 2026, unrestricted cash increased by $6.31 million to $27.37 million. The increase was attributable to net income, non-cash adjustments, and the timing of operating assets and liability payments, partially offset by capital investments in intangible and fixed assets and payments of other liabilities associated with the Gamma acquisition. Restricted cash increased $5.19 million to $149.11 million from December 31, 2025, primarily related to an increase in funds on card of $7.41 million offset primarily by a decrease in customer program deposits for our plasma and pharma customers of $2.22 million. Restricted cash represents funds used for customer card funding and pharmaceutical claim reimbursements with a corresponding offset under current liabilities. 2026 Outlook "We delivered another strong quarter, with results in both plasma and patient affordability reflecting the momentum we have been building," commented Jeff Baker, Chief Financial Officer of Paysign. "Our first two quarters of 2026 make two things clear: our patient affordability solutions continue to resonate with pharmaceutical companies, and recent trends in our plasma business indicate improvement from the high inventory levels that weighed on results throughout 2025. We also drove year-over-year improvement across our core margin metrics, even excluding a one-time, non-cash benefit of $990,000 related to the fair value of the Gamma acquisition earn-out liability. Revenue, operating margin and net income all finished above the high end of our guidance, and the strength we’ve seen through the first half of the year, combined with the visibility into additional program launches and seasonal trends, supports our increased full-year outlook." Paysign expects to exit the third quarter of 2026 with 165–170 active patient affordability programs and 561–563 plasma centers. 2 The company is unable to provide a reconciliation of forward-looking adjusted EBITDA, adjusted EBITDA per diluted share and adjusted EBITDA margin to the most directly comparable GAAP measure, net income (and net income per diluted share), without unreasonable effort due to the variability, complexity and low visibility of certain reconciling items. These items include, but are not limited to, stock-based compensation and other non-recurring items, which could have a material impact on GAAP results. Second Quarter 2026 Financial Results Conference Call Details The company will hold a conference call at 5 p.m. Eastern time on Wednesday August 5, 2026, to discuss its second quarter 2026 financial results. The conference call may include forward-looking statements. The dial-in information for this call is 877.407.2988 (within the U.S.) and +1.201.389.0923 (outside the U.S.). A call replay will be available until November 4, 2026, and can be accessed by dialing 877.660.6853 (within the U.S.) and +1.201.612.7415 (outside the U.S.), using passcode 13761445. An audio replay and a transcript of the call will be available following the call on the company's website, www.paysign.com, under Investor Relations, Investor Resources. The earnings release and the financial and other statistical information discussed on the call, including a reconciliation of any non-GAAP financial measures to the most directly comparable GAAP financial measures, are available on the company's website, www.paysign.com, under Investor Relations, SEC Filings. Forward-Looking Statements Certain statements in this press release may be considered forward-looking under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements, besides statements of fact included in this release are forward-looking. Such forward-looking statements include, among others, our belief that strong growth in our patient affordability business, steady performance in plasma donor compensation, and disciplined execution across the company drove meaningful operating leverage and profitability, reinforcing the multiyear strategy we have been building; our belief that with momentum across the business and a robust pipeline of opportunities, we intend to remain focused on sustainable growth, continued margin expansion, and creating long-term value for shareholders; our belief that our patient affordability solutions continue to resonate with pharmaceutical companies and that recent trends in our plasma business indicate improvement from the high inventory levels that weighed on results throughout 2025; our belief that the strength we have seen through the first half of the year, combined with the visibility into additional program launches and seasonal trends, supports our increased full-year outlook; our belief that mix shift and expense discipline continue to drive gross and operating margin expansion; our belief that our balance sheet supports continued investment and growth initiatives; our belief that our expectation that we will exit the third quarter of 2026 with 165–170 active patient affordability programs and 561–563 plasma centers; our belief that non-GAAP measures used by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential future results; and our expectations for total revenues, gross profit margins, operating expenses, depreciation and amortization expenses, stock-based compensation expense, interest income, tax rate, fully diluted share count, net income, net income margin, Adjusted EBITDA and Adjusted EBITDA margin for the third quarter and full-year 2026. We caution that these statements are qualified by important risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the inability to continue our current growth rate in future periods; the risk that we may not be able to add new patient affordability programs or retain existing programs at anticipated rates; the risk that plasma center customers may switch to competing providers or close centers, reducing our revenue; the risk that our outlook and guidance may not be achieved due to factors within or outside our control; that a downturn in the economy could reduce our customer base and demand for our products and services, which could have an adverse effect on our business, financial condition, profitability and cash flows; operating in a highly regulated environment; failure by us or business partners to comply with applicable laws and regulations; changes in the laws, regulations, credit card association rules or other industry standards affecting our business; changes in the regulatory or legislative environment affecting pharmaceutical patient affordability or copay assistance programs, including potential restrictions on copay accumulator or maximizer programs; that a data security breach could expose us to liability and protracted and costly litigation; risks related to the integration of acquisitions, including the Gamma acquisition, and the realization of anticipated benefits therefrom; and other risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025. Except to the extent required by federal securities laws, the company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise. About Paysign, Inc. Paysign, Inc. (NASDAQ: PAYS) operates at the intersection of fintech and healthcare, integrating advanced payment processing and program management with tailored technologies for the plasma, pharmaceutical and life sciences industries. Their breakthrough patient affordability solutions ensure patients receive the financial assistance they need to adhere to prescribed therapies by mitigating the effects of copay accumulators and maximizers. Paysign specializes in blood and plasma donor compensation programs, as well as comprehensive engagement and management platforms optimized for life sciences. Paysign’s proprietary processing architecture supports physical, virtual, mobile and bank-based payments with real-time transaction intelligence, enabling efficient, compliant and scalable program delivery. Through advanced reporting, analytics and in-house 24/7 bilingual customer support, Paysign delivers measurable value, exceptional service and a superior experience for donors, patients, healthcare providers, pharmaceutical manufacturers and program sponsors across their growing fintech healthcare ecosystem. The company is committed to improving efficiencies, reducing costs, streamlining communications, increasing program performance and providing actionable insights to those they serve. Paysign, Inc. Non-GAAP Measures To supplement Paysign’s financial results presented on a GAAP basis, we use non-GAAP measures that exclude from net income the following cash and non-cash items: interest, taxes, depreciation and amortization and stock-based compensation. We believe these non-GAAP measures used by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting, and investors should read them in conjunction with the company’s financial statements prepared in accordance with GAAP. The non-GAAP measures we use may be different from, and not directly comparable to, similarly titled measures used by other companies. "EBITDA" is defined as earnings before interest, taxes, depreciation and amortization expense. "Adjusted EBITDA" reflects the adjustment to EBITDA to exclude stock-based compensation charges and change in fair value of contingent consideration. EBITDA and Adjusted EBITDA are not intended to represent cash flows from operations, operating income or net income as defined by U.S. GAAP as indicators of operating performances. Management cautions that amounts presented in accordance with Paysign’s definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate Adjusted EBITDA in the same manner. "EBITDA margin" is defined as earnings before interest, income taxes, depreciation and amortization expense as a percentage of the company’s revenue and "Adjusted EBITDA margin" reflects the adjustment to EBITDA margin to exclude stock-based compensation expense and change in fair value of contingent consideration as a percentage of revenue. A reconciliation of net income margin to Adjusted EBITDA margin is provided in the table below. "Adjusted operating margin" is defined as income from operations excluding fair value adjustment on contingent consideration as a percentage of the company’s revenue is provided in the table below. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805328721/en/ Contacts Investor Relations:888.522.4810paysign.com/investors [email protected] Media Relations:[email protected]

HENDERSON, Nev., July 14, 2026--(BUSINESS WIRE)--Paysign, Inc. (NASDAQ: PAYS), a leading provider of patient affordability programs, donor compensation solutions, engagement and management platforms and integrated payment processing for the life sciences industries, will discuss second quarter 2026 earnings at 5:00 p.m. Eastern time on Wednesday, August 5, 2026. Participant details are as follows:U.S. dial-in: 877.407.2988International dial-in: +1.201.389.0923Webcast: Click Here Replay:Dial-in: 877.660.6853 or +1.201.612.7415Conference ID: 13761445The replay will be available until November 4, 2026. To register as a financial professional in order to ask questions during the call, please email [email protected] no later than 5:00 p.m. Eastern time on Friday, July 31, 2026. About Paysign Paysign, Inc. (NASDAQ: PAYS) operates at the intersection of fintech and healthcare, integrating advanced payment processing and program management with tailored technologies for the plasma, pharmaceutical and life sciences industries. Their breakthrough patient affordability solutions ensure patients receive the financial assistance they need to adhere to prescribed therapies by mitigating the effects of copay accumulators and maximizers. Paysign specializes in blood and plasma donor compensation programs, as well as comprehensive engagement and management platforms optimized for life sciences. Paysign’s proprietary processing architecture supports physical, virtual, mobile and bank-based payments with real-time transaction intelligence, enabling efficient, compliant and scalable program delivery. Through advanced reporting, analytics and in-house 24/7 bilingual customer support, Paysign delivers measurable value, exceptional service and a superior experience for donors, patients, healthcare providers, pharmaceutical manufacturers and program sponsors across their growing fintech healthcare ecosystem. The company is committed to improving efficiencies, reducing costs, streamlining communications, increasing program performance and providing actionable insights to those they serve. Forward-Looking Statements Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There is no assurance that such statements will prove to be accurate, and actual results and future events could differ materially. Paysign undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260714149197/en/ Contacts Investor Relations [email protected] 888.522.4853paysign.com/investors Media Relations Alicia [email protected]

Image source: The Motley Fool. Tuesday, May 12, 2026 at 5 p.m. ET President and Chief Executive Officer — Mark R. Newcomer Chief Financial Officer — Jeffery Baker President, Patient Affordability — Matthew Turner Chief Payments Officer — Matthew Lanford Need a quote from a Motley Fool analyst? Email [email protected] Mark R. Newcomer: Thank you, Kevin. Good afternoon, everyone, and thank you for joining us today for PaySign's first quarter 26 earnings call. I am Mark R. Newcomer, president and chief executive officer. Joining me today is Jeffery Baker, our chief financial officer. Also on the call are Matthew Turner, president of patient affordability, and Matthew Lanford, our chief payments officer. Both of whom will be available for Q&A following our prepared remarks. Earlier today, we announced our first quarter financial results. Which marked the strongest start to a year in PaySign's history. Revenue grew 50.8% to $28 million, exceeding the high end of guidance we provided in Mark. Net income increased 110% to $5.4 million and adjusted EBITDA increased 113% to $10.6 million Most notably, operating margins increased 1.04 thousand basis points or 10.4 percentage points year over year demonstrating the operating leverage inherent in our business as we scale across health care and financial ecosystems. We continue to see strong growth across the patient affordability business in the first quarter. Revenue grew 82% year over year to $15.7 million, and claim volume was approximately 49% higher than Q1 25, driven by a combination of new programs launched over the past year, organic growth within the existing programs, the continued ramp of our largest pharmaceutical clients. As expected, this rate reflects a larger and more established revenue base than a year ago. In Q1 alone, patient affordability generated nearly as much revenue as it did in 2025. During the quarter, our patient affordability business delivered more than $540 million in financial assistance to patients. A meaningful step up from approximately $320 million in the first quarter of last year. That growth reflects both the increased number of patients we are serving and the expanding role our business plays in supporting access to high cost branded therapies. Our dynamic business rules technology continues to deliver substantial economic value to our pharmaceutical clients and the patients that rely upon their therapy. Demonstrating both the scale our platform now operates at and the differentiated value our technology provides in helping manufacturers navigate Copay Maximizer, and accumulator programs. We launched 4 new programs in the first quarter bringing total active programs to 135. As is typical for the industry, Q1 is the most operationally constrained period of the year as manufacturers, payers and pharmacy partners work through plan year transitions, formulary changes, and deductible resets. Against that backdrop, our pipeline remains robust and we are on track to exceed the 55 net program additions we launched in 2025. Strength of that pipeline reflects the trust pharmaceutical manufacturers continue to place in PaySign as a partner in helping patients access and afford the therapies they need. Taken together, the increase we are seeing in program count claim volume and benefit dollars deployed reinforce both the scalability of our platform and the durability of demand for our solutions. Last month, we attended the Assembia Specialty Pharmacy Summit, ASX26, in Las Vegas. Asembia is the most important annual gathering in the specialty pharmaceutical industry and consistently 1 of the most productive pipeline generating events on our calendar. It is where the decision makers across pharmaceutical manufacturers, specialty pharmacies, hub providers, and payer partners come together in 1 place. And the conversations we had during those 3 days helped shape our commercial road map for the balance of the year. ASX 26 was no exception. We conducted more than 50 meetings over 3 days and closed new business while on-site. The breadth and depth of these conversations combined with the deals we secured in real time reinforce our confidence in both the demand environment and the strength of our pipeline heading into the remainder of 2026. Turning to our plasma donor compensation business, In the first quarter, plasma contributed $11.7 million in revenue. A 25% increase over $9.4 million in Q1 25. Our plasma business also remains a strong source of cash generation, facilitating investments in high opportunity areas. Looking ahead, we expect continued revenue growth as existing centers fill excess capacity much of which has been unlocked by recent advances in plasmapheresis hardware. Bringing significant efficiencies to the plasmapheresis process. In response to that capacity gain several of our larger collectors have consolidated operations closing some lower performing centers. Historically, these closures have had minimal impact on our results as donors typically transition to nearby centers. And we expect that same pattern to play out following our clients' closure of 19 centers in early May. We exited the quarter with 573 centers an increase of 89 centers over the previous year. But 22 less than 2025. As several low performing centers were either sold to collectors that do not utilize our services or closed. Again, we do not believe these closings will negatively affect our growth outlook, and we continue to pursue the remaining plasma collection companies that we do not currently service. In late April, we sponsored the International Plasma Protein Congress in Milan, Italy, where we engaged with plasma collectors, device manufacturers, and industry participants from The US Europe and Asia. The conference generated meaningful progress for our Software-as-a-Service suite of solutions, including the discussions with plasma collection companies across all 3 regions and with plasmapheresis device manufacturers regarding direct integration to our platform. Direct integration of our software with plasmapheresis device eliminates manual steps that can introduce human error in the collection process. It also streamlines implementation and reduces friction for collection centers when transitioning to our platform. Creating a clear operational benefit. Beyond The US, we continue to view Europe and Asia as significant long term opportunities for our SaaS solutions across the blood and plasma collection industries. In summary, the first quarter marked an outstanding start to 2026. And a meaningful inflection point for PaySign. We delivered record results across the business and more importantly validated strategic direction we have set. Purpose built platforms grounded in deep industry expertise, scaling with discipline as we grow. With strong momentum in patient affordability, a robust pipeline, and expanding opportunities both within and beyond health care, are well positioned to drive sustained growth and create long term value for shareholders, customers, and the individuals we ultimately serve. With that, I will turn it over to Jeffery for additional details on our first quarter financial results. Jeffery Baker: Thank you, Mark. Good afternoon, everyone. As Mark highlighted, our first quarter results reflect the continued momentum in our business the growing financial impact of our patient affordability platform and the inflection point we have reached as it relates to operating leverage. For the first quarter, total revenues increased 50.8% year over year to $28 million Pharma industry revenue increased 81.9% year over year to $15.7 million. Driven by 45 net pharma patient affordability programs launched during the past 12 months and a corresponding increase in monthly management fees, setup fees, claim processing fees, other billable services such as dynamic business rules and customer service contact center support. Process claims increased by approximately 49% compared to 2025. For the first time, pharma surpassed plasma to become our largest revenue contributor in the quarter. A milestone that reflects the strategic direction we have been executing against and the growing importance patient affordability plays in our business. Plasma revenue increased 24.9% year over year to $11.7 million The average monthly revenue per center increased to $6.67 thousand versus $6.52 thousand and the average number of loads per center increased on a year over year for the first time since the industry experienced an inventory correction that began in 2024. As Mark noted, we exited the quarter with 573 centers below our guidance of 589 as 1 customer notified us they had sold all their centers to a competing provider. These centers contributed approximately $650 thousand in 2025 revenue and averaged less than $3.5 thousand per month in revenue, which is below the corporate average of $6.67 thousand. Gross profit margin expanded to 65% from 62.9% in 2025, reflecting a greater mix of pharma revenue which carries higher gross margins than our plasma business. Cost of revenues increased 42.2% driven mainly by increased call center support expense associated with the growth in both our plasma and pharma businesses and higher processing and commission costs, all of which grew well below our revenue growth of 50.8%. Demonstrating the operating leverage inherent in our business. Total operating expenses were $11.6 million an increase of 25.5% from $9.2 million in 2025. Again, well below our revenue growth rate. Selling, general, and administrative expenses increased 20.5% to $8.9 million, which includes stock-based compensation of $1.3 million. Depreciation and amortization increased $835 thousand due primarily to the amortization of intangible assets from our Gamma acquisition and capitalization of new software development costs. A highlight of the quarter is overall operating leverage amidst strong revenue growth. Operating margin expanded to 23.8% from 13.4% in 2025, an improvement of over a thousand basis points. Put another way, we converted approximately $9.4 million in incremental revenue into $4.2 million in operating income. Here are a few other important details for the quarter. Income before taxes increased to $7.5 million from $3.3 million in 2025. The company recorded an income tax provision of $2 million resulting in an effective tax rate of 27.2%. Compared to 20.5% in 2025. The higher rate reflects discrete item adjustments primarily related to the increase in our stock price at 3/31/2026 compared to the same period last year, which reduced the tax benefit from stock based compensation relative to the prior year period. Net income for the quarter totaled $5.4 million or $0.09 per fully diluted share, an increase from $2.6 million or $0.05 per fully diluted share in the first quarter 25. Adjusted EBITDA, which excludes stock-based compensation, and is used by management to evaluate core operating performance, increased 113.4% to $10.6 million or $0.17 per fully diluted share versus $5 million or $0.09 per fully diluted share in 2025. Adjusted EBITDA margin expanded to 37.8% from 26.7% a year ago. The fully diluted share count used in calculating per share amounts was 61.0 million versus 55.1 million in the prior year period. We exited the quarter with $20.5 million in unrestricted cash and zero bank debt. Restricted cash increased $15 million to $159 million primarily related to customer program deposits for our plasma and pharma customers and an increase in funds on card. Now turning to our outlook. Our first quarter results exceeded our guidance across every line of the income statement. Revenue of $28 million exceeded the high end of our 27 to $27.5 million guidance range. Operating margin of 23.8%, finished above our guided range of 20 to 22% and net margin of 19.4% exceeded the top of our 17 to 19% range. Based on our strong start to the year, we are increasingly confident in our ability to achieve the upper end of our 2026 guidance ranges. We continue to expect full year revenue of $106.5 million to $110.5 million representing 30 to 35% year over year growth. With gross profit margins between 60% to 62%. Net income is expected to be in the range of $13 million to $16 million or $0.21 to $0.26 per diluted share, and adjusted EBITDA is expected to be in the range of $30 million to $33 million or $0.49 to $0.53 per diluted share. As of today, we have 141 active patient affordability programs and expect to exit the quarter with 147 to 150 active programs. Also expect our active plasma center count to decline to 555 to 560 centers as a customer closed 19 underperforming centers in May. As in the past, we do not expect any financial impact from these closures as we expect cardholders from these underperforming centers to transition to other centers. As a reminder, there is seasonality in both our main businesses. Pharma revenues are typically highest in the first quarter as patient affordability claims peak with annual insurance deductible resets and then moderate throughout the balance of the year. Plasma revenues, by contrast, tend to be softest in the first quarter and build through the remainder of the year as donor activity normalize following tax refund season. These seasonal dynamics are anticipated and fully reflected in our full year guidance. Overall, our first quarter results validate the financial framework we laid out, and the operating leverage we are generating gives us confidence in our ability to continue delivering on the forecast we have outlined for 2026. With that, I would like to turn the call back over to Kevin for questions and answers. Operator: Thank you. We will now be conducting a question and answer session. If you would like to before pressing star 1. Our first question is coming from Jacob Stephan from Lake Street Capital Markets. Your line is now live. Analyst (Jacob Stavant): Yes. Hey, guys. Appreciate you taking the questions. Congrats on a nice quarter here. Mark, you made a comment that in the beginning of the call, you said you expect to exceed 55 net program adds that you did in 2025. I guess for starters, what is kind of driving the confidence in the strength in the pipeline Is there 1 is there a 1-time event out there that you are seeing? Or is this mostly and that maybe is a part b. Is this mostly newer existing customers that are additive in the back half of the year? Matthew Turner: Hey. This is Matthew Turner. So I think if you were to look at what the pipeline looks right now, there is a pretty good mix probably around 50/50 when you look at the program count, you know, that we are talking about now, like, you know, going over 55. Half are gonna be entirely new clients and the other half are going to be growth inside of existing clients. I do not think it is any you know, there is not 1 moment of inflection point Last time we are on the call, we talked about kind of what inning were we in. And I think, you know, this is showing that what we built on know, in the first inning, right, is coming true now. So we have got a larger client base. We are going to continue to see the new programs from those clients. And then also selling never stops. So, we are always trying to bring new, clients onto the platform. Analyst (Jacob Stavant): Got it. And I mean, if I am running the numbers, that kind of implies like, 190 programs exiting 2026. I guess from a capacity standpoint, you know, you guys feel like you have the extra bandwidth? I guess, what is needed to fully add those programs? Matthew Turner: I do not think there is anything else needed. I mean, we will continue to hire people to support the business even on the account management side. From an IT perspective, the systems are robust and well positioned to handle growth that we have this year and any years coming. So we have built systems that are high availability, high demand, the partners that we have in the space are all used to higher claim volumes like this. So we are confident we have everything in place that we need to continue to scale the growth year after year. Analyst (Jacob Stavant): Got it. And then maybe if we could just touch on, the some of the guidance commentary. I know you guys said you expect revenue to be roughly equal Looking at kind of the, you know, the plasma centers, obviously, you are expecting a decline in Q2 here. I think that implies a pretty significant ramp in the back half for plasma revenue. If I am catching that right. Jeffery Baker: No. I we revenue for plasma should be up sequentially and continue to grow throughout the rest of the year. So the centers that we called out for the quarter that were sold were garbage centers, to be quite honest with you. And they were below our corporate averages. And then the centers that were consolidated or shut down, that company has other centers within the proximity of the ones that they close. So what is going to happen is those cardholders are just going to move over. But we have you know, there are some there I put some comments out there to give you kind of a heads up. I mean, we saw average loads per center up for the first time since 2024 on a year over year basis. So we talk about the inventory overhang that we experienced all throughout 2025. And we are seeing early indications that we are through that. Now what you are seeing is some of the plasma companies trying to become more efficient. They are closing underperforming centers. We have run the numbers on those centers. They should have closed them a long time ago to be honest with you, but the matter of fact that we have gone through this before, pretty much every year, and it does not impact the number. So we expect plasma to continue to grow throughout the year. And hold to that 50/50 mix right now as we see it. Subject to change as we move forward. Analyst (Jacob Stavant): Okay. Appreciate the color, guys. Congrats again. Thanks, Jacob. Operator: Thank you. Next question is coming from Gary Prestopino from Barrington Research. Your line is now live. Analyst (Gary Prestopino): Hey, good afternoon, everyone. Jeffery, you guys were throwing around a lot of numbers here. I want to make sure that I have got this right. By your press release, you say you have a 135 pharma programs right now. Correct? Jeffery Baker: No. Part of the press release for the quarter, we exited the quarter with 135 programs. As I sit here today, at 05:20, we have 141 active programs. By the end of the end of the second quarter, I have told you that we will have between 147 to 150. Active programs. Analyst (Gary Prestopino): Okay. that is what I was, confused about. And then for the plasma, you got 573, and you are gonna be between 550 and 560. Jeffery Baker: Right. We were at 573 million at the end of the quarter. And then we had a customer notify us that they were shutting centers on May 5th, 19 centers and then I have said that we expect it in the second quarter between 555 and 560 as we have some other new centers opening in the pipeline. Analyst (Gary Prestopino): Okay. that is helpful. I just want to make sure I got that right. So you talked a little bit Mark, about your plasma platform. Mark R. Newcomer: And how you are integrating into these providers. What are the competitive advantages to an entity integrating into the platform, number 1? How does that work in conjunction with the app that you have developed? And then are there any other players out there that have a platform with your technological capabilities? If we look at our entire ecosystem of what we built, the platform with the various modules of the app the CRM, the qualitative analysis, and everything else. Do not see any other peers that are out there that have built anything like we have built. it is kind of you know, some of the, you know, some of the feedback we have gotten from you know, the various conferences we have gone to is a game changer. It, you know, the fact that all of the pieces of the software can communicate together and feed off 1 another is definitely a step up. Analyst (Gary Prestopino): From what folks have had. So, you know, if you look at it from, you know, from a plasma center perspective, it provides less friction for what they have currently and allows for a center to really not only have less friction, but just more ease of use in how they interact with the donors engagement, all the way through. Mark R. Newcomer: So it really, you know, it is really about less friction and just better capabilities. Analyst (Gary Prestopino): Okay. Thank you. And then just a couple just a couple more, and I will jump off. I believe 1 of the individuals, and I forgot your name on this, is that you are talking about the pharma programs and about 50% are takeaways and 50% are new programs. Is that about Before you buy stock in Paysign, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Paysign wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!* Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Paysign. The Motley Fool has a disclosure policy. Paysign PAYS Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Mix Shift Continues to Deliver Expansion in Gross and Operating Margin Strong Balance Sheet Enables Continued Investment for Profitable Growth HENDERSON, Nev., May 12, 2026--(BUSINESS WIRE)--Paysign, Inc. (NASDAQ: PAYS), a leading provider of patient affordability offerings, donor compensation solutions, engagement and management platforms and integrated payment processing for the life sciences industries, today announced financial results for the first quarter 2026. First Quarter 2026 Financial Highlights First quarter 2026 revenues of $28.04 million, up 50.8% from first quarter 2025 First quarter 2026 pharma revenue increased to $15.68 million, an increase of 81.9% versus first quarter 2025; added 45 net patient affordability programs during the past twelve months, exiting the quarter with 135 active programs First quarter 2026 plasma revenue increased to $11.75 million, an increase of 24.9% versus first quarter 2025; total net plasma center count increased by 89 during the past 12 months, exiting the quarter with 573 centers First quarter 2026 operating margin was 23.8% compared to 13.4% in the first quarter 2025 First quarter 2026 net income of $5.44 million, or $0.09 per diluted share, versus net income of $2.59 million, or $0.05 per diluted share in the first quarter 2025 First quarter 2026 adjusted EBITDA of $10.59 million, up 113.4% from $4.96 million for first quarter 2025; diluted Adjusted EBITDA per share of $0.17 versus $0.09 for first quarter 20251 Exited the quarter with $20.55 million of unrestricted cash and zero bank debt First quarter 2026 restricted cash balances increased 10.4% to $158.95 million from first quarter 2025 First quarter 2026 gross dollar load volume was up 26.4% versus first quarter 2025 First quarter 2026 gross spend volume was up 26.7% versus first quarter 2025 "Paysign delivered a strong start to 2026, with exceptional top- and bottom-line results that are consistent with our strategic direction and the scalability of the platform we’ve built," said Mark Newcomer, President and CEO of Paysign. "Our plasma donor compensation business continues to perform exceptionally well, and the reception to our SaaS solutions from collectors and plasmapheresis manufacturers across the U.S., Europe and Asia reinforces our conviction that purpose-built technology, backed by deep industry expertise, creates a competitive advantage. Patient affordability emerged as our largest revenue contributor in the quarter, with 135 active programs and a strong pipeline that reflects the trust pharmaceutical manufacturers place in Paysign to help patients access and afford the therapies they need. As this business grows, we are positioned to deliver long-term value for our shareholders, our customers and the patients we serve." 2026 First Quarter Results Total revenues increased 50.8%, or $9.44 million, to $28.04 million, up from $18.6 million in the first quarter of 2025. Pharma industry revenue increased 81.9% to $15.68 million from $8.62 million due to the financial benefit of 45 net pharma patient affordability programs launched during the past 12 months, and a corresponding increase in monthly management fees, setup fees, claim processing fees and other billable services such as dynamic business rules and customer service contact center support. Processed claims increased by approximately 49% compared to the first quarter of 2025. Plasma revenue increased 24.9% to $11.75 million, up from $9.41 million, primarily due to the addition of 89 net plasma centers added during the past 12 months. The average monthly revenue per center increased to $6,671 versus $6,517 and the average number of loads per center increased for the first time since the industry experienced an inventory correction that began in 2024. We exited the quarter with 573 centers versus 595 centers at the end of 2025 as 20 centers were sold to companies who use a competing provider and two underperforming centers were closed. Combined, these centers averaged less than $3,500 per month in revenue, performing below the corporate average. Cost of revenues increased 42.2% due to increased call center support expense associated with the revenue growth, a new customer service contact center that went live in November 2025 and higher employee costs. Gross profit improved to 65.0% compared to 62.9% in the first quarter of 2025 as we experienced a greater mix of pharma revenue. Total operating expenses were $11.55 million compared to $9.20 million in the first quarter of 2025, an increase of 25.5%. Selling, general and administrative expenses increased by 20.5% to $8.91 million. Of that amount, stock compensation expense increased 91.0% to $1.28 million. Depreciation and amortization increased by $835 thousand, or 46.4%, due mainly to the amortization of intangible assets from our Gamma acquisition and continued capitalization of new software development costs and equipment purchases related to the enhancement to our processing platform. Operating margin was 23.8% compared to 13.4% in the first quarter of 2025. The company recorded an income tax provision of $2.03 million, resulting in an effective tax rate of 27.2%, up $1.36 million from the first quarter of 2025 and a tax rate of 20.5%. The effective tax rates reflect adjustments for discrete quarterly items and tax benefits from stock-based compensation. The significant driver in the discrete item adjustment in the first quarter of 2026 was primarily related to the increase in stock price at March 31, 2026, when compared to the same period in the prior year. Net income for the quarter totaled $5.44 million, or $0.09 per fully diluted share, an increase of 110.3% from $2.59 million, or $0.05 per fully diluted share, reported in the first quarter of 2025. On a non-GAAP basis, EBITDA, defined as earnings before interest, taxes, depreciation and amortization, increased by $5.01 million, or 116.9%, to $9.30 million. Adjusted EBITDA, which excludes stock-based compensation from EBITDA and is used by management to evaluate core operating performance, rose $5.63 million, or 113.4%, to $10.59 million, or $0.17 per fully diluted share. Balance Sheet at March 31, 2026 The company’s cash flows increased $14.51 million from December 31, 2025, largely related to the improvement in our operating results, growth of existing customer programs and the launch of new customer programs. During the first quarter of 2026, unrestricted cash decreased by $523 thousand to $20.55 million. The decline was attributable to the timing of operating asset and liability payments, capital investments in intangible and fixed assets and payments of other liabilities associated with the Gamma acquisition. Offsetting these cash outflows were net income and non-cash adjustments. Restricted cash increased $15.03 million to $158.95 million from December 31, 2025, primarily related to customer program deposits for our plasma and pharma customers of $9.71 million and an increase in funds on card of $5.32 million. Restricted cash are funds used for customer card funding and pharmaceutical claim reimbursements with a corresponding offset under current liabilities. 2026 Outlook "Our first quarter results exceeded guidance across every line of the income statement," commented Jeff Baker, Chief Financial Officer of Paysign. "Revenue, operating margin and net income all finished above the high end of our prior ranges, driven by fixed cost leverage and a continued mix shift toward patient affordability. We are reiterating our full-year 2026 ranges, and the momentum from the first quarter supports our confidence in achieving the upper half of our guidance ranges." "The table below details our second quarter and full-year 2026 outlook," continued Baker. "The second quarter reflects the seasonal pattern we have laid out previously: pharma revenue is highest in the first quarter as patient affordability claims peak, and plasma builds through the balance of the year. For the full year, we continue to expect plasma and pharma to contribute roughly equally to revenue, with margins expanding across the income statement and net income nearly doubling over 2025 as patient affordability scales. With a strong unrestricted cash position, no bank debt and a growing cash flow profile, we are well positioned to fund our 2026 investment plans and execute against the financial framework we have communicated." First Quarter 2026 Financial Results Conference Call Details The company will hold a conference call at 5:00 p.m. Eastern time on Tuesday, May 12, 2026, to discuss its first quarter 2026 financial results. The conference call may include forward-looking statements. The dial-in information for this call is 877.407.2988 (within the U.S.) and +1.201.389.0923 (outside the U.S.). A call replay will be available until August 12, 2026, and can be accessed by dialing 877.660.6853 (within the U.S.) and +1.201.612.7415 (outside the U.S.), using passcode 13760115. Forward-Looking Statements Certain statements in this press release may be considered forward-looking under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements, besides statements of fact included in this release are forward-looking. Such forward-looking statements include, among others, our belief that we delivered a strong start to 2026, with exceptional top- and bottom-line results that are consistent with our strategic direction and the scalability of the platforms we’ve built; our belief that our plasma donor compensation business continues to perform exceptionally well, and the reception to our SaaS solutions from collectors and plasmapheresis manufacturers across the U.S., Europe and Asia reinforces our conviction that purpose-built technology, backed by deep industry expertise, creates a competitive advantage; our belief that patient affordability emerged as our largest revenue contributor in the quarter, with 135 active programs and a strong pipeline that reflects the trust pharmaceutical manufacturers place in us to help patients access and afford the therapies they need; our belief that as this business grows, we are positioned to deliver long-term value for our shareholders, our customers and the patients we serve; our belief that our first quarter results exceeded guidance across every line of the income statement; our belief that revenue, operating margin and net income all finished above the high end of our prior ranges, driven by fixed cost leverage and a continued mix shift toward patient affordability; our belief that the full-year 2026 ranges, and the momentum from the first quarter supports our continued confidence in our full-year guidance ranges; our belief that the second quarter reflects the seasonal pattern we have laid out previously: pharma revenue is highest in the first quarter as patient affordability claims peak, and plasma builds through the balance of the year; our belief that for the full year, we will continue to expect plasma and pharma to contribute roughly equally to revenue, with margins expanding across the income statement and net income nearly doubling over 2025 as patient affordability scales; our belief that with a strong unrestricted cash position, no debt and a growing cash flow profile, we are well positioned to fund our 2026 investment plans and execute against the financial framework we have communicated; our expectation that we will exit the second quarter of 2026 with 147–150 active patient affordability programs and 555–560 plasma centers; our belief that non-GAAP measures used by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential future results; and our expectations for total revenues, gross profit margins, operating expenses, depreciation and amortization expenses, stock-based compensation expense, interest income, tax rate, fully diluted share count, net income, net margin, Adjusted EBITDA and Adjusted EBITDA margin for the second quarter and full-year 2026. We caution that these statements are qualified by important risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the inability to continue our current growth rate in future periods; the risk that we may not be able to add new patient affordability programs or retain existing programs at anticipated rates; the risk that plasma center customers may switch to competing providers or close centers, reducing our revenue; the risk that our outlook and guidance may not be achieved due to factors within or outside our control; that a downturn in the economy could reduce our customer base and demand for our products and services, which could have an adverse effect on our business, financial condition, profitability and cash flows; operating in a highly regulated environment; failure by us or business partners to comply with applicable laws and regulations; changes in the laws, regulations, credit card association rules or other industry standards affecting our business; changes in the regulatory or legislative environment affecting pharmaceutical patient affordability or copay assistance programs, including potential restrictions on copay accumulator or maximizer programs; that a data security breach could expose us to liability and protracted and costly litigation; risks related to the integration of acquisitions, including the Gamma acquisition, and the realization of anticipated benefits therefrom; and other risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025. Except to the extent required by federal securities laws, the company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise. About Paysign, Inc. Paysign, Inc. (NASDAQ: PAYS) operates at the intersection of fintech and healthcare, integrating advanced payment processing and program management with tailored technologies for the plasma, pharmaceutical and life sciences industries. Their breakthrough patient affordability solutions ensure patients receive the financial assistance they need to adhere to prescribed therapies by mitigating the effects of copay accumulators and maximizers. Paysign specializes in blood and plasma donor compensation programs, as well as comprehensive engagement and management platforms optimized for life sciences. Paysign’s proprietary processing architecture supports physical, virtual, mobile and bank-based payments with real-time transaction intelligence, enabling efficient, compliant and scalable program delivery. Through advanced reporting, analytics and in-house 24/7 bilingual customer support, Paysign delivers measurable value, exceptional service and a superior experience for donors, patients, healthcare providers, pharmaceutical manufacturers and program sponsors across their growing fintech healthcare ecosystem. The company is committed to improving efficiencies, reducing costs, streamlining communications, increasing program performance and providing actionable insights to those they serve. Paysign, Inc. Non-GAAP Measures To supplement Paysign’s financial results presented on a GAAP basis, we use non-GAAP measures that exclude from net income the following cash and non-cash items: interest, taxes, depreciation and amortization and stock-based compensation. We believe these non-GAAP measures used by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting, and investors should read them in conjunction with the company’s financial statements prepared in accordance with GAAP. The non-GAAP measures we use may be different from, and not directly comparable to, similarly titled measures used by other companies. "EBITDA" is defined as earnings before interest, taxes, depreciation and amortization expense. "Adjusted EBITDA" reflects the adjustment to EBITDA to exclude stock-based compensation charges. EBITDA and Adjusted EBITDA are not intended to represent cash flows from operations, operating income or net income as defined by U.S. GAAP as indicators of operating performances. Management cautions that amounts presented in accordance with Paysign’s definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate Adjusted EBITDA in the same manner. "EBITDA margin" is defined as earnings before interest, income taxes, depreciation and amortization expense as a percentage of the company’s revenue and "Adjusted EBITDA margin" reflects the adjustment to EBITDA margin to exclude stock-based compensation expense as a percentage of revenue. A reconciliation of net income margin to Adjusted EBITDA margin is provided in the table below. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512985779/en/ Contacts Investor Relations: 888.522.4810 paysign.com/investors [email protected] Media Relations: Alicia Ches 888.522.4850 [email protected]

Interested in Paysign, Inc.? Here are five stocks we like better. Paysign posted a record first quarter, with revenue up 50.8% year over year to $28 million and net income more than doubling to $5.4 million. Adjusted EBITDA surged 113% to $10.6 million, and management said margins expanded sharply as the company scaled. The patient affordability business became Paysign’s largest revenue source for the first time, with pharma revenue rising 81.9% to $15.7 million. Growth was driven by more active programs and higher claims volume, while the company said it delivered over $540 million in financial assistance to patients during the quarter. Despite some plasma center closures, plasma revenue still increased 25% to $11.7 million, and the company maintained its full-year guidance while expressing confidence in reaching the high end. Paysign ended the quarter with $20.5 million in cash and no bank debt, leaving room for possible acquisitions or shareholder returns. Paysign (NASDAQ:PAYS) reported what executives described as the strongest start to a year in the company’s history, with first-quarter 2026 revenue rising 50.8% year over year to $28 million and profitability expanding sharply as its patient affordability business became its largest revenue contributor. President and CEO Mark Newcomer said on the company’s earnings call that net income increased 110% to $5.4 million, while adjusted EBITDA rose 113% to $10.6 million. He also highlighted a 1,040-basis-point improvement in operating margin, which he said demonstrated “the operating leverage inherent in our business as we scale across healthcare and financial ecosystems.” → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? CFO Jeff Baker said revenue exceeded the high end of the company’s prior guidance range of $27 million to $27.5 million. Operating margin came in at 23.8%, above the guided range of 20% to 22%, and net margin was 19.4%, above the top end of the company’s 17% to 19% outlook. Paysign’s pharma industry revenue, which includes its patient affordability programs, increased 81.9% year over year to $15.7 million. Baker said the growth was driven by 45 net pharma patient affordability programs launched over the past 12 months, along with increases in monthly management fees, setup fees, claim processing fees and other services such as dynamic business rules and customer service contact center support. → MercadoLibre Boldly Invests in Growth: Discount Deepens Processed claims increased approximately 49% compared with the first quarter of 2025. Baker said pharma surpassed plasma as Paysign’s largest revenue contributor for the first time during the quarter, calling it “a milestone that reflects the strategic direction we have been executing against.” Newcomer said the patient affordability business delivered more than $540 million in financial assistance to patients during the quarter, up from approximately $320 million in the first quarter of last year. He said the increase reflected both a larger number of patients served and the company’s expanding role in supporting access to high-cost branded therapies. → MP Materials Is Quietly Building a Rare Earth Powerhouse Paysign launched four new patient affordability programs in the first quarter, bringing total active programs to 135 at quarter-end. Baker said that as of the call, the company had 141 active programs and expected to exit the second quarter with 147 to 150 active programs. During the question-and-answer session, Matthew Turner, Paysign’s President of Patient Affordability Services, said the company’s pipeline was roughly evenly split between new clients and additional programs from existing clients. Turner said the company had the systems and staffing approach needed to support growth, adding that its technology partners are accustomed to higher claim volumes. Paysign’s plasma donor compensation business generated $11.7 million in first-quarter revenue, up 25% from $9.4 million in the year-earlier period. Baker said average monthly revenue per center increased to $6,671 from $6,517, and average loads per center rose year over year for the first time since the industry inventory correction that began in 2024. The company ended the quarter with 573 plasma centers, up 89 from a year earlier but down 22 from the end of 2025. Newcomer said some low-performing centers were sold to collectors that do not use Paysign’s services or were closed. Baker said one customer sold centers to a competing provider, and those centers had contributed approximately $650,000 in 2025 revenue while averaging less than $3,500 per month in revenue, below the corporate average. Paysign expects its active plasma center count to decline to 555 to 560 in the second quarter after a customer closed 19 underperforming centers in May. Executives said they do not expect a financial impact from the closures because cardholders typically transition to nearby centers. Newcomer also discussed Paysign’s software-as-a-service opportunities in plasma and blood collection. He said the company made progress at the International Plasma Protein Congress in Milan, including discussions with plasma collection companies and device manufacturers about direct integration with Paysign’s platform. He said such integration could reduce manual steps, lower the risk of human error and ease implementation for collection centers. Gross profit margin increased to 65% from 62.9% in the first quarter of 2025. Baker attributed the improvement to a greater mix of pharma revenue, which carries higher gross margins than the plasma business. Total operating expenses rose 25.5% to $11.6 million, well below the company’s revenue growth rate. Selling, general and administrative expenses increased 20.5% to $8.9 million, including $1.3 million of stock-based compensation. Depreciation and amortization increased by $835,000, primarily tied to intangible assets from the Gamma acquisition and capitalized software development costs. Baker said Paysign converted approximately $9.4 million in incremental revenue into $4.2 million in operating income. Income before taxes rose to $7.5 million from $3.3 million a year earlier. Net income was $5.4 million, or $0.09 per fully diluted share, compared with $2.6 million, or $0.05 per fully diluted share, in the prior-year period. Adjusted EBITDA was $10.6 million, or $0.17 per fully diluted share, up from $5 million, or $0.09 per fully diluted share, in the first quarter of 2025. Adjusted EBITDA margin expanded to 37.8% from 26.7%. Paysign maintained its full-year 2026 outlook, though Baker said the company is increasingly confident in its ability to achieve the upper end of its guidance ranges. The company continues to expect: Revenue of $106.5 million to $110.5 million, representing 30% to 35% year-over-year growth. Gross profit margins of 60% to 62%. Net income of $13 million to $16 million, or $0.21 to $0.26 per diluted share. Adjusted EBITDA of $30 million to $33 million, or $0.49 to $0.53 per diluted share. Baker noted that both major businesses have seasonal patterns. Pharma revenue is typically highest in the first quarter as patient affordability claims peak with annual insurance deductible resets, then moderates through the rest of the year. Plasma revenue tends to be softest in the first quarter and build as donor activity normalizes after tax refund season. The company ended the quarter with $20.5 million in unrestricted cash and no bank debt. In response to an analyst question about capital allocation, Baker said Paysign has no cash obligations beyond $6 million remaining in payments related to Gamma, to be paid annually over the next three March anniversary dates. He said the company would continue holding cash while evaluating potential uses, including acquisitions or returns to shareholders. Baker also said there were no share repurchases during the quarter. Newcomer closed the call by saying the quarter represented “a meaningful inflection point” for the company, citing record results, growth in patient affordability and continued opportunities in plasma and related software solutions. Paysign, Inc (NASDAQ:PAYS) is a U.S.-based financial technology company specializing in prepaid payment solutions. Through its cloud-based platform, the company enables corporations, government agencies and payroll providers to issue and manage stored-value cards, digital wallets and disbursement programs. Paysign's offerings span gift and incentive cards, payroll and earned-wage access cards, government benefit distribution, tax refund solutions and health savings account disbursements. The company's flagship Paysign Experience Platform provides configurable card programs with real-time transaction reporting, fraud monitoring and regulatory compliance tools. 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 "Paysign Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PaySign Inc (NASDAQ:PAYS) reported a 50.8% increase in revenue to $28 million, exceeding the high end of their guidance. Net income rose by 110% to $5.4 million, showcasing strong profitability. The patient affordability business saw an 82% year-over-year revenue growth, driven by new programs and organic growth. Operating margins improved by 1,040 basis points, demonstrating significant operating leverage. The company launched four new programs in Q1, bringing total active programs to 135, indicating robust pipeline growth. The plasma donor compensation business experienced a decline in the number of active centers, with 19 centers closed in early May. Despite strong revenue growth, the company faces seasonality challenges, with pharma revenues typically peaking in Q1 and moderating throughout the year. The company has not yet generated revenue from its SaaS and app offerings, as they are still in discussions with the FDA. There were no share repurchases in the quarter, despite having a high cash balance. The effective tax rate increased to 27.2% from 20.5% in the previous year, impacting net income. Warning! GuruFocus has detected 5 Warning Signs with PAYS. Is PAYS fairly valued? Test your thesis with our free DCF calculator. Q: Mark, you mentioned expecting to exceed 55 net program additions from 2025. What's driving this confidence in the pipeline? Is it due to a one-time event or a mix of new and existing customers? A: Matt Turner, President of Patient Affordability, explained that the pipeline is a balanced mix of approximately 50% new clients and 50% growth within existing clients. The confidence stems from the foundation built in previous years, with a larger client base leading to new programs from existing clients and ongoing efforts to bring new clients onto the platform. Q: With the expected increase in programs, do you have the capacity to handle this growth? A: Matt Turner assured that the company is well-prepared, with robust IT systems and sufficient staffing to support the anticipated growth. The systems are designed for high availability and demand, ensuring they can handle increased claim volumes. Q: Regarding plasma centers, you expect a decline in Q2. Does this imply a significant ramp in plasma revenue in the latter half of the year? A: Jeff Baker, CFO, clarified that plasma revenue should grow sequentially throughout the year. The centers being closed were underperforming, and donors are expected to transition to nearby centers, minimizing impact on revenue. Q: Can you elaborate on the competitive advantages of your plasma platform and its integration with providers? A: Matt Lanford, Chief Payments Officer, highlighted that their platform, with its integrated modules, offers less friction and better capabilities compared to competitors. The seamless communication between software components enhances ease of use and donor engagement. Q: Are you currently generating revenue from your SaaS and app, and has it been approved by the FDA? A: Matt Lanford stated that discussions with the FDA are ongoing, and they are not yet generating revenue from the SaaS and app. Updates will be provided as the process progresses. 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. The first quarter marked a significant milestone as Pharma revenue surpassed Plasma for the first time, validating the company's strategic pivot toward healthcare ecosystems. Operating margin expanded by 1,040 basis points year-over-year, demonstrating substantial operating leverage as the business scales across its purpose-built platforms. Patient Affordability growth was driven by a 49% increase in claim volume and the continued ramp of the company's largest pharmaceutical clients. The Plasma business saw a 25% revenue increase, supported by the first year-over-year increase in average loads per center since the 2024 industry inventory correction. Management attributed the robust Pharma pipeline to the differentiated value of their dynamic business rules technology in navigating complex co-pay maximizer and accumulator programs. Management expressed increased confidence in achieving the upper end of 2026 guidance ranges following the record-breaking start to the year. The company expects to exceed the 55 net program additions achieved in 2025, supported by a pipeline consisting of approximately 50% new clients and 50% expansion within existing accounts. Guidance accounts for typical seasonality where Pharma revenues peak in Q1 due to insurance deductible resets, while Plasma revenues are expected to build throughout the year. The company is pursuing direct integration of its software with plasmapheresis devices to eliminate manual steps and reduce friction for collection centers transitioning to the platform. The active plasma center count is expected to decline to 555-560 in Q2 following a customer's closure of 19 underperforming centers in May. Management noted that recent center closures and sales involve low-performing locations with revenues significantly below the corporate average, expecting minimal financial impact as donors transition to nearby sites. The company remains in active discussions with the FDA regarding its SaaS and app suite, which is not yet generating revenue. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is split roughly 50-50 between entirely new clients and expansion within the existing client base. Management confirmed that current IT systems and staffing are sufficiently robust to handle the projected scale without significant additional investment. The closed centers were characterized as "underperforming" and below corporate averages; historical patterns suggest cardholders simply migrate to nearby centers. Plasma revenue is expected to grow sequentially throughout the year despite the lower center count. Management claims no other peers offer a similar ecosystem where various modules like the app, CRM, and qualitative analysis communicate seamlessly. The platform is designed to reduce operational friction and improve donor engagement compared to legacy systems. With $20.5 million in unrestricted cash and no bank debt, the company is evaluating acquisitions or potential redistribution to shareholders. The only material upcoming cash obligation is the remaining $6 million in payments related to the Gamma acquisition over the next three years.