Core Insights - Paymentus Holdings, Inc. is a leading provider of cloud-based bill payment technology solutions, serving over 2,500 billers and financial institutions across North America [3]. Company Participation in Investor Conferences - The CEO Dushyant Sharma and CFO Sanjay Kalra will participate in investor conferences, including the Keefe, Bruyette & Woods FinTech Conference on November 11 and the Citi 2025 FinTech Conference on November 18 [4]. - A live webcast and replay of the Citi fireside chat will be available on Paymentus' investor relations website [1]. Company Overview - Paymentus offers an omni-channel platform that provides consumers with flexible and secure electronic bill payment experiences through their preferred payment channels [3]. - The company's proprietary Instant Payment Network™ (IPN) connects various platforms and tens of thousands of billers to integrated billing, payment, and reconciliation capabilities [3].

Financial Performance - Revenue for Q3 2025 reached $310,737,000, a 34% increase from $231,571,000 in Q3 2024[18] - Gross profit for Q3 2025 was $74,849,000, up 23% from $60,665,000 in Q3 2024[18] - Net income for Q3 2025 was $17,744,000, compared to $14,430,000 in Q3 2024, representing a 23% increase[18] - Net income for the nine months ended September 30, 2025, increased to $46,264,000 from $31,020,000 in 2024, representing a growth of 49%[22] - Total revenue for the nine months ended September 30, 2025, reached $866,049,000, up from $613,868,000 in 2024, reflecting a growth of 41%[44] - Payment transaction processing revenue for the nine months ended September 30, 2025, was $860,163,000, compared to $606,029,000 in 2024, an increase of 42%[44] - Revenue from the United States for the nine months ended September 30, 2025, was $851,789,000, up from $602,572,000 in 2024, indicating a growth of 41%[44] - Revenue for the three months ended September 30, 2025, increased by 34.2% to $310,737,000 compared to $231,571,000 in the same period of 2024[103] - Revenue for the nine months ended September 30, 2025, increased significantly due to a rise in the number of transactions processed, driven by new billers and increased transactions from existing billers[115] Expenses and Costs - Operating expenses for Q3 2025 totaled $54,988,000, compared to $48,577,000 in Q3 2024, reflecting a 13% increase[18] - Research and development expenses for Q3 2025 were $15,219,000, up from $13,187,000 in Q3 2024, a 15% increase[18] - General and administrative expenses increased by 59.9% to $14,291,000 for the three months ended September 30, 2025, compared to $8,939,000 in 2024[111] - Sales and marketing expenses increased due to higher reseller commissions and marketing costs, indicating a strategic focus on expanding market presence[118] - General and administrative expenses rose due to higher employee-related costs and professional fees, reflecting the company's growth and operational demands[119] Cash Flow and Assets - Cash and cash equivalents increased to $287,908,000 as of September 30, 2025, from $205,900,000 at the end of 2024[17] - Net cash provided by operating activities surged to $116,996,000 in 2025, compared to $35,721,000 in 2024, marking a significant increase of 227%[22] - Cash and cash equivalents and restricted cash at the end of the period increased to $291,474,000 in 2025 from $190,785,000 in 2024, a rise of 53%[22] - As of September 30, 2025, the company had $287.9 million in unrestricted cash and cash equivalents, sufficient to support operations for at least the next 12 months[123] - Net cash used in investing activities for the nine months ended September 30, 2025, was $27.8 million, primarily for capitalized internal-use software development costs[129] Equity and Liabilities - Total stockholders' equity increased to $537,402,000 as of September 30, 2025, from $485,596,000 at the end of 2024[17] - Current liabilities rose to $95,675,000 as of September 30, 2025, compared to $81,550,000 at the end of 2024, a 17% increase[17] - Total contract liabilities increased to $6.441 million as of September 30, 2025, up from $5.720 million as of December 31, 2024[48] Taxation - The effective tax rate for the three months ended September 30, 2025, was 21.5%, compared to 0.03% in the same period of 2024[73] - The effective tax rate for the nine months ended September 30, 2025, increased to 21.3% from 17.6% in the prior year, aligning with the U.S. federal statutory rate of 21%[121] - The company forecasts an estimated effective tax rate of 28% for 2025, primarily due to state taxes and permanent differences on nondeductible compensation[75] Stock-Based Compensation - The company incurred stock-based compensation of $12,929,000 for the nine months ended September 30, 2025, compared to $7,990,000 in 2024, an increase of 62%[22] - The total stock-based compensation expense for the nine months ended September 30, 2025, was $14,557,000, an increase from $9,424,000 in the same period of 2024[72] - There was $67.2 million of total unrecognized compensation cost related to unvested RSUs expected to be recognized over a remaining weighted-average period of 3.6 years[72] Operational Metrics - The company processed 182.3 million transactions in the three months ended September 30, 2025, representing a 17.4% growth compared to 155.3 million transactions in the same period of 2024[84] - The increase in revenue was primarily driven by an increase in the number of transactions processed, attributed to new billers and increased transactions from existing billers[107] - Gross margin compression was noted due to a shift towards high-volume enterprise billers with lower margins, although this was partially mitigated by economies of scale[116] Corporate Governance - Dushyant Sharma serves as the Principal Executive Officer, while Sanjay Kalra is the Principal Financial and Accounting Officer[32.1][32.2] - The report was signed on November 3, 2025, by both the CEO and CFO[152] - The company has a 2021 Equity Incentive Plan for its executives, including Dushyant Sharma[10.1+] Reporting Changes - The company changed its reporting segment structure to a single reporting segment effective January 1, 2025, to provide more focused data for decision-making[32] - The filing includes various Inline XBRL Taxonomy Extension documents for detailed financial reporting[101.SCH][101.CAL][101.DEF][101.LAB][101.PRE]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $310.7 million, an increase of 34.2% year-over-year, driven by an increased number of billers and higher transaction values [8][12] - Contribution profit reached $98.3 million, up 22.8% year-over-year [12][14] - Adjusted EBITDA was $35.9 million, a 45.9% year-over-year increase, representing a record 36.5% adjusted EBITDA margin [8][18] - The company exceeded the rule of 40 for the quarter, achieving a score of 59 [8][19] Business Line Data and Key Metrics Changes - The customer mix is shifting towards enterprise and larger mid-market clients, resulting in significant growth in revenue and contribution profit per transaction [4][14] - Contribution profit per transaction improved to $0.54, a 3.8% increase from the prior year [14][15] - The number of transactions processed increased to 182.3 million, up 17.4% year-over-year [12][14] Market Data and Key Metrics Changes - The company is in market capture mode, increasing market penetration and entering new verticals, which presents a significant opportunity for share gain [5][6] - The onboarding of a large B2B client in a new vertical has shown significant outperformance, indicating strong market demand [5][29] Company Strategy and Development Direction - The company aims for a long-term CAGR model of 20% top-line growth and 20%-30% adjusted EBITDA dollar growth [4] - The strategy includes vertical expansion and supporting bidirectional payment rails, which has opened up further total addressable market (TAM) opportunities [5][6] - The company is focused on creating long-term shareholder value through innovation and execution [4][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the visibility for the remainder of 2025 and into 2026, supported by strong bookings and backlog [8][26] - The company is optimistic about the future, citing a solid foundation built over the years and the potential for TAM expansion [8][27] - Management noted that the quality of customers is improving, contributing to better cash flow and operational efficiency [47] Other Important Information - The company ended Q3 2025 with total cash of $291.5 million, an increase from $270 million at the end of the previous quarter [20] - Days sales outstanding (DSO) remained flat sequentially and declined by approximately 30% year-over-year, indicating improved working capital efficiency [20][21] Q&A Session Summary Question: Comments on onboarding a new B2B customer in a new vertical - Management highlighted the B2B market as a significant opportunity and noted that the new client is performing better than anticipated [29][30] Question: Contribution profit per transaction increase despite moving up market - Management attributed the increase to the value of the platform resonating well with clients and the successful onboarding of larger clients [32][34] Question: Visibility looking ahead to next year - Management confirmed high visibility and a strong backlog, similar to the previous year, indicating positive trends [36][37] Question: Who are the company replacing with new deals? - Management noted that large clients are looking for control and bespoke configurations, which Paymentus can provide, making it an attractive option [39][41] Question: Impact of four key factors driving revenue increase - Management prioritized the factors contributing to growth, with the successful launch of new billers being the largest component [42][43] Question: Sustainability of free cash flow conversion - Management emphasized strong cash flow generation due to high incremental adjusted EBITDA margins and improved DSO [45][47]

Q3 2025 Financial Performance - Revenue reached $310.7 million, a 34.2% year-over-year increase[7, 11] - Contribution Profit was $98.3 million, up 22.8% year-over-year[7, 11] - Adjusted EBITDA increased to $35.9 million, representing a 45.9% year-over-year growth[7, 11] - Net Income increased significantly to $22.6 million, a 53.4% increase compared to Q3 2024[11] - Earnings Per Share (EPS) rose to $0.17, a 41.7% increase from $0.12 in Q3 2024[11] Additional Financial Data - Cash and Cash Equivalents increased to $291.5 million, an 8.0% increase compared to Q2 2025[14] - Free Cash Flow was $25.7 million, a 14.2% increase compared to Q2 2025[14] Q4 2025 and FY 2025 Financial Guidance - The company projects Q4 2025 revenue between $307 million and $312 million[16] - Revised FY 2025 revenue guidance is between $1,173 million and $1,178 million, representing a 4.3% increase from prior guidance and a 34.9% growth versus FY 2024 midpoint[16] - Revised FY 2025 Contribution Profit guidance is between $378 million and $380 million, representing a 2.2% increase from prior guidance and a 21.5% growth versus FY 2024 midpoint[16] - Revised FY 2025 Adjusted EBITDA guidance is between $132 million and $134 million, representing a 6.4% increase from prior guidance and a 41.2% growth versus FY 2024 midpoint[16]

Financial Performance - Revenue for Q3 2025 was $310.7 million, an increase of 34.2% year-over-year, driven by a higher number of billers and increased transactions[1][8] - Adjusted EBITDA rose to $35.9 million, a 45.9% year-over-year increase, resulting in a 36.5% adjusted EBITDA margin[1][8] - Contribution profit for the quarter was $98.3 million, reflecting a year-over-year increase of 22.8%[1][8] - Non-GAAP net income was $22.6 million, compared to $14.7 million in the prior period, with diluted non-GAAP earnings per share at $0.17, up from $0.12[1][8] - Net income for the quarter was $17.7 million, compared to $14.4 million in the prior period, with diluted GAAP earnings per share at $0.14[1][8] - Revenue for Q3 2025 reached $310,737,000, a 34% increase from $231,571,000 in Q3 2024[29] - Gross profit for Q3 2025 was $74,849,000, up 23% from $60,665,000 in Q3 2024[29] - Adjusted EBITDA for Q3 2025 was $35,852,000, with an adjusted EBITDA margin of 36.5%, compared to 30.7% in Q3 2024[37] - Contribution profit for Q3 2025 was $98,266,000, up from $80,004,000 in Q3 2024, reflecting a 23% increase[36] - Non-GAAP net income for Q3 2025 was $22,572,000, compared to $14,717,000 in Q3 2024, reflecting a 53.5% year-over-year growth[40] - The company’s income before taxes under GAAP for Q3 2025 was $22,602,000, up from $14,435,000 in Q3 2024, a growth of 56.5%[40] Operational Metrics - The company processed 182.3 million transactions in Q3 2025, up 17.4% from the same quarter in 2024[1][8] - Cash and cash equivalents at the end of Q3 2025 totaled $287,908,000, an increase from $205,900,000 at the end of Q4 2024[31] - Total assets as of September 30, 2025, were $644,412,000, up from $576,247,000 at the end of 2024[31] - Total stockholders' equity increased to $537,402,000 as of September 30, 2025, compared to $485,596,000 at the end of 2024[31] - Operating cash flow for the nine months ended September 30, 2025, was $116,996,000, significantly higher than $35,721,000 for the same period in 2024[32] - The company reported net cash provided by operating activities of $35,076,000 in Q3 2025, compared to $6,737,000 in Q3 2024, marking a substantial increase[41] Guidance and Future Outlook - For Q4 2025, the company expects revenue between $307 million and $312 million, and for the full fiscal year 2025, revenue guidance is set at $1,173 million to $1,178 million[1][7] - Strong bookings year-to-date and a considerable backlog provide visibility for the remainder of 2025 and into 2026[2] Expenses and Investments - Research and development expenses for Q3 2025 were $15,219,000, a 15% increase from $13,187,000 in Q3 2024[29] - GAAP operating expenses for Q3 2025 were $54,988,000, up from $48,577,000 in Q3 2024, representing a 9.2% increase[39] - Non-GAAP operating expenses for the nine months ended September 30, 2025, were $142,706,000, up from $128,658,000 in the same period of 2024, a rise of 10.9%[39] - Stock-based compensation for Q3 2025 was $5,724,000, compared to $3,168,000 in Q3 2024, reflecting an increase of 80.4%[40] - Capitalized internal-use software development costs for Q3 2025 were $9,248,000, slightly higher than $8,876,000 in Q3 2024[41] Shareholder Information - The weighted-average shares of common stock diluted increased to 129,249,477 in Q3 2025 from 127,614,115 in Q3 2024[40] - Free cash flow for Q3 2025 was $25,725,000, a significant improvement from a negative free cash flow of $(2,211,000) in Q3 2024[41]

Core Points - PayPoint plc has completed a Share Consolidation and announced the payment of a Special Dividend following approval at the General Meeting held on 17 October 2025 [2][7] - The Share Consolidation resulted in shareholders receiving 12 New Ordinary Shares for every 13 Existing Ordinary Shares held as of the record date [3] - As of 20 October 2025, the Company's share capital consists of 63,710,952 ordinary shares, each with a nominal value of 0.3611 pence [4] Share Consolidation Details - The Share Consolidation has become effective, with trading of the New Ordinary Shares commencing at 8:00 a.m. (London Time) on the day of the announcement [2] - Shareholders will maintain the same proportion of the Company's issued share capital post-consolidation, subject to adjustments for fractional entitlements [3] - The figure of 63,710,952 shares will be used for calculations related to shareholder notifications under the FCA's Disclosure Guidance and Transparency Rules [5] Special Dividend Information - The Special Dividend is expected to be paid to shareholders on 31 October 2025 [7] - CREST accounts will be credited with New Ordinary Shares on the same day, with share certificates expected to be dispatched by 31 October 2025 [6]

Core Points - PayPoint plc successfully passed all resolutions at the General Meeting, including the approval of a Special Dividend and Share Consolidation [2][3] - The voting results showed overwhelming support for the resolutions, with the Special Dividend receiving 99.94% approval [3] - The Share Consolidation will result in shareholders receiving 12 New Ordinary Shares for every 13 Existing Ordinary Shares held, effective from 20 October 2025 [6] Voting Results - Resolution 1 (Special Dividend and Share Consolidation): 55,000,050 votes for (99.94%), 33,778 votes against (0.06%) [3] - Resolution 2 (Allotting shares): 54,782,132 votes for (99.55%), 244,953 votes against (0.45%) [3] - Resolution 3 (Disapply pre-emption rights): 54,737,260 votes for (99.48%), 286,713 votes against (0.52%) [3] - Resolution 4 (Disapply pre-emption rights for acquisitions): 53,706,157 votes for (97.60%), 1,319,717 votes against (2.40%) [3] - Resolution 5 (Market purchases of shares): 52,708,547 votes for (95.85%), 2,282,727 votes against (4.15%) [3] Share Capital Information - As of 15 October 2025, PayPoint had 69,020,204 ordinary shares in issue, with one vote per share [5] - Following a buyback and cancellation, the issued share capital will be 69,020,198 ordinary shares as of 17 October 2025 [5] Share Consolidation Details - The Share Consolidation will be effective as of 6:00 p.m. on 17 October 2025, with new shares trading on the London Stock Exchange starting 20 October 2025 [6]

Core Points - PayPoint Plc has announced the reinvestment of the second installment of the final dividend, which was paid on 26 September 2025, under the Share Incentive Plan, allowing PDMRs to purchase ordinary shares at a price of £6.79 on 29 September 2025 [3][4]. - The announcement includes details of share acquisitions by PDMRs, specifically Julian Coghlan, who acquired Partnership Shares and Matching Shares under the PayPoint plc Share Incentive Plan [4][8]. - The transactions were conducted on the London Stock Exchange (XLON) and involved multiple PDMRs, with specific share volumes and prices detailed in the notification [6][7]. Summary by Sections Share Incentive Plan - Dividend Reinvestment - The second installment of the final dividend was reinvested to purchase ordinary shares at £6.79 on 29 September 2025 for PDMRs, including Nicholas Wiles (41 shares) and Rob Harding (15 shares) [3]. Share Incentive Plan - Acquisitions - Julian Coghlan, a PDMR, acquired Partnership Shares and Matching Shares under the PayPoint plc Share Incentive Plan, with the details of the transactions provided in the notification [4][8]. - The total volume of shares purchased by PDMRs on 29 September 2025 was 86 shares at a price of £6.79, totaling £584.28 [8]. Transaction Details - The transactions were executed on 29 September 2025, with the ordinary shares having an ISIN of GB00B02QND93 [6][8]. - The nature of the transactions included both dividend shares and matching shares, with specific volumes and prices outlined for each transaction [7][8].

Core Insights - PayPoint Plc and International Distribution Services (IDS) have announced a strategic investment in Collect+, acquiring a 49% stake for £43.9 million, valuing Collect+ at £90 million [2][4] - The partnership aims to enhance Collect+'s growth and position as a leading out-of-home (OOH) store network in the UK, with plans to upgrade 500 sites to offer Royal Mail services and expand further over the next year [3][4] Financial Implications - PayPoint will propose a special dividend of 50.0 pence per share and a share consolidation of 12 for 13, subject to shareholder approval at a Special General Meeting on 17 October 2025 [5][11] - The transaction is expected to enhance earnings per share (EPS) in the first full year to March 2027, driven by the special dividend, share consolidation, and anticipated growth in Royal Mail service volumes through the Collect+ network [5][12] Operational Developments - Collect+ currently operates over 14,000 OOH locations in the UK, with nearly 8,000 offering Royal Mail services, and plans to roll out Royal Mail Shop branding across these sites starting in October [3][4] - The introduction of Royal Mail over-the-counter services and self-service kiosks is expected to improve customer convenience and expand service offerings [6][7] Shareholder Returns - The total return to shareholders for the current financial year is projected to exceed £90 million, combining the special dividend, ordinary dividend, and ongoing share buyback [6][8] - The special dividend is contingent upon shareholder approval and is expected to be paid on 31 October 2025, following the completion of the share consolidation [13][14]

Group 1 - Affirm's stock (NASDAQ: AFRM) has increased over 20% in the last month due to strong quarterly performance and an optimistic outlook [2] - The growth was supported by an expanded partnership with Apple Pay for in-store purchases and new integrations with ServiceTitan and Stripe Terminal [2] - The U.S. Federal Reserve's 25-basis-point interest rate cut and potential future cuts have created a favorable market for AFRM stock [2] Group 2 - Paymentus stock (NYSE: PAY) is considered a more attractive investment compared to Affirm due to stronger long-term revenue growth, higher profitability, and better valuation [3] - Paymentus reported a quarterly revenue increase of 41.9%, while Affirm's revenue growth was 33.0% [6] - Paymentus' Last 12 Months revenue growth was 49.4%, surpassing Affirm's 38.8% [6] Group 3 - Paymentus has a stronger 3-year average margin of 3.7%, compared to Affirm's -20.9% [6]