[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section warns that forward-looking statements involve risks and uncertainties, and actual results may differ materially from projections - This report contains forward-looking statements that involve substantial risks and uncertainties, which may cause actual results to differ materially from historical results or future projections. Investors should not place undue reliance on these statements as predictions of future events[6](index=6&type=chunk)[8](index=8&type=chunk)[10](index=10&type=chunk) - Key areas covered by forward-looking statements include the company's ability to manage growth, attract and retain customers, implement new customers, expectations for revenue and operating results, cybersecurity impact, market opportunity, competitiveness, product development, employee retention, general economic conditions (inflation, trade policies), financial services industry stability, benefits of acquisitions, brand maintenance, international expansion, and factors described in 'Risk Factors' and 'Management's Discussion and Analysis'[9](index=9&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Paymentus Holdings, Inc., including the Balance Sheets, Statements of Operations and Comprehensive Income, Statements of Stockholders' Equity, and Statements of Cash Flows, along with their accompanying notes. These statements provide a snapshot of the company's financial position, performance, and cash flows for the periods ended June 30, 2025, and December 31, 2024 (for balance sheet), and for the three and six months ended June 30, 2025 and 2024 (for income and cash flow statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and cash equivalents | $266,422 | $205,900 | | Total current assets | $380,926 | $345,641 | | Capitalized internal-use software development costs, net | $69,053 | $67,375 | | Intangible assets, net | $14,809 | $19,076 | | Goodwill | $131,836 | $131,815 | | Total assets | $609,523 | $576,247 | | **Liabilities** | | | | Total current liabilities | $83,479 | $81,550 | | Total liabilities | $92,824 | $90,651 | | **Stockholders' Equity** | | | | Total stockholders' equity | $516,699 | $485,596 | | Total liabilities and stockholders' equity | $609,523 | $576,247 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $280,077 | $197,422 | $555,312 | $382,297 | | Cost of revenue | $208,600 | $138,671 | $417,811 | $270,821 | | Gross profit | $71,477 | $58,751 | $137,501 | $111,476 | | Total operating expenses | $55,555 | $48,515 | $105,890 | $92,897 | | Income from operations | $15,922 | $10,236 | $31,611 | $18,579 | | Net income | $14,707 | $9,364 | $28,520 | $16,590 | | Net income per share - Basic | $0.12 | $0.08 | $0.23 | $0.13 | | Net income per share - Diluted | $0.11 | $0.07 | $0.22 | $0.13 | | Comprehensive income | $14,770 | $9,324 | $28,529 | $16,508 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) | (In thousands) | Dec 31, 2024 | Mar 31, 2025 | June 30, 2025 | | :------------------------------------ | :----------- | :----------- | :------------ | | Total Stockholders' Equity | $485,596 | $500,395 | $516,699 | | **Changes (Q1 2025):** | | | | | Stock-based compensation | | $2,932 | | | Net income | | $13,813 | | | **Changes (Q2 2025):** | | | | | Stock-based compensation | | | $3,315 | | Net income | | | $14,707 | | (In thousands) | Dec 31, 2023 | Mar 31, 2024 | June 30, 2024 | | :------------------------------------ | :----------- | :----------- | :------------ | | Total Stockholders' Equity | $429,616 | $439,384 | $451,627 | | **Changes (Q1 2024):** | | | | | Stock-based compensation | | $2,484 | | | Net income | | $7,226 | | | **Changes (Q2 2024):** | | | | | Stock-based compensation | | | $2,882 | | Net income | | | $9,364 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $81,920 | $28,984 | | Net cash used in investing activities | $(17,708) | $(18,789) | | Net cash used in financing activities | $(3,673) | $(369) | | Effect of exchange rate changes on Cash and cash equivalents and Restricted cash | $95 | $(141) | | Net increase in cash, cash equivalents and Restricted cash | $60,634 | $9,685 | | Cash and cash equivalents and Restricted cash at the beginning of period | $209,411 | $183,195 | | Cash and cash equivalents and Restricted cash at the end of period | $270,045 | $192,880 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization and Description of Business](index=10&type=section&id=1.%20Organization%20and%20Description%20of%20Business) - Paymentus Holdings, Inc. provides electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management through a SaaS, secure, omni-channel technology platform. The platform supports various payment types (credit/debit cards, eChecks, digital wallets) and channels (online, mobile, IVR, call center, chatbot, voice-based assistants)[25](index=25&type=chunk) [2. Basis of Presentation and Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) - The unaudited interim condensed consolidated financial statements are prepared in accordance with GAAP and SEC rules for interim reporting, and should be read with the 2024 Form 10-K. Management's estimates are based on historical experience and reasonable assumptions, with actual results potentially differing[26](index=26&type=chunk)[27](index=27&type=chunk)[29](index=29&type=chunk) - The Company changed its reporting segment structure to a single operating and reportable segment effective January 1, 2025, based on the CODM's review of consolidated financial information for resource allocation and performance assessment. Previously, there were three operating segments with one reportable segment[32](index=32&type=chunk)[33](index=33&type=chunk) - Custodial accounts, holding **$128.9 million** as of June 30, 2025, are not included in the Company's balance sheets as Paymentus has no legal ownership or control over these funds[30](index=30&type=chunk) - The Company is evaluating ASU 2024-03, 'Disaggregation of Income Statement Expenses,' effective for fiscal 2027, which requires additional disclosures of expenses by nature[40](index=40&type=chunk) [3. Revenue, Performance Obligations and Contract Balances](index=13&type=section&id=3.%20Revenue%2C%20Performance%20Obligations%20and%20Contract%20Balances) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Payment transaction processing revenue | $278,080 | $193,564 | $551,360 | $376,316 | | Other revenue | $1,997 | $3,858 | $3,952 | $5,981 | | Total revenue | $280,077 | $197,422 | $555,312 | $382,297 | | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue from United States | $275,417 | $193,483 | $546,096 | $374,784 | | Revenue from Other | $4,660 | $3,939 | $9,216 | $7,513 | | Total revenue | $280,077 | $197,422 | $555,312 | $382,297 | - As of June 30, 2025, the Company has **$6.4 million** in remaining performance obligations, with over **75%** expected to be recognized within the next two years. Contractual rights for future minimum guarantees amount to **$54.1 million** through 2029[42](index=42&type=chunk)[43](index=43&type=chunk) | (In thousands) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Current | $3,771 | $2,937 | | Non-current | $2,666 | $2,783 | | Total contract liabilities | $6,437 | $5,720 | [4. Property and Equipment, Net](index=14&type=section&id=4.%20Property%20and%20Equipment%2C%20Net) | (In thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Computer equipment | $6,467 | $6,178 | | Furniture and fixtures | $1,832 | $1,724 | | Leasehold improvements | $387 | $375 | | Total property and equipment | $8,686 | $8,277 | | Less: Accumulated depreciation | $(7,646) | $(7,120) | | Property and equipment, net | $1,040 | $1,157 | | (In thousands) | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | United States | $361 | $450 | | Other | $679 | $707 | | Total | $1,040 | $1,157 | [5. Goodwill, Internal-use Software Development Costs and Intangible Assets](index=14&type=section&id=5.%20Goodwill%2C%20Internal-use%20Software%20Development%20Costs%20and%20Intangible%20Assets) - Goodwill reporting units were realigned into a single reporting unit, consistent with the change in segment structure. Changes in goodwill carrying amount during the three and six months ended June 30, 2025, were due to foreign currency translation adjustments[47](index=47&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Capitalized internal-use software development costs | $8,900 | $9,100 | $18,300 | $18,400 | | Amortization expense (Cost of revenue) | $5,517 | $4,366 | $11,155 | $8,395 | | Amortization expense (Research and development) | $2,672 | $2,373 | $5,460 | $4,655 | | Total Amortization expense | $8,189 | $6,739 | $16,615 | $13,050 | | (In thousands) | June 30, 2025 Net Carrying Amount | December 31, 2024 Net Carrying Amount | | :-------------------- | :-------------------------------- | :------------------------------------ | | Technology | $1,009 | $3,123 | | Customer relationship | $13,622 | $15,257 | | Software and license | $0 | $8 | | Trademark | $178 | $688 | | Total | $14,809 | $19,076 | | Years Ending December 31, | Future Expected Amortization Expense (in thousands) | | :-------------------------- | :-------------------------------------------------- | | 2025 | $2,822 | | 2026 | $3,269 | | 2027 | $3,269 | | 2028 | $3,269 | | 2029 | $2,180 | | Total | $14,809 | [6. Prepaid expenses and other assets](index=15&type=section&id=6.%20Prepaid%20expenses%20and%20other%20assets) | (In thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Prepaid expenses | $5,362 | $6,584 | | Contract acquisition costs | $5,223 | $6,657 | | Other assets | $1,927 | $2,832 | | Total prepaid expenses and other assets | $12,512 | $16,073 | [7. Accrued and Other Liabilities](index=16&type=section&id=7.%20Accrued%20and%20Other%20Liabilities) | (In thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Payroll and employee-related expenses | $11,030 | $16,650 | | Other accrued expenses | $9,335 | $8,095 | | Other liabilities | $5,395 | $1,717 | | Total accrued and other liabilities | $25,760 | $26,462 | [8. Commitments and Contingencies](index=16&type=section&id=8.%20Commitments%20and%20Contingencies) - The Company is involved in various claims and legal proceedings in the ordinary course of business. As of June 30, 2025, no current claims or legal proceedings are expected to have a material adverse effect on financial position, results of operations, or cash flows, beyond estimated liabilities already recorded[54](index=54&type=chunk) - Paymentus enters into indemnification provisions with business partners, investors, contractors, customers, officers, directors, and employees, seeking to limit its exposure in commercial contracts[55](index=55&type=chunk) [9. Equity](index=16&type=section&id=9.%20Equity) - As of June 30, 2025, all **509,370** warrant shares from the May 2021 agreement with JPMC (exercise price **$18.38**) were vested and exercisable. Additionally, **175,904** warrant shares from the August 2022 agreement (exercise price **$10.10**) were vested and exercisable, with the remaining **513,382** shares subject to commercial milestones through December 31, 2026[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) [10. Stock-Based Compensation](index=18&type=section&id=10.%20Stock-Based%20Compensation) - The 2021 Equity Incentive Plan had approximately **26.4 million** shares available for grant as of June 30, 2025, following an annual increase of approximately **5.0 million** shares on January 1, 2025[60](index=60&type=chunk) | (In thousands, except per share amounts) | Options Outstanding at Dec 31, 2024 | Options Exercised | Options Forfeited | Options Outstanding at June 30, 2025 | | :--------------------------------------- | :---------------------------------- | :---------------- | :---------------- | :--------------------------------- | | Options | 3,534,103 | (61,976) | (7,667) | 3,464,460 | | Weighted-Average Exercise Price per Share | $8.47 | $1.46 | $0.28 | $8.61 | | Weighted-Average Remaining Contractual Life (years) | 4.26 | | | 3.81 | | Aggregate Intrinsic Value | $85,525 | | | $83,620 | - Unrecognized compensation cost for unvested stock options was **$0.1 million** as of June 30, 2025, expected to be recognized over **0.5 years**[62](index=62&type=chunk) | (In thousands, except per share amounts) | RSUs Awarded and Unvested at Dec 31, 2024 | Awards Granted | Awards Vested | Awards Forfeited | RSUs Awarded and Unvested at June 30, 2025 | | :--------------------------------------- | :---------------------------------------- | :------------- | :------------ | :--------------- | :----------------------------------------- | | RSUs | 2,096,168 | 605,306 | (486,019) | (40,967) | 2,174,488 | | Weighted Average Grant Date Fair Value | $16.01 | $29.39 | $16.56 | $17.17 | $19.59 | - Unrecognized compensation cost for unvested RSUs was **$39.9 million** as of June 30, 2025, expected to be recognized over **3.7 years**[65](index=65&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total stock-based compensation | $5,288 | $3,323 | $8,833 | $6,256 | [11. Income Taxes](index=19&type=section&id=11.%20Income%20Taxes) | Effective Tax Rate | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Effective Tax Rate | 19.9% | 24.9% | 21.2% | 28.6% | - The effective tax rate differences from the U.S. federal statutory rate of **21%** are primarily due to permanent differences for disallowed stock-based compensation (IRC Section 162(m)), state taxes, and discrete benefits for excess tax benefits on stock-based compensation and prior year Canadian R&D credit claims[67](index=67&type=chunk) - The Company forecasts an estimated effective tax rate of **27%** for 2025, excluding discrete benefits, mainly due to state taxes and non-deductible compensation[68](index=68&type=chunk) - The recently enacted H.R. 1, 'The One Big Beautiful Bill Act' (OBBBA), includes significant changes to corporate taxation, such as increased deductions for capital spending and expensing of domestic R&D costs. The Company is evaluating its potential impact[69](index=69&type=chunk) [12. Net Income per Share Attributable to Common Stock](index=19&type=section&id=12.%20Net%20Income%20per%20Share%20Attributable%20to%20Common%20Stock) - Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share includes the dilutive effect of stock options, RSUs, and warrants using the treasury stock method, excluding anti-dilutive shares[70](index=70&type=chunk)[71](index=71&type=chunk) | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $14,707 | $9,364 | $28,520 | $16,590 | | Weighted-average shares of common stock — basic | 125,077,964 | 124,264,789 | 125,066,334 | 124,106,046 | | Dilutive effect of stock options | 2,584,773 | 2,167,559 | 2,551,462 | 2,157,147 | | Dilutive effect of RSUs | 1,016,437 | 709,580 | 1,018,724 | 721,860 | | Dilutive effect of warrants | 351,365 | 110,438 | 331,287 | 89,868 | | Weighted-average shares of common stock — diluted | 129,030,539 | 127,252,366 | 128,967,807 | 127,074,921 | | Net income per share - Basic | $0.12 | $0.08 | $0.23 | $0.13 | | Net income per share - Diluted | $0.11 | $0.07 | $0.22 | $0.13 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Paymentus's financial condition and results of operations for the three and six months ended June 30, 2025, compared to the same periods in 2024. It covers the company's business overview, transaction volumes, key factors affecting operating results (including economic trends and non-GAAP measures), detailed analysis of revenue and expenses, liquidity, and critical accounting policies [Overview](index=21&type=section&id=Overview) - Paymentus is a leading provider of cloud-based bill payment technology and solutions, serving over **2,500** biller businesses and financial institution clients. Its platform was used by approximately **46 million** consumers and businesses globally in December 2024 for bill payments and money movements[74](index=74&type=chunk) - The company's SaaS platform, built on a single code base, offers easy-to-use, flexible, and secure electronic bill payment experiences across omni-channels, enabling rapid deployment of new features and helping billers collect revenue faster and more profitably[75](index=75&type=chunk) [Transactions Processed](index=21&type=section&id=Transactions%20Processed) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Growth | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Growth | | :---------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Transactions processed | 175.8 | 140.4 | 25.2% | 349.0 | 275.7 | 26.6% | - The increase in transactions processed was primarily driven by the addition of new billers and increased transactions from existing billers[76](index=76&type=chunk) [Other Key Factors and Trends Affecting Our Operating Results](index=21&type=section&id=Other%20Key%20Factors%20and%20Trends%20Affecting%20Our%20Operating%20Results) [Impact of Economic and Inflationary Trends](index=21&type=section&id=Impact%20of%20Economic%20and%20Inflationary%20Trends) - Economic uncertainty, driven by trade policies, geopolitical tensions, inflation, and interest rates, is expected to persist through 2025. An economic slowdown could reduce revenue per transaction and overall volume if consumers switch to lower-cost payment methods or defer payments[78](index=78&type=chunk) - Conversely, a higher frequency of partial payments could increase total transaction count, potentially offsetting negative impacts. Elevated inflation could negatively affect results due to the lag in adjusting pricing strategies[78](index=78&type=chunk)[79](index=79&type=chunk) [Non-GAAP Measures](index=22&type=section&id=Non-GAAP%20Measures) - Paymentus uses non-GAAP measures like contribution profit, adjusted gross profit, adjusted EBITDA, and free cash flow to supplement GAAP results, providing management and investors with a clearer understanding of consolidated financial performance and facilitating period-to-period comparisons[80](index=80&type=chunk)[85](index=85&type=chunk) - Interchange and assessment fees are excluded from contribution profit as they are less reflective of operating performance and are largely outside the company's control[85](index=85&type=chunk) [Contribution Profit](index=22&type=section&id=Contribution%20Profit) - Contribution profit is calculated as gross profit plus other cost of revenue (cost of revenue less interchange and assessment fees). It measures the amount available to fund operations after network fees[81](index=81&type=chunk)[85](index=85&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross profit | $71,477 | $58,751 | $137,501 | $111,476 | | Plus: other cost of revenue | $22,051 | $17,730 | $43,669 | $34,372 | | Contribution profit | $93,528 | $76,481 | $181,170 | $145,848 | - Contribution profit increased by approximately **22.3%** for the three months and **24.2%** for the six months ended June 30, 2025, driven by growth in transaction count and volume from new and existing billers and financial institutions[87](index=87&type=chunk) [Adjusted Gross Profit](index=22&type=section&id=Adjusted%20Gross%20Profit) - Adjusted gross profit is gross profit adjusted for non-cash items, primarily stock-based compensation and amortization of acquisition-related intangible assets and capitalized software development costs[82](index=82&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross profit | $71,477 | $58,751 | $137,501 | $111,476 | | Stock-based compensation | $83 | $66 | $149 | $117 | | Amortization of capitalized software development costs | $5,517 | $4,366 | $11,155 | $8,395 | | Amortization of acquisition-related intangibles | $829 | $827 | $1,657 | $1,657 | | Adjusted gross profit | $77,906 | $64,010 | $150,462 | $121,645 | - Adjusted gross profit increased by **21.7%** for the three months and **23.7%** for the six months ended June 30, 2025. The percentage decreased modestly due to a shift in customer mix towards large, high-volume enterprise billers with lower margins, partially offset by economies of scale[88](index=88&type=chunk) [Adjusted EBITDA](index=23&type=section&id=Adjusted%20EBITDA) - Adjusted EBITDA is calculated as net income before interest, other income/expense, depreciation, amortization of acquisition-related intangibles and capitalized software, and income taxes, further adjusted for foreign exchange gains/losses, stock-based compensation, and certain nonrecurring expenses[83](index=83&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income — GAAP | $14,707 | $9,364 | $28,520 | $16,590 | | EBITDA | $26,516 | $19,244 | $52,995 | $36,142 | | Adjustments (Foreign exchange gain, Stock-based compensation) | $5,177 | $3,284 | $8,672 | $6,199 | | Adjusted EBITDA | $31,693 | $22,528 | $61,667 | $42,341 | - Adjusted EBITDA increased by **40.7%** for the three months and **45.6%** for the six months ended June 30, 2025, primarily due to higher revenues from transaction volume growth and operating leverage[90](index=90&type=chunk) [Free Cash Flow](index=24&type=section&id=Free%20Cash%20Flow) - Free cash flow is calculated as net cash provided by (used in) operating activities less capital expenditures, other intangible assets acquired, and capitalized internal-use software development costs[84](index=84&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $31,479 | $18,030 | $81,920 | $28,984 | | Purchases of property and equipment | $(116) | $(188) | $(176) | $(304) | | Capitalized internal-use software development costs | $(8,888) | $(9,086) | $(18,166) | $(18,362) | | Free cash flow | $22,475 | $8,756 | $63,578 | $10,318 | - Free cash flow increased significantly for both the three and six months ended June 30, 2025, primarily driven by higher cash generated from operations[91](index=91&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) [Comparison of the Three Months Ended June 30, 2025 and 2024](index=25&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) | (In thousands) | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Revenue | $280,077 | $197,422 | $82,655 | 41.9% | | Cost of revenue | $208,600 | $138,671 | $69,929 | 50.4% | | Gross profit | $71,477 | $58,751 | $12,726 | 21.7% | | Gross margin | 25.5% | 29.8% | | | | Research and development | $15,231 | $12,535 | $2,696 | 21.5% | | Sales and marketing | $29,610 | $26,766 | $2,844 | 10.6% | | General and administrative | $10,714 | $9,214 | $1,500 | 16.3% | | Total operating expenses | $55,555 | $48,515 | $7,040 | 14.5% | | Income from operations | $15,922 | $10,236 | $5,686 | 55.5% | | Interest income, net | $2,336 | $2,194 | $142 | 6.5% | | Other income | $111 | $39 | $72 | n/m | | Income before income taxes | $18,369 | $12,469 | $5,900 | 47.3% | | Provision for income taxes | $(3,662) | $(3,105) | $(557) | 17.9% | | Net income | $14,707 | $9,364 | $5,343 | 57.1% | - Revenue increased by **41.9%** due to higher transaction volumes from new and existing billers. Cost of revenue rose by **50.4%** in line with revenue and transaction volumes, primarily due to variable interchange fees and processor costs[95](index=95&type=chunk)[96](index=96&type=chunk) - Gross margin decreased from **29.8%** to **25.5%** due to a customer mix shift towards new, high-volume enterprise billers with lower margins, partially offset by economies of scale[96](index=96&type=chunk) - Operating expenses increased across R&D (employee costs, cloud services, software amortization), Sales & Marketing (reseller commissions, warrant amortization), and G&A (professional fees, legal fees, insurance premiums)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - Net income increased by **57.1%** to **$14.7 million**, and the effective tax rate decreased to **19.9%** from **24.9%**, influenced by permanent differences for disallowed compensation, state taxes, and discrete benefits[92](index=92&type=chunk)[101](index=101&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=26&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | (In thousands) | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Revenue | $555,312 | $382,297 | $173,015 | 45.3% | | Cost of revenue | $417,811 | $270,821 | $146,990 | 54.3% | | Gross profit | $137,501 | $111,476 | $26,025 | 23.3% | | Gross margin | 24.8% | 29.2% | | | | Research and development | $30,332 | $24,586 | $5,746 | 23.4% | | Sales and marketing | $55,661 | $50,005 | $5,656 | 11.3% | | General and administrative | $19,897 | $18,306 | $1,591 | 8.7% | | Total operating expenses | $105,890 | $92,897 | $12,993 | 14.0% | | Income from operations | $31,611 | $18,579 | $13,032 | 70.1% | | Interest income, net | $4,398 | $4,380 | $18 | 0.4% | | Other income | $161 | $270 | $(109) | (40.4)% | | Income before income taxes | $36,170 | $23,229 | $12,941 | 55.7% | | Provision for income taxes | $(7,650) | $(6,639) | $(1,011) | 15.2% | | Net income | $28,520 | $16,590 | $11,930 | 71.9% | - Revenue increased by **45.3%** due to new biller implementations and increased transactions from existing billers. Cost of revenue increased by **54.3%** due to higher transaction volumes and variable fees[103](index=103&type=chunk)[104](index=104&type=chunk) - Gross margin decreased from **29.2%** to **24.8%** due to a customer mix shift towards lower-margin, high-volume enterprise billers, partially offset by economies of scale[104](index=104&type=chunk) - Operating expenses increased across R&D (employee costs, cloud services, software amortization), Sales & Marketing (reseller commissions, warrant amortization), and G&A (professional and legal fees, offset by lower insurance premiums)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - Net income increased by **71.9%** to **$28.5 million**, and the effective tax rate decreased to **21.2%** from **28.6%**, influenced by similar factors as the three-month period[92](index=92&type=chunk)[109](index=109&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) [Sources and Uses of Funds](index=26&type=section&id=Sources%20and%20Uses%20of%20Funds) - As of June 30, 2025, Paymentus had **$266.4 million** in unrestricted cash and cash equivalents, which management believes is sufficient for working capital and capital expenditure requirements for at least the next **12 months**[110](index=110&type=chunk) - Historically, operations have been financed through equity sales and revenue from payment transaction fees and subscriptions. Principal uses of cash are funding operations and capital expenditures[110](index=110&type=chunk) - The company may explore additional financing, but there is no assurance of availability on acceptable terms. Inability to raise capital could adversely affect business objectives, and new financing could dilute existing stockholders or impose restrictive covenants[111](index=111&type=chunk)[112](index=112&type=chunk) [Historical Cash Flows](index=27&type=section&id=Historical%20Cash%20Flows) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by (used in) Operating activities | $81,920 | $28,984 | | Net cash used in Investing activities | $(17,708) | $(18,789) | | Net cash used in Financing activities | $(3,673) | $(369) | | Effects of foreign exchange on cash | $95 | $(141) | | Net increase in cash, cash equivalents and restricted cash | $60,634 | $9,685 | [Net Cash Provided by Operating Activities](index=27&type=section&id=Net%20Cash%20Provided%20by%20Operating%20Activities) - Net cash provided by operating activities for the six months ended June 30, 2025, was **$81.9 million**, driven by **$28.5 million** net income, **$33.2 million** in non-cash charges, and **$20.2 million** in net cash inflows from changes in operating assets and liabilities[115](index=115&type=chunk) - For the six months ended June 30, 2024, net cash provided by operating activities was **$29.0 million**, from **$16.6 million** net income and **$27.5 million** in non-cash charges, offset by **$15.1 million** net cash outflows from changes in operating assets and liabilities[116](index=116&type=chunk) [Net Cash Used in Investing Activities](index=27&type=section&id=Net%20Cash%20Used%20in%20Investing%20Activities) - Net cash used in investing activities for the six months ended June 30, 2025, was **$17.7 million**, primarily due to **$18.2 million** in capitalized internal-use software development costs and **$0.2 million** in property and equipment purchases, partially offset by **$0.6 million** from interest-bearing deposits[117](index=117&type=chunk) - For the six months ended June 30, 2024, net cash used was **$18.8 million**, mainly from **$18.4 million** in capitalized internal-use software development costs and **$0.3 million** in property and equipment purchases[118](index=118&type=chunk) [Net Cash Used in Financing Activities](index=27&type=section&id=Net%20Cash%20Used%20in%20Financing%20Activities) - Net cash used in financing activities for the six months ended June 30, 2025, was **$3.7 million**, primarily due to **$3.8 million** in tax payments withheld on net settled restricted stock units, partially offset by **$0.1 million** from stock-based award exercises[119](index=119&type=chunk) - For the six months ended June 30, 2024, net cash used was **$0.4 million**, mainly from **$0.5 million** in settlement of holdback liability related to a prior acquisition, partially offset by **$0.1 million** from stock-based award exercises[120](index=120&type=chunk) [Critical Accounting Policies and Estimates](index=27&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The preparation of financial statements requires management to make estimates and assumptions affecting reported amounts. No material changes to critical accounting policies and estimates have occurred since December 31, 2024, except for those disclosed in Note 2[121](index=121&type=chunk) [Recent Accounting Pronouncements](index=28&type=section&id=Recent%20Accounting%20Pronouncements) - Refer to Note 2, 'Basis of Presentation and Summary of Significant Accounting Policies,' for a full description of recent accounting pronouncements, including adoption dates and effects on condensed consolidated financial statements[122](index=122&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in Paymentus's exposure to market risk since December 31, 2024. Details on interest rate, foreign currency exchange, and inflation risks are available in the 2024 Form 10-K - No material changes in market risk exposure since December 31, 2024. For details on interest rate, foreign currency exchange, and inflation risks, refer to the 2024 Form 10-K[123](index=123&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of Paymentus's disclosure controls and procedures and internal control over financial reporting. Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, and there were no material changes in internal control over financial reporting during the quarter [Evaluation of Disclosure Controls and Procedures](index=28&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management, with CEO and CFO participation, evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025, concluding they were effective at a reasonable assurance level[125](index=125&type=chunk) [Changes in Internal Control over Financial Reporting](index=28&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no material changes in internal control over financial reporting during the three months ended June 30, 2025[126](index=126&type=chunk) [Inherent Limitations on Effectiveness of Controls](index=28&type=section&id=Inherent%20Limitations%20on%20Effectiveness%20of%20Controls) - Management acknowledges that no control system can prevent or detect all errors and fraud, providing only reasonable, not absolute, assurance. Controls may become inadequate over time due to changing conditions or deteriorating compliance[127](index=127&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) Paymentus is not currently party to any material legal proceedings and is unaware of any pending or threatened legal actions that could have a material adverse effect on its business, operating results, cash flows, or financial condition, beyond those referred to in Note 8 of the condensed consolidated financial statements - The Company is not currently involved in any material legal proceedings and is unaware of any pending or threatened legal actions that could materially adversely affect its business, operating results, cash flows, or financial condition, except as noted in Note 8[129](index=129&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in Item 1A of the Company's 2024 Form 10-K - No material changes to risk factors previously disclosed in the 2024 Form 10-K[130](index=130&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds during the reporting period - None[131](index=131&type=chunk) [Item 3. Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[132](index=132&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Paymentus Holdings, Inc. - Not Applicable[133](index=133&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, none of the Company's directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[134](index=134&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, equity incentive plan agreements, insider trading policy, and certifications from the principal executive and financial officers - Exhibits include Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Form of Restricted Stock Unit Agreement, Insider Trading Policy, and Certifications of Principal Executive and Financial Officers (31.1, 31.2, 32.1, 32.2)[135](index=135&type=chunk) [Signatures](index=31&type=section&id=Signatures) This section provides the official signatures certifying the accuracy and completeness of the report - The report was signed on August 4, 2025, by Dushyant Sharma, Chairman, President and Chief Executive Officer, and Sanjay Kalra, Senior Vice President and Chief Financial Officer[140](index=140&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $280.1 million, representing a 41.9% year-over-year increase, driven by an increased number of billers and higher transaction volumes [12][18] - Contribution profit increased to $93.5 million, up 22.3% year-over-year, with an adjusted EBITDA of $31.7 million, reflecting a 40.7% year-over-year increase and a 33.9% adjusted EBITDA margin [12][23] - The company exceeded the "Rule of 40" for the quarter, achieving a score of 56, indicating solid execution and high-quality earnings alongside revenue growth [12][24] Business Line Data and Key Metrics Changes - The number of transactions processed grew to 175.8 million in Q2, a 25.2% year-over-year increase, with the average price per transaction rising from $1.41 to $1.59 due to a favorable biller mix [19][20] - Contribution profit per transaction remained relatively flat at $0.53 compared to $0.54 in the prior year, demonstrating the ability to expand market share without sacrificing profit per transaction [21] Market Data and Key Metrics Changes - Strong bookings were noted in the large enterprise segment across various verticals, including utilities, government agencies, telecommunications, and banking [13][14] - The company reported a significant backlog, providing visibility for the remainder of 2025 and into 2026, with a focus on onboarding clients from multiple verticals [14][27] Company Strategy and Development Direction - The company aims to leverage its unmatched visibility and strong backlog to create long-term shareholder value through innovation and execution [5][6] - The management expressed confidence in becoming a multibillion-dollar revenue company primarily through organic growth, without significant M&A activity [7][8] - The advent of Agentic AI is seen as a major opportunity, with the company positioned to disrupt the market by handling complex workflows and providing actionable insights [8][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the stability and durability of the growth algorithm, which supports disruptive innovation and long-term value creation [36] - The company remains optimistic about its future, citing a strong balance sheet with $270 million in cash and no debt, allowing for financial flexibility [36][25] Other Important Information - The company raised its full-year 2025 guidance for revenue, contribution profit, and adjusted EBITDA based on strong quarterly performance and positive business trends [18][31] - Non-GAAP net income for Q2 was $19.3 million, or $0.15 per share, compared to $13.4 million, or $0.10 per share in the prior year, marking a 50% increase [23] Q&A Session Summary Question: Historical seasonality and Q3 growth expectations - Management acknowledged a shift in seasonality due to increased market share and large government customers, leading to a more stable growth trajectory [38][39] Question: Quality of earnings and bad debt expense - Management noted that the bad debt expense is small and insignificant compared to overall revenues, attributing it to prudent write-offs of old amounts [42][43] Question: Demand in verticals and enterprise success - Management highlighted the strong performance in utilities and government sectors, emphasizing the platform's capabilities and the increasing comfort of large enterprises with Paymentus [48][52] Question: Sustainability of operating leverage - Management expressed confidence in maintaining high operating leverage while being cautious with spending, ensuring investments align with growth opportunities [54][58] Question: Free cash flow expectations - Management indicated strong cash generation trends, with a focus on maintaining profitability while being prepared for potential working capital needs [66][69] Question: AI and agentic payments future - Management discussed the readiness to capitalize on AI opportunities, emphasizing the platform's capabilities in handling complex workflows and customer interactions [74][75] Question: Hiring plans across Salesforce and implementation - Management stated that hiring plans are focused on converting the pipeline to bookings while maintaining technical strengths, with a majority of focus on sales [78][79] Question: Incremental EBITDA margin sustainability - Management reassured that the company has strong operating leverage and expects incremental EBITDA margins to improve over time, indicating that current levels are not peak [88][89]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $280.1 million, representing a 41.9% year-over-year increase, driven by an increased number of billers and higher transactions [12][17][18] - Contribution profit increased to $93.5 million, up 22.3% year-over-year, with an adjusted EBITDA of $31.7 million, reflecting a 40.7% year-over-year increase and a 33.9% adjusted EBITDA margin [12][22][31] - The company exceeded the rule of 40 for the quarter, achieving a score of 56, indicating solid execution and high-quality earnings alongside revenue growth [12][23] Business Line Data and Key Metrics Changes - The number of transactions processed grew to 175.8 million in Q2, a 25.2% year-over-year increase, with the average price per transaction rising from $1.41 to $1.59 [18][19] - Contribution margin for Q2 was 33.4%, down from 38.7% in the prior year, attributed to the addition of larger enterprise billers [19][20] Market Data and Key Metrics Changes - Strong bookings were noted in the large enterprise segment across various verticals, including utilities, government agencies, telecommunications, and banking [13][14][26] - The company reported a significant backlog growth, providing greater visibility for the remainder of 2025 and into 2026 [17][26] Company Strategy and Development Direction - The company aims to leverage its unmatched visibility and strong backlog to focus on long-term shareholder value through innovation and execution [5][6] - The management expressed confidence in becoming a multibillion-dollar revenue company in the coming years, primarily through organic growth without significant M&A activity [6][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the positive trends in customer activity and demand, raising full-year guidance for revenue, contribution profit, and adjusted EBITDA [17][30] - The company is optimistic about the impact of Agentic AI on the broader technology landscape, positioning itself to capitalize on this shift [7][60] Other Important Information - The company ended Q2 with total cash and cash equivalents of $270 million and no debt, providing financial flexibility for working capital investments and potential M&A opportunities [24][33] - Free cash flow generated during the quarter was $22.5 million, driven by strong adjusted EBITDA [24][62] Q&A Session Summary Question: Historical seasonality and Q3 growth expectations - Management noted a shift in seasonality due to increased market share and large government customers, indicating that past trends may not apply [35][36] Question: Quality of earnings and bad debt expense - Management stated that the bad debt expense is insignificant and reflects prudent write-offs of old amounts [40][41] Question: Demand in verticals and enterprise success - Management emphasized the strength of their platform and ecosystem, which has led to success across various verticals, including utilities and government agencies [46][49] Question: Sustainability of operating leverage - Management confirmed that they expect to maintain high operating leverage while being cautious with spending, focusing on converting pipeline into bookings [51][54] Question: Free cash flow expectations - Management indicated that cash flow generation is strong, with a model provided for forecasting free cash flow based on adjusted EBITDA and working capital needs [62][66] Question: AI and agentic payments future - Management expressed readiness to capitalize on AI opportunities, viewing it as a potential revenue center and a means to enhance customer experience [70][72] Question: Hiring plans across Salesforce and implementation - Management highlighted a balanced approach to hiring, focusing on sales to convert pipeline into bookings while also strengthening technical capabilities [73][76] Question: Incremental EBITDA margin sustainability - Management reassured that the company has strong operating leverage and expects incremental EBITDA margins to improve over time [85]

Financial Performance Highlights - Paymentus achieved a revenue of $280.1 million in Q2 2025, representing a year-over-year (YoY) growth of 41.9%[10, 14] - Contribution profit reached $93.5 million in Q2 2025, a 22.3% increase compared to Q2 2024[10, 14] - Adjusted EBITDA for Q2 2025 was $31.7 million, showing a 40.7% YoY growth[10, 14] - Net income increased by 44.8% to $19.3 million, with EPS rising by 50% to $0.15[14] Additional Financial Data - Cash and cash equivalents increased to $270.0 million in Q2 2025, an 8.2% increase from Q1 2025[17] - Free cash flow was $22.5 million in Q2 2025, a decrease of 45.3% compared to Q1 2025[17] Q3 and FY 2025 Financial Guidance - The company projects Q3 2025 revenue between $278 million and $282 million, contribution profit between $92 million and $94 million, and adjusted EBITDA between $30 million and $32 million[19] - Revised FY 2025 revenue guidance is $1.123 billion to $1.132 billion, a 4.2% increase from the prior guidance midpoint[19] - Revised FY 2025 contribution profit guidance is $369 million to $373 million, a 1.4% increase from the prior guidance midpoint[19] - Revised FY 2025 adjusted EBITDA guidance is $123 million to $127 million, a 4.2% increase from the prior guidance midpoint[19]

Revenue and Growth - Revenue for Q2 2025 was $280.1 million, an increase of 41.9% year-over-year, driven by a higher number of billers and transactions[1][8] - Revenue for Q2 2025 reached $280,077,000, a 42% increase from $197,422,000 in Q2 2024[29] - For Q3 2025, the company expects revenue between $278 million and $282 million, and for the full fiscal year 2025, revenue guidance is set at $1,123 million to $1,132 million[1][7] Profitability Metrics - Adjusted EBITDA rose to $31.7 million, reflecting a 40.7% year-over-year increase and a 33.9% adjusted EBITDA margin[1][8] - Contribution profit for Q2 2025 was $93.5 million, up 22.3% year-over-year[1][8] - Gross profit for Q2 2025 was $71.5 million, an increase of 21.7% year-over-year[1][8] - Adjusted gross profit for Q2 2025 was $77,906,000, a 22% increase from $64,010,000 in Q2 2024[36] - Net income for Q2 2025 was $14,707,000, representing a 57% increase compared to $9,364,000 in Q2 2024[29] - Non-GAAP net income was $19.3 million, compared to $13.4 million in the prior period, with diluted non-GAAP earnings per share at $0.15[1][8] - Total net income for the first half of 2025 was $28,520, a 72.0% increase from $16,590 in the first half of 2024[38] Operational Performance - The company processed 175.8 million transactions in Q2 2025, representing a 25.2% increase from Q2 2024[1][8] - The company ended the quarter with significant momentum in bookings, resulting in a substantial backlog for the remainder of 2025[2] - Free cash flow for Q2 2025 was $22,475, significantly higher than $8,756 in Q2 2024, indicating strong operational cash generation[42] - Net cash provided by operating activities for the first half of 2025 was $81,920,000, significantly higher than $28,984,000 in the same period of 2024[33] Expenses and Investments - Operating expenses increased to $55,555,000 in Q2 2025 from $48,515,000 in Q2 2024, reflecting a 14% rise[29] - Operating expenses on a GAAP basis for Q2 2025 were $55,555, an increase from $48,515 in Q2 2024, while non-GAAP operating expenses were $49,049 compared to $44,065 in the prior year[40] - The amortization of capitalized software development costs increased to $8,189 in Q2 2025 from $6,739 in Q2 2024, indicating ongoing investment in technology[38] Cash and Assets - Cash and cash equivalents at the end of Q2 2025 totaled $266,422,000, up from $205,900,000 at the end of 2024[31] - Total assets as of June 30, 2025, were $609,523,000, compared to $576,247,000 at the end of 2024[31] - Total stockholders' equity increased to $516,699,000 as of June 30, 2025, from $485,596,000 at the end of 2024[31] Earnings Per Share - Diluted GAAP earnings per share increased to $0.11 from $0.07 in the prior period[1][8] - Earnings per share (EPS) on a diluted GAAP basis for Q2 2025 was $0.11, up from $0.07 in Q2 2024, while non-GAAP EPS before tax adjustments was $0.17 compared to $0.12[41] Foreign Exchange and Other Gains - The company experienced a foreign exchange gain of $111 in Q2 2025, compared to a gain of $39 in Q2 2024, contributing positively to financial results[38] Strategic Focus - Paymentus continues to focus on expanding its cloud-based bill payment technology and solutions across North America, serving over 2,500 billers and financial institutions[1][11]

Company Overview - Paymentus (PAY) shares increased by 5.8% to $30.05, following a significant trading volume, contrasting with a 13.1% loss over the past four weeks [1] - The stock received a rating upgrade from Market Perform to Outperform by Raymond James, with a price target set at $37.00 [2] - Paymentus has a competitive edge due to its scalable, cloud-native platform that supports omnichannel, real-time bill payments [2] Technology and Integration - The company’s integration with billing and ERP systems, along with its proprietary Instant Payment Network (IPN), connects thousands of billers and partners, including PayPal and Walmart, enhancing its market reach [3] - AI-powered features facilitate smart engagement, while flexible APIs and secure infrastructure contribute to efficiency and reliability, positioning Paymentus as a leader in modern bill payment solutions [3] Financial Performance Expectations - Paymentus is projected to report quarterly earnings of $0.14 per share, reflecting a year-over-year increase of 16.7%, with revenues expected to reach $257.95 million, up 30.7% from the previous year [4] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5] Industry Context - Paymentus operates within the Zacks Financial Transaction Services industry, which includes other companies like MasterCard (MA) [6] - MasterCard's consensus EPS estimate for its upcoming report has increased by 0.2% to $4.05, representing a 12.8% change from the previous year [7]

Core Viewpoint - PayPoint plc has announced an extension of its share buyback programme, committing to return at least £30 million per annum to shareholders until March 2028, aiming for a reduction of at least 20% in the company's equity base over this period [2][5]. Group 1: Buyback Programme Details - The initial tranche of the buyback programme, amounting to £20 million, ran from July 1, 2024, to June 30, 2025, during which 2,849,507 ordinary shares were repurchased at an average price of 701.88 pence per share, representing 3.9% of the issued share capital at the programme's commencement [3]. - The second tranche of the buyback programme will purchase ordinary shares for an aggregate consideration of up to £30 million, starting immediately and concluding no later than March 31, 2026 [4]. - The buyback programme's sole purpose is to reduce PayPoint's share capital, with all purchased ordinary shares being cancelled [5]. Group 2: Regulatory and Operational Framework - The second tranche is subject to the authority granted by a special resolution passed on August 1, 2024, allowing for the purchase of a maximum of 7,257,609 ordinary shares, and further authority to be granted at the 2025 annual general meeting for up to 7,024,818 ordinary shares [6]. - PayPoint has engaged Investec Bank plc to conduct the buyback programme on its behalf, with trading decisions made independently of the company, adhering to pre-set parameters and regulations [7]. - Any purchases made under the buyback programme will be announced by PayPoint no later than 7:30 a.m. on the business day following the purchase [8]. Group 3: Share Capital Information - As of the announcement date, PayPoint's share capital consists of 70,140,123 ordinary shares of 1/3 pence each, with each share carrying one vote at general meetings [10].

Core Viewpoint - PayPoint Plc has demonstrated a resilient financial performance for the year ended 31 March 2025, making significant progress towards achieving its target of £100 million EBITDA by the end of FY26, while also establishing new growth targets for the next three years [3][20][44]. Group Financial Highlights - Revenue increased by 1.4% to £310.7 million from £306.4 million in FY24 [2] - Net revenue rose by 3.7% to £187.7 million compared to £181.0 million in FY24 [2] - Underlying EBITDA grew by 10.7% to £90.0 million from £81.3 million in FY24 [2] - Underlying profit before tax increased by 10.2% to £68.0 million from £61.7 million in FY24 [2] - Profit before tax decreased by 45.4% to £26.3 million from £48.2 million in FY24, impacted by adjusting items [2] - Net corporate debt rose by 44.2% to £97.4 million from £67.5 million in FY24 [2] Strategic Outlook - The company aims for net revenue growth of 5% to 8% per annum through FY28, supported by a robust business mix and growth opportunities [4][20] - An organizational framework will be established to enhance automation and agility in operations [4][21] - A share buyback program will be enhanced to return at least £30 million per annum to shareholders until the end of March 2028, targeting a reduction of at least 20% of issued share capital [4][8][22] Business Division Highlights - The Shopping division's net revenue increased by 1.2% to £65.2 million [10] - E-commerce division net revenue surged by 39.0% to £16.4 million [14] - Payments & Banking division net revenue grew by 1.7% to £54.4 million [14] - Love2shop division net revenue increased by 0.8% to £51.7 million [15] Key Performance Indicators - Underlying EBITDA reached £90.0 million, up from £81.3 million in FY24 [48] - Underlying profit before tax was £68.0 million, compared to £61.7 million in FY24 [48] - Diluted underlying earnings per share increased to 69.1 pence from 62.6 pence in FY24 [48] - Net corporate debt stood at £97.4 million, up from £67.5 million in FY24 [48]

Issuer Details - The issuer is PayPoint PLC, a UK-based company [1] - The notification pertains to an acquisition or disposal of voting rights [1] Shareholder Information - Harwood Capital LLP and North Atlantic Smaller Companies Investment Trust Plc are the shareholders involved [2] - Both entities are registered in London, United Kingdom [2] Voting Rights Notification - The threshold for voting rights was crossed on May 21, 2025, and the issuer was notified on May 22, 2025 [3] - The resulting voting rights held by Harwood Capital LLP are 4.053% of the total voting rights, amounting to 2,852,000 shares [3][4] Previous Position - The previous notification indicated a voting rights percentage of 3.031910% [3] Breakdown of Voting Rights - The voting rights attached to shares include 2,000 direct voting rights and 2,850,000 indirect voting rights, totaling 2,852,000 [4] - The direct voting rights percentage is 0.003% and the indirect voting rights percentage is 4.050% [4] Financial Instruments - There are no financial instruments reported that may affect voting rights [5][6] Control Structure - The ultimate controlling person is Christopher Harwood, associated with Harwood Capital LLP and North Atlantic Smaller Companies Investment Trust Plc [7] - The voting rights held by Christopher Harwood through Harwood Capital LLP are 0.003% and through North Atlantic Smaller Companies Investment Trust Plc are 4.050% [7] Completion Information - The completion date of the notification is May 22, 2025, and it was completed at the London Stock Exchange [8]

Paymentus (PAY) FY Conference May 13, 2025 04:30 PM ET Speaker0 Alright. Let's get started. My name is Tien Tsin Huang. I follow payments and IT services at JPMorgan, and this is the Paymentus fireside chat. We're happy to take questions at the end and also through the through the portal. But thank you to the Paymentus team for being here. Dushant Sharma, CEO Sanjay Kahara, CFO. Again, thank you both for for being here. I I always say like, Dushant, what you founded Paymentus of what, 02/2004, is that what ...