HENDERSON, Nev.--(BUSINESS WIRE)--Paysign, Inc. Announces 2025 Performance Analysis of Patient Affordability Solutions. ...

Paysign, Inc. (PAYS) closed the last trading session at $5.49, gaining 7.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $9.1 indicates a 65.8% upside potential.The mean estimate comprises five short-term price targets with a standard deviation of $0.65. While the lowest estimate of $8.50 indicates a 54.8% increase from the current price level, the most optimistic analyst expect ...

Core Viewpoint - Paysign, Inc. (PAYS) shows potential for significant upside, with a mean price target of $9.1 indicating a 74% increase from its current price of $5.23 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $0.65, suggesting a consensus among analysts [2] - The lowest estimate of $8.50 indicates a 62.5% increase, while the highest target of $10.00 suggests a 91.2% increase from the current price [2] - Analysts' price targets can be misleading, as they may not accurately reflect the stock's future price movements [3][7] Earnings Estimates and Analyst Agreement - There is strong agreement among analysts regarding PAYS's ability to report better earnings, which supports the potential for stock upside [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 2.9%, with one estimate moving higher and no negative revisions [12] - PAYS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of the extent of potential gains, it does provide a useful guide for the direction of price movement [14]

Core Viewpoint - Paysign, Inc. (PAYS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, Paysign is expected to earn $0.36 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.9% over the past three months [8]. - The upgrade to Zacks Rank 2 places Paysign in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks are positioned for superior earnings estimate revisions [9][10].

Summary of Conference Call Company Overview - The company operates in the payments industry, specifically focusing on patient affordability and plasma donation services. The leadership team has extensive experience in financial technology and services, with backgrounds in mergers and acquisitions [1][2]. Financial Performance - Market capitalization is approximately $300 million, with annual revenue for 2024 reported at $58.4 million and trailing 12-month revenue at $74.9 million [2]. - Fully diluted EPS for 2024 was $0.07, with trailing 12-month EPS at $0.13. Adjusted EBITDA for 2024 was $0.17, and trailing 12-month adjusted EBITDA was $0.30 [3]. - Total cash balance is around $120 million, with unrestricted adjusted cash just under $17 million [3]. Business Segments Patient Affordability Business - The patient affordability business is a significant growth driver, with the company facilitating copay assistance for patients unable to afford their medications [4][9]. - The company charges pharmaceutical companies for claims processing, with fees ranging from $2-$3 per claim and up to $50 for sending checks to providers [6][7]. - The proprietary technology, Dynamic Business Rules, allows the company to identify and prevent unnecessary claims, saving pharmaceutical companies over $200 million last year [10][11]. Plasma Donation Services - The company has about 50% market share in the plasma donation sector, serving approximately 75% of plasma companies in the U.S. [13][14]. - The plasma collection industry has seen an oversupply, but the company expects this to normalize by early 2026 [16]. - Revenue from the plasma business is projected to remain flat year-over-year, contrary to earlier expectations of a 10% decline [16]. Market Dynamics - The patient affordability business is complex and not well understood, even within the pharmaceutical industry [24]. - The company faces competition from established players like IQVIA and McKesson, but has been successful in winning business from them due to its innovative technology and service model [30][32]. - Barriers to entry in the patient affordability space include the slow adoption of technology by pharmaceutical companies and the need for trust [32][33]. Growth Strategy - The company employs a "land and expand" strategy, adding new programs with existing customers and acquiring new pharmaceutical clients [28][29]. - The leadership team is focused on leveraging their domain expertise to capture more market share in both patient affordability and plasma donation services [1][2]. Future Outlook - The company anticipates continued growth in both business segments, with expectations for revenue in the low $30 million range for 2025 [13]. - The approval of the Donor Management System is expected to enhance the company's offerings in the plasma sector, with potential market entry in early 2026 [19][20]. Analyst Coverage - The company is covered by five sell-side analysts, all of whom have buy ratings with price targets ranging from $8 to $10 [22]. Conclusion - The company is well-positioned in the payments industry, with strong financials and a clear growth strategy. The focus on patient affordability and plasma donation services, combined with innovative technology, provides a competitive edge in a complex market.

Company Overview - Paysign is a leading provider of payment solutions tailored to the life sciences industries[8] - The company has been a trusted partner for major pharmaceutical and healthcare companies for over 20 years[12] - Paysign navigates all aspects of the prepaid card lifecycle in house[13] Financial Performance - Paysign's stock price was $5.47 as of November 13, 2025, with a market cap of $337.9 million[27] - The company's TTM revenue is $74.9 million[27] - Q3 2025 Gross Profit Margin was 56.3%[27] - TTM Fully Diluted EPS is $0.13, and TTM Fully Diluted Adjusted EBITDA per Share is $0.30[27] - Cash as of September 30, 2025, was $7.5 million[27] Market and Growth - Paysign holds approximately 50% of the plasma donor compensation market as of September 30, 2025[53] - The company acquired Gamma Innovation LLC to enhance capabilities in plasma donor and pharmaceutical patient engagement technologies[62] - The 2026 U S Open-Loop Prepaid Market is estimated at $728.8 billion[73]

Core Insights - Paysign, Inc. is scheduled to present at the 17th Annual Southwest IDEAS Investor Conference, indicating its active engagement with investors and the broader financial community [1] Company Summary - Paysign, Inc. is participating in a significant investor conference, which may enhance its visibility and attract potential investment opportunities [1]

Revenue Growth - Total revenues for the three months ended September 30, 2025, increased by $6,340,047, or 41.6%, compared to the same period in 2024, reaching $21,596,478[108]. - For the nine months ended September 30, 2025, total revenues increased by $16,494,876, or 38.6%, compared to the same period in the prior year, driven by a 191.3% increase in pharma revenue[118]. Profitability - Gross profit for the three months ended September 30, 2025, increased by $3,677,075, or 43.4%, resulting in a gross margin of 56.3%[108][111]. - Net income for the three months ended September 30, 2025, was $2,215,135, reflecting a 54.2% increase compared to $1,436,837 in 2024[108]. - Gross profit for the nine months ended September 30, 2025 increased by $12,598,054, or 54.8%, resulting from the launch of additional pharma patient affordability programs[121]. - The net income for the nine months ended September 30, 2025 was $6,188,996, an increase of $3,745,961, or 153.3%, compared to the net income of $2,443,035 for the same period in 2024[127]. Operating Expenses - Operating expenses increased by $2,784,973, or 35.8%, totaling $10,568,438 for the same period[108]. - Selling, general and administrative expenses for the nine months ended September 30, 2025 increased by $5,826,732, or 32.1%, primarily due to increased compensation and benefits[122]. Claims Processing - The number of claims processed increased over 60% in Q3 2025 compared to the same period in the prior year[109]. - The number of claims processed increased over 90% for the nine months ending September 30, 2025 compared to the same period in the prior year[119]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $4,360,171, a decrease of 49.5% from $8,633,922 in 2024[134]. - Cash used in investing activities increased to $8,436,339 for the nine months ended September 30, 2025, compared to $7,087,867 in 2024, primarily due to investments in software licenses and the Gamma acquisition[137]. - The company repurchased 100,000 shares of common stock at a weighted average price of $3.76 per share during the nine months ended September 30, 2025[138]. Tax and Other Financial Metrics - The effective tax rate for the nine months ended September 30, 2025 was 17.9%, compared to 15.8% for the same period in 2024[126]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $14,512,453, up from $6,756,410 in 2024, reflecting a growth of 114.5%[132]. - EBITDA margin for the three months ended September 30, 2025, improved to 17.5%, compared to 14.8% in the same period of 2024[133]. Future Outlook - The company plans to continue investing in technology improvements, sales and marketing, and regulatory compliance throughout 2025[107]. - The company expects available cash and forecasted revenues to sustain operations for the next twenty-four months[140].

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Financial Data and Key Metrics Changes - Paysign reported record revenue of $21.6 million, an increase of 41.6% year over year [3][12] - Adjusted EBITDA reached a record $5 million, up 78% [3][12] - Net income rose 54% to $2.2 million, or $0.04 per fully diluted share [3][14] - Consolidated gross profit margin improved to 56.3%, up 72 basis points [12][13] - Adjusted unrestricted cash balance at quarter-end was $16.9 million with zero debt [15] Business Line Data and Key Metrics Changes - Patient affordability business generated $7.9 million in revenue, up 142% year over year, accounting for 36.7% of quarterly revenues [4][12] - Plasma donor compensation revenue grew 12.4% to $12.9 million, despite a net loss of 12 centers, totaling 595 active centers [6][12] - The number of claims processed in the patient affordability segment increased by over 60% compared to the same period last year [12] Market Data and Key Metrics Changes - The company ended the quarter with 105 active patient affordability programs and expects to add 20-30 more by year-end [4][10] - The plasma business is expected to normalize in the first half of 2026 due to an oversupply of source plasma [6] Company Strategy and Development Direction - Paysign aims to expand its role in the blood and plasma ecosystem, evolving from a payments provider to a technology partner [8] - The company is focused on integrating its proprietary Dynamic Business Rules technology into the pharmacy claims process to unlock new revenue streams [5] - The opening of a new 30,000 sq ft patient support center is expected to enhance service capacity and operational efficiency [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory and long-term value creation for shareholders [9][11] - The company anticipates improvement in gross profit margins as new customer service centers ramp up [11] - Management noted that the plasma industry is expected to normalize, which could lead to organic growth at the center level sooner than anticipated [7][12] Other Important Information - The company raised its revenue guidance for 2025 to a range of $80.5 million to $81.5 million, reflecting year-over-year growth of 38.7% at the midpoint [16] - Full-year gross profit margins are expected to be approximately 60% [16] Q&A Session Summary Question: Insights on retail versus specialty pharmacy mix - Management indicated a decent mix of retail versus specialty pharmacy, with a higher percentage of retail programs expected in the pipeline moving into next year [19][21] Question: Gross profit margins and capacity utilization - Management clarified that gross profit margins are expected to improve as new centers mature and the patient affordability programs ramp up [24][26] Question: Average revenue per program and seasonal business dynamics - Management explained that the business is seasonal, and the current mix is more geared towards claims rather than initial launch fees, impacting average revenue per program [27][31] Question: Dynamics affecting plasma donor engagement - Management noted no significant changes in donor engagement due to immigration issues and did not expect changes from the government shutdown [44][46] Question: Timing for FDA approval of the donor management system - Management expects FDA approval for the donor management system in the first quarter of 2026, with potential licensing opportunities on a center-by-center basis [49][50]