Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - Paysign, Inc. (PAYS) has shown a significant price increase of 246.2% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also experienced a price increase of 50.3% over the last four weeks, suggesting that the upward trend is still intact [5]. - PAYS is currently trading at 86.4% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - PAYS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like PAYS that are on an upward trend supported by strong fundamentals [3][8]. - It also mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can help in finding potential winning stocks [8].

Core Insights - Paysign, Inc. (NASDAQ: PAYS) has experienced a significant increase in stock price, tripling in value in 2025 due to robust revenue growth and market expansion efforts [1] - The current stock price is 271% higher compared to previous evaluations, indicating strong market performance [1] Company Performance - The company has demonstrated strong revenue growth, contributing to the tripling of its stock price [1] - Market expansion efforts have played a crucial role in the company's financial success [1] Market Context - The substantial increase in stock price reflects positive investor sentiment and confidence in the company's future prospects [1]

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse before exiting a trade [1][2]. - A stock's recent price strength can be assessed through a unique short-term trading strategy that identifies stocks with strong fundamentals capable of maintaining an uptrend [3]. Group 2: Company Spotlight - Paysign, Inc. (PAYS) - Paysign, Inc. has demonstrated a solid price increase of 265% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 59.6% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, PAYS is trading at 97.3% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - PAYS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging a +25% annual return since 1988 [7]. Group 4: Investment Opportunities - In addition to PAYS, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, which can be considered for investment [8]. - The Zacks Premium Screens offer over 45 strategically created options to help investors find winning stock picks based on their investing style [8].

Group 1 - Paysign, Inc. (PAYS) closed at $5.09, with a 42.4% gain over the past four weeks, and analysts set a mean price target of $7.35, indicating a 44.4% upside potential [1][2] - The mean estimate includes five short-term price targets with a standard deviation of $0.74, where the lowest estimate is $6.50 (27.7% increase) and the highest is $8.25 (62.1% increase) [2] - Analysts show strong agreement on the company's ability to report better earnings, with a positive trend in earnings estimate revisions, which is a powerful predictor of potential upside [4][11] Group 2 - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 6.1%, with one estimate moving higher and no negative revisions [12] - PAYS has a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential upside [13] - While the consensus price target may not be reliable for predicting the extent of gains, it does provide a good directional guide for price movement [14]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while price momentum can be profitable, it requires solid fundamentals to maintain that momentum [1][2]. Group 1: Stock Performance - Paysign, Inc. (PAYS) has shown a significant price increase of 114% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 31.5% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, PAYS is trading at 85.8% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - PAYS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with sufficient fundamental strength to sustain their recent uptrends [3]. - In addition to PAYS, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [8].

PaySign Inc. Conference Call Summary Company Overview - **Company Name**: PaySign Inc. (Ticker: PAYS) - **Industry**: Payment services, primarily in healthcare - **Headquarters**: Southern Nevada, near Las Vegas - **Incorporation Year**: 1995 - **Public Listing**: Went public through a reverse merger in 2018 Core Business Segments - **Healthcare Payments**: Predominantly provides payment services to the healthcare industry, including patient affordability programs and plasma donor payments [5][9] - **Patient Affordability Programs**: Helps patients cover copays for expensive medications, with a focus on reducing abandonment rates for prescriptions [9][10] - **Plasma Industry**: Engaged in electronic payments for plasma donation centers, holding a 40% market share in the U.S. [8][11] Financial Performance - **Revenue**: - 2024 projected revenue: $58.4 million - 2023 revenue: $87 million from plasma business and $12.7 million from patient affordability [11][16] - Patient affordability business expected to grow at least 135% in 2024 [11] - **Adjusted EBITDA**: $13 million for the trailing twelve months, with margins improving [16][34] - **Cash Position**: $111 million in cash, with zero debt [15][34] - **Gross Margins**: Increased to 62.9% from 53% year-over-year [14] Market Dynamics - **Plasma Market**: - U.S. provides over 75% of the world's plasma, with a normal growth rate of about 5% annually [8][26] - Anticipated decline of 8-10% in plasma business revenue due to operational adjustments post-COVID [26] - **Patient Affordability Market**: - Total Addressable Market (TAM) estimated at over $500 million, indicating significant growth potential [29] Strategic Initiatives - **Acquisition of Gamma Innovation**: - Acquired for $16 million, aimed at enhancing software capabilities in the plasma industry [28][30] - **Dynamic Business Rules Technology**: - Proprietary technology that saved customers over $100 million in claims in 2024, expected to double in 2025 [22] Leadership and Expertise - **Senior Leadership**: Comprised of individuals with extensive backgrounds in banking, payments, and healthcare, enhancing domain expertise [13][39] - **Analyst Coverage**: Covered by five firms, all with buy or equivalent ratings, target prices ranging from $6 to $8 [35] Additional Insights - **Customer Engagement**: The company emphasizes direct partnerships with pharmaceutical companies, enhancing payment capabilities and transparency [42][44] - **Operational Efficiency**: The call center operates at breakeven, indicating effective cost management [17] - **Regulatory Environment**: The company operates primarily in the U.S. market, with limited applicability of its services outside due to different healthcare systems [37] Conclusion PaySign Inc. is positioned for growth in the healthcare payment sector, with strong financials, innovative technology, and a strategic focus on expanding its market share in both the plasma and patient affordability segments. The leadership team's expertise and recent acquisitions further bolster its competitive advantage in a rapidly evolving industry.

Core Viewpoint - The article emphasizes the importance of value investing and highlights Paysign (PAYS) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][4][7]. Valuation Metrics - Paysign has a Forward P/E ratio of 10.41, significantly lower than the industry average of 23.41, indicating potential undervaluation [4]. - The stock's P/B ratio stands at 5.33, compared to the industry's average P/B of 8.81, suggesting a solid valuation relative to its book value [5]. - Paysign's P/CF ratio is 13.78, which is lower than the industry average of 18.69, further supporting the notion that the stock may be undervalued based on its cash flow outlook [6]. Historical Performance - Over the past year, Paysign's Forward P/E has fluctuated between a high of 22.80 and a low of 6.69, with a median of 13.31 [4]. - The P/B ratio for Paysign has ranged from a high of 10.84 to a low of 3.43, with a median of 6.71 [5]. - The P/CF ratio has varied from a high of 24.14 to a low of 8.85, with a median of 15.96 over the past year [6]. Investment Outlook - Given its strong earnings outlook and favorable valuation metrics, Paysign is positioned as one of the strongest value stocks in the market currently [7].

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q1 2025, showing **$205.1 million** in total assets and **$2.6 million** net income Condensed Consolidated Balance Sheet Highlights | Account | March 31, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Total Current Assets** | $167,153,858 | $158,836,633 | | Goodwill | $5,512,637 | $– | | **Total Assets** | **$205,118,026** | **$179,028,197** | | **Total Current Liabilities** | $155,678,621 | $146,106,495 | | **Total Liabilities** | **$165,843,762** | **$148,586,565** | | **Total Stockholders' Equity** | **$39,274,264** | **$30,441,632** | Condensed Consolidated Statements of Operations (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$18,598,149** | **$13,190,074** | **+41.0%** | | Gross Profit | $11,690,828 | $6,939,251 | +68.5% | | Income (loss) from operations | $2,489,066 | $(258,352) | NM | | **Net Income** | **$2,586,100** | **$309,096** | **+736.7%** | | Diluted EPS | $0.05 | $0.01 | +400.0% | Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(6,033,177) | $8,244,499 | | Net cash used in investing activities | $(4,443,855) | $(2,273,081) | | Net cash used in financing activities | $(375,786) | $– | | **Net change in cash and restricted cash** | **$(10,852,818)** | **$5,971,418** | - On March 19, 2025, the company acquired substantially all assets of Gamma Innovation LLC, a software and services company in the plasma collection industry, for a preliminary purchase consideration of **$17,758,637**, consisting of cash, equity, and contingent consideration[61](index=61&type=chunk)[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting **41.0%** revenue growth to **$18.6 million** and **$5.0 million** Adjusted EBITDA [Overview](index=18&type=section&id=Overview) Paysign is a vertically integrated provider of prepaid card programs, patient affordability offerings, and digital banking services - Paysign is a vertically integrated provider of prepaid card products, patient affordability offerings, and digital banking services for businesses, consumers, and government institutions[22](index=22&type=chunk)[88](index=88&type=chunk) - Revenue sources include cardholder fees, interchange, program management fees, transaction processing fees, breakage, and settlement income[91](index=91&type=chunk) - The company is focusing its marketing on corporate incentive and expense cards, particularly in healthcare, patient affordability, clinical trials, and donor compensation, and will also market new donor engagement applications following the Gamma acquisition[99](index=99&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Total revenues increased **41.0%** to **$18.6 million** in Q1 2025, driven by pharma revenue, with gross margin improving to **62.9%** Revenue by Industry (Three Months Ended March 31) | Industry | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Plasma | $9,409,880 | $10,368,034 | $(958,154) | (9.2%) | | Pharma | $8,618,653 | $2,388,644 | $6,230,009 | 260.8% | | Other | $569,616 | $433,396 | $136,220 | 31.4% | | **Total** | **$18,598,149** | **$13,190,074** | **$5,408,075** | **41.0%** | - The increase in pharma revenue was primarily due to the launch of 14 net new patient affordability programs in Q1 2025 and the full-quarter impact of 33 net programs launched in 2024[103](index=103&type=chunk) - Gross margin increased to **62.9%** in Q1 2025 from **52.6%** in Q1 2024, primarily due to a greater revenue contribution from the higher-margin pharma patient affordability business[103](index=103&type=chunk)[105](index=105&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **25.2%** to **$7.4 million**, mainly due to a **$1.5 million** rise in compensation and benefits to support business growth[106](index=106&type=chunk) [Key Performance Indicators and Non-GAAP Measures](index=23&type=section&id=Key%20Performance%20Indicators%20and%20Non-GAAP%20Measures) Key performance indicators show **$407 million** gross dollar volume and Adjusted EBITDA reaching **$5.0 million** in Q1 2025 - Gross dollar volume loaded on cards was **$407 million** for Q1 2025, compared to **$426 million** for Q1 2024[112](index=112&type=chunk) - The total revenue conversion rate on gross dollar volume increased to **4.57%** (457 bps) in Q1 2025 from **3.09%** (309 bps) in Q1 2024[113](index=113&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Three Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $2,586,100 | $309,096 | | EBITDA | $4,290,069 | $1,028,053 | | **Adjusted EBITDA** | **$4,962,387** | **$1,692,004** | Adjusted EBITDA Margin Reconciliation (As a percentage of revenue) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income margin | 13.9% | 2.3% | | EBITDA margin | 23.1% | 7.8% | | **Adjusted EBITDA margin** | **26.7%** | **12.8%** | [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash usage was **$10.9 million** in Q1 2025, with **$6.8 million** available cash expected to sustain operations for 24 months - Net cash used in operating activities was **$6.0 million** in Q1 2025, a decrease of **$14.3 million** from the prior year, mainly due to changes in accounts receivable, accounts payable, and customer card funding tied to pharma business growth[119](index=119&type=chunk) - Net cash used in investing activities was **$4.4 million**, which included **$2.0 million** for the Gamma acquisition and **$2.4 million** for capitalization of internally developed software[120](index=120&type=chunk) - The company believes its available cash of **$6,847,021** at March 31, 2025, along with forecasted revenues and cash flows, will be sufficient to sustain operations for the next twenty-four months[122](index=122&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Paysign is exempt from providing market risk disclosures - The company is exempt from providing market risk disclosures as it qualifies as a smaller reporting company[126](index=126&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[127](index=127&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the quarter ended March 31, 2025[128](index=128&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) Details the **$3.75 million** settlement of a securities class action and pending preliminary approval for stockholder derivative actions - A securities class action was settled for **$3,750,000**, with the entire amount paid from the company's directors-and-officers insurance policy, and the court approved the settlement on April 18, 2024[80](index=80&type=chunk)[131](index=131&type=chunk) - Four stockholder derivative actions have been consolidated or related, and the parties agreed in principle to a settlement on October 4, 2024, with a Motion for Preliminary Approval currently pending[84](index=84&type=chunk)[135](index=135&type=chunk) [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Paysign is exempt from providing risk factor disclosures in its Form 10-Q - The company is exempt from providing risk factor disclosures in its Form 10-Q as it qualifies as a smaller reporting company[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Issued **500,000** shares for acquisition and repurchased **100,000** shares, with **$3.0 million** available for future repurchases - Issued **500,000** shares of common stock in connection with the purchase agreement with Gamma Innovations LLC[137](index=137&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Weighted Average Price Paid Per Share | Approx. Value of Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 2025 | – | – | $3,377,071 | | Feb 2025 | 100,000 | $3.76 | $3,001,285 | | Mar 2025 | – | – | $3,001,285 | [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the quarter[140](index=140&type=chunk) [Exhibits](index=28&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - The report includes certifications from the principal executive and financial officers (Exhibits 31.1, 31.2, 32.1, 32.2) and Inline XBRL data files (Exhibit 101 series)[143](index=143&type=chunk) [Signatures](index=29&type=section&id=SIGNATURES) - The Form 10-Q report was duly signed on May 9, 2025, by Mark Newcomer, President and Chief Executive Officer, and Jeff Baker, Chief Financial Officer[147](index=147&type=chunk)

Financial Data and Key Metrics Changes - Revenue grew 41% year over year to $18.6 million, up from $13.2 million in Q1 of last year [5] - Net income surged to $2.59 million, a 737% increase over Q1 2024 [5] - Adjusted EBITDA jumped 193% to $4.9 million, with gross margin expanding over 10 points to 62.9% [5][6] Business Line Data and Key Metrics Changes - Patient Affordability business revenues rose 261% year over year to $8.6 million, with claims processed growing by more than 160% [6] - Plasma donor compensation revenue decreased 9.2% to $9.4 million, with revenue per plasma center declining to $6,517 [10][14] Market Data and Key Metrics Changes - The Patient Affordability segment accounted for 46.3% of quarterly revenues, a significant increase from 18.1% in the same period last year [15] - The company ended the quarter with 484 plasma centers, adding four new centers during the period [10][14] Company Strategy and Development Direction - The acquisition of Gamma Innovation is expected to enhance the tech stack and offer a full front-end engagement platform integrated with core payment solutions [11][12] - The company aims to unlock additional revenue streams and expand its total addressable market beyond the plasma sector into broader pharmaceutical and healthcare sectors [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory and commitment to delivering long-term value to shareholders [13] - The company expects patient affordability revenue to more than double again in 2025 based on current pipeline and results [8] Other Important Information - The company exited the quarter with $6.9 million in unrestricted cash and zero debt [17] - Full-year gross profit margins are expected to be between 62% to 64%, reflecting stable margins in the plasma business and increased contributions from the higher-margin pharma patient affordability business [18] Q&A Session Summary - No questions were raised during the Q&A session [21]

Paysign (PAYS) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good afternoon. My name is Chelsea, and I will be your conference operator today. At this time, I would like to welcome everyone to the PaySign, Inc. First Quarter twenty twenty five Earnings Conference Call. After the speakers' remarks, there will be a question and answer session. As a reminder, this conference is being recorded. The comments on today's call regarding PaySign's financial results will be on a GAAP basis unless otherwise ...