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)

Paysign (PAYS) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Mark Newcomer - Co-Founder, President, CEO & ChairmanJeff Baker - CFO Operator 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 t ...

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 ...

[Paysign, Inc. Q1 2025 Earnings Release](index=1&type=section&id=Paysign%2C%20Inc.%20Reports%20First%20Quarter%202025%20Financial%20Results) [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Paysign achieved record Q1 2025 results, driven by significant growth in pharma patient affordability and strong margin expansion Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $18.60 million | $13.19 million | +41.0% | | Net Income | $2.59 million | $309 thousand | +738.2% | | Diluted EPS | $0.05 | $0.01 | +400.0% | | Adjusted EBITDA | $4.96 million | $1.69 million | +193.3% | | Diluted Adj. EBITDA per Share | $0.09 | $0.03 | +200.0% | - The Pharma Patient Affordability segment was the primary growth driver, with revenue increasing **260.8% YoY**. The company added **14 net new programs**, ending the quarter with **90 active programs**[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) - The Plasma segment experienced a **9.2% YoY revenue decrease**, attributed to an industry-wide oversupply in plasma inventories, despite adding **4 net new centers** to reach a total of **484**[4](index=4&type=chunk)[5](index=5&type=chunk) - The company ended the quarter with **$6.85 million** in unrestricted cash and no bank debt, after repurchasing **100,000 shares** for **$376 thousand**[4](index=4&type=chunk)[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong Q1 performance, driven by patient affordability and Gamma Innovation acquisition synergies - CEO Mark Newcomer emphasized **record revenue, operating income, and Adjusted EBITDA**, with a **10.3 percentage point expansion** in gross margins[3](index=3&type=chunk) - The strategic focus is on unlocking the potential of the Gamma Innovation acquisition to enhance payment solutions and drive long-term growth in the plasma, pharmaceutical, and healthcare industries[3](index=3&type=chunk) - CFO Jeff Baker noted that the patient affordability business's growth is offsetting the decline in the plasma segment. The Gamma acquisition is expected to yield significant operating efficiencies and cost savings[9](index=9&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [First Quarter 2025 Detailed Financial Results](index=2&type=section&id=2025%20First%20Quarter%20Results) Q1 2025 revenues grew significantly, driven by pharma patient affordability and improved gross margins, despite plasma decline Q1 2025 vs Q1 2024 Revenue Breakdown | Revenue Stream | Q1 2025 Revenue | Change ($) | Change (%) | Reason | | :--- | :--- | :--- | :--- | :--- | | Pharma Patient Affordability | $8.62M | +$6.23M | +260.8% | Growth and launch of new programs. | | Plasma | $9.41M | -$0.96M | -9.2% | Reduced revenue per center and donations. | | Other | $0.57M | +$0.14M | +31.4% | Growth in retail, payroll, and other programs. | - Cost of revenues increased by **10.5% ($656k)**, driven by higher customer care, program management fees, and sales commissions related to the pharma business growth[5](index=5&type=chunk) - Selling, general and administrative (SG&A) expenses rose by **25.2% ($1.49M)** due to increased compensation and benefits from hiring, technology investments, and M&A costs[5](index=5&type=chunk) - Net income increased significantly to **$2.59 million** from **$309 thousand** in the prior year, with the effective tax rate decreasing to **20.5%** from **34.7%** due to tax benefits from stock-based compensation[5](index=5&type=chunk) [Balance Sheet Analysis (as of March 31, 2025)](index=3&type=section&id=Balance%20Sheet%20at%20March%2031%2C%202025) Total assets grew to $205.1 million, primarily from accounts receivable and acquisition-related intangibles, despite lower cash Key Balance Sheet Items (March 31, 2025 vs. Dec 31, 2024) | Account | March 31, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Unrestricted Cash | $6.85 million | $10.77 million | -$3.92 million | | Restricted Cash | $104.64 million | $111.58 million | -$6.94 million | | Accounts Receivable, net | $52.23 million | $32.64 million | +$19.59 million | | Intangible assets, net | $25.15 million | $12.24 million | +$12.91 million | | Goodwill | $5.51 million | $0 | +$5.51 million | | Total Assets | $205.12 million | $179.03 million | +$26.09 million | | Total Liabilities | $165.84 million | $148.59 million | +$17.25 million | | Total Stockholders' Equity | $39.27 million | $30.44 million | +$8.83 million | - Unrestricted cash decreased by **$3.92 million** primarily due to the purchase of Gamma Innovation assets, payment of prior year accrued expenses, and stock repurchases[7](index=7&type=chunk) - Restricted cash decreased by **$6.93 million**, resulting from a **$17.99 million reduction** in plasma customer deposits, partially offset by a **$5.94 million increase** in pharma deposits and a **$4.85 million increase** in funds on cards[8](index=8&type=chunk) [Business Outlook](index=3&type=section&id=Updated%202025%20Outlook) [Updated Full-Year 2025 Outlook](index=3&type=section&id=Updated%20Full-Year%202025%20Outlook) The company raised its full-year 2025 guidance, projecting $72.0-$74.0 million revenue, driven by patient affordability growth Full-Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenues | $72.0M - $74.0M | | Gross Profit Margins | 62.0% - 64.0% | | Operating Expenses | $41.0M - $43.0M | | Net Income | $6.0M - $7.0M | | Diluted EPS | $0.10 - $0.12 | | Adjusted EBITDA | $16.0M - $17.0M | | Diluted Adj. EBITDA per Share | $0.28 - $0.30 | | Diluted Share Count | ~56.0 million | - Patient affordability revenue is expected to grow **over 135% YoY**, making up about **43%** of total revenue[10](index=10&type=chunk) - Plasma revenue is projected to decline by **8.0% to 10.0% YoY**, constituting about **57%** of total revenue[10](index=10&type=chunk) [Second Quarter 2025 Outlook](index=4&type=section&id=Second%20Quarter%202025%20Outlook) Q2 2025 revenue is projected at $18.5-$19.0 million, with patient affordability offsetting plasma weakness Second Quarter 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $18.5M - $19.0M | | Gross Profit Margins | 63.0% - 64.0% | | Operating Expenses | $10.0M - $11.0M | | Adjusted EBITDA | $4.5M - $5.0M | - The expected revenue mix for Q2 is **54%-55%** from plasma and **41%-42%** from patient affordability[12](index=12&type=chunk) [Appendix: Financial Statements & Reconciliations](index=6&type=section&id=Appendix%3A%20Financial%20Statements%20%26%20Reconciliations) [Condensed Consolidated Statements of Operation (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operation%20%28Unaudited%29) Unaudited consolidated income statement for the three months ended March 31, 2025, compared to 2024 Condensed Consolidated Statements of Operation (Unaudited) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Total revenues** | **$18,598,149** | **$13,190,074** | | Gross profit | $11,690,828 | $6,939,251 | | Income (loss) from operations | $2,489,066 | $(258,352) | | **Net income** | **$2,586,100** | **$309,096** | | Diluted EPS | $0.05 | $0.01 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Unaudited condensed consolidated balance sheet as of March 31, 2025, compared to December 31, 2024 Condensed Consolidated Balance Sheets | | March 31, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Total current assets** | **$167,153,858** | **$158,836,633** | | **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** | [Non-GAAP Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Measures) Reconciliation of GAAP net income to non-GAAP EBITDA and Adjusted EBITDA, highlighting significant Q1 2025 margin expansion Reconciliation of Net Income to Adjusted EBITDA | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net income** | **$2,586,100** | **$309,096** | | Income tax provision | $665,164 | $163,896 | | Interest income, net | $(762,198) | $(731,344) | | Depreciation and amortization | $1,801,003 | $1,286,405 | | **EBITDA** | **$4,290,069** | **$1,028,053** | | Stock-based compensation | $672,318 | $663,951 | | **Adjusted EBITDA** | **$4,962,387** | **$1,692,004** | Reconciliation of Net Income Margin to Adjusted EBITDA Margin | (As a percentage of Revenue) | 2025 | 2024 | | :--- | :--- | :--- | | Net income margin | 13.9% | 2.3% | | EBITDA margin | 23.1% | 7.8% | | Adjusted EBITDA margin | 26.7% | 12.8% |

Financial Performance - Total revenues increased by 23.5% to $58,384,552 for the year ended December 31, 2024, compared to $47,274,162 in 2023[165]. - Pharma industry revenue surged by 212.3%, reaching $12,652,412, driven by the launch of 33 net new pharma programs[165]. - Gross profit increased by 33.4% to $32,197,334, with a gross margin of 55.1% for the year ended December 31, 2024[165][167]. - Net income for the year ended December 31, 2024 was $3,815,907, a decline of 40.9% compared to $6,458,727 in 2023[172]. - The gross dollar volume loaded on cards was $1,783 million for the year ended December 31, 2024, compared to $1,706 million in 2023[173]. - Total revenue conversion rate improved to 3.27% for 2024, up from 2.77% in 2023[174]. - Operating expenses increased by 28.3% to $31,175,826, primarily due to higher selling, general and administrative expenses[165][168]. - Adjusted EBITDA for the year ended December 31, 2024 was $9,621,083, compared to $6,712,966 in 2023[176]. - Net cash provided by operating activities was $22,947,120 in 2024, a decrease of $4,673,504 compared to 2023[179][181]. - Cash used in financing activities was $466,245 for the year ended December 31, 2024, compared to $1,118,284 for 2023, with share repurchases of 136,700 shares at an average price of $3.62 per share in 2024[183]. - Unrestricted cash as of December 31, 2024, was $10,766,982, a decrease of $6,227,723 from the previous year, primarily due to payment timing on claim reimbursement receivables[185]. Business Operations - Paysign reported significant growth in the prepaid card market, driven by improved technology and greater consumer convenience[158]. - The company operates a high-availability payments platform that allows seamless integration with clients' systems, enhancing transaction processing and customer service[151]. - Paysign's prepaid card offerings include corporate rewards, prepaid gift cards, general purpose reloadable debit cards, and healthcare reimbursement payments[152]. - The company manages all aspects of the prepaid card lifecycle, including design, production, distribution, and customer service[159]. - Paysign's architecture is known for its cross-platform compatibility, flexibility, and scalability, providing cost savings and revenue opportunities for clients[151]. - Paysign's marketing efforts are focused on corporate incentive and expense prepaid card products across various market verticals, including healthcare and loyalty rewards[160]. Revenue Recognition - Revenue from plasma and pharma card programs includes cardholder fees, transaction claims processing fees, and interchange fees[193]. - The company recognizes revenue from cardholder fees at the point of transaction fulfillment and management fees on a monthly basis[194]. - Breakage revenue is recognized ratably over the estimated card life, based on historical redemption patterns[195]. Future Outlook - The company plans to invest additional funds in technology improvements, sales and marketing, cybersecurity, fraud prevention, customer service, and regulatory compliance in 2025[163]. - The company anticipates that its available cash and forecasted revenues will sustain operations for the next 24 months[149]. - The company may evaluate raising capital to diversify into new market verticals while believing it can support existing operations with internally generated funds if new capital is not raised[163]. - The company grew to approximately 7.3 million cardholders and approximately 600 card programs as of December 31, 2024[164]. Stock and Compensation - The company repurchased 394,558 shares at an average price of $2.86 per share in 2023[183]. - Stock-based compensation expense is recognized for all restricted stock awards and stock options, with fair value measured at grant date[200]. Compliance and Risk - Operating lease expenses are recorded as rent expense and included within selling, general, and administrative expenses[198]. - The company is not required to provide market risk disclosures as a smaller reporting company[201].

Financial Data and Key Metrics Changes - For the full year 2024, revenue increased by 23.5% to $58.4 million, and adjusted EBITDA increased by 43.3% to $9.6 million [8] - Adjusted EBITDA margins improved by 230 basis points to 16.5% [8] - Fourth quarter total revenues of $15.6 million increased by $1.9 million or 14% compared to the same period last year [21] - Net income for the fourth quarter was $1.4 million or $0.02 per fully diluted share, down from $5.6 million or $0.05 per fully diluted share in the same period last year [23] Business Line Data and Key Metrics Changes - The patient affordability business grew 212% year-over-year, reaching $12.7 million compared to $4.1 million in 2023 [9] - Claims processed in the patient affordability segment increased by 272%, with 33 net programs added, representing a 77% increase over the previous year [9] - Plasma donor compensation business contributed $43.9 million in revenue for the year, a 4.6% increase over 2023's $42 million [11] - Fourth quarter plasma revenue decreased by 6.2% to $10.8 million, primarily due to oversupply issues [18] Market Data and Key Metrics Changes - The company exited 2024 with 480 plasma centers, an increase of 16 centers over the previous year, and anticipates adding 10 to 15 centers in 2025 [11] - The average revenue per plasma center decreased by 9.5% to $7,510 [18] - Fourth quarter pharma revenues of $12.7 million accounted for 21.7% of total revenue, up from 8.6% during the same period last year [20] Company Strategy and Development Direction - The long-term strategy focuses on expanding solutions to create new revenue streams, particularly in maturing segments [13] - The acquisition of Gamma Innovation LLC aims to enhance capabilities in plasma donor and pharmaceutical patient engagement [14] - The company plans to enter the high-margin software-as-a-service market, significantly expanding its total addressable market [14] Management's Comments on Operating Environment and Future Outlook - Management expects the patient affordability business to sustain its strong growth trajectory in 2025, projecting to at least double in revenue [10] - The plasma business is facing challenges due to oversupply and increased donation yields, which are expected to persist [12] - Guidance for 2025 anticipates total revenues between $68.5 million and $70 million, reflecting year-over-year growth of 17.5% to 20% [26] Other Important Information - The company exited the year with $10.8 million in unrestricted cash and zero debt, a decrease of $6.3 million from 2023 [24] - The company repurchased 36,700 shares in the fourth quarter for approximately $135,000 [25] Q&A Session Summary Question: Can you help us understand the strength in Q4 and the contributions from existing vs. new pharma patient affordability programs? - Management noted that 14 new programs were launched in the first quarter of 2025, with 10 added in Q4 2024, indicating strong revenue visibility from historical programs [35][37] Question: What is the marketing strategy behind the Gamma acquisition? - The acquisition is aimed at enhancing engagement tools and capabilities for both plasma and pharmaceutical businesses, with no revenue from Gamma factored into guidance [39][41] Question: Can you provide a deeper dive into the issues causing the slowdown in the plasma business? - Management explained that oversupply is due to post-COVID overproduction and increased plasma yields, leading to lower donations and compensation [50][51] Question: How many new programs are anticipated in the patient affordability segment this year? - Management indicated that they aim to at least double the number of programs added last year, with 14 already added in Q1 2025 [66] Question: Can you quantify the cash portion of the purchase price related to Gamma? - The cash portion will be paid out over five years, with the company maintaining a cautious approach to its cash position [73]

Financial Data and Key Metrics Changes - For the full year 2024, revenue increased by 23.5% to $58.4 million, and adjusted EBITDA increased by 43.3% to $9.6 million [8] - Adjusted EBITDA margins improved by 230 basis points to 16.5% [8] - Fourth quarter total revenues of $15.6 million increased by $1.9 million or 14% compared to the same period last year [21] - Gross profit margin for the fourth quarter was 58.9% versus 52.2% during the same period last year [22] - Net income for the fourth quarter was $1.4 million or $0.02 per fully diluted share, down from $5.6 million or $0.05 per fully diluted share in the same period last year [23] Business Line Data and Key Metrics Changes - The patient affordability business grew 212% year-over-year, reaching $12.7 million compared to $4.1 million in 2023 [9] - Claims processed in the patient affordability segment increased by 272%, and 33 net programs were added, representing a 77% increase over the previous year [9] - Plasma donor compensation business contributed $43.9 million in revenue for the year, a 4.6% increase over 2023's $42 million [11] - Fourth quarter plasma revenue decreased by 6.2% to $10.8 million, primarily due to oversupply issues [18] Market Data and Key Metrics Changes - The company exited 2024 with 480 plasma centers, an increase of 16 centers over the previous year, and anticipates adding 10 to 15 centers in 2025 [11] - The plasma business maintained a market share of just under 40% [18] - Fourth quarter pharma revenues of $12.7 million accounted for 21.7% of total revenue, up from 8.6% during the same period last year [20] Company Strategy and Development Direction - The long-term strategy focuses on expanding the depth and breadth of solutions to create new revenue streams, particularly in maturing segments [13] - The acquisition of Gamma Innovation LLC aims to enhance capabilities in plasma donor and pharmaceutical patient engagement, marking entry into the high-margin software-as-a-service market [14] - The company expects to at least double its patient affordability revenue in 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slowdown in the plasma business due to excess inventory and expects these conditions to persist through at least the remainder of 2025 [12] - The guidance for 2025 anticipates total revenues in the range of $68.5 million to $70 million, reflecting year-over-year growth of 17.5% to 20% [26] - Management expressed confidence in the patient affordability business continuing to grow significantly, projecting at least 100% year-over-year growth [26] Other Important Information - The company exited the year with $10.8 million in unrestricted cash and zero debt, a decrease of $6.3 million over 2023 [24] - The company repurchased 36,700 shares in the fourth quarter for approximately $135,000, totaling 136,700 shares for the year at approximately $495,000 [25] Q&A Session Summary Question: Understanding the strength in Q4 and 2025 - Management noted that 14 new programs were launched in 2025, with 10 added in Q4 2024, contributing to revenue visibility [35][37] Question: Marketing strategy for Gamma acquisition - The acquisition is aimed at enhancing engagement tools and capabilities for both plasma and pharmaceutical businesses, with no revenue from Gamma factored into guidance [39][41] Question: Issues causing slowdown in plasma business - Management explained the oversupply in the plasma collection industry due to overproduction post-COVID and increased plasma yields, leading to lower donations and compensation [50][51] Question: Anticipated additions to patient affordability programs - Management indicated that they aim to at least double the number of programs added in 2025, following a 77% increase in the previous year [66] Question: Cash portion of Gamma purchase price - The cash portion of the purchase price will be paid out over five years, with no specific amount disclosed [73]

Financial Performance - Full-year 2024 total revenues reached $58.38 million, representing a 23.5% increase from 2023[3] - Full-year 2024 net income was $3.82 million, or diluted earnings per share of $0.07, down from $6.46 million, or $0.12 per share in 2023[3] - Full-year 2024 Adjusted EBITDA increased by 43.3% to $9.62 million, with diluted Adjusted EBITDA per share at $0.17 compared to $0.12 in 2023[3] - Fourth quarter 2024 total revenues were $15.61 million, up 14.0% from the same quarter in 2023[8] - Fourth quarter 2024 net income was $1.37 million, or diluted earnings per share of $0.02, down from $5.62 million, or $0.10 per share in Q4 2023[8] - Fourth quarter 2024 Adjusted EBITDA was $2.86 million, a 14.3% increase from $2.51 million in Q4 2023[8] - For full-year 2025, total revenues are expected to be between $68.5 million and $70.0 million, representing year-over-year growth of 17.5% to 20.0%[15] - Net income for full-year 2025 is expected to be approximately break-even, or $0.00 per diluted share[15] - For the year ended December 31, 2024, net income was $1,372,872, a decrease from $5,622,409 in 2023[30] - Adjusted EBITDA for the year ended December 31, 2024, was $9,621,083, up from $6,712,966 in 2023, representing a 43.5% increase[30] - The company reported a net income margin of 6.5% for 2024, down from 13.7% in 2023[32] Revenue Sources - Patient affordability revenue surged by 214.5% to $8.63 million, contributing 21.7% of total revenue in 2024, expected to rise to over 37.0% in 2025[7][14] - Plasma revenue is projected to account for approximately 57.5% of total revenue, while pharma revenue is expected to grow at least 100% year-over-year[15] Operational Metrics - The total plasma center count increased by 16 to 480 centers, leading to a 4.6% increase in plasma revenue[3] - The company added 16 net plasma donation centers, ending the year with a total of 480 centers, and added 33 net pharma patient affordability programs, bringing the total to 76 active programs[16] Future Projections - For Q1 2025, total revenue is expected to be between $17.5 million and $18.0 million, with gross profit margins projected at 63.0% to 64.0%[15] - Full-year gross profit margins for 2025 are anticipated to be between 62.0% and 64.0%[15] - Operating expenses for 2025 are expected to be between $47.5 million and $50.0 million, including costs related to a recent acquisition[15] - Adjusted EBITDA for full-year 2025 is projected to be in the range of $12.5 million to $13.5 million, or $0.22 to $0.24 per diluted share[15] Cash and Debt Management - The company exited 2024 with $10.77 million in unrestricted cash and zero debt, having repurchased 136,700 shares for $495 thousand[3] - Restricted cash balances increased by 20.8% from December 31, 2023, to $111.58 million, primarily due to growth in customer programs[16] - The company expects to generate interest income of approximately $2.8 million in 2025[15] Cost and Expense Analysis - Stock-based compensation expense was $2,604,589 for the year ended December 31, 2024, down from $2,853,643 in 2023[30] - The income tax provision for 2024 was a benefit of $(137,265), compared to a benefit of $(4,259,730) in 2023[30] - Interest income, net, was $(3,116,689) for 2024, compared to $(2,531,071) in 2023[30] EBITDA and Margins - The Adjusted EBITDA margin improved to 16.5% in 2024 from 14.2% in 2023[32] - The EBITDA margin also increased to 12.0% in 2024 compared to 8.2% in 2023[32] - Basic Adjusted EBITDA per share remained stable at $0.05 for both 2024 and 2023[30] - The weighted average common shares for diluted calculations were 55,527,689 in 2024, compared to 53,773,758 in 2023[30]

Group 1 - Paysign, Inc. operates in the healthcare-focused Fintech sector and has made significant inroads into the estimated $500 million Patient Affordability market [1] - The company has achieved an impressive average revenue growth of 230% over the past four quarters specifically in its Pharma segment [1] - Despite being a small company, Paysign, Inc. has demonstrated strong performance metrics that may indicate potential investment opportunities [1]