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Paysign(PAYS) - 2025 Q1 - Quarterly Results
PaysignPaysign(US:PAYS)2025-05-08 20:05

Paysign, Inc. Q1 2025 Earnings Release First Quarter 2025 Highlights 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 programs345 - 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 48445 - The company ended the quarter with $6.85 million in unrestricted cash and no bank debt, after repurchasing 100,000 shares for $376 thousand47 Management Commentary Management highlighted strong Q1 performance, driven by patient affordability and Gamma Innovation acquisition synergies - CEO Mark Newcomer emphasized record revenue, operating income, and Adjusted EBITDA, with a 10.3 percentage point expansion in gross margins3 - The strategic focus is on unlocking the potential of the Gamma Innovation acquisition to enhance payment solutions and drive long-term growth in the plasma, pharmaceutical, and healthcare industries3 - CFO Jeff Baker noted that the patient affordability business's growth is offsetting the decline in the plasma segment. The Gamma acquisition is expected to yield significant operating efficiencies and cost savings9 Financial Performance Analysis First Quarter 2025 Detailed Financial Results Q1 2025 revenues grew significantly, driven by pharma patient affordability and improved gross margins, despite plasma decline Q1 2025 vs Q1 2024 Revenue Breakdown | Revenue Stream | Q1 2025 Revenue | Change ($) | 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 growth5 - 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 costs5 - 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 compensation5 Balance Sheet Analysis (as of March 31, 2025) 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 repurchases7 - 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 cards8 Business Outlook Updated Full-Year 2025 Outlook 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 revenue10 - Plasma revenue is projected to decline by 8.0% to 10.0% YoY, constituting about 57% of total revenue10 Second Quarter 2025 Outlook 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 affordability12 Appendix: Financial Statements & Reconciliations Condensed Consolidated Statements of Operation (Unaudited) 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 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 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% |