Summary of Paymentus Conference Call (December 09, 2025) Company Overview - **Company**: Paymentus (NYSE: PAY) - **Industry**: FinTech and Payments Key Points and Arguments Growth Metrics - Paymentus is experiencing over **35% gross revenue growth** and **40% EBITDA growth** based on current guidance [3][3] - The company has grown from **$5 million in revenue in 2010** to nearly **$1.2 billion** since going public, indicating significant organic growth [18][19] Platform and Strategy - The platform is designed to be **horizontally scalable**, allowing it to serve various verticals and customer sizes effectively [3][4] - The **Instant Payment Network** enhances the distribution of payments and engagement channels, contributing to operational leverage [4][4] Market Expansion - Paymentus has successfully diversified beyond utilities into sectors like **government, insurance, and property management** [8][8] - The company initially targeted utilities due to their complexity, which provided a strong foundation for scaling into other verticals [10][11] B2B Market Opportunity - The B2B segment represents a **larger Total Addressable Market (TAM)** compared to B2C, prompting Paymentus to expand its offerings in this area [12][13] - A significant B2B client has exceeded expectations, indicating strong potential for growth in this vertical [15][16] Market Share and Future Potential - Paymentus currently holds about **4% market share** in the traditional bill pay market, with significant room for growth as it captures more electronic payments [17][19] - The company believes it can double its size by converting existing customer payments to electronic formats [19][19] Revenue Growth Strategy - Long-term growth is projected at **20% CAGR**, driven by new implementations and existing customer growth [21][22] - The company emphasizes profitability alongside revenue growth, achieving **60%+ incremental EBITDA margins** in recent quarters [24][24] Implementation Efficiency - Paymentus has improved implementation times for larger clients, leveraging internal tools and frameworks developed during the COVID-19 pandemic [41][44] Free Cash Flow Generation - The company generated over **$100 million** in free cash flow in the last 12 months, with a conversion rate of about **140%** [45][46] - The business model is not capital-intensive, allowing for strong cash flow generation [46][46] Capital Allocation Strategy - Paymentus maintains a strong balance sheet and is focused on organic growth opportunities, with M&A being considered if suitable targets arise [48][50] - Share buybacks are not currently prioritized [50][50] Key Messages for Investors - Paymentus is positioned as a **long-term investment** with a strong growth algorithm and profitability focus [51][51] - The company aims to expand its market share while enhancing profitability and operational efficiency [51][51] Additional Important Insights - The company has successfully navigated challenges posed by the pandemic, adapting its strategies to maintain growth and efficiency [43][43] - Paymentus is committed to building a robust business model that balances growth with sustainable profitability [37][38]

Core Viewpoint - A securities class action lawsuit has been filed against Fiserv by Labaton Keller Sucharow, alleging that the company misled investors regarding its Clover payment gateway product and its overall business performance [1][2]. Group 1: Allegations of Misleading Information - The lawsuit claims that from July 24, 2024, to July 22, 2025, Fiserv misled investors by not disclosing that it forced merchants on its older Payeezy platform to migrate to Clover, which artificially inflated Clover's revenue growth and gross payment volume (GPV) while masking a slowdown in new merchant business [3]. - It is alleged that a significant number of former Payeezy merchants switched to competitors shortly after the forced conversions to Clover, indicating potential customer dissatisfaction [3]. - The lawsuit also states that Fiserv failed to disclose that Clover's GPV growth was significantly slowing and that its revenue growth was unsustainable, rendering the company's statements about Clover's business prospects materially false and misleading [4]. Group 2: Market Reaction and Stock Performance - The market began to recognize the alleged fraud on April 24, 2025, when Fiserv reported Clover GPV growth of only 8% for Q1 2025, a significant decline from the 14% to 17% growth rates in 2024, leading to an 18.5% drop in Fiserv's stock price to $176.90 per share [5]. - Following this, the stock further declined to $159.13 on May 15, 2025, after Fiserv indicated that the slowdown in GPV growth would persist throughout 2025, and dropped to $143.00 per share on July 23, 2025, when the company lowered its full-year organic growth guidance [5][6]. Group 3: Class Action Details - The lawsuit has been filed on behalf of the City of Hollywood Police Officers' Retirement System, and it includes all individuals who purchased or acquired Fiserv common stock during the class period and suffered damages [6]. - Fiserv has recently adjusted its guidance for overall 2025 organic revenue growth rates to 10%, which is at the lower end of its previously targeted range of 10% to 12% [6].