Paysign raises 2025 revenue guidance to $81.5M while expanding patient affordability programs

Earnings Call Insights: Paysign, Inc. (PAYS) Q3 2025

MANAGEMENT VIEW

* Mark Newcomer, President and CEO, announced "record revenue of $21.6 million, up 41.6% year-over-year. Adjusted EBITDA reached a record $5 million, an increase of 78%, and net income rose 54% to $2.2 million or $0.04 per fully diluted share." He highlighted operational efficiencies and exceptional growth in the Patient Affordability business, which generated $7.9 million in revenue, up 142% from the prior year. The company ended the quarter with 105 active programs and expects "to add 20 to 30 more by year-end, including 13 launched in October." Newcomer emphasized the opening of a new 30,000 square foot support center, quadrupling support capacity and supporting "a growing high-value offering, dedicated patient support representatives."
* He noted ongoing expansion in retail pharmaceutical programs as a top sales priority and described the pipeline as "robust, fueled by both new and existing clients across retail and specialty."
* For the plasma donor compensation business, revenue grew 12.4% year-over-year to $12.9 million, despite a net loss of 12 centers, ending with 595 active centers. Newcomer said, "average donor compensation per donation increased during the quarter, and that trend is carried into Q4."
* He mentioned strong industry interest in the company’s Software-as-a-Service engagement platform for plasma, stating, "The reception has been overwhelmingly positive, reinforcing our confidence in the long-term opportunity for this business line."
* Jeffery Baker, CFO, stated, "Revenue and adjusted EBITDA results exceeded the guidance we provided last quarter." He pointed to improving gross profit margins and anticipated further "improvement from these levels as the new centers mature over the next 6 to 9 months."
* Baker added, "We have raised our net income estimates to be between $7 million and $8 million for the year or $0.12 to $0.13 per diluted share. Adjusted EBITDA is now expected to be in the range of $19 million to $20 million or $0.32 to $0.34 per diluted share."

OUTLOOK

* The company raised its 2025 revenue guidance to a range of $80.5 million to $81.5 million, reflecting year-over-year growth of 38.7% at the midpoint. Plasma is estimated to make up approximately 57% of total revenue, while pharma patient affordability revenue is expected to comprise about 41%, representing year-over-year growth of over 155%.
* Full year gross profit margins are expected to be approximately 60%, with operating expenses projected between $41.5 million and $42.5 million, and depreciation and amortization expense of about $8.4 million. Stock-based compensation is projected at approximately $4.3 million.
* The company expects interest income of approximately $2.6 million, a full year tax rate of 18.7%, and a fully diluted share count of 59.76 million shares.

FINANCIAL RESULTS

* Q3 revenue was $21.6 million, an increase of $6.3 million or 41.6% year-over-year. Adjusted EBITDA was $5 million, up $2.2 million or 78.1%. Plasma revenue rose 12.4% to $12.9 million, and patient affordability revenues jumped 142% to $7.9 million, accounting for 36.7% of quarterly revenues.
* Gross profit margin for the quarter improved to 56.3%. SG&A, excluding depreciation, amortization, and stock-based compensation, improved to 32.9% of revenue. Total operating expenses were 48.9% of revenue. Compensation and benefits increased 20.3% to $7.2 million, and stock compensation increased 32% to $1.3 million.
* Net income was $2.2 million or $0.04 per fully diluted share. Adjusted unrestricted cash balance was $16.9 million with zero debt.

Q&A

* Jacob Stephan, Lake Street Capital Markets, LLC, Research Division: Asked about the mix and pipeline of retail versus specialty pharmacy programs. Matthew Turner, President of Patient Affordability: Stated the pipeline is shifting toward a higher percentage of retail programs, with higher claim volumes expected due to broader patient use in retail compared to specialty drugs.
* Stephan asked about gross profit margin expansion as the patient support center ramps. Jeffery Baker explained that new patient affordability programs (not plasma centers) are expected to mature and contribute to improved margins, as fees typically "don't kick in for 90-plus days."
* Stephan questioned a sequential step-down in pharma revenue per program in Q4. Baker clarified that "it's a mix issue where the mix is more geared towards claims versus initial launch fees" and emphasized year-over-year metrics over sequential comparisons.
* Gary Prestopino, Barrington Research: Asked about revenue differences between mature programs and between specialty and retail programs. Turner responded that profitability varies by program and that specialty programs using dynamic business rules are generally more profitable.
* Peter Heckmann, D.A. Davidson: Inquired about plasma donor trends related to government shutdown and immigration. Baker and Newcomer stated there was "zero impact" from immigration, and no notable change from the shutdown.

SENTIMENT ANALYSIS

* Analysts focused on growth drivers, margin expectations, and revenue mix, reflecting a neutral to slightly positive tone, with a few probing questions about program profitability and business segment contributions.
* Management maintained a confident and optimistic tone, with Baker stating, "We could not be more excited about the prospects of our business for the remainder of this year and throughout 2026."
* Compared to the previous quarter, analysts’ tone remained consistently constructive, while management’s confidence appeared to strengthen, highlighted by raised guidance and upbeat commentary.

QUARTER-OVER-QUARTER COMPARISON

* The company raised its full-year revenue and net income guidance compared to Q2, reflecting stronger-than-expected Q3 results.
* The strategic focus has shifted further toward scaling the patient affordability segment and investing in support infrastructure, with the opening of the new support center and ongoing SaaS platform development for plasma.
* Analysts’ focus shifted from the onboarding of plasma centers in Q2 to the profitability and mix of patient affordability programs in Q3.
* Key metrics such as revenue, adjusted EBITDA, and net income saw robust growth quarter-over-quarter.
* Management’s confidence and forward-looking optimism intensified, supported by operational wins and improved financial outlook.

RISKS AND CONCERNS

* The plasma industry continues to face "an oversupply of sourced plasma," which management expects to normalize in the first half of 2026.
* New plasma centers are not yet at full maturity, impacting per-center revenue and gross margins, though improvement is anticipated as centers mature.
* Management noted no material impact from government shutdowns or immigration changes but acknowledged the timing of FDA approval for the BECS platform could impact future growth.

FINAL TAKEAWAY

Paysign’s Q3 2025 call highlighted record revenue, significant margin improvement, and a sharply raised outlook for full-year growth, driven by the scaling of patient affordability programs and continued expansion in the plasma segment. Management’s confidence is underscored by operational milestones, new client wins, and a robust pipeline, while ongoing investments in infrastructure and technology position the company for continued momentum into 2026.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/pays/earnings/transcripts]

MORE ON PAYSIGN

* Paysign, Inc. (PAYS) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4842788-paysign-inc-pays-q3-2025-earnings-call-transcript]
* Paysign: Gaining Traction In The Patient Affordability Space Into 2026 (Hold) [https://seekingalpha.com/article/4827157-paysign-gaining-traction-in-patient-affordability-space-into-2026-hold]
* Paysign GAAP EPS of $0.04 beats by $0.02, revenue of $21.6M beats by $1.68M [https://seekingalpha.com/news/4520856-paysign-gaap-eps-of-0_04-beats-by-0_02-revenue-of-21_6m-beats-by-1_68m]
* Seeking Alpha’s Quant Rating on Paysign [https://seekingalpha.com/symbol/PAYS/ratings/quant-ratings]
* Historical earnings data for Paysign [https://seekingalpha.com/symbol/PAYS/earnings]