Paysign, Inc. Reports Third Quarter 2025 Financial Results
HENDERSON, Nev.--( BUSINESS WIRE)--Paysign, Inc. (NASDAQ: PAYS), a leading provider of patient affordability programs, donor compensation solutions, engagement and management software platforms and integrated payment processing for the life sciences industries, today announced financial results for the third quarter 2025.
“Q3 2025 proved once again to be a record-breaking quarter for Paysign,” said Mark Newcomer, President and CEO. “Our revenue soared to $21.6 million, reflecting an outstanding 41.6% year-over-year growth rate. Adjusted EBITDA reached a new high of $5.0 million, up 78.1%, while net income improved by a healthy 54.2% to $2.2 million. These results underscore the exceptional momentum and improving operational efficiencies driving our business forward.”
“Our pharma patient affordability business continues to exceed expectations, growing an impressive 141.9%. We ended the quarter with 105 active programs and anticipate adding another 20-30 programs before year end, a testament to the strong demand for our innovative solutions. During the quarter, we announced the opening of our new, 30,000-square-foot customer service contact center. This transformative expansion has increased our support capacity fourfold, empowering us to meet the surging demand and deliver exceptional service as we prepare for significant acceleration in our patient affordability business in the new year. With this enhanced infrastructure, we are fully prepared to capitalize on the tremendous growth opportunities ahead and continue setting new standards for excellence.”
“Our plasma donor compensation business returned to year-over-year growth, increasing 12.4% over the prior year. Our suite of SaaS donor engagement technologies has been well received by plasma collection companies and plasmapheresis machine manufacturers alike. We continue to showcase these products to the plasma industry as we await FDA 510(k) approval on our donor management system targeted at the blood and plasma collection space.”
“With patient affordability continuing its exceptional growth trajectory, growth returning to plasma, and the many opportunities that lie ahead for our SaaS engagement technology solutions, we are well-positioned to deliver long term value to our shareholders.”
2025 Third Quarter Results
The following additional details are provided to aid in understanding Paysign’s third quarter 2025 results versus third quarter 2024:
Third Quarter 2025 Milestones
Balance Sheet at September 30, 2025
The company’s total cash balances decreased $3.79 million from December 31, 2024, for the reasons discussed below.
Unrestricted cash decreased $3.24 million to $7.53 million from December 31, 2024, primarily from payment timing on passthrough claim reimbursement receivables and related payables associated with our patient affordability business in the amount of $9.36 million. Also impacting our unrestricted cash balance was the ongoing investment in our platform, the purchase of the assets of Gamma Innovation LLC (“Gamma”), the opening of a new customer service contact center and the repurchase of 100,000 shares of common stock. These decreases were offset by improvements in our operating results, collection of tax credits and proceeds from exercised stock options.
Restricted cash decreased $553 thousand to $111.02 million from December 31, 2024, primarily related to a decrease in customer program deposits for our plasma customers and funds on cards of $12.12 million, offset by an increase of pharma patient affordability deposits of $11.57 million. Restricted cash is funds used for customer card funding and pharmaceutical claim reimbursements with a corresponding offset under current liabilities.
Updated 2025 Outlook
“We delivered another quarter of solid operating results with our pharma patient affordability business leading the way, representing 36.7% of revenue, a significant increase from the 21.5% of revenue it contributed during the same period last year. This, coupled with the 117 net plasma centers we added over the past 12 months, continues to help offset the decline we continue to experience in plasma due largely to an industry-wide oversupply of plasma inventories which we expect will abate in the first half of 2026. Our gross profit margins improved by 70 basis points (bps) from 55.5% to 56.3%, due to a greater percentage of pharma patient affordability revenues, offset by the new plasma centers not being fully mature as well as additional costs associated with our new customer service contact center. Our operating margin improved by 280 bps from 4.5% to 7.3%, our net margin improved by 90 bps, from 9.4% to 10.3% and our Adjusted EBITDA margin improved by 480 bps, from 18.5% to 23.3%, demonstrating the operating leverage inherent in our business model while still making significant investments in people and infrastructure to ensure the success of our growing businesses,” said Jeff Baker, Paysign CFO.
“With the results of our third quarter of 2025 now in the books, we are once again revising our full-year 2025 estimated results upward. In general, we expect our fourth quarter results to be similar to our third quarter results, reflecting flat plasma revenue, the launch of additional patient affordability programs and seasonally lower claim activity. Full-year 2025 total revenues are now estimated to be in the 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, reflecting modest year-over-year growth, while pharma patient affordability revenue is expected to make up approximately 41% of total revenue, representing year-over-year growth of over 155%. Full-year gross profit margins are expected to be approximately 60%. We expect operating expenses to be between $41.5 million and $42.5 million with depreciation and amortization expenses of approximately $8.4 million and stock-based compensation expense of approximately $4.3 million. Interest income is estimated to be approximately $2.6 million, reflecting lower interest rates and the implied interest expense for future Gamma payments. We expect our full-year tax rate to be 18.7% and our fully diluted share count to be 59.76 million shares. Taking all the factors above into consideration, we expect net income to be between $7.0 million and $8.0 million for the year, or $0.12 to $0.13 per diluted share. At the mid-point, this equates to a net margin of 9.3% versus 6.5% the year prior, an improvement of 280 basis points. Adjusted EBITDA is expected to be in the range of $19.0 million to $20.0 million, or $0.32 to $0.34 per diluted share. At the mid-point, this equates to an Adjusted EBITDA margin of 24.1% versus 16.5% the year prior, an improvement of 760 basis points,” Baker concluded.
Third Quarter 2025 Financial Results Conference Call Details
The company will hold a conference call at 5:00 p.m. Eastern time on Wednesday, November 12, 2025, to discuss its third quarter 2025 financial results. The conference call may include forward-looking statements. The dial-in information for this call is 877.407.2988 (within the U.S.) and +1.201.389.0923 (outside the U.S.). A call replay will be available until May 12, 2026, and can be accessed by dialing 877.660.6853 (within the U.S.) and +1.201.612.7415 (outside the U.S.), using passcode 13756404.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements, besides statements of fact included in this release are forward-looking. Such forward-looking statements include, among others, our belief that our third quarter financial results underscore the exceptional momentum and improving operational efficiencies driving our business forward; our expectation to add another 20-30 programs before year-end, a testament to the strong demand for our innovative solutions; our belief that the opening of our new customer service contact center is a transformative expansion that has increased our support capacity fourfold, empowering us to meet the surging demand and deliver exceptional service as we prepare for significant acceleration in our patient affordability business in the new year; our belief that with this enhanced infrastructure, we are fully prepared to capitalize on the tremendous growth opportunities ahead and continue setting new standards for excellence; our belief that with patient affordability continuing its exceptional growth trajectory, growth returning to plasma and the many opportunities that lie ahead for our SaaS engagement technology solutions, we are well-positioned to deliver long-term value to our shareholders; our expectation that the industry-wide oversupply of plasma inventories will abate in the first half of 2026; our belief that the improvement of our operating margin, our net margin and our Adjusted EBITDA margin demonstrates the operating leverage inherent in our business model while still making significant investments in people and infrastructure to ensure the success of our growing business; our expectations for fourth quarter results to be similar to our third quarter results, reflecting flat plasma revenue, the launch of additional patient affordability programs and seasonally lower claim activity; and our expectations for total revenues, plasma revenue percentage of total revenue, pharma patient affordability revenue percentage of total revenue, gross profit margins, operating expenses, depreciation and amortization expenses, stock-based compensation expense, interest income, tax rate, fully diluted share count, net income, net margin, Adjusted EBITDA and Adjusted EBITDA margin for the full-year 2025. We caution that these statements are qualified by important risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the inability to continue our current growth rate in future periods; that a downturn in the economy could reduce our customer base and demand for our products and services, which could have an adverse effect on our business, financial condition, profitability and cash flows; operating in a highly regulated environment; failure by us or business partners to comply with applicable laws and regulations; changes in the laws, regulations, credit card association rules or other industry standards affecting our business; that a data security breach could expose us to liability and protracted and costly litigation; and other risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024. Except to the extent required by federal securities laws, the company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
About Paysign, Inc.
Paysign, Inc. (NASDAQ: PAYS) is a leading financial services provider uniquely positioned to provide technology solutions tailored to the healthcare industry. As an early innovator in prepaid card programs, pharma patient affordability, digital banking services and integrated payment processing, Paysign enables countless exchanges of value for businesses, consumers and government agencies across all industry types.
Incorporated in southern Nevada in 1995, Paysign operates on a powerful, high-availability payments platform with cutting-edge fintech capabilities that can be seamlessly integrated with our clients’ systems. This distinctive positioning allows Paysign to provide end-to-end technologies that securely manage transaction processing, cardholder enrollment, value loading, account management, data and analytics and customer service. Paysign’s architecture is known for its cross-platform compatibility, flexibility and scalability – allowing our clients and partners to leverage these advantages for cost savings and revenue opportunities.
Through Paysign’s direct connections for processing and program management, the company navigates all aspects of the prepaid card lifecycle completely in house – from concept and card design to inventory, fulfillment and launch. The company’s 24/7/365 in-house, bilingual customer service is facilitated through live agents, interactive voice response (IVR) and two-way SMS alerts, reflecting the company’s commitment to world-class consumer support.
For more than two decades, Paysign has been a trusted partner for major pharmaceutical and healthcare companies, as well as multinational corporations, delivering fully managed programs built to meet their individual business goals. The company’s suite of offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable (GPR) debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and copay assistance. For more information, visit paysign.com.
Paysign, Inc.
Condensed Consolidated Statements of Operation (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Revenues
Plasma industry
$
12,860,478
$
11,439,534
$
33,014,282
$
33,080,830
Pharma industry
7,920,604
3,274,888
24,293,163
8,338,433
Other
815,396
542,009
1,965,535
1,358,841
Total revenues
21,596,478
15,256,431
59,272,980
42,778,104
Cost of revenues
9,446,089
6,783,117
23,676,598
19,779,776
Gross profit
12,150,389
8,473,314
35,596,382
22,998,328
Operating expenses
Selling, general and administrative
8,378,018
6,217,844
23,976,238
18,149,506
Depreciation and amortization
2,190,420
1,565,621
6,111,520
4,291,648
Total operating expenses
10,568,438
7,783,465
30,087,758
22,441,154
Income from operations
1,581,951
689,849
5,508,624
557,174
Other income
Interest income, net
663,666
800,715
2,031,024
2,345,416
Income before income tax provision
2,245,617
1,490,564
7,539,648
2,902,590
Income tax provision
30,482
53,727
1,350,652
459,555
Net income
$
2,215,135
$
1,436,837
$
6,188,996
$
2,443,035
Net income per share
Basic
$
0.04
$
0.03
$
0.11
$
0.05
Diluted
$
0.04
$
0.03
$
0.10
$
0.04
Weighted average common shares
Basic
54,797,527
53,450,613
54,205,002
53,102,454
Diluted
61,770,520
56,051,960
58,955,421
55,613,026
Paysign, Inc.
Condensed Consolidated Balance Sheets
September 30,
2025
(Unaudited)
December 31,
2024
(Audited)
ASSETS
Current assets
Cash
$
7,529,047
$
10,766,982
Restricted cash
111,022,839
111,576,204
Accounts receivable, net
49,644,417
32,639,242
Other receivables
651,294
1,606,276
Prepaid expenses and other current assets
2,456,060
2,247,929
Total current assets
171,303,657
158,836,633
Fixed assets, net
1,451,605
1,157,975
Intangible assets, net
23,341,906
12,239,717
Goodwill
4,487,637
–
Operating lease right-of-use asset
5,935,797
2,792,922
Deferred tax asset, net
2,988,483
4,000,950
Total assets
$
209,509,085
$
179,028,197
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities
$
39,441,663
$
34,330,217
Customer card funding
110,360,889
111,328,270
Operating lease liability, current portion
583,773
448,008
Other liabilities, current portion
1,728,852
–
Total current liabilities
152,115,177
146,106,495
Operating lease liability, long-term portion
5,495,452
2,480,070
Other liabilities, long-term portion
6,140,651
–
Total liabilities
163,751,280
148,586,565
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock: $0.001 par value; 25,000,000 shares authorized; none issued and outstanding
–
–
Common stock; $0.001 par value; 150,000,000 shares authorized, 55,977,596 and 54,358,382 issued at September 30, 2025 and December 31, 2024, respectively
55,978
54,358
Additional paid-in capital
34,133,548
24,632,205
Treasury stock at cost, 934,708 and 834,708 shares, respectively
(2,148,715
)
(1,772,929
)
Retained earnings
13,716,994
7,527,998
Total stockholders’ equity
45,757,805
30,441,632
Total liabilities and stockholders’ equity
$
209,509,085
$
179,028,197
Paysign, Inc. Non-GAAP Measures
To supplement Paysign’s financial results presented on a GAAP basis, we use non-GAAP measures that exclude from net income the following cash and non-cash items: interest, taxes, depreciation and amortization and stock-based compensation. We believe these non-GAAP measures used by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting, and investors should read them in conjunction with the company’s financial statements prepared in accordance with GAAP. The non-GAAP measures we use may be different from, and not directly comparable to, similarly titled measures used by other companies.
“EBITDA” is defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” reflects the adjustment to EBITDA to exclude stock-based compensation charges.
EBITDA and Adjusted EBITDA are not intended to represent cash flows from operations, operating income or net income as defined by U.S. GAAP as indicators of operating performances. Management cautions that amounts presented in accordance with Paysign’s definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate Adjusted EBITDA in the same manner.
Paysign, Inc.
Adjusted EBITDA (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Reconciliation of Adjusted EBITDA to net income:
Net income
$
2,215,135
$
1,436,837
$
6,188,996
$
2,443,035
Income tax provision
30,482
53,727
1,350,652
459,555
Interest income, net
(663,666
)
(800,715
)
(2,031,024
)
(2,345,416
)
Depreciation and amortization
2,190,420
1,565,621
6,111,520
4,291,648
EBITDA
3,772,371
2,255,470
11,620,144
4,848,822
Stock-based compensation
1,265,591
573,499
2,892,309
1,907,588
Adjusted EBITDA
$
5,037,962
$
2,828,969
$
14,512,453
$
6,756,410
Adjusted EBITDA per share
Basic
$
0.09
$
0.05
$
0.27
$
0.13
Diluted
$
0.08
$
0.05
$
0.25
$
0.12
Weighted average common shares
Basic
54,797,527
53,450,613
54,205,002
53,102,454
Diluted
61,770,520
56,051,960
58,955,421
55,613,026
“EBITDA margin” is defined as earnings before interest, income taxes, depreciation and amortization expense as a percentage of the company’s revenue and “Adjusted EBITDA margin” reflects the adjustment to EBITDA margin to exclude stock-based compensation expense as a percentage of revenue. A reconciliation of net income margin to EBITDA margin and Adjusted EBITDA margin is provided in the table below.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Reconciliation of adjusted EBITDA margin to net income margin:
Net income margin
10.3%
9.4%
10.4%
5.7%
Income tax provision
0.1%
0.4%
2.3%
1.1%
Interest income, net
(3.1%
)
(5.2%
)
(3.4%
)
(5.5%
)
Depreciation and amortization
10.1%
10.3%
10.3%
10.0%
EBITDA margin
17.5%
14.8%
19.6%
11.3%
Stock-based compensation
5.9%
3.8%
4.9%
4.5%
Adjusted EBITDA margin
23.3%
18.5%
24.5%
15.8%