Earnings release
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1 Paymentus Reports Third Quarter 2026 Financial Results Revenue up 19.8% year-over-year Contribution Profit up 20.6% year-over-year Adjusted EBITDA up 38.6% year-over-year, with record adjusted EBITDA margin of 41.9% Dallas, Texas, November 2, 2026 -- Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading provider of cloud-native billing, payment, disbursement and AI-enabled Service Commerce solutions, today announced its unaudited financial results for the quarter ended September 30, 2026. “Paymentus delivered another strong quarter, with 19.8% year-over-year revenue growth. This revenue performance drove growth in contribution profit and adjusted EBITDA of 20.6% and 38.6%, respectively. Our year-to-date results, combined with strong bookings and a sizable backlog, reinforce our confidence in achieving our 2026 financial targets as well as our outlook for 2027,” said Dushyant Sharma, Founder and CEO. Third Quarter 2026 Financial and Business Highlights • Revenue increased 19.8% year-over-year to reach a record $372.2 million, driven largely by growth in billers and transaction volumes. • Gross profit was $93.8 million, an increase of 25.4% year-over-year. Adjusted gross profit(1) was $99.8 million, up 23.1% year-over-year. • Contribution profit(1) was $118.5 million, a year-over-year increase of 20.6%. • Net income was $27.5 million, compared with $17.7 million in the same period in 2025, and diluted GAAP earnings per share was $0.21, compared to $0.14 in the same period in 2025. • Non-GAAP net income(1, 2) was $33.1 million, compared with $22.6 million in the same period in 2025, and diluted non-GAAP earnings per share(1, 2) was $0.25, compared with $0.17 in the same period in 2025. • Adjusted EBITDA(1) was $49.7 million, a 38.6% increase year-over-year, representing a 41.9% adjusted EBITDA margin(1). • The Company processed 219.0 million transactions during the third quarter of 2026, an increase of 20.1% year- over-year. (1) Descriptions of the non-GAAP financial measures adjusted gross profit, contribution profit, non-GAAP net income, non- GAAP earnings per share, adjusted EBITDA, and adjusted EBITDA margin are provided below under “Use and Definitions of Non-GAAP Financial Measures,” and reconciliations are provided in the tables at the end of this release. (2) Non-GAAP net income and non-GAAP earnings per share are adjusted for an assumed provision for income taxes based on our long-term projected non-GAAP tax rate of 25%. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information regarding non-GAAP net income and non-GAAP earnings per share. Financial Guidance The statements in this section are forward-looking statements. For additional information regarding the use and limitations of such statements, refer to “Forward-Looking Statements” below and the “Risk Factors” section of Paymentus’ most recent Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission, or SEC, on February 24, 2026, and our subsequent Quarterly Reports on Form 10-Q and other filings with the SEC.
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2 Fourth Quarter 2026 Fiscal Year 2026 Revenue $373 million to $378 million $1,464 million to $1,469 million Contribution Profit $120 million to $122 million $466 million to $468 million Adjusted EBITDA $45 million to $50 million $186 million to $191 million Paymentus does not reconcile its forward-looking guidance for non-GAAP measures because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated due to potential variability, complexity and uncertainty as to the items that would be excluded from the GAAP measure in the relevant future period. Refer to “Use of Forward-Looking Non-GAAP Measures” below for additional explanation. Conference Call Information In conjunction with this announcement, Paymentus will host a conference call for investors today at 5:00 p.m. ET (2:00 p.m. PT) to discuss third quarter 2026 results and its financial guidance for the remainder of 2026. The live webcast and replay will be available in the Investor Relations section of Paymentus’ website at ir.paymentus.com or click here. An audio version of the webcast will be available by calling (800) 715-9871 or (646) 307-1963 (conference ID: 7276930). An audio replay will be available after 8:00 p.m. Eastern Time by calling (800) 770-2030 or (609) 800-9909 (conference ID: 7276930). About Paymentus Paymentus (NYSE: PAY) is a leading provider of cloud-native billing, payment, disbursement and AI-enabled Service Commerce solutions for businesses and financial institutions. Our platform enables secure, intelligent consumer experiences across digital and assisted channels while providing enterprises with the integration, orchestration and payment capabilities to manage complex service interactions at scale. Paymentus processes more than 790 million transactions annually across inbound bill payments, multi-party disbursements and payouts, serves approximately 53 million consumers and businesses worldwide, and provides solutions to more than 30 Fortune 500 enterprises across 35 countries. Paymentus’ proprietary Instant Payment Network™ (IPN) extends the reach of our platform by connecting ecosystem partners and tens of thousands of billers to integrated billing, payment, disbursement and reconciliation capabilities. For more information, visit www.paymentus.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements included in this press release, other than statements of historical or current fact, are forward-looking statements, including but not limited to statements regarding bookings, backlog and pipeline, visibility into 2026 and beyond, our ability to deliver near- term and longer-term growth and strategic objectives, future financial performance and our fourth-quarter and full-year 2026 financial guidance. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Paymentus' current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including, without limitation, risks related to our ability to effectively manage our growth and expand our operations, including into new channels and industry verticals across different markets; our ability to expand and retain our base of billers, financial institutions, partners and consumers; our ability to implement new bookings in a timely manner and recognize anticipated revenue therefrom; our ability to manage economic challenges, including inflation; the impact of future widespread health issues on our operating results, liquidity and financial condition and on our employees, billers, financial institutions, partners, consumers and other key stakeholders; our ability to remain competitive; our ability to develop new product features and enhance our platform and brand; our use of artificial intelligence and machine learning; our future acquisitions and strategic investments; our ability to hire and retain experienced and talented employees; the impact of any cybersecurity incidents; the impact of evolving regulations and our ability to maintain regulatory compliance; and other risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings with the SEC, including, without limitation, our Annual Report on Form 10- K for the year ended December 31, 2025, filed with the SEC on February 24, 2026, and subsequent Quarterly Reports on Form 10-Q, including our Quarterly Report on Form 10-Q for the quarter ended September 30,
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3 2026, which we expect to file with the SEC shortly after the date of this release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and speak only as of the date hereof, and Paymentus undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law. Use of Forward-Looking Non-GAAP Measures Paymentus does not meaningfully reconcile guidance for adjusted EBITDA and adjusted EBITDA margin because we cannot provide guidance for the more significant reconciling items between net income and adjusted EBITDA without unreasonable effort. This is due to the fact that future-period non-GAAP guidance includes adjustments for items not indicative of Paymentus' core operations, which may include, without limitation, items included in the supplemental financial information for reconciliation of reported GAAP results to non-GAAP results. Such items include acquisition-related amortization expense for acquired intangibles, foreign exchange gains and losses, adjustments to our income tax provision and certain other items we believe to be non-indicative of our ongoing operations. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual or unanticipated charges, expenses, gains or losses, or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant. In addition, Paymentus does not meaningfully reconcile guidance for contribution profit because contribution profit is affected by variables outside our control, such as changes in the average payment amount, payment mix and the payment channels used by consumers, and therefore cannot be estimated without unreasonable effort, if at all. Use and Definitions of Non-GAAP Financial Measures In addition to disclosing financial measures in accordance with accounting principles generally accepted in the United States, or GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures, including adjusted gross profit, contribution profit, non-GAAP net income, non-GAAP earnings per share, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating expense and free cash flow. Paymentus uses non-GAAP measures to supplement financial information presented on a GAAP basis. Paymentus believes that excluding certain items from GAAP results allows management and our board of directors to more fully understand our consolidated financial performance from period to period and helps management project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Adjusted gross profit is defined as gross profit adjusted for certain non-cash items, primarily stock-based compensation and amortization of acquisition-related intangible assets and capitalized software development costs. Contribution profit is defined as gross profit plus other cost of revenue. Other cost of revenue equals cost of revenue less interchange, assessment and other network fees paid by us to our payment processors. Interchange, assessment and other network fees paid by us to our payment processors are excluded from contribution profit because we believe their inclusion is less directly reflective of our operating performance as we do not control the payment channel used by consumers, which is the primary determinant of the amount of interchange, assessment and other network fees. We use contribution profit to measure the amount available to fund our operations after interchange, assessment and other network fees, which are directly linked to the number of transactions we process and thus our revenue and gross profit. Adjusted EBITDA is defined as net income before interest income (expense), net, other income (expense), depreciation and amortization of acquisition-related intangible assets and capitalized software development costs, and income taxes, adjusted to exclude foreign exchange gain (loss), the effects of stock-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of contribution profit. Non-GAAP operating expense is defined as total operating expense excluding amortization of acquisition-related intangibles, stock-based compensation and other nonrecurring expenses. Management believes that the adjustment of acquisition-related intangibles amortization supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. Although we exclude amortization of acquisition-related intangible assets from our non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue
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4 generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Non-GAAP net income and non-GAAP EPS are defined as the applicable GAAP measures, adjusted for (1) stock-based compensation, (2) amortization of acquisition-related intangibles, (3) certain nonrecurring items such as discrete tax items, one-time expenses or other non-cash items, and (4) an assumed provision for income taxes based on our long-term projected non-GAAP tax rate. Our long-term projected non-GAAP tax rate is subject to change for a variety of reasons, including significant changes in our earnings, tax adjustments and potential future changes to business operations. We will re-evaluate our long-term projected tax rate as appropriate. We believe non-GAAP net income and non-GAAP EPS enhance the understanding of our operating performance and enable more meaningful period-to-period comparisons. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures, other intangible assets acquired, and capitalized internal-use software development costs. Paymentus believes these non-GAAP measures provide our investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. Paymentus uses these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance and liquidity, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance and liquidity. There are limitations to the use of the non-GAAP measures presented in this press release. Our non-GAAP measures may not be comparable to similarly titled measures of other companies; other companies, including companies in our industry, may calculate non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes. These non-GAAP measures should not be considered in isolation from or as a substitute for financial measures prepared in accordance with GAAP. Paymentus encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view our non-GAAP measures in conjunction with GAAP financial measures. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables for the reconciliation of GAAP to non-GAAP results included at the end of this release. CONTACTS: At the Company Sanjay Kalra Chief Financial Officer Paymentus Holdings, Inc. ir@paymentus.com Investor Relations David Hanover paymentus@kcsa.com Media Relations Tony Labriola media-relations@paymentus.com
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5 PAYMENTUS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Revenue $ 372,175 $ 310,737 $ 1,091,352 $ 866,049 Cost of revenue 278,333 235,888 816,967 653,699 Gross profit 93,842 74,849 274,385 212,350 Operating expenses Research and development 15,292 15,219 46,942 45,551 Sales and marketing 32,265 25,478 95,522 81,139 General and administrative 12,749 14,291 39,212 34,188 Total operating expenses 60,306 54,988 181,676 160,878 Income from operations 33,536 19,861 92,709 51,472 Interest income, net 3,218 2,578 8,791 6,976 Other income 77 163 80 324 Income before income taxes 36,831 22,602 101,580 58,772 Provision for income taxes 9,351 4,858 27,660 12,508 Net income $ 27,480 $ 17,744 $ 73,920 $ 46,264 Net income per share Basic $ 0.22 $ 0.14 $ 0.59 $ 0.37 Diluted $ 0.21 $ 0.14 $ 0.57 $ 0.36 Weighted-average number of shares used to compute net income per share Basic 126,028,733 125,341,855 125,854,573 125,159,766 Diluted 130,337,448 129,249,477 129,478,554 129,053,404
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6 PAYMENTUS HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) September 30, December 31, 2026 2025 Assets Current assets Cash and cash equivalents $ 407,616 $ 320,908 Restricted cash and cash equivalents 2,021 3,630 Accounts and other receivables, net of allowance for expected credit losses of $525 and $452, respectively 109,776 102,338 Income tax receivable 2,179 1,207 Prepaid expenses and other assets 12,402 13,248 Total current assets 533,994 441,331 Property and equipment, net 2,306 877 Capitalized internal-use software development costs, net 73,772 70,920 Intangible assets, net 9,535 11,987 Goodwill 131,777 131,815 Operating lease right-of-use assets 7,594 6,380 Deferred tax asset 1,223 314 Prepaid expenses and other assets, less current portion 3,671 4,261 Total assets $ 763,872 $ 667,885 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 74,384 $ 63,972 Accrued and other liabilities 30,736 27,671 Current portion of operating lease liabilities 2,543 2,294 Contract liabilities 2,945 3,496 Income tax payable 226 1,416 Total current liabilities 110,834 98,849 Operating lease liabilities, less current portion 5,487 4,560 Contract liabilities, less current portion 2,854 3,404 Accrued and other liabilities, less current portion 1,454 683 Total liabilities 120,629 107,496 Stockholders’ equity Class A common stock, $0.0001 par value per share, 883,950,000 shares authorized as of September 30, 2026 and December 31, 2025; 78,633,297 and 62,459,587 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively 8 6 Class B common stock, $0.0001 par value per share, 111,050,000 shares authorized as of September 30, 2026 and December 31, 2025; 47,477,189 and 63,121,661 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively 4 6 Additional paid-in capital 407,145 397,954 Accumulated other comprehensive loss (684) (427) Retained earnings 236,770 162,850 Total stockholders’ equity 643,243 560,389 Total liabilities and stockholders' equity $ 763,872 $ 667,885
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7 PAYMENTUS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Cash flows from operating activities Net income $ 27,480 $ 17,744 $ 73,920 $ 46,264 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 9,630 10,267 28,949 31,491 Deferred income taxes 154 5,034 (910) 3,043 Stock-based compensation 6,226 5,159 18,386 12,929 Amortization of capitalized warrants cost 292 572 866 1,696 Non-cash operating lease expense 773 600 2,271 1,758 Amortization of capitalized contract acquisition cost 771 511 2,286 1,384 Provision for expected credit losses 49 224 107 53 Change in operating assets and liabilities Accounts and other receivables (4,294) (8,622) (7,701) 14,807 Prepaid expenses and other assets (5,122) (8,499) (2,654) (7,513) Accounts payable 3,689 11,419 10,299 13,934 Accrued and other liabilities 7,433 2,308 2,673 (113) Operating lease liabilities (832) (636) (2,299) (1,861) Contract liabilities (1,439) 5 (1,100) 721 Income taxes receivable, net of payable (1,191) (1,010) (2,162) (1,597) Net cash provided by operating activities 43,619 35,076 122,931 116,996 Cash flows from investing activities Purchases of property and equipment (179) (103) (372) (279) Purchases of interest-bearing deposits — (720) (754) (1,633) Proceeds from matured interest-bearing deposits — — 1,604 1,547 Capitalized internal-use software development costs (9,457) (9,248) (28,633) (27,414) Net cash used in investing activities (9,636) (10,071) (28,155) (27,779) Cash flows from financing activities Proceeds from exercise of stock-based awards 166 6 181 97 Payments of taxes withheld on net-settled vesting of restricted stock units (3,973) (3,411) (9,376) (7,175) Payments on finance leases (174) — (174) — Net cash used in financing activities (3,981) (3,405) (9,369) (7,078) Effect of exchange rate changes on cash and cash equivalents and restricted cash (68) (171) (308) (76) Net increase in cash and cash equivalents and restricted cash 29,934 21,429 85,099 82,063 Cash and cash equivalents and restricted cash at the beginning of period 379,703 270,045 324,538 209,411 Cash and cash equivalents and restricted cash at the end of period$ 409,637 $ 291,474 $ 409,637 $ 291,474 Reconciliation of cash and cash equivalents and restricted cash: Cash and cash equivalents at the beginning of period 377,694 266,422 320,908 205,900 Restricted cash at the beginning of period 2,009 3,623 3,630 3,511 Cash and cash equivalents and restricted cash at the beginning of period $ 379,703 $ 270,045 $ 324,538 $ 209,411 Cash and cash equivalents at the end of period 407,616 287,908 407,616 287,908 Restricted cash at the end of period 2,021 3,566 2,021 3,566 Cash and cash equivalents and restricted cash at the end of period$ 409,637 $ 291,474 $ 409,637 $ 291,474
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8 PAYMENTUS HOLDINGS, INC. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data) The following tables set forth our non-GAAP financial measures with reconciliations to the most directly comparable GAAP financial measures. Adjusted Gross Profit Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Gross profit $ 93,842 $ 74,849 $ 274,385 $ 212,350 Stock-based compensation 55 64 209 213 Amortization of capitalized software development costs 5,907 5,643 17,746 16,797 Amortization of acquisition-related intangibles — 552 — 2,209 Adjusted gross profit $ 99,804 $ 81,108 $ 292,340 $ 231,569 Contribution Profit Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Gross profit $ 93,842 $ 74,849 $ 274,385 $ 212,350 Plus: other cost of revenue 24,625 23,417 71,880 67,086 Contribution profit $ 118,467 $ 98,266 $ 346,265 $ 279,436 Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Net income — GAAP $ 27,480 $ 17,744 $ 73,920 $ 46,264 Interest income, net (3,218) (2,578) (8,791) (6,976) Provision for income taxes 9,351 4,858 27,660 12,508 Amortization of capitalized software development costs 8,553 8,334 25,887 24,950 Amortization of acquisition-related intangibles 817 1,770 2,452 6,037 Depreciation 260 163 610 504 EBITDA $ 43,243 $ 30,291 $ 121,738 $ 83,287 Adjustments Foreign exchange gain (77) (163) (80) (324) Stock-based compensation 6,509 5,724 19,231 14,557 Adjusted EBITDA $ 49,675 $ 35,852 $ 140,889 $ 97,520 Adjusted EBITDA margin 41.9% 36.5% 40.7% 34.9%
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9 PAYMENTUS HOLDINGS, INC. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data) Non-GAAP Operating Expense Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Operating expenses — GAAP $ 60,306 $ 54,988 $ 181,676 $ 160,878 Stock-based compensation (6,454) (5,660) (19,022) (14,344) Amortization of acquisition-related intangibles (817) (1,218) (2,452) (3,828) Non-GAAP operating expense $ 53,035 $ 48,110 $ 160,202 $ 142,706 Non-GAAP Net Income and Non-GAAP EPS(1) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Net income — GAAP $ 27,480 $ 17,744 $ 73,920 $ 46,264 Add: Provision for income taxes — GAAP 9,351 4,858 27,660 12,508 Income before taxes — GAAP 36,831 22,602 101,580 58,772 Add: Stock-based compensation 6,509 5,724 19,231 14,557 Amortization of acquisition-related intangibles 817 1,770 2,452 6,037 Income before taxes — non-GAAP 44,157 30,096 123,263 79,366 Less: Provision for income taxes — non-GAAP (11,039) (7,524) (30,816) (19,842) Net income — non-GAAP $ 33,118 $ 22,572 $ 92,447 $ 59,524 Weighted-average shares of common stock — diluted 130,337,448 129,249,477 129,478,554 129,053,404 Earnings per share — diluted (GAAP) $ 0.21 $ 0.14 $ 0.57 $ 0.36 Earnings per share — diluted (non-GAAP) $ 0.25 $ 0.17 $ 0.71 $ 0.46 (1) Non-GAAP financial information for the periods shown reflects an assumed provision for income taxes based on our long- term projected non-GAAP tax rate of 25%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our long-term projected tax rate on non-GAAP net income may differ from our GAAP tax rate and from our actual tax liabilities. Free Cash Flow Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Net cash provided by operating activities $ 43,619 $ 35,076 $ 122,931 $ 116,996 Purchases of property and equipment (179) (103) (372) (279) Capitalized internal-use software development costs (9,457) (9,248) (28,633) (27,414) Free cash flow $ 33,983 $ 25,725 $ 93,926 $ 89,303