Record Revenue Growth
Total revenue grew 50.8% year-over-year to $28.0 million, above the high end of guidance ($27.0 - $27.5M). Full-year revenue guidance is $106.5M-$110.5M (30%-35% YoY growth).
PaySign
· PAYS
May 12th, 2026
Summary
- Earnings Call Date:
- 2026-05-12
- Change Since:
- +16.09%
- Next Earnings Date:
- 2026-08-11
Earnings Call Sentiment
PositiveThe call highlighted a very strong quarter: substantial revenue and profit growth, wide margin expansion, a robust pharma pipeline, and continued plasma revenue expansion and cash generation. Management reiterated confident full-year guidance and plans to exceed prior program-addition performance. Key risks discussed include a lower-than-guided plasma center count (due to sales/closures), the SaaS/app not yet producing revenue (FDA engagement ongoing), a higher effective tax rate, and margin variability driven by seasonal mix. Overall the positives (large percentage growth across revenue, EBITDA, operating margin, patient assistance dollars, and pipeline strength) substantially outweigh the operational and timing-related lowlights.
Company Guidance
Paysign reiterated full‑year 2026 targets of $106.5M–$110.5M in revenue (≈30%–35% YoY growth) with gross profit margins of 60%–62%, net income of $13M–$16M (≈$0.21–$0.26 per diluted share), and adjusted EBITDA of $30M–$33M (≈$0.49–$0.53 per diluted share); those outlooks follow a strong Q1 that produced $28.0M revenue (↑50.8% YoY; above prior guidance of $27.0M–$27.5M), $5.4M net income ($0.09/share), $10.6M adjusted EBITDA ($0.17/share) and expanded margins (gross margin 65%, operating margin 23.8%, adjusted EBITDA margin 37.8%); management expects to exit the quarter with 147–150 active patient affordability programs (141 today, 135 at quarter end, targeting >55 net program adds in 2026), patient affordability revenue of $15.7M in Q1 (↑81.9% YoY), plasma revenue of $11.7M in Q1 (↑24.9% YoY) with 573 centers at quarter end and an expected 555–560 centers after recent closures, $20.5M unrestricted cash (plus $159M restricted), zero bank debt, a Q1 effective tax rate of 27.2%, and a diluted share count of ~61M used for per‑share guidance.
Strong Profitability & Operating Leverage
Net income increased 110% to $5.4 million ($0.09 per diluted share). Operating margin expanded ~1,040 basis points to 23.8% (from 13.4%), and adjusted EBITDA increased 113.4% to $10.6 million with adjusted EBITDA margin up to 37.8% (from 26.7%).
Patient Affordability (Pharma) Momentum
Pharma/patient affordability revenue rose 81.9% to $15.7 million; claim volume ~49% higher than Q1 2025. Patient affordability deployed >$540 million in financial assistance in Q1 vs ~$320 million a year ago. Active pharma programs grew (exited quarter at 135, 141 active at call, expected 147-150 by quarter end).
Plasma Business Growth and Cash Generation
Plasma revenue increased 24.9% year-over-year to $11.7 million. Average monthly revenue per center rose to $6,671 from $6,517. Exited quarter with 573 centers (up 89 year-over-year) and the plasma business remains a strong source of cash; unrestricted cash $20.5M and no bank debt.
Gross Margin Expansion
Gross profit margin expanded to 65% from 62.9% YoY, reflecting a higher mix of higher-margin Pharma revenue.
Efficient Expense Growth
Cost of revenues increased 42.2% and total operating expenses rose 25.5% (to $11.6M), both growing well below revenue growth, demonstrating operating leverage.
Robust Pipeline & Business Development
Management reported a strong pipeline after Assembia (ASX 26) with >50 meetings and real-time deal wins; they expect to exceed the 55 net program adds achieved in 2025, with roughly a 50/50 split between new clients and expansions.
Conservative Balance Sheet & Customer Deposits
Restricted cash increased to $159M (primarily customer program deposits and funds on card), and management holds substantial cash for potential acquisitions, shareholder returns, or other uses; remaining acquisition cash obligation is ~$6M to Gamma over next three anniversaries.
Operator
Good afternoon. My name is Kevin, and I'll be your conference operator today. At this time, I'd like to welcome everyone to Paysign, Inc.'s First Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. The comments on today's call regarding Paysign's financial results will be on a GAAP basis unless otherwise noted. Paysign's earnings release was disseminated to the SEC earlier today and can be found in the Investor Relations section of our website, paysign.com, which includes reconciliations of non-GAAP measures to GAAP reported amounts. Additionally, as set forth in more detail in our earnings release, I'd like to remind everyone that today's call will include forward-looking statements regarding Paysign's future performance. Actual performance could differ materially from these forward-looking statements.
Information about the factors that could affect future performance is summarized at the end of Paysign's earnings release and in our section of SEC recent SEC filings. Lastly, a replay of this call will be available on August 12 -- until August 12, 2026. Please see Paysign's First Quarter 2026 earnings call announcement for details on how to access the replay. It's now my pleasure to turn the call over to Mr. Mark Newcomer, President and CEO. Please go ahead.
Mark Newcomer
Thank you, Kevin. Good afternoon, everyone, and thank you for joining us today for Paysign's First Quarter 2026 Earnings Call. I'm Mark Newcomer, President and Chief Executive Officer. Joining me today is Jeff Baker, our Chief Financial Officer. Also on the ca...
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