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1. Company Snapshot

1.a. Company Description

Paymentus Holdings, Inc.provides cloud-based bill payment technology and solutions.The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform.


The company serves utility, financial service, insurance, government, telecommunication, and healthcare industries.The company was founded in 2004 and is based in Redmond, Washington.

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1.b. Last Insights on PAY

Paymentus Holdings, Inc.'s recent performance was negatively impacted by a significant increase in short interest, with a 20.9% rise in December, resulting in 9.2% of shares being short sold. This surge in short interest may indicate market skepticism about the company's prospects. Additionally, the acquisition of 121,173 shares by Lisanti Capital Growth LLC in the third quarter may have contributed to the negative sentiment. Furthermore, the recent purchase of 31,500 shares by Hussman Strategic Advisors Inc. may have been seen as a contrarian move, but its impact on the overall market perception remains unclear.

1.c. Company Highlights

2. Paymentus' Strong Q3 2025 Earnings Exceed Expectations

Paymentus delivered a robust third quarter in 2025, with revenue reaching $310.7 million, a 34.2% year-over-year increase driven by a higher number of billers and transaction values. The company also reported a contribution profit of $98.3 million, up 22.8%, and adjusted EBITDA of $35.9 million, a 45.9% increase, representing a record 36.5% adjusted EBITDA margin. Earnings per share (EPS) came in at $0.17, beating estimates of $0.16. The company's strong financial performance was characterized by durable revenue and adjusted EBITDA growth, despite a tough year-over-year comparison.

Publication Date: Nov -16

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue reached $310.7M, a 34.2% YoY increase, driven by higher billers and transaction values.
  • Adjusted EBITDA Surge:: Adjusted EBITDA hit $35.9M, up 45.9% YoY, with a record 36.5% margin and 61.7% incremental margin.
  • Full-Year Guidance:: 2025 revenue projected at $1.173–1.178B, up 34.9% YoY, with adjusted EBITDA expected at $132–134M (41.2% growth).
  • Client Expansion:: Added new large enterprises and a B2B client in a new vertical, expanding its 2,000+ client base and enterprise pipeline.
  • Free Cash Flow Strength:: Over 140% free cash flow conversion in the last four quarters, driven by 61.7% incremental EBITDA margin and improved DSO.

Growth Drivers and Client Acquisition

Bookings remained strong, particularly in the large enterprise and mid-market segments, across various verticals. The company added new channel partners and onboarded several large enterprises during the quarter, including a new B2B customer in a new vertical, marking a significant opportunity in the huge B2B market. This client was acquired through the company's horizontal approach to its platform, demonstrating its ability to enter different verticals.

Operational Efficiency and Cash Flow

The company's contribution profit per transaction grew 3.8% year-over-year, driven by the value of its platform resonating with clients, successful upselling and cross-selling, and better pricing. Free cash flow conversion has been high, over 140% in the last four quarters, driven by high incremental adjusted EBITDA margin and improvement in DSO. The company expects free cash flow to continue to be generated every quarter, driven by operating leverage and high-quality customers.

Outlook and Valuation

For the full year 2025, revenue is now expected to be $1.173-1.178 billion, up 34.9% annually, contribution profit $378-380 million, up 21.5% annually, and adjusted EBITDA $132-134 million, representing a 41.2% annual growth. Analysts estimate next year's revenue growth at 21.0%. With a P/S Ratio of 4.21 and EV/EBITDA of 51.81, the market appears to be pricing in a significant growth premium. The company's high ROIC of 12.14% and ROE of 11.65% suggest efficient capital allocation and profitability.

Strategic Positioning and Future Growth

Paymentus is well-positioned to play a big role in the agentic commerce world, with AI being a key part of its strategy for many years. The company is making significant investments in this area and believes it will be a major player in bill payments and overall service commerce. With a strong backlog and pipeline, the company expects similar growth rates to 2025 to be reasonable for 2026.

3. NewsRoom

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121,173 Shares in Paymentus Holdings, Inc. $PAY Acquired by Lisanti Capital Growth LLC

Jan -31

Source: defenseworld.net

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Hussman Strategic Advisors Inc. Buys 31,500 Shares of Paymentus Holdings, Inc. $PAY

Jan -28

Source: defenseworld.net

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Paypoint jumps as it remains on course for record profits

Jan -28

Source: proactiveinvestors.co.uk

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Short Interest in Paymentus Holdings, Inc. (NYSE:PAY) Expands By 20.9%

Jan -21

Source: defenseworld.net

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Paymentus: Positioning Itself As A Leading Bill Payments Platform

Jan -19

Source: seekingalpha.com

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Reviewing Paymentus (NYSE:PAY) and RB Global (NYSE:RBA)

Dec -22

Source: defenseworld.net

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Castleark Management LLC Purchases 25,180 Shares of Paymentus Holdings, Inc. $PAY

Dec -15

Source: defenseworld.net

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Head to Head Review: Medical Cannabis Payment Solutions (OTCMKTS:REFG) & Paymentus (NYSE:PAY)

Dec -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.87%)

6. Segments

Payment Transaction Processing

Expected Growth: 15%

Paymentus Holdings, Inc.'s 15% growth in Payment Transaction Processing is driven by increasing adoption of digital payments, rising e-commerce transactions, and growing demand for contactless payment methods. Additionally, the company's expansion into new markets, strategic partnerships, and investments in technology infrastructure have contributed to its growth.

Other

Expected Growth: 5%

Paymentus Holdings, Inc.'s 5% growth is driven by increasing adoption of electronic payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, customer experience, and operational efficiency has contributed to its growth. Furthermore, the shift towards digital payments and the need for secure and convenient payment processing have also fueled the company's growth.

7. Detailed Products

Paymentus Bill Pay

A comprehensive bill payment platform that enables consumers to pay bills online, by phone, or through mobile devices.

Paymentus Presentment

A digital billing and payment platform that enables businesses to send electronic bills and invoices to customers.

Paymentus Engagement

A customer engagement platform that enables businesses to communicate with customers through personalized messages and notifications.

Paymentus Analytics

A data analytics platform that provides insights into customer behavior, payment trends, and business performance.

8. Paymentus Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Paymentus Holdings, Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand recognition and customer loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Paymentus Holdings, Inc. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified product offerings and strong relationships with customers further reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Paymentus Holdings, Inc. relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate contracts help to mitigate this risk.

Threat Of New Entrants

The payment processing industry is highly competitive, and new entrants can easily disrupt the market. Paymentus Holdings, Inc. needs to continuously innovate and improve its services to stay ahead of new entrants.

Intensity Of Rivalry

The payment processing industry is highly competitive, with many established players and new entrants vying for market share. Paymentus Holdings, Inc. needs to focus on differentiating its services and improving its operational efficiency to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.39%
Debt Cost 3.95%
Equity Weight 97.61%
Equity Cost 11.59%
WACC 11.41%
Leverage 2.45%

11. Quality Control: Paymentus Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Concentrix

A-Score: 4.7/10

Value: 9.2

Growth: 6.0

Quality: 4.2

Yield: 4.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
EPAM Systems

A-Score: 4.4/10

Value: 3.6

Growth: 6.9

Quality: 6.9

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
N-able

A-Score: 4.3/10

Value: 5.3

Growth: 8.4

Quality: 5.8

Yield: 0.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
DXC Technology

A-Score: 4.0/10

Value: 9.5

Growth: 4.3

Quality: 4.2

Yield: 0.0

Momentum: 1.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Kyndryl

A-Score: 3.8/10

Value: 6.3

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Paymentus

A-Score: 3.7/10

Value: 1.4

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.81$

Current Price

24.81$

Potential

-0.00%

Expected Cash-Flows