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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, which expanded by 20.9% to 1,410,571 shares, representing 9.2% of the company's outstanding shares. Additionally, Adams Street Partners LLC trimmed its holdings in the company by 69.5%, selling 212,478 shares. Despite beating earnings estimates with quarterly earnings of $0.2 per share, the company's growth prospects may be affected by increased short selling and reduced institutional ownership.

1.c. Company Highlights

2. Paymentus' Strong Q4 and Full Year 2025 Results Position it for Continued Growth

Paymentus reported a record fourth quarter and full year 2025 results, with revenue growing 28.1% year-over-year to $330.5 million in Q4, and 37.3% to $1.2 billion for the full year. Contribution profit was $106.9 million in Q4, up 24% year-over-year, and $386.3 million for the full year, up 23.8%. Adjusted EBITDA was $39.9 million in Q4, up 46.3%, and $137.4 million for the full year, up 45.9%. Actual EPS came out at $0.1599, slightly lower than estimates at $0.18. The company's strong financial performance was driven by its growth algorithm and innovation framework, which position it for continued growth and disruption in the fintech landscape.

Publication Date: Mar -08

📋 Highlights
  • Q4 & Full-Year Revenue Growth:: Revenue rose 28.1% YoY to $330.5M in Q4 and 37.3% to $1.2B for 2025.
  • Adjusted EBITDA Surge:: Adjusted EBITDA climbed 46.3% to $39.9M in Q4 and 45.9% to $137.4M annually.
  • Strong Free Cash Flow:: Generated $125M in 2025 free cash flow, exiting with $320M+ cash and no debt.
  • 2026 Guidance:: Targets $1.4B+ revenue and $167M adjusted EBITDA (top-end), implying >$100M non-GAAP net income.
  • Rule of 40 Compliance:: Achieved 61% in Q4 and 59% annually, reflecting balanced growth and profitability.

Financial Highlights

The company's financial results were strong, with a Rule of 40 for Q4 at 61%, and for the full year at 59%. Paymentus generated $125 million of free cash flow in 2025 and exited with over $320 million of cash, with no debt. For 2026, the company expects revenue over $1.4 billion and adjusted EBITDA of $167 million at the top end of its guidance, implying non-GAAP net income of over $100 million.

Growth Prospects

Paymentus sees a big market opportunity and believes its best is yet to come. The company's growth vectors include new biller launches, same-store sales, enterprise go-lives, and IPN. New implementations are the largest vector, followed by same-store sales. The company sees tremendous opportunity in same-store sales, with the potential to more than double its business in its existing customer base. The pipeline is looking strong, with a large and growing TAM.

Valuation

With a P/E Ratio of 49.92 and an EV/EBITDA of 26.33, Paymentus' valuation suggests that the market is pricing in significant growth expectations. The company's strong balance sheet, with over $320 million of cash and no debt, enables it to invest in working capital and explore attractive M&A opportunities. The Free Cash Flow Yield is 4.71%, indicating a reasonable return for investors.

AI Opportunity

Paymentus sees AI as a significant opportunity, with its business model well-positioned to benefit from the trend. The company is confident in its continued success due to its strong business model, unique technology footprint, and large customer base. AI has the potential to bring a lot more opportunities for the company, particularly in terms of its large and diversified customer base.

3. NewsRoom

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Paymentus Holdings, Inc. $PAY is Adams Street Partners LLC’s 5th Largest Position

Mar -15

Source: defenseworld.net

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Capital International Investors Boosts Stock Holdings in Paymentus Holdings, Inc. $PAY

Mar -12

Source: defenseworld.net

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Paymentus Holdings, Inc. (PAY) Presents at 47th Annual Raymond James Institutional Investor Conference Transcript

Mar -06

Source: seekingalpha.com

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Paymentus Holdings, Inc. (PAY) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

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Paymentus (PAY) Q4 Earnings and Revenues Surpass Estimates

Feb -24

Source: zacks.com

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Here Are Friday’s Top Wall Street Analyst Research Calls: Amgen, ETSY, Eldorado Gold, GE Aerospace, Merck, Southern Company, Walmart, Yeti, and More

Feb -20

Source:

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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

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 ->

View Full Report
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 ->

View Full Report
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 ->

View Full Report
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

25.02$

Current Price

25.02$

Potential

-0.00%

Expected Cash-Flows