Paymentus (PAY) investor relations material

Growth drivers and platform strategy

• Horizontally scalable platform enables entry into multiple verticals and rapid feature deployment across clients.

• Instant Payment Network ecosystem provides broad distribution and engagement channels.

• Operating leverage and platform sophistication drive success with both mid-market and large billers.

• Implementation speed and tooling improvements have accelerated onboarding, even for large clients.

• Diversification beyond utilities into government, insurance, and property management has been intentional and successful.

Market expansion and verticals

• Initial focus on utilities built a robust, efficient platform, making expansion into other verticals easier.

• Success in utilities, a challenging vertical, established credibility and facilitated entry into government, insurance, and B2B.

• B2B represents a significant TAM expansion, with sophisticated workflows and automation added to the platform.

• Large B2B clients are outperforming expectations, prompting a more focused approach to this market.

• All verticals, including the primary utility segment, continue to grow rapidly.

Financial performance and guidance

• Achieved 35%+ gross revenue growth and over 40% EBITDA growth, with a long-term target of 20% top-line CAGR and 20%-30% EBITDA growth.

• Growth is driven by new customer implementations and increased penetration within existing accounts.

• Contribution profit per transaction has increased due to enhanced value proposition and customer mix.

• EBITDA margins have improved from 30% to 35% year-over-year, with incremental margins exceeding 60%.

• Guidance for 2026 is modeled on consistent growth rates, with formal updates to be provided in future calls.