Paymentus (PAY) investor relations material

Market evolution and opportunity

• Market has shifted toward scalable, horizontal bill presentment platforms, with significant growth from $300 million pre-IPO to over $1.1 billion currently.

• Only 3.5% to 4% of the total addressable market has been captured, with substantial room for expansion both within existing clients and across new verticals.

• Non-discretionary bill payments in essential sectors like utilities, insurance, and telecoms provide resilience against macroeconomic fluctuations.

• Manual payments remain prevalent; platform investments focus on simplifying experiences for the majority who do not use autopay.

• Instant Payment Network (IPN) extends reach across multiple payment channels, including banks and retailers.

Strategic evolution and operational efficiency

• Core values of innovation and customer-centricity remain unchanged, with increased focus on humility and direct customer feedback.

• Strategic shift toward serving large enterprises with complex, in-house payment systems, demonstrating ability to implement at scale and ahead of schedule.

• Operating leverage and efficiency have improved, with incremental adjusted EBITDA margin exceeding 50% in Q2 2025, enabling greater investment in sales and marketing.

• Average customer size and implementation speed have increased, driving economies of scale and higher free cash flow.

Vertical and channel expansion

• Utilities remain about 50% of business due to complexity, but expansion into insurance, government, healthcare, telecom, education, and banking is strong.

• All verticals are performing well, with a focus on tailored storytelling and ecosystem development for each sector.

• Distribution has evolved from direct sales to a robust channel partner strategy, including banks, processors, software, and print vendors.

• Direct sales inspire channel partners, and all channels are contributing to growth.