Paymentus (PAY) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $358.4M, up 30.2% year-over-year, driven by increased transaction volumes, new billers, and expansion across multiple verticals.

• Contribution profit rose 25.2% to $109.7M, and adjusted EBITDA grew 41.5% to $42.4M, with a record margin of 38.7%.

• Net income increased to $20.9M (up 51.2%), and non-GAAP net income was $26.9M ($0.21/share), up 50% year-over-year.

• Expanded and diversified customer base, signing new clients and channel partners across utilities, insurance, telecom, government, property management, consumer finance, banking, education, and healthcare.

• Announced launch of AI-native Service Commerce platform, including BillWallet and Billeo, with early adoption and granted patents.

Financial highlights

• Processed 203.4M transactions in Q1, up 17.4% year-over-year; average revenue per transaction increased 11% to $1.76.

• Adjusted gross profit was $92.4M, up 27.3% year-over-year; gross profit reached $86.2M, up 30.6%.

• Free cash flow was $20.9M, down from $41.1M in Q1 2025, primarily due to higher working capital investment.

• Ended Q1 with $342.1M in cash and no debt; working capital increased to $365.4M.

• Non-GAAP operating expenses were $53.0M, up 16.3% year-over-year.

Outlook and guidance

• Q2 2026 guidance: revenue $340M–$350M, contribution profit $108M–$111M, adjusted EBITDA $38M–$40M.

• Full-year 2026 guidance: revenue $1.425B–$1.44B (up 2.3% from prior midpoint), contribution profit $450M–$457M, adjusted EBITDA $165M–$172M.

• Guidance reflects prudent forecasting, with strong bookings and backlog supporting visibility into 2027.

• Management expects continued macroeconomic uncertainty, with inflation, energy volatility, and geopolitical instability impacting consumer payment behavior and operating costs.