Paymentus (PAY) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $360.7 million, up 28.8% year-over-year, driven by increased billers, transaction volume, and broad-based customer and vertical expansion.

• Contribution profit reached $118.1 million (+26.3% YoY); adjusted EBITDA rose 54% to $48.8 million with a record 41.3% margin.

• Net income for Q2 2026 was $25.6 million (+73.8% YoY); non-GAAP net income was $32.4 million ($0.25/share), up 66.7% YoY.

• Free cash flow grew to $39.0 million (+73.7% YoY), with cash and equivalents at $379.7 million and no debt.

• Strategic investments in AI-driven products and improved onboarding efficiency are positioning the company as a premium provider.

Financial highlights

• Processed 213.4 million transactions in Q2 2026, up 21.4% YoY; average price per transaction rose from $1.59 to $1.69.

• Gross profit was $94.3 million (+31.9% YoY); adjusted gross profit was $100.2 million (+28.6% YoY).

• Contribution profit per transaction was $0.55 (up from $0.53 YoY).

• Rule of 40 score reached 68, up from 56 last year.

• Operating expenses (non-GAAP) were $54.2 million, up 10.5% YoY.

Outlook and guidance

• Raised FY 2026 guidance: revenue $1.443B–$1.458B (21.2%–21.9% growth), contribution profit $460M–$465M (19.7%–20.4% growth), adjusted EBITDA $175M–$185M (31%–34.6% growth).

• Q3 2026 guidance: revenue $353M–$363M, contribution profit $112M–$115M, adjusted EBITDA $40M–$45M.

• Guidance philosophy remains disciplined, based on high confidence, robust backlog, and current visibility.