Paymentus (PAY) Q4 2025 earnings summary

Executive summary

• Achieved record full year 2025 revenue of $1,196.5 million, up 37.3% year-over-year, surpassing guidance and driven by large enterprise customer growth, innovation, and expanding market share.

• Quadrupled revenue over five years, significantly outpacing long-term CAGR model of 20%.

• Ended 2025 with a substantial backlog and strong bookings, providing high visibility into 2026.

• Maintained momentum in non-discretionary, essential U.S. markets and expanded into new verticals and channel partnerships.

• Processed 724.0 million transactions in 2025, up 21.3% year-over-year.

Financial highlights

• Q4 2025 revenue reached $330.5 million, up 28.1% year-over-year; full year revenue was $1,196.5 million, up 37.3%.

• Q4 contribution profit was $106.9 million, up 24% year-over-year; full year contribution profit was $386.3 million, up 23.8%.

• Adjusted EBITDA for Q4 was $39.9 million (37.3% margin), up 46.3% year-over-year; full year adjusted EBITDA was $137.4 million (35.6% margin), up 45.9%.

• Non-GAAP net income for Q4 was $25.4 million ($0.20/share); full year non-GAAP net income was $84.9 million ($0.66/share), up 51.2%.

• Free cash flow for 2025 was $125 million, up over 360% year-over-year; ended year with $324.5 million in cash and no debt.

Outlook and guidance

• 2026 revenue guidance: $1,390–$1,410 million (17–17.8% growth); contribution profit: $442–$452 million (15.7–17% growth); adjusted EBITDA: $157–$167 million (17.9–21.5% growth).

• Q1 2026 revenue expected at $330–$340 million (22–24% growth); contribution profit $103–$105 million; adjusted EBITDA $36–$38 million.

• Guidance implies Rule of 40 of 50–54 for 2026, reflecting strong growth and profitability.

• Top end of 2026 guidance achievable without signing new clients.

• Continued focus on expanding market share and entering new verticals.