PaySauce (PYS) Q1 2026 TU earnings summary

Executive summary

• Recurring revenue for 1Q26 reached $2.2m, up 6% year-over-year, driven by strong processing fee growth and customer expansion.

• Processing fees rose 17% year-over-year to $1.7m, reflecting increased transaction volumes.

• Interest revenue from customer funds declined 21% year-over-year to $0.5m due to lower wholesale interest rates.

• Active customers grew 10% year-over-year to 8,382, supporting revenue growth.

Financial highlights

• Annualized recurring revenue (ARR) reached $8.7m, up 6% year-over-year.

• Recurring revenue for the quarter was $2.2m, a 6% increase from the same quarter last year.

• Processing fee revenue for the quarter was $1.7m, up 17% year-over-year.

• Interest income from float funds dropped 21% year-over-year, despite higher balances.

Outlook and guidance

• Plans to recruit first pilot customers for payroll services in Australia in the coming months.

• Processing fee revenue from overseas markets, especially Australia, is expected to be a key long-term growth driver.

• Short-term outlook anticipates further declines in interest income as rates fall.