Key Highlights

  • PAY reported third quarter 2026 Revenue of $372.2 million, up 19.8% year over year and a record.
  • Net income rose to $27.5 million, or $0.21 per diluted share, from $17.7 million, or $0.14.
  • Adjusted EBITDA climbed 38.6% to $49.7 million, a record 41.9% Margin on contribution profit.
  • The company processed 219.0 million transactions, up 20.1% year over year.
  • Fourth quarter revenue is guided to $373 million to $378 million, about 13.6% growth at the midpoint.

Revenue Growth of 19.8% Driven by New Billers and Higher Transaction Volumes

Paymentus (NYSE:PAY) reported results for the quarter ended Sep 30, 2026 on Nov 2, 2026. Revenue rose 19.8% to a record $372.2 million, compared with $310.7 million a year earlier, driven mainly by new biller launches and growth at existing billers. Transactions processed reached 219.0 million, up 20.1%.

Gross profit increased 25.4% to $93.8 million, and adjusted Gross Profit rose 23.1% to $99.8 million. Contribution profit grew 20.6% to $118.5 million, at $0.54 per transaction, roughly flat from a year ago. Contribution margin was 31.8%, versus 31.6%.

The Dallas-based company provides cloud-native billing, payment and disbursement services, processing more than 790 million transactions a year for about 53 million consumers and businesses. Its clients include more than 30 of the largest U.S. enterprises across 35 countries.

Operating Leverage Lifts Adjusted EBITDA 38.6% to a Record 41.9% Margin

Adjusted EBITDA reached $49.7 million, up from $35.9 million, and the margin on contribution profit expanded from 36.5% to 41.9%, a 540 basis point gain. Incremental adjusted EBITDA margin was 68.4%. Non-GAAP Operating Expense grew 10.2% to $53 million on hiring, partner fees and research spending.

Net income was $27.5 million, or $0.21 per diluted share, against $17.7 million, or $0.14. Income from operations rose to $33.5 million from $19.9 million. Non-GAAP Net Income was $33.1 million, or $0.25 per share, versus $22.6 million, or $0.17.

For the nine months, revenue was $1,091.4 million and net income $73.9 million, compared with $866.0 million and $46.3 million a year earlier.

Interchange Agreement and BillWallet Growth Highlight Strategic Progress

Third quarter bookings included a sizable interchange monetization agreement that will use the company's Instant Payment Network, though management said it was too early to describe the impact. BillWallet, its consumer wallet, doubled to 200,000 users.

Management said combining current revenue, signed backlog, expected Backlog conversion and growth within the existing customer base could produce about $2 billion of revenue and backlog combined within 18 to 24 months. It stressed that this is not guidance. The company also said bookings, pipeline and backlog were all strong at quarter end.

Raised Full-Year Targets Contrast With Fourth Quarter Growth Slowing to 13.6%

Cash and equivalents stood at $409.6 million at quarter end, up $29.9 million from the prior quarter, on $43.7 million of operating cash flow. Days Sales Outstanding were 27.

Fourth quarter revenue is guided to $373 million to $378 million, about 13.6% growth at the midpoint, with contribution profit of $120 million to $122 million. Adjusted EBITDA is guided to $45 million to $50 million, below the third quarter figure, which management attributed to a cautious approach as large billers ramp and room to invest in converting pipeline.

The full-year outlook moved up: revenue of $1,464 million to $1,469 million, contribution profit of $466 million to $468 million, and adjusted EBITDA of $186 million to $191 million. Management gave no 2027 guidance and said it would address that on the February 2027 call.