Operational efficiency remains high as evidenced by an OCF/NI ratio of 1.46 in 2026Q1, while minimal CapEx/Revenue ratios near 0% support strong free cash flow generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 |
|---|
| Cash from Operations | 142.14M | 162.13M | 63.63M | 68.83M | 19.87M | 19.49M | 35.62M | 17.51M | 165.9M | 193.7M | 249.3M | 199.1M | 236.5M | 217.96M | 174.57M | 156.03M | 202.61M | -8.63M | 89.27M | 16.75M | 40.6M | 33.22M | 9.77M |
| Operating CF Margin % | - | 13.55% | 7.3% | 11.2% | 4% | 4.93% | 11.8% | 7.43% | 8.87% | 9.72% | 12.46% | 10.65% | 13.89% | 11.68% | 13.39% | 15.58% | 23.99% | -0.94% | 9.89% | 2.88% | 8.36% | 8.52% | 2.88% |
| Operating CF Growth % | 517.3% | 154.78% | -7.55% | 246.44% | 1.92% | -45.28% | 103.41% | -89.44% | -14.35% | -22.3% | 25.21% | -15.81% | 8.5% | 24.85% | 11.89% | -22.99% | 2448.27% | -109.67% | 433.05% | -58.75% | 22.23% | 239.92% | - |
| Net Income | 74.03M | 66.94M | 44.17M | 22.32M | -513K | 9.3M | 13.71M | 13.7M | -173.9M | -9.3M | 79.1M | -38.1M | -296.1M | 65.03M | 282.4M | 98.83M | -137.84M | -425.32M | -34.02M | 59.51M | 33.24M | 5.61M | 241K |
| Depreciation & Amortization | 40.21M | 41.06M | 36.48M | 30.6M | 24.06M | 13.29M | 8.07M | 6M | 140.7M | 179.2M | 169.4M | 213.6M | 207.8M | 177.83M | 48.32M | 46.6M | 61.5M | 73.33M | 70.77M | 16.41M | 18.02M | 24.04M | 26.8M |
| Stock-Based Compensation | 10.42M | 0 | 10.99M | 9.39M | 6.74M | 3.14M | 1.99M | 1.58M | 40M | 42.3M | 42.3M | 53.9M | 48.9M | 44.55M | 34.14M | 21.07M | 22.87M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 611K | 50K | -1.35M | 413K | -2.98M | -660K | 1.64M | 1.28M | 800K | -14M | -31.6M | -38M | 142.9M | -22.03M | -227.03M | -15.44M | 1.73M | 58.35M | 9.2M | -5.74M | -9.85M | -8.1M | 1.13M |
| Other Non-Cash Items | 16.65M | 25.63M | 9.3M | 5.67M | 4.69M | 3.27M | 2.9M | 0 | 200.5M | 17.9M | 42.3M | -48.2M | 460.75M | -155.31M | 80.86M | -119.19M | 173.53M | 285.51M | -86.92M | -107.57M | -87.85M | -21.11M | 469K |
| Working Capital Changes | 244K | 28.46M | -35.96M | 429K | -12.13M | -8.85M | 7.31M | -5.05M | -42.2M | -22.4M | -52.2M | 55.9M | -327.75M | 107.89M | -44.12M | 124.16M | 80.81M | -499K | 130.24M | 54.13M | 87.04M | 32.78M | -18.87M |
| Change in Receivables | -7.89M | 17.14M | -46.92M | -8.51M | -22.97M | -15.56M | -8.69M | -6.47M | -11.6M | 59.6M | -75.4M | -29.5M | 84.3M | -53.95M | -72.39M | 37.41M | 13.03M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 1.18M | 0 | 30.4M | -45.7M | -16.4M | 9.5M | 26.8M | -19.27M | 23.22M | -14.37M | 72.54M | -60.57M | 45.13M | -51.98M | -3.41M | 8.54M | -414K |
| Change in Payables | 17.79M | 13.98M | 13.82M | 6.02M | 4.77M | 7.38M | 14.64M | -596K | -7.5M | -39.6M | 41.2M | 47.4M | -77M | 31.8M | 29.46M | -26.64M | 5.91M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -37.67M | -36.52M | -36.76M | -34.3M | -34.56M | -77.81M | -15.14M | -13.9M | -72.7M | -275.2M | -128.4M | -77.9M | -144.7M | -1.12B | -63.17M | -25.1M | -15.99M | -37.8M | -311.7M | -4.03M | -35M | -5.27M | -10.41M |
| Capital Expenditures | -9.63M | -361K | -457K | -600K | -1.26M | -979K | -458K | -1.04M | -67.3M | -105.3M | -106.4M | -85M | -77.5M | -63.18M | -14.81M | -11.58M | -12.05M | -22.05M | -30.73M | -5.67M | -3.12M | -2.43M | -2.2M |
| CapEx % of Revenue | 0.75% | 0.03% | 0.05% | 0.1% | 0.25% | 0.25% | 0.15% | 0.44% | 3.6% | 5.29% | 5.32% | 4.55% | 4.55% | 3.39% | 1.14% | 1.16% | 1.43% | 2.39% | 3.4% | 0.97% | 0.64% | 0.62% | 0.65% |
| Acquisitions | 0 | 0 | 0 | 0 | -3.26M | -57.4M | -290K | -1.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -28.14M | -36.16M | -36.3M | -33.7M | -30.04M | -19.43M | -14.39M | -11.49M | -5.4M | -169.9M | -22M | 7.1M | -67.2M | -1.05B | -48.36M | -8.52M | -1.22M | -15.75M | -275.27M | -15.2M | -15.13M | -2.84M | -8.22M |
| Cash from Financing | -11.97M | -10.58M | -207K | -1.2M | -37.28M | 213.49M | -1.36M | -857K | -112.4M | 24.4M | -133.6M | -128.1M | -277.5M | 768.15M | 38.67M | -10.38M | -24.55M | -2.25M | 349.92M | 7.83M | 46.88M | -21.55M | 3.17M |
| Debt Issued (Net) | 0 | 0 | 0 | -102K | -268K | 541K | -323K | -282K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 114K | 162K | 338K | 0 | 0 | 251.58M | 0 | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -34.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -97.43M | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -79.9M | -70.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -86.18M | 0 |
| Other Financing | -12.08M | -10.74M | -545K | -1.09M | -37.02M | -4.22M | -1.03M | -675K | -112.4M | 24.4M | -133.6M | -128.1M | -277.5M | 768.15M | 38.67M | -10.38M | -24.55M | -2.25M | 349.92M | 7.83M | 46.88M | 75.88M | 3.17M |
| Net Change in Cash | 92.48M | 115.13M | 26.22M | 33.51M | -52.14M | 155.16M | 19.24M | 2.79M | -15.5M | -60.5M | -41.3M | -18M | -185.9M | -140.49M | 149.43M | 120.14M | 167.84M | -57.84M | 128.44M | 21.5M | 52.36M | 6.83M | 2.84M |
| Free Cash Flow | 132.3M | 161.77M | 63.18M | 34.53M | -11.43M | -916K | 20.77M | 4.98M | 98.6M | 88.4M | 142.9M | 114.1M | 159M | 154.78M | 159.76M | 144.45M | 190.56M | -30.68M | 58.55M | 11.08M | 37.48M | 30.79M | 7.58M |
| FCF Margin % | 10.34% | 13.52% | 7.25% | 5.62% | -2.3% | -0.23% | 6.88% | 2.11% | 5.27% | 4.44% | 7.14% | 6.11% | 9.34% | 8.29% | 12.25% | 14.42% | 22.56% | -3.33% | 6.48% | 1.91% | 7.72% | 7.89% | 2.23% |
| FCF Growth % | 98.65% | 156.05% | 82.97% | 402.01% | -1148.14% | -104.41% | 316.79% | -94.95% | 11.54% | -38.14% | 25.24% | -28.24% | 2.73% | -3.12% | 10.6% | -24.2% | 721.13% | -152.4% | 428.29% | -70.43% | 21.74% | 306.38% | - |
| FCF per Share | 1.02 | 1.25 | 0.49 | 0.28 | -0.09 | -0.01 | 0.18 | 0.04 | 0.88 | 0.80 | 1.23 | 1.02 | 1.46 | 1.40 | 1.65 | 1.65 | 2.26 | -0.36 | 0.71 | 0.16 | 0.61 | 0.54 | 0.16 |
| FCF Conversion (FCF/Net Income) | 1.79x | 2.42x | 1.44x | 3.08x | -38.73x | 2.10x | 2.60x | 1.28x | -0.95x | -20.83x | 3.15x | -5.23x | -0.80x | 3.35x | 0.62x | 1.58x | -1.47x | 0.02x | -2.62x | 0.28x | 1.22x | 5.93x | 40.55x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 9.75M | 0 | 14.4M | 1.4M | 672K | 2.49M | 2.89M | 4.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Interchange Fee Margin Compression
According to quarterly financial disclosures, Paymentus consistently reports operating cash flow significantly higher than net income, with an OCF/NI ratio peaking at 3.65 in 2025Q1, which suggests that the company's reported earnings are conservative relative to the actual cash generated by its core payment processing operations.
The persistent gap between net income and operating cash flow indicates that non-cash charges, primarily depreciation and amortization, are substantial relative to bottom-line profitability. Investors should monitor whether this conversion efficiency remains elevated as the company scales, as it currently provides a strong buffer for ongoing platform reinvestment.
As reported in recent financial statements, free cash flow has exhibited notable volatility, ranging from a low of -$2.2 million in 2024Q3 to a high of $45.0 million in 2025Q4, largely driven by fluctuations in working capital requirements rather than underlying operational performance or structural cash burn.
The FCF trajectory appears sensitive to the timing of biller settlements and payment processing cycles, which can cause temporary swings in cash availability. While the overall trend remains positive, the lack of consistent FCF growth suggests that working capital management remains a primary determinant of short-term liquidity.
Based on the company's reported cash flow statements, working capital changes have been highly erratic, swinging from a $20.9 million inflow in 2025Q1 to an $18.2 million outflow in 2024Q3, which highlights the inherent complexity of managing settlement flows within the company's multi-tenant payment architecture.
These fluctuations suggest that the company's cash position is frequently impacted by the timing of pass-through payments to card networks and merchant banks. Analysts should interpret these movements as operational noise rather than a fundamental shift in the company's ability to collect fees from its enterprise biller base.
Data from recent filings indicates that Paymentus maintains an exceptionally low capital intensity, with CapEx/Revenue ratios consistently near zero, suggesting that the company's cloud-native platform requires minimal ongoing physical infrastructure investment to support its expanding transaction volume and enterprise client base.
The company's ability to scale without significant capital expenditure is a key differentiator, allowing it to convert a high percentage of operating cash flow into free cash flow. This asset-light model appears to be a structural advantage that mitigates the impact of lower gross margins on overall profitability.
Quick answers to the most common questions about buying PAY stock.
Paymentus Holdings, Inc. (PAY) generated $162.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Paymentus Holdings, Inc. (PAY) generated $161.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Paymentus Holdings, Inc. (PAY) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.