Revenue growth has moderated from a 56.5% peak in 2024Q4 to 30.2% in 2026Q1, while gross margins have compressed to 24.1% due to variable interchange fee sensitivity.
| 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 |
|---|
| Sales/Revenue | 1.28B | 1.2B | 871.75M | 614.49M | 497M | 395.52M | 301.77M | 235.78M | 1.87B | 1.99B | 2B | 1.87B | 1.7B | 1.87B | 1.3B | 1B | 844.71M | 921.93M | 902.89M | 581.07M | 485.37M | 390.09M | 339.33M |
| Revenue Growth % | 33.01% | 37.25% | 41.86% | 23.64% | 25.66% | 31.07% | 27.99% | -87.4% | -6.08% | -0.42% | 7.04% | 9.79% | -8.78% | 43.11% | 30.19% | 18.57% | -8.38% | 2.11% | 55.38% | 19.72% | 24.43% | 14.96% | - |
| Cost of Goods Sold | 963.16M | 900.16M | 633.58M | 432.15M | 347.32M | 274.14M | 209.14M | 161.34M | 1.16B | 1.2B | 1.17B | 1.14B | 1.06B | 1.11B | 812.12M | 631.23M | 562.59M | 628.9M | 603.66M | 319.52M | 288.54M | 231.89M | 200.29M |
| COGS % of Revenue | - | 75.23% | 72.68% | 70.33% | 69.88% | 69.31% | 69.31% | 68.43% | 61.89% | 60.13% | 58.71% | 61.22% | 62.1% | 59.49% | 62.29% | 63.03% | 66.6% | 68.22% | 66.86% | 54.99% | 59.45% | 59.45% | 59.03% |
| Gross Profit | 316.55M | 296.34M | 238.17M | 182.34M | 149.68M | 121.38M | 92.63M | 74.43M | 713.1M | 794.3M | 826M | 724.7M | 645.2M | 755.84M | 491.75M | 370.31M | 282.13M | 293.03M | 299.23M | 261.55M | 196.82M | 158.19M | 139.04M |
| Gross Margin % | 24.74% | 24.77% | 27.32% | 29.67% | 30.12% | 30.69% | 30.69% | 31.57% | 38.11% | 39.87% | 41.29% | 38.78% | 37.9% | 40.51% | 37.71% | 36.97% | 33.4% | 31.78% | 33.14% | 45.01% | 40.55% | 40.55% | 40.97% |
| Gross Profit Growth % | - | 24.42% | 30.62% | 21.82% | 23.31% | 31.04% | 24.44% | -89.56% | -10.22% | -3.84% | 13.98% | 12.32% | -14.64% | 53.7% | 32.79% | 31.26% | -3.72% | -2.07% | 14.41% | 32.88% | 24.42% | 13.78% | - |
| Operating Expenses | 230.15M | 220.8M | 193.31M | 164.25M | 152.65M | 111.01M | 74.2M | 56.06M | 664.9M | 719.6M | 717.8M | 727.4M | 647.2M | 590.66M | 386.04M | 267.89M | 235.58M | 608.86M | 264M | 153.24M | 128.64M | 113.41M | 103.46M |
| OpEx % of Revenue | - | 18.45% | 22.18% | 26.73% | 30.71% | 28.07% | 24.59% | 23.78% | 35.54% | 36.12% | 35.88% | 38.92% | 38.02% | 31.65% | 29.61% | 26.75% | 27.89% | 66.04% | 29.24% | 26.37% | 26.5% | 29.07% | 30.49% |
| Selling, General & Admin | 167.44M | 159.33M | 141.98M | 120M | 111.43M | 76.89M | 49.69M | 38.2M | 383.7M | 421.6M | 433.7M | 426.1M | 377.7M | 354.87M | 276.88M | 179.04M | 150.01M | 218.08M | 177M | 101.18M | 81.84M | 0 | 0 |
| SG&A % of Revenue | - | 13.32% | 16.29% | 19.53% | 22.42% | 19.44% | 16.47% | 16.2% | 20.51% | 21.16% | 21.68% | 22.8% | 22.19% | 19.02% | 21.24% | 17.88% | 17.76% | 23.65% | 19.6% | 17.41% | 16.86% | - | - |
| Research & Development | 62.71M | 61.47M | 51.33M | 44.25M | 41.22M | 34.12M | 24.51M | 17.86M | 211.6M | 207.5M | 201.6M | 203.7M | 173.3M | 152M | 109.16M | 74.23M | 65.15M | 75.62M | 65.43M | 47.35M | 41.83M | 33.7M | 28.19M |
| R&D % of Revenue | - | 5.14% | 5.89% | 7.2% | 8.29% | 8.63% | 8.12% | 7.58% | 11.31% | 10.42% | 10.08% | 10.9% | 10.18% | 8.15% | 8.37% | 7.41% | 7.71% | 8.2% | 7.25% | 8.15% | 8.62% | 8.64% | 8.31% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 69.6M | 90.5M | 82.5M | 97.6M | 96.2M | 83.8M | 0 | 14.62M | 20.42M | 315.15M | 21.57M | 4.7M | 4.97M | 79.7M | 75.26M |
| Operating Income | 86.4M | 75.54M | 44.86M | 18.09M | -2.98M | 10.37M | 18.43M | 18.37M | 48.2M | 74.7M | 108.2M | -2.7M | -2M | 165.18M | 105.71M | 102.42M | 46.55M | -315.82M | 35.23M | 108.31M | 68.19M | 44.79M | 35.58M |
| Operating Margin % | 6.75% | 6.31% | 5.15% | 2.94% | -0.6% | 2.62% | 6.11% | 7.79% | 2.58% | 3.75% | 5.41% | -0.14% | -0.12% | 8.85% | 8.11% | 10.23% | 5.51% | -34.26% | 3.9% | 18.64% | 14.05% | 11.48% | 10.49% |
| Operating Income Growth % | - | 68.4% | 147.92% | 707.96% | -128.69% | -43.71% | 0.31% | -61.89% | -35.48% | -30.96% | 4107.41% | -35% | -101.21% | 56.25% | 3.21% | 120.05% | 114.74% | -996.42% | -67.47% | 58.84% | 52.25% | 25.86% | - |
| EBITDA | 126.61M | 116.6M | 81.34M | 48.69M | 6.39M | 23.67M | 26.5M | 24.37M | 188.9M | 253.9M | 277.6M | 210.9M | 205.8M | 343.01M | 154.03M | 149.03M | 108.05M | -242.5M | 106M | 124.71M | 86.21M | 68.83M | 62.38M |
| EBITDA Margin % | 9.89% | 9.74% | 9.33% | 7.92% | 1.29% | 5.98% | 8.78% | 10.34% | 10.1% | 12.75% | 13.88% | 11.28% | 12.09% | 18.38% | 11.81% | 14.88% | 12.79% | -26.3% | 11.74% | 21.46% | 17.76% | 17.64% | 18.38% |
| EBITDA Growth % | 57.97% | 43.34% | 67.05% | 662.38% | -73.01% | -10.68% | 8.72% | -87.1% | -25.6% | -8.54% | 31.63% | 2.48% | -40% | 122.69% | 3.36% | 37.92% | 144.56% | -328.77% | -15.01% | 44.66% | 25.26% | 10.33% | - |
| D&A (Non-Cash Add-back) | 40.21M | 41.06M | 36.48M | 30.6M | 9.36M | 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 |
| EBIT | 91.58M | 75.54M | 44.86M | 18.09M | -2.98M | 10.37M | 18.43M | 18.37M | -109.7M | 36.4M | 104.4M | 2.6M | -62.7M | 131.18M | 119.94M | 106.59M | -116.11M | -323.02M | 27.3M | 105.29M | 61.52M | 23.17M | 24.99M |
| Net Interest Income | 9.97M | 9.51M | 8.74M | 7.02M | 1.66M | -6K | 52K | 106K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 9.97M | 9.51M | 8.74M | 7.02M | 1.66M | 0 | 52K | 106K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 6K | 0 | 0 | 33.2M | 34.6M | 31.5M | 42.5M | 44.3M | 62.83M | 28.95M | 28.34M | 12.48M | 28.41M | 36.6M | 13.62M | 14.79M | 12.6M | 12.46M |
| Other Income/Expense | 10.16M | 9.73M | 9.09M | 7.03M | 1.67M | -7K | -64K | 108K | -191.1M | -72.9M | -35.3M | -37.2M | -105M | -96.82M | -14.72M | -24.18M | -175.14M | -35.61M | -44.53M | -16.64M | -21.46M | -34.21M | -23.05M |
| Pretax Income | 96.56M | 85.28M | 53.94M | 25.12M | -1.31M | 10.37M | 18.36M | 18.48M | -142.9M | 1.8M | 72.9M | -39.9M | -107M | 68.35M | 90.99M | 78.25M | -128.59M | -351.44M | -9.3M | 91.67M | 46.73M | 10.58M | 12.54M |
| Pretax Margin % | 7.55% | 7.13% | 6.19% | 4.09% | -0.26% | 2.62% | 6.09% | 7.84% | -7.64% | 0.09% | 3.64% | -2.13% | -6.29% | 3.66% | 6.98% | 7.81% | -15.22% | -38.12% | -1.03% | 15.78% | 9.63% | 2.71% | 3.69% |
| Income Tax | 22.56M | 18.34M | 9.78M | 2.8M | -795K | 1.07M | 4.65M | 4.78M | 32.5M | 11.5M | -7.5M | -3.5M | 188M | 2.05M | -191.41M | -20.58M | 9.25M | 73.88M | 24.72M | 32.16M | 13.49M | 4.97M | 12.3M |
| Effective Tax Rate % | 23.36% | 21.5% | 18.12% | 11.15% | 60.78% | 10.28% | 25.34% | 25.88% | -22.74% | 638.89% | -10.29% | 8.77% | -175.7% | 3% | -210.36% | -26.3% | -7.19% | -21.02% | -265.84% | 35.08% | 28.87% | 47% | 98.08% |
| 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 |
| Net Margin % | 5.79% | 5.59% | 5.07% | 3.63% | -0.1% | 2.35% | 4.54% | 5.81% | -9.29% | -0.47% | 3.95% | -2.04% | -17.4% | 3.49% | 21.66% | 9.87% | -16.32% | -46.13% | -3.77% | 10.24% | 6.85% | 1.44% | 0.07% |
| Net Income Growth % | 45.86% | 51.55% | 97.87% | 4451.27% | -105.52% | -32.17% | 0.1% | 107.88% | -1769.89% | -111.76% | 307.61% | 87.13% | -555.31% | -76.97% | 185.76% | 171.7% | 67.59% | -1150.36% | -157.16% | 79.04% | 492.92% | 2226.14% | - |
| Net Income (Continuing) | 74M | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.57 | 0.52 | 0.35 | 0.18 | -0.00 | 0.06 | 0.07 | 0.08 | -1.56 | -0.08 | 0.68 | -0.34 | -2.73 | 0.59 | 2.92 | 1.13 | -1.63 | -5.05 | -0.41 | 0.86 | 0.54 | 0.10 | 0.00 |
| EPS Growth % | 46.15% | 48.57% | 94.44% | - | -107% | -18.48% | -3.92% | 104.91% | -1759.36% | -112.34% | 300% | 87.55% | -562.71% | -79.79% | 158.41% | 169.33% | 67.72% | -1131.71% | -147.67% | 59.26% | 444.9% | - | - |
| EPS (Basic) | - | 0.53 | 0.36 | 0.18 | -0.00 | 0.06 | 0.07 | 0.08 | -1.56 | -0.08 | 0.69 | -0.34 | -2.73 | 0.61 | 3.06 | 1.16 | -1.63 | -5.05 | -0.41 | 0.90 | 0.57 | 0.11 | 0.00 |
| Diluted Shares Outstanding | 129.31M | 129.38M | 127.72M | 125.07M | 122.1M | 118.82M | 115.86M | 117.48M | 111.8M | 110.8M | 115.9M | 111.6M | 108.6M | 110.31M | 96.62M | 87.78M | 84.47M | 84.22M | 82.19M | 68.89M | 61.46M | 56.59M | 48.87M |
| Basic Shares Outstanding | 125.67M | 129.38M | 124.37M | 123.51M | 122.1M | 112.76M | 115.86M | 117.48M | 111.8M | 110.8M | 114M | 111.6M | 108.6M | 107.01M | 92.41M | 85.2M | 84.47M | 84.22M | 82.19M | 66.22M | 58.32M | 50.73M | 48.87M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1738% | - |
Interchange Fee Margin Compression
As reported in recent financial statements, Paymentus achieved a 30.2% year-over-year revenue increase in 2026Q1, which represents a notable deceleration from the 56.5% growth rate observed in 2024Q4, suggesting that the company is moving past its initial hyper-growth phase toward a more sustainable expansion trajectory.
The moderation in top-line growth suggests that the initial surge from new customer acquisitions is beginning to normalize against a larger base. Investors should monitor whether the company can maintain this double-digit growth through deeper penetration of existing utility and government accounts rather than relying solely on new logo additions.
Based on the provided income statement data, gross margins have compressed from 30.0% in 2023Q4 to 24.1% in 2026Q1, reflecting the inherent sensitivity of the business model to variable interchange and assessment fees paid to card networks as transaction volumes scale across the platform.
This margin contraction indicates that the company's revenue growth is heavily tied to payment methods that carry higher processing costs. Future profitability improvements appear contingent on shifting the payment mix toward lower-cost rails like ACH or successfully leveraging the Instant Payment Network to bypass traditional card network fees.
According to quarterly filings, operating income scaled to $26.6 million in 2026Q1 from $9.1 million in 2023Q4, demonstrating that the company is successfully managing its overhead costs while simultaneously investing in the platform infrastructure required to support its expanding transaction volume and enterprise client base.
The ability to grow operating income faster than gross profit suggests that the company is achieving some degree of scale in its SG&A and R&D functions. However, the thin operating margin of 7.4% warrants further investigation into whether this efficiency is sustainable or if it masks under-investment in critical R&D.
Analysis of the income statement reveals that stock-based compensation reached $5.7 million in 2026Q1, a significant increase from the zero-dollar expense reported in late 2025, which suggests that non-cash compensation is becoming a more material factor in the company's reported net income and diluted EPS figures.
The re-emergence of stock-based compensation may indicate a shift in management's approach to talent retention, which could dilute shareholder value if not offset by proportional growth in net income. Investors should carefully distinguish between cash-based operational performance and these non-cash accounting charges when evaluating the true profitability of the firm.
Quick answers to the most common questions about buying PAY stock.
For fiscal year 2025, Paymentus Holdings, Inc. (PAY) reported total revenue of $1.20B. This represents a 252.6% increase compared to $339.3M in 2003.
Paymentus Holdings, Inc. (PAY) is profitable, generating $66.9M in net income for the fiscal year ending 2025 with a net profit margin of 5.6%.
Paymentus Holdings, Inc. (PAY) reported an operating income of $75.5M, resulting in an operating profit margin of 6.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Paymentus Holdings, Inc. (PAY) generated $296.3M in gross profit for the year, representing a gross profit margin of 24.8%. This demonstrates the company's core pricing power and production efficiency.