Cash flow conversion is erratic, with the operating cash flow to net income ratio swinging from -14.03x to 35.29x over ten quarters, primarily due to working capital changes that resulted in a negative $12.8M cash use in 2026Q2.
Paysign, Inc. (PAYS) cash flow statement — 16-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | 71.32M | 52.45M | 22.95M | 27.62M | 25.32M | 15.23M | 13.78M | 9.95M | 16M | 7.15M | 1.27M | -719.5K | 3.08M | -620.27K | 2.06M | 225.92K | 64.33K |
| Operating CF Margin % | - | 63.94% | 39.3% | 58.43% | 66.57% | 51.68% | 57.11% | 28.7% | 68.29% | 46.95% | 12.16% | -8.87% | 29.95% | -9.83% | 30.67% | 6.98% | 1.5% |
| Operating CF Growth % | 617.39% | 128.57% | -16.92% | 9.1% | 66.26% | 10.54% | 38.44% | -37.79% | 123.67% | 464.58% | 276.06% | -123.34% | 596.96% | -130.18% | 809.67% | 251.22% | - |
| Net Income | 15.77M | 7.55M | 3.82M | 6.46M | 1.03M | -2.72M | -9.14M | 7.45M | 2.59M | 1.79M | 1.4M | -2.41M | 2.61M | 611.68K | 1.82M | 215.29K | -8.29K |
| Depreciation & Amortization | 9.37M | 8.32M | 5.99M | 4.03M | 2.91M | 2.5M | 2.12M | 1.48M | 1.09M | 876.19K | 572.32K | 362.71K | 171.59K | 58.01K | 59.25K | 43.51K | 109.11K |
| Stock-Based Compensation | 5.17M | 4.26M | 2.6M | 2.85M | 2.28M | 2.28M | 2.97M | 2.53M | 1.37M | 308.7K | 92.94K | 202.55K | 600.64K | 180.25K | 85.38K | 935 | 0 |
| Deferred Taxes | 1.59M | 0 | 298.78K | -4.3M | 0 | 0 | 917.48K | -909.98K | 0 | 0 | 0 | -11.34K | 0 | 0 | -1.3M | 0 | 0 |
| Other Non-Cash Items | 745.32K | 2.86M | 422.1K | 394.95K | 378.82K | 331.03K | 614.29K | -1.57K | -6.81K | -5.43K | -103.15K | -139.24K | -444 | -950 | -8.29K | -105 | 26.66K |
| Working Capital Changes | 38.66M | 29.46M | 9.81M | 18.19M | 18.72M | 12.84M | 16.29M | -604K | 10.96M | 4.18M | -696.19K | 1.28M | -299.74K | -1.47M | 1.4M | -33.71K | -63.15K |
| Change in Receivables | -61.71M | -38.87M | -16.44M | -11.69M | -1.71M | -3.76M | 237.08K | -554.63K | -171.78K | -55.25K | -93.53K | 69.92K | 291.06K | -310.28K | 1.17M | 394.57K | -1.64M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -596.9K | -557.05K | -1.81M | 1.36M | 604.59B | 949.74B | -240.92B | 424.3B | 3.24B |
| Change in Payables | 27.37M | 36.61M | 0 | 0 | 0 | 0 | 0 | 196.11K | 182.41K | 379.49K | 415.51K | -130.59K | -604.59B | -949.75B | 240.93B | -424.3B | 1.58M |
| Cash from Investing | -7.36M | -10.09M | -9.49M | -7.05M | -4.09M | -2.68M | -3.34M | -3.24M | -1.59M | -1.52M | -887.01K | -926.18K | -527.91K | -238.78K | -234.32K | -199.31K | -2.99K |
| Capital Expenditures | -1.41M | -1.21M | -434.9K | -262.56K | -105.19K | -328.57K | -1.38M | -3.24M | -1.59M | -1.52M | -887.01K | -926.18K | -527.91K | -238.78K | -234.32K | -199.31K | -2.99K |
| CapEx % of Revenue | 1.4% | 1.47% | 0.74% | 0.56% | 0.28% | 1.12% | 5.73% | 9.34% | 6.81% | 9.97% | 8.52% | 11.42% | 5.13% | 3.79% | 3.5% | 6.16% | 0.07% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -5.94M | -8.89M | -9.05M | -6.79M | -3.99M | -2.35M | -1.96M | 0 | -1.34M | -812.12K | -777.14K | -787.85K | -387.06K | -186.45K | -157.95K | -160.38B | -23.6K |
| Cash from Financing | -4.8M | 284.87K | -466.25K | -1.12M | 0 | 192.14K | -72.86K | 430.92K | 100K | -102.06K | -137.26K | -851.79K | 305.11K | 13.38K | -11.75K | -5K | -22.03K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -152.06K | -137.26K | -151.35K | 0 | 0 | -11.75K | -5K | -22.28K |
| Equity Issued (Net) | 0 | 284.87K | -495.05K | -1.13M | 0 | 0 | -245.43K | 430.92K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 250 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | -375.79K | -495.05K | -1.13M | 0 | 0 | -245.43K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -4.8M | 0 | 28.8K | 9.6K | 0 | 192.14K | 172.56K | 0 | 100K | 50K | 0 | -700.44K | 305.11K | 13.38K | 0 | 0 | 0 |
| Net Change in Cash | 59.16M | 42.64M | 12.99M | 19.45M | 21.23M | 12.74M | 10.36M | 13.91M | 14.5M | 5.53M | 242.45K | -2.5M | 2.86M | -845.67K | 1.81M | 21.61K | 39.31K |
| Free Cash Flow | 67.11M | 51.24M | 13.46M | 20.57M | 21.23M | 12.55M | 10.43M | 9.49M | 14.4M | 5.63M | 379.71K | -1.65M | 2.55M | -859.05K | 1.82M | 26.61K | 61.34K |
| FCF Margin % | 66.68% | 62.47% | 23.05% | 43.52% | 55.81% | 42.59% | 43.25% | 27.37% | 61.48% | 36.97% | 3.65% | -20.3% | 24.82% | -13.62% | 27.18% | 0.82% | 1.43% |
| FCF Growth % | 486.92% | 280.74% | -34.58% | -3.08% | 69.15% | 20.3% | 9.95% | -34.12% | 155.68% | 1383.32% | 123.07% | -164.42% | 397.38% | -147.18% | 6742.16% | -56.61% | - |
| FCF per Share | 1.08 | 0.86 | 0.24 | 0.38 | 0.40 | 0.25 | 0.21 | 0.17 | 0.28 | 0.12 | 0.01 | -0.04 | 0.06 | -0.02 | 0.05 | 0.00 | 0.00 |
| FCF Conversion (FCF/Net Income) | 4.25x | 6.95x | 6.01x | 4.28x | 24.63x | -5.60x | -1.51x | 1.33x | 6.18x | 3.99x | 0.90x | 0.30x | 1.18x | -1.01x | 1.13x | 1.05x | -7.76x |
| Interest Paid | 0 | 0 | 0 | 0 | 221 | 4.59K | 0 | 0 | 0 | 46.66K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 34.7K | 414.19K | 136.63K | 207.94K | 35.95K | 4.07K | 0 | 0 | 7.5K | 16.2K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying PAYS stock.
Paysign, Inc. (PAYS) generated $52.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Paysign, Inc. (PAYS) generated $51.2M 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.
Paysign, Inc. (PAYS) spent $1.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Paysign, Inc. (PAYS) spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Volatility in Working Capital
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Volatility
PAYS exhibits extreme volatility in cash conversion, with the operating cash flow to net income ratio swinging from -14.03x to 35.29x over the last ten quarters, suggesting earnings quality is heavily influenced by timing of large working capital movements rather than consistent operational cash generation.
The massive gap between reported net income and operating cash flow, particularly in quarters like 2025Q4 where OCF was $48.1M versus $1.4M net income, indicates that accrual-based accounting is not capturing the true cash dynamics of the business. This volatility suggests the company's cash profile is driven by episodic inflows and outflows rather than a smooth, predictable cash generation pattern, which complicates valuation and forecasting.
Working Capital Swings Dominate Cash Profile
According to the cash flow data, working capital changes have been the primary driver of operating cash flow, with massive swings from a $41.7M source in 2025Q4 to a $12.8M use in 2026Q2, indicating a lumpy and unpredictable cash conversion cycle.
The $41.7M working capital source in 2025Q4 alone accounted for 87% of that quarter's operating cash flow, while the $24.0M use in 2024Q3 was the primary cause of a significant cash burn. This pattern implies that the company's cash flow is highly sensitive to the timing of customer collections and vendor payments, and investors should monitor the days sales outstanding and inventory levels closely as the business scales.
FCF Margin Volatility Amidst Growth
Based on reported figures, free cash flow margin has been erratic, ranging from -148.2% to 126.9% over the past ten quarters, with recent quarters showing a concerning trend of negative FCF (-3.6% in 2026Q2) despite strong revenue growth.
The negative FCF in the most recent quarter, despite 48.1% revenue growth, suggests that the company's cash needs are currently outpacing its ability to generate cash from core operations, likely due to significant investments in working capital to support expansion. This trajectory warrants monitoring to see if the company can achieve consistent positive free cash flow generation as its revenue base matures.
Minimal Capital Intensity Supports Scalability
As reported in the financial statements, capital expenditure as a percentage of revenue has remained exceptionally low, ranging from 0.4% to 7.4% across all quarters, indicating a highly scalable, asset-light business model with minimal need for reinvestment.
The consistently low CapEx intensity, with the highest ratio at 7.4% in 2026Q1 still below the depreciation run rate, suggests that the company requires very little capital to maintain and grow its operations. This is a positive structural characteristic that should support higher free cash flow conversion once working capital volatility subsides, as the business does not require heavy reinvestment to sustain its growth trajectory.
Hidden Cash Costs in Growth Engine
The cash flow statement reveals that stock-based compensation, which reached $1.3M in 2026Q2, is a persistent non-cash charge that dilutes shareholders, while the massive working capital builds required for growth are consuming operating cash that might otherwise fund shareholder returns.
While SBC is a non-cash expense for earnings, it represents a real cost to existing shareholders through dilution, and its consistent inclusion in expenses highlights a structural compensation practice. Furthermore, the company's growth appears to be funding-intensive in terms of working capital, with the $12.8M cash outflow in 2026Q2 suggesting that revenue growth is not yet translating into proportional cash generation, which could pressure the balance sheet if not managed carefully.