Revenue growth accelerated to 48.1% year-over-year in 2026Q2, driving a dramatic expansion in gross margin to 63.3% and enabling operating income to surge to $7.0M, or a 24.8% margin.
Paysign, Inc. (PAYS) annual income statement — 16-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 100.64M | 82.03M | 58.38M | 47.27M | 38.03M | 29.46M | 24.12M | 34.67M | 23.42M | 15.23M | 10.42M | 8.11M | 10.29M | 6.31M | 6.7M | 3.24M | 4.28M |
| Revenue Growth % | 46.84% | 40.5% | 23.5% | 24.3% | 29.08% | 22.16% | -30.42% | 48% | 53.76% | 46.25% | 28.48% | -21.23% | 63.18% | -5.86% | 107.02% | -24.41% | - |
| Cost of Goods Sold | 44.1M | 41.63M | 26.19M | 23.14M | 17.08M | 14.75M | 14.82M | 15.43M | 12.03M | 8.53M | 5.2M | 4.02M | 4.65M | 4.1M | 5.31M | 2.43T | 3.61M |
| COGS % of Revenue | - | 50.75% | 44.85% | 48.94% | 44.91% | 50.07% | 61.43% | 44.5% | 51.34% | 56.02% | 49.89% | 49.58% | 45.22% | 65.06% | 79.18% | 75084666.74% | 84.27% |
| Gross Profit | 56.54M | 40.4M | 32.2M | 24.14M | 20.95M | 14.71M | 9.3M | 19.24M | 11.4M | 6.7M | 5.22M | 4.09M | 5.64M | 2.2M | 1.4M | -2.43T | 673.29K |
| Gross Margin % | 56.18% | 49.25% | 55.15% | 51.06% | 55.09% | 49.93% | 38.57% | 55.5% | 48.66% | 43.98% | 50.11% | 50.42% | 54.78% | 34.94% | 20.82% | -75084566.74% | 15.73% |
| Gross Profit Growth % | - | 25.47% | 33.4% | 15.18% | 42.43% | 58.13% | -51.65% | 68.83% | 70.11% | 28.37% | 27.67% | -27.5% | 155.8% | 58% | 100% | -99999900% | - |
| Operating Expenses | 39.43M | 33.15M | 31.18M | 24.3M | 20.61M | 17.45M | 17.64M | 13.14M | 8.92M | 4.93M | 3.86M | 4.1M | 2.89M | 1.53M | 820.18K | 591.2B | 657.81K |
| OpEx % of Revenue | - | 40.42% | 53.4% | 51.41% | 54.19% | 59.23% | 73.14% | 37.9% | 38.1% | 32.37% | 37.06% | 50.53% | 28.05% | 24.32% | 12.24% | 18266634.49% | 15.36% |
| Selling, General & Admin | 26.52M | 33.15M | 25.18M | 20.28M | 18.16M | 15.83M | 15.09M | 11.66M | 7.84M | 4.06M | 3.29M | 3.73M | 2.72M | 1.48M | 760.93K | 547.69K | 548.69K |
| SG&A % of Revenue | - | 40.42% | 43.13% | 42.89% | 47.75% | 53.72% | 62.57% | 33.63% | 33.45% | 26.62% | 31.57% | 46.06% | 26.38% | 23.41% | 11.36% | 16.92% | 12.82% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 5.99M | 4.03M | 2.45M | 1.62M | 2.55M | 1.48M | -31.13K | 55.54K | 16.15K | -6.36K | 171.59K | 58.01K | -1.3M | 43.51B | 109.11K |
| Operating Income | 17.12M | 7.24M | 1.02M | -167.25K | 344.33K | -2.74M | -8.34M | 6.1M | 2.47M | 1.77M | 1.36M | -8.87K | 2.75M | 669.82K | 574.85K | 278.89B | 3.59M |
| Operating Margin % | 17.01% | 8.83% | 1.75% | -0.35% | 0.91% | -9.3% | -34.57% | 17.6% | 10.56% | 11.6% | 13.04% | -0.11% | 26.73% | 10.62% | 8.58% | 8616866.36% | 83.92% |
| Operating Income Growth % | - | 609.11% | 710.75% | -148.57% | 112.57% | 67.15% | -236.65% | 146.77% | 39.87% | 30.12% | 15413.45% | -100.32% | 310.79% | 16.52% | -100% | 7762275.33% | - |
| EBITDA | 24.97M | 15.56M | 7.02M | 3.86M | 3.25M | -241.51K | -6.21M | 7.58M | 3.56M | 2.64M | 1.93M | 353.84K | 2.92M | 727.83K | 634.1K | 278.89B | 3.7M |
| EBITDA Margin % | 24.81% | 18.97% | 12.02% | 8.16% | 8.56% | -0.82% | -25.76% | 21.88% | 15.21% | 17.36% | 18.54% | 4.36% | 28.4% | 11.54% | 9.46% | 8616867.71% | 86.46% |
| EBITDA Growth % | 103.51% | 121.8% | 81.81% | 18.6% | 1447.31% | 96.11% | -181.92% | 112.93% | 34.73% | 36.93% | 445.71% | -87.9% | 301.63% | 14.78% | -100% | 7533477.79% | - |
| D&A (Non-Cash Add-back) | 6.96M | 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 |
| EBIT | 20.11M | 10.03M | 4.14M | 2.36M | -115.42K | -3.62M | -7.91M | 6.54M | 2.58M | 1.77M | 1.37M | -2.5M | 2.75M | 669.82K | 1.87M | 278.89K | 51.1K |
| Net Interest Income | 3M | 2.67M | 3.12M | 2.53M | 790.92K | 28.3K | 90.72K | 441.12K | 139.74K | 7.6K | -77.11K | -45.68K | -141.51K | -59.08K | -62.16K | -63.7K | -66.43K |
| Interest Income | 3M | 2.67M | 3.12M | 2.53M | 790.92K | 28.3K | 90.72K | 441.12K | 139.74K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 31.62K | 77.11K | 45.68K | 141.51K | 59.08K | 62.16K | 63.7K | 66.43K |
| Other Income/Expense | 3M | 2.79M | 3.12M | 2.53M | 790.92K | 28.3K | 90.72K | 441.12K | 108.61K | 23.92K | -60.96K | -2.54M | -141.51K | -59.08K | 1.23M | -63.7K | -97.23K |
| Pretax Income | 20.11M | 10.03M | 4.14M | 2.36M | 1.14M | -2.71M | -8.25M | 6.54M | 2.58M | 1.79M | 1.3M | -2.55M | 2.61M | 610.73K | 1.81M | 215.19K | -15.32K |
| Pretax Margin % | 19.99% | 12.23% | 7.09% | 5% | 2.98% | -9.2% | -34.19% | 18.87% | 11.02% | 11.76% | 12.46% | -31.45% | 25.36% | 9.68% | 26.99% | 6.65% | -0.36% |
| Income Tax | 4.34M | 2.48M | 322.29K | -4.09M | 107.48K | 10.2K | 894.18K | -909.98K | 0 | 6K | 0 | 0 | 0 | 0 | 0 | -105M | -7.03K |
| Effective Tax Rate % | 21.58% | 24.73% | 7.79% | -173.23% | 9.47% | -0.38% | -10.84% | -13.91% | 0% | 0.33% | 0% | 0% | 0% | 0% | 0% | -48795% | 45.89% |
| 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 |
| Net Margin % | 15.67% | 9.21% | 6.54% | 13.66% | 2.7% | -9.24% | -37.9% | 21.5% | 11.05% | 11.76% | 13.45% | -29.73% | 25.36% | 9.7% | 27.12% | 6.65% | -0.19% |
| Net Income Growth % | 132.52% | 97.9% | -40.92% | 528.42% | 137.77% | 70.23% | -222.63% | 188.03% | 44.49% | 27.87% | 158.12% | -192.33% | 326.77% | -66.33% | 743.91% | 2696.37% | - |
| Net Income (Continuing) | 15.77M | 7.55M | 3.82M | 6.46M | 1.03M | -2.72M | -9.14M | 7.45M | 2.58M | 1.79M | 1.3M | -2.55M | 2.61M | 610.73K | 1.81M | 215.19K | -15.32K |
| Discontinued Operations | 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 | -263.09K | -206.93K | -200.12K | -194.69K | -91.54K | 47.7K | 48.15K | 49.1K | 57.38K | 57.49K |
| EPS (Diluted) | 0.25 | 0.13 | 0.07 | 0.12 | 0.02 | -0.05 | -0.19 | 0.14 | 0.05 | 0.04 | 0.03 | -0.06 | 0.06 | 0.01 | 0.05 | 0.01 | -0.00 |
| EPS Growth % | 107.56% | 89.5% | -42.83% | 518.56% | 136.33% | 71.89% | -235.71% | 181.12% | 24.5% | 33.33% | 149.34% | -201.33% | 500% | -80% | - | - | - |
| EPS (Basic) | - | 0.14 | 0.07 | 0.12 | 0.02 | -0.05 | -0.19 | 0.16 | 0.05 | 0.04 | 0.03 | -0.06 | 0.07 | 0.02 | 0.05 | 0.01 | -0.00 |
| Diluted Shares Outstanding | 61.98M | 59.65M | 55.59M | 54.16M | 52.93M | 50.98M | 49.27M | 54.55M | 51.99M | 48.04M | 43.87M | 39.64M | 42.41M | 42.39M | 39.57M | 35.25M | 34.69M |
| Basic Shares Outstanding | 55.86M | 54.43M | 53.21M | 52.49M | 52.05M | 50.98M | 49.27M | 47.44M | 51.76M | 43.4M | 42.88M | 39.64M | 38.81M | 38.93M | 36.53M | 35.25M | 34.69M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PAYS stock.
For fiscal year 2025, Paysign, Inc. (PAYS) reported total revenue of $82.0M. This represents a 1815.9% increase compared to $4.3M in 2010.
Paysign, Inc. (PAYS) is profitable, generating $7.6M in net income for the fiscal year ending 2025 with a net profit margin of 9.2%.
Paysign, Inc. (PAYS) reported an operating income of $7.2M, resulting in an operating profit margin of 8.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Paysign, Inc. (PAYS) generated $40.4M in gross profit for the year, representing a gross profit margin of 49.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin sustainability at scale
Metrics are mathematically derived from official filings.
Sustained High-Velocity Revenue Growth
PAYS has delivered explosive top-line growth, with revenue accelerating to 48.1% year-over-year in 2026Q2, building upon a consistent trend of over 30% annual growth in each of the preceding five quarters.
This growth trajectory appears to be driven by a significant expansion in scale, as revenue has nearly doubled from $13.2M in 2024Q1 to $28.3M in 2026Q2. The consistent, high double-digit growth rates suggest strong market adoption or successful execution of a strategic initiative, making durability of this expansion the key question for valuation.
Gross Margin Expansion and Peer Outperformance
As reported in financial statements, PAYS's gross margin has significantly expanded to 63.3% in 2026Q2, a notable improvement from the low-50% range a year ago and substantially higher than the ~23% gross margins seen at peers like USIO and Priority Technology.
This structural improvement in gross margin suggests a favorable shift in revenue mix towards higher-margin services or improved pricing power as scale increases. The 63.3% level is also approaching that of EVERTEC, indicating PAYS may be moving upmarket or capturing a more valuable segment of the transaction flow, which warrants monitoring for sustainability.
Significant Operating Leverage Emerges
Operating income surged to $7.0M in 2026Q2, representing a 24.8% operating margin, a dramatic improvement from the negative margin reported in 2024Q1, demonstrating the company's ability to scale earnings faster than revenue.
The inflection is particularly stark when comparing the most recent quarter to 2025Q4, where a $22.8M revenue base only yielded an 8.1% operating margin. This indicates that recent revenue growth is flowing to the bottom line at an accelerating rate, suggesting successful management of overhead costs relative to the top-line surge.
Stock-Based Compensation Dilutes Reported Growth
Despite robust top-line performance, EPS growth has been volatile, with a 3.6% increase in 2026Q2, while stock-based compensation reached $1.3M, a significant figure that appears to be a persistent drag on shareholder dilution.
The reported EPS growth of 3.6% in the latest quarter contrasts sharply with the 48.1% revenue growth, a disconnect largely explained by the increase in shares outstanding and the $1.3M SBC charge. Investors should monitor the trend in SBC as a percentage of revenue, which has been relatively stable, to assess the true cost of this non-cash compensation.
SG&A Discipline Underpins Margin Expansion
Based on PAYS's reported figures, selling, general and administrative expenses have been effectively managed, with SG&A as a percentage of revenue declining sharply to 30.0% in 2026Q2 from the 44.9% level seen in 2024Q4.
This cost discipline is a primary driver of the operating margin expansion. The company appears to be leveraging its existing cost structure to support much higher revenue volumes, with SG&A growing far slower than the top line. The key risk is whether this level of efficiency can be maintained as the business continues to scale.
Margin Sustainability Amid Rapid Scale
The strongest challenge to the narrative is the sustainability of the 63.3% gross margin, which has spiked recently, and whether the recent operational leverage can hold as the company invests to support its rapid growth trajectory.
Short-sellers would likely focus on the cyclical nature of transaction-based businesses and question whether the margin expansion is structural or a temporary benefit from a favorable mix. The significant jump in COGS from $6.9M in 2025Q1 to $12.5M in 2026Q1, despite rising revenue, hints at potential volatility in direct costs that could compress margins if growth decelerates.