Paymentus — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue increased 19.8% year-over-year to $372.2 million, driven by growth in billers and transaction volumes.
• Gross profit rose 25.4% year-over-year to $93.8 million; adjusted gross profit increased 23.1% to $99.8 million.
• Contribution profit grew 20.6% year-over-year to $118.5 million.
• Net income was $27.5 million, up from $17.7 million in the same period in 2025; diluted GAAP EPS was $0.21 versus $0.14.
• Non-GAAP net income was $33.1 million, up from $22.6 million; diluted non-GAAP EPS was $0.25 versus $0.17.
• Adjusted EBITDA increased 38.6% year-over-year to $49.7 million, achieving a record adjusted EBITDA margin of 41.9% (compared to 36.5% in Q3 2025).
• The company processed 219.0 million transactions, a 20.1% year-over-year increase.
• Cash and cash equivalents were $407.6 million as of September 30, 2026, compared to $320.9 million as of December 31, 2025.
• Free cash flow for the quarter was $33.983 million, compared to $25.725 million in the prior year period.

Guidance and Future Outlook:

• Fourth Quarter 2026 revenue guidance is $373 million to $378 million.
• Full-year 2026 revenue guidance is $1,464 million to $1,469 million.
• Fourth Quarter 2026 contribution profit guidance is $120 million to $122 million.
• Full-year 2026 contribution profit guidance is $466 million to $468 million.
• Fourth Quarter 2026 adjusted EBITDA guidance is $45 million to $50 million.
• Full-year 2026 adjusted EBITDA guidance is $186 million to $191 million.
• Management expressed confidence in achieving 2026 financial targets and 2027 outlook, citing strong bookings and a sizable backlog.

Business Segments and Product Lines:

• The company serves approximately 53 million consumers and businesses worldwide.
• Solutions are provided to more than 30 Fortune 500 enterprises across 35 countries.
• The proprietary Instant Payment Network (IPN) connects ecosystem partners and tens of thousands of billers to integrated billing, payment, disbursement, and reconciliation capabilities.
• The platform processes more than 790 million transactions annually across inbound bill payments, multi-party disbursements, and payouts.

Market and Competitive Landscape:

• Paymentus is positioned as a leading provider of cloud-native billing, payment, disbursement, and AI-enabled Service Commerce solutions.
• The platform enables secure, intelligent consumer experiences across digital and assisted channels.

Risks and Challenges:

• Forward-looking statements are subject to risks including the ability to manage growth, expand operations into new channels and verticals, and retain billers, financial institutions, partners, and consumers.
• Risks include economic challenges such as inflation, widespread health issues, cybersecurity incidents, and evolving regulations.
• Potential variability in non-GAAP reconciling items, such as acquisition-related amortization and foreign exchange gains/losses, may affect financial performance.

Management Commentary and Tone:

• Dushyant Sharma, Founder and CEO, stated the company delivered "another strong quarter" with revenue growth driving increases in contribution profit and adjusted EBITDA.
• Management highlighted that year-to-date results, combined with strong bookings and a sizable backlog, reinforce confidence in future targets.

Other Key Points:

• The company hosts a conference call for investors at 5:00 p.m. ET on November 2, 2026, to discuss results and guidance.
• Non-GAAP net income and EPS are adjusted for an assumed provision for income taxes based on a long-term projected non-GAAP tax rate of 25%.
• The company does not reconcile forward-looking guidance for non-GAAP measures due to the complexity and uncertainty of potential variability in excluded items.
• Weighted-average diluted shares outstanding were 130,337,448 for the quarter ended September 30, 2026.