Paymentus Raises 2026 Adjusted Earnings Outlook 4.7% After Record Revenue of $372.2 Million
Key Facts
Paymentus raised its fiscal 2026 outlook after posting record third-quarter revenue of $372.2 million, up 19.8% year over year, and exceeding the high ends of its previous guidance for revenue, contribution profit and adjusted EBITDA. In its earnings release, the company said its full-year revenue range is now $1,464 million to $1,469 million, while it raised the midpoint of its adjusted EBITDA outlook by 4.7%. It also processed 219.0 million transactions during the quarter, up 20.1% from the same period last year. The company reported results after the market close on November 2, according to Investing.com coverage. The chief executive said year-to-date results, together with strong bookings and a sizable backlog, “reinforce our confidence in achieving our financial goals for 2026 as well as our outlook for 2027.”
Revenue reached the high end of the company’s previous guidance of $363 million, while contribution profit came to $118.5 million against a prior high end of $115 million, and adjusted EBITDA was $49.7 million against a high end of $45 million. In August, the company had set revenue guidance of $353 million to $363 million, contribution profit of $112 million to $115 million, and adjusted EBITDA of $40 million to $45 million. Gross profit was $93.8 million, up 25.4% year over year, while adjusted gross profit was $99.8 million, an increase of 23.1%. Contribution profit rose 20.6% to $118.5 million. The comparison between revenue growth and adjusted earnings growth shows the latter accelerated more sharply during the quarter.
Paymentus said revenue growth was driven by an increase in the number of billers and transaction volume, while management attributed performance to new biller launches and sales growth among existing clients. The average price per transaction was $1.70, a level the company said was consistent with the prior year. Management said launches by new clients and growth in existing business supported activity during the quarter. The company also reported accelerating demand across utilities, insurance, government, property management, telecommunications and banking and education, and said it had formed new channel partnerships in utilities and mortgages. The company serves businesses and consumers across multiple sectors through a platform it says processes more than 790 million transactions annually.
Adjusted EBITDA was $49.7 million, up 38.6%, and its margin reached a record 41.9%. The chief financial officer said the margin improved 540 basis points year over year, mainly due to higher operating leverage. GAAP net income was $27.5 million, compared with $17.7 million a year earlier, while diluted earnings per share on the same basis rose to $0.21 from $0.14. On an adjusted basis, net income was $33.1 million versus $22.6 million, and diluted earnings per share were $0.25 versus $0.17. Investing.com coverage cited analyst estimates of $0.21 per adjusted share and $359.31 million in revenue, compared with the reported actual results of $0.25 and $372.17 million.
Free cash flow was $34.0 million, up 32.1% year over year, but down 12.8% from the second quarter, when it was $39.0 million. As of September 30, 2026, cash and cash equivalents totaled $407.616 million, in addition to $2.021 million in restricted cash and cash equivalents. The company says it serves about 53 million consumers and businesses and provides solutions to more than 30 Fortune 500 companies in 35 countries. These figures reflect the scale of the company’s platform, alongside transaction growth during the quarter. The earnings release did not report a year-over-year change in available cash in the figures presented here.
Paymentus set fourth-quarter guidance of $373 million to $378 million in revenue, $120 million to $122 million in contribution profit, and $45 million to $50 million in adjusted EBITDA. The chief financial officer said fourth-quarter guidance was about $2 million higher for revenue and $1 million higher for adjusted earnings than the prior implied level. For the fiscal year, the company raised its revenue outlook to $1,464–$1,469 million and contribution profit to $466–$468 million, alongside adjusted EBITDA guidance of $186–$191 million. The midpoint of annual revenue guidance increased 1.1%, contribution profit 1.0%, and adjusted EBITDA 4.7% compared with prior guidance. In trading on November 2, the stock closed at $35.05, up 6.79% during the regular session, before the results were announced after the close; it then traded at $35.07 after hours, according to Investing.com citing Reuters.