Paymentus Posts Record Revenue of $372.2 Million in Third Quarter
Key Facts
Paymentus reported unaudited results on Nov. 2 for the quarter ended Sept. 30, 2026, posting record revenue of $372.2 million, up 19.8% year over year, according to the company’s statement. Growth came alongside an increase in processed transactions to 219.0 million, up 20.1% from the same period a year earlier. The company said revenue growth came largely from an increase in the number of billers and transaction volumes. Net income under generally accepted accounting principles was $27.5 million, compared with $17.7 million a year earlier. Diluted earnings per share rose to $0.21 from $0.14. The available information did not include a verified comparison with analyst estimates.
Activity indicators show revenue and transactions growing at a similar pace, with transaction growth slightly outpacing revenue growth during the quarter. Paymentus said the expansion of its biller base and higher transaction volumes were the main drivers of revenue. 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%. These figures offer a view of business expansion alongside improving profitability indicators. The company also said it processes more than 790 million transactions annually and serves about 53 million consumers and businesses worldwide.
Adjusted profitability provides another indicator of the quarter’s performance: adjusted EBITDA was $49.7 million, up 38.6% year over year, with a margin of 41.9%. Contribution profit rose 20.6% to $118.5 million. Adjusted EBITDA growth outpaced revenue growth of 19.8%. These measures, however, are not GAAP earnings; GAAP net income was $27.5 million. Adjusted gross profit also rose 23.1% to $99.8 million, compared with a 25.4% increase in gross profit to $93.8 million.
Actual results exceeded the guidance range the company set for the third quarter in its second-quarter earnings announcement. Paymentus had then forecast revenue of $353 million to $363 million and contribution profit of $112 million to $115 million. Actual revenue was $372.2 million, while contribution profit was $118.5 million. Comparing results with prior guidance offers an indicator of the company’s execution during the quarter, but does not by itself establish the stock’s performance or market expectations. The available materials did not include verifiable analyst estimates for comparison with the results.
The company raised its guidance for the fourth quarter of 2026, setting revenue at $373 million to $378 million and contribution profit at $120 million to $122 million. It also set an adjusted EBITDA range of $45 million to $50 million. These measures are defined differently, as guidance presents contribution profit and adjusted EBITDA separately. The CEO said the company’s year-to-date results, along with strong bookings and a large backlog, strengthen confidence in achieving its 2026 goals and 2027 outlook. He concluded, "Our year-to-date results, along with strong bookings and a large backlog, strengthen our confidence in achieving our 2026 financial goals as well as our 2027 outlook."
On its cash position, company data showed cash and cash equivalents of $407.616 million as of Sept. 30, 2026, alongside $2.021 million in restricted cash and cash equivalents. PAY shares closed at $32.82 on Oct. 30, according to EL7 data, before the results were announced on Nov. 2. The company scheduled a live webcast to discuss results for Nov. 2 at 5 p.m. Eastern time, with a replay available for one year afterward. By the date of the results announcement, the webcast time had passed; it therefore did not represent a future event. The fourth-quarter guidance and annual goals cited by the company remain the focus of monitoring in coming periods.