Paymentus (PAY) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $358.4M, up 30.2% year-over-year, driven by increased transaction volumes and biller adoption.

• Adjusted EBITDA grew 41.5% to $42.4M, with margin improving to 38.7%, reflecting strong operating leverage.

• Net income rose to $20.9M, up 51% year-over-year; non-GAAP net income was $26.9M, with diluted EPS up to $0.21.

• Launched AI-native Service Commerce platform, including BillWallet and Billeo, to transform service provider-customer interactions.

• Expanded and diversified customer base with new clients and channel partners across utilities, insurance, telecom, government, property management, finance, banking, education, and healthcare.

Financial highlights

• Processed 203.4M transactions in Q1 2026, up 17.4% year-over-year; average revenue per transaction increased to $1.76.

• Contribution profit rose 25.2% to $109.7M; adjusted gross profit was $92.4M, up 27.3% year-over-year.

• Adjusted EBITDA margin reached 38.7%, up from 34.2% in Q1 2025.

• Free cash flow for Q1 2026 was $20.9M, down from $41.1M in Q1 2025, due to higher working capital investment.

• Cash and cash equivalents at quarter-end were $338.8M–$342.1M, with no debt.

Outlook and guidance

• Q2 2026 guidance: revenue $340M–$350M, contribution profit $108M–$111M, adjusted EBITDA $38M–$40M.

• Full year 2026 guidance raised: revenue $1.425B–$1.44B, contribution profit $450M–$457M, adjusted EBITDA $165M–$172M.

• Guidance reflects 19.7%–20.4% revenue growth and 22.6%–25.2% adjusted EBITDA growth.

• No material revenue from new AI-native products expected in 2026; impact anticipated in 2027 and beyond.

• Management expects continued macroeconomic uncertainty, with inflation, energy volatility, and geopolitical instability impacting consumer payment behavior and costs.