Paymentus (PAY) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $1.2 billion for full year 2025, up 37.3% year-over-year, and $330.5 million in Q4, up 28.1% year-over-year, driven by large enterprise clients, increased billers, and transaction volume.

• Quadrupled business over five years, far exceeding long-term CAGR model of 20% top-line growth.

• Maintained momentum in non-discretionary, essential U.S. markets and expanded into new verticals, including new channel partnerships.

• Ended Q4 with a robust backlog and strong bookings, providing high visibility into 2026.

• Significant growth driven by large enterprise customers and expansion across multiple industry verticals.

Financial highlights

• Q4 contribution profit was $106.9 million, up 24% year-over-year; full year contribution profit was $386.3 million, up 23.8%.

• Adjusted EBITDA for Q4 was $39.9 million (37.3% margin), up 46.3% year-over-year; full year adjusted EBITDA was $137.4 million (35.6% margin), up 45.9%.

• Non-GAAP net income for Q4 was $25.4 million ($0.20/share), up from $16.3 million ($0.13/share) prior year; full year non-GAAP net income was $84.9 million, up 51.2%.

• Free cash flow for 2025 was $125 million, up over 360% year-over-year; ended year with $324.5 million in cash and no debt.

• Rule of 40 exceeded in both Q4 (61) and full year (59).

Outlook and guidance

• 2026 revenue guidance: $1.39–$1.41 billion (17–17.8% growth); contribution profit: $442–$452 million (15.7–17% growth); adjusted EBITDA: $157–$167 million (17.9–21.5% growth).

• Q1 2026 revenue expected at $330–$340 million (22–24% growth); contribution profit $103–$105 million; adjusted EBITDA $36–$38 million.

• Guidance can be achieved without signing new clients; prudent approach due to limited experience with new large enterprise billers.

• Rule of 40 guidance for 2026: 50–54.

• Continued focus on expanding market share and entering new verticals.