Our pipeline remains robust, and we are extremely confident that the business will continue its current growth trajectory."
"all the nitty gritty":
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2025-05-08 20:05:00 GMT Press Release: Paysign, Inc. Reports First Quarter 2025 Financial Results
Paysign, Inc. Reports First Quarter 2025 Financial Results
-- First quarter 2025 total revenues of $18.60 million, up 41.0% from first
quarter 2024
-- First quarter 2025 net income of $2.59 million, or diluted earnings per
share of $0.05, versus net income of $309 thousand, or diluted earnings
per share of $0.01, for first quarter 2024
-- First quarter 2025 Adjusted EBITDA of $4.96 million, up 193.3% from $1.69
million a year ago, while diluted Adjusted EBITDA per share was $0.09
versus $0.03 for first quarter 20241
-- Total plasma center count increased by four net centers during first
quarter 2025, exiting the quarter with 484 centers; revenue per plasma
center decreased to $6,517 compared to $7,414 for the same period last
year; year-over-year plasma revenue decreased 9.2%
-- Added 14 net patient affordability programs during first quarter 2025,
exiting the quarter with 90 active programs; number of processed claims
increased over 160% over the same period last year; year-over-year pharma
patient affordability revenue increased 260.8%
-- Exited the quarter with $6.85 million of unrestricted cash and zero bank
debt while repurchasing 100,000 shares of common stock for $376 thousand
-- First quarter 2025 gross dollar load volume and gross spend volume were
down 4.5% and 9.4%, respectively, over first quarter 2024
(1) Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP metrics used by management to gauge the operating performance of the business -- see reconciliation of net income to Adjusted EBITDA at the end of the press release.
HENDERSON, Nev.--(BUSINESS WIRE)--May 08, 2025--
Paysign, Inc. (NASDAQ: PAYS), a leading provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services and integrated payment processing, today announced financial results for the first quarter 2025.
"Q1 2025 was another exceptional quarter for Paysign, as we achieved record revenue, operating income and Adjusted EBITDA," said Mark Newcomer, President and CEO of Paysign. "We delivered 41.0% year-over-year revenue growth and a 193.3% increase in Adjusted EBITDA, along with a 10.3 percentage point expansion in gross margins. Our patient affordability business once again outperformed expectations, delivering an impressive 260.8% revenue increase compared to the first quarter of 2024. We ended the quarter with 90 active patient affordability programs, adding 14 net patient affordability programs during the quarter. Our pipeline remains robust, and we are extremely confident that the business will continue its current growth trajectory."
"Looking ahead, we are focused on unlocking the full potential of our recent Gamma Innovation acquisition, by streamlining operations and expanding the capabilities of our platform. By integrating engagement technology into our existing payment solutions, we are well-positioned to deliver greater value to our customers and drive long-term growth, particularly within the plasma, pharmaceutical, and broader healthcare industries."
2025 First Quarter Results
The following additional details are provided to aid in understanding Paysign's first quarter 2025 results versus first quarter 2024:
-- Total revenues increased 41.0%, or $5.41 million. The increase was
attributable to the following factors:
-- Plasma revenue decreased $958 thousand, or 9.2%, primarily due to
reduced revenue per plasma center, plasma donations and dollars
loaded to cards. Total plasma center count increased by four net
centers during first quarter 2025, exiting with 484 centers. The
decline in plasma revenue is predominately due to an industry-wide
oversupply in plasma inventories.
-- Pharma patient affordability revenue increased $6.23 million, or
260.8%, primarily due to the growth and launch of new pharma
patient affordability programs and seasonally strong processed
claim volume. We added 33 net patient affordability programs
during 2024 and 14 during the first quarter of 2025, exiting the
quarter with 90 active programs. Processed claims increased over
160%.
-- Other revenue increased by $136 thousand, or 31.4%, primarily due
to the growth in our retail, payroll and other prepaid
disbursement programs.
-- Cost of revenues increased 10.5%, or $656 thousand, compared to the same
period in the prior year. Cost of revenues is comprised of transaction
processing fees, data connectivity and data center expenses, network fees,
bank fees, card production and postage costs, customer service, program
management, application integration setup and sales and commission
expense. The increase in cost of revenues consisted primarily of (i)
increased customer care expense of approximately $379 thousand associated
primarily with the growth in our pharma patient affordability programs,
wage inflation pressures, a tight labor market and increased benefit
costs; (ii) increased third-party program management fees of
approximately $366 thousand associated with our pharma patient
affordability programs; and (iii) increased sales commission expense of
approximately $255 thousand related to the increase in overall revenue
for programs in which we pay commission expenses. These increases were
offset predominantly by decreased usage of our card programs and related
fees of approximately $124 thousand in network fees, approximately $114
thousand of rebate costs, a decline in postage of approximately $64
thousand and a decline in other costs of approximately $42 thousand.
-- Gross profit increased by $4.75 million, or 68.5%, primarily due to
increased pharma patient affordability revenue. Our gross profit margin
increased approximately 10 percentage points to 62.9% versus 52.6% in the
prior year primarily due to an increase in the mix of our revenue from
our pharma patient affordability business and stable plasma gross margins,
offset by increased cost of revenues mentioned above.
-- Selling, general and administrative expenses increased by $1.49 million,
or 25.2%, compared to the same period in the prior year and consisted
primarily of an increase in (i) compensation and benefits of
approximately $1.54 million due to continued hiring to support the
company's growth primarily from our pharma patient affordability business,
a tight labor market and increased benefit costs; (ii) technologies and
telecom of approximately $333 thousand primarily related to ongoing
platform security investments; and (iii) merger and acquisition costs of
approximately $108 thousand. This increase was offset by a decrease in
outside professional services of approximately $128 thousand, an increase
of $359 thousand in the amount of capitalized platform development costs
and a decrease in other costs of approximately $9 thousand.
-- Depreciation and amortization expense increased by $515 thousand, or
40.0%, due mainly to the continued capitalization of new software
development costs and equipment purchases related to enhancements to our
processing platform.
-- Other income increased by $31 thousand primarily related to an increase
in interest income resulting from higher average cash balances and stable
interest rates.
-- We recorded an income tax expense of $665 thousand which was based on our
net operating income adjusted for discrete items that occurred within the
quarter. The effective tax rate of 20.5% compared to 34.7% varies
primarily as a result of tax benefits related to our stock-based
compensation.
-- Net income of $2.59 million, or $0.05 per diluted share, increased by
$2.28 million compared to net income of $309 thousand, or $0.01 per
diluted share, during the same period last year. The overall change in
net income relates to the factors mentioned above.
-- "EBITDA," defined as earnings before interest, taxes, depreciation and
amortization expense, which is a non-GAAP metric, increased by $3.26
million, or 317.3%, to $4.29 million due to the factors mentioned above.
-- "Adjusted EBITDA," which excludes stock-based compensation from EBITDA,
and which is a non-GAAP metric used by management to gauge the operating
performance of the business, increased by $3.27 million, or 193.3%, to
$4.96 million, or $0.09 per diluted share, due to the factors mentioned
above.
First Quarter 2025 Milestones
-- Exited the quarter with approximately 7.6 million cardholders and
approximately 630 card programs.
-- Quarter-over-quarter revenue increased 41.0%.
-- Pharma patient affordability revenue increased 260.8%.
-- Added four net plasma donation centers, ending the quarter with 484
centers.
-- Added 14 net pharma patient affordability programs, ending the quarter
with 90 active programs.
Balance Sheet at March 31, 2025
The company's cashflows decreased $10.85 million from December 31, 2024, largely related to increased accounts receivable balances related to the growth of our patient affordability programs.
Unrestricted cash decreased $3.92 million to $6.85 million from December 31, 2024. The decrease resulted primarily from the purchase of the assets of Gamma Innovation LLC, the payment of accrued operating expenses from the prior year and the repurchase of 100,000 shares of common stock.
2025-05-08 20:05:00 GMT Press Release: Paysign, Inc. Reports First -2-
Restricted cash decreased $6.93 million to $104.64 million from December 31, 2024, primarily related to a reduction in customer program deposits for our plasma customers of $17.99 million, offset by an increase of pharma patient affordability deposits of $5.94 million and funds on cards of $4.85 million. Restricted cash is funds used for customer card funding and pharmaceutical claim reimbursements with a corresponding offset under current liabilities.
Updated 2025 Outlook
"We delivered another quarter of solid operating results with our patient affordability business leading the way, representing 46.3% of revenue, a significant increase from the 18.1% of revenue it contributed during the same period last year. This has helped offset the decline we have experienced in plasma due largely to an industry-wide oversupply of plasma inventories. Early operating efficiencies from our Gamma acquisition are very promising as we look to reduce the reliance of third-party professional services that have historically been capitalized as part of our platform development costs. By the end of our second quarter, we expect to be on an annual run rate for cash cost savings of $4.0 million to $5.0 million," said Jeff Baker, Paysign CFO.
"With the results of our first quarter of 2025 now in the books and our preliminary purchase price allocation for the Gamma acquisition now substantially complete, we are revising our full-year 2025 estimated results upward. We expect total revenues to be in the range of $72.0 million to $74.0 million, reflecting year-over-year growth of 25.0% at the midpoint. Plasma is estimated to make up approximately 57% of total revenue, representing a year-over-year decline of 8.0% to 10.0%, while patient affordability revenue is expected to make up approximately 43.0% of total revenue, representing year-over-year growth of over 135%. Given the seasonality we see with our patient affordability business and trends in our plasma business, we continue to forecast revenue to be slightly higher in the first half of the year compared to the second half of the year with a corresponding impact on operating income. Full-year gross profit margins are expected to be between 62.0% and 64.0% reflecting stable margins in our plasma business and increased revenue contribution from our pharma patient affordability business. Operating expenses are being revised lower due to operational synergies driven by the Gamma acquisition as well as revisions to stock compensation and amortization following the purchase price allocation for Gamma. Operating expenses are now expected to be between $41.0 million and $43.0 million with depreciation and amortization expense of approximately $8.0 million and stock-based compensation of approximately $3.8 million. Interest income is estimated to be approximately $2.9 million. Taking all the factors above into consideration, we now expect net income to be between $6.0 million and $7.0 million for the year, or $0.10 to $0.12 per diluted share. Adjusted EBITDA is expected to be in the range of $16.0 million to $17.0 million, or $0.28 to $0.30 per diluted share. The diluted share count for the year is estimated to be 56.0 million shares."
"For the second quarter of 2025, we expect total revenue to be in the range of $18.5 million to $19.0 million, reflecting continued strength for our patient affordability business, offset by weakness with our plasma business. We expect plasma revenues to be approximately 54% to 55% of revenue and patient affordability to be approximately 41% to 42% of revenue. Gross profit margins are expected to be 63.0% to 64.0%. Operating expenses are expected to be between $10.0 million and $11.0 million, of which depreciation and amortization will be approximately $2.0 million and stock-based compensation will be approximately $1.0 million. Adjusted EBITDA is expected to be in the range of $4.5 million to $5.0 million, or approximately 25.5% of revenue," Baker concluded.
First quarter 2025 Financial Results Conference Call Details
The company will hold a conference call at 5:00 p.m. Eastern time on Thursday May 8, 2025, to discuss its first quarter 2025 financial results. The conference call may include forward-looking statements. The dial-in information for this call is 800.579.2543 (within the U.S.) and +1.785.424.1789 (outside the U.S.), using "PAYSIGN" as the conference ID. A call replay will be available until August 8, 2025, and can be accessed by dialing 877.660.6853 (within the U.S.) and +1.201.612.7415 (outside the U.S.), using passcode 13753463.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements, besides statements of fact included in this release are forward-looking. Such forward-looking statements include, among others, our belief that our pipeline remains robust and that we are extremely confident that the business will continue its current growth trajectory; our focus on unlocking the full potential of our recent Gamma Innovation acquisition, by streamlining operations and expanding the capabilities of our platform; our belief that by integrating engagement technology into our existing payment solutions, we are well-positioned to deliver greater value to our customers and drive long-term growth, particularly within the plasma, pharmaceutical, and broader healthcare industries; our belief that early operating efficiencies from our Gamma acquisition are very promising as we look to reduce the reliance of third party professional services that have historically been capitalized as part of our platform development costs; our expectation that by the end of our second quarter, we will be on an annual run rate for cash cost savings of $4.0 million to $5.0 million; our expectations for total revenues, plasma revenue percentage of total revenue, pharma revenue percentage of total revenue, gross profit margins, operating expenses, interest income, net income, adjusted EBITDA, and the diluted share count for the full-year 2025; and our expectations for total revenue, plasma revenue as a percentage of total revenue, gross profit margins, operating expenses, and adjusted EBITDA for the second quarter of 2025. We caution that these statements are qualified by important risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the inability to continue our current growth rate in future periods; that a downturn in the economy, including as a result of COVID-19 and variants, as well as further government stimulus measures, could reduce our customer base and demand for our products and services, which could have an adverse effect on our business, financial condition, profitability and cash flows; operating in a highly regulated environment; failure by us or business partners to comply with applicable laws and regulations; changes in the laws, regulations, credit card association rules or other industry standards affecting our business; that a data security breach could expose us to liability and protracted and costly litigation; and other risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024. Except to the extent required by federal securities laws, the company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
About Paysign, Inc.
Paysign, Inc. (NASDAQ: PAYS) is a leading financial services provider uniquely positioned to provide technology solutions tailored to the healthcare industry. As an early innovator in prepaid card programs, patient affordability, digital banking services and integrated payment processing, Paysign enables countless exchanges of value for businesses, consumers and government agencies across all industry types.
Incorporated in southern Nevada in 1995, Paysign operates on a powerful, high-availability payments platform with cutting-edge fintech capabilities that can be seamlessly integrated with our clients' systems. This distinctive positioning allows Paysign to provide end-to-end technologies that securely manage transaction processing, cardholder enrollment, value loading, account management, data and analytics and customer service. Paysign's architecture is known for its cross-platform compatibility, flexibility and scalability -- allowing our clients and partners to leverage these advantages for cost savings and revenue opportunities.
Through Paysign's direct connections for processing and program management, the company navigates all aspects of the prepaid card lifecycle completely in house -- from concept and card design to inventory, fulfillment and launch. The company's 24/7/365 in-house, bilingual customer service is facilitated through live agents, interactive voice response (IVR) and two-way SMS alerts, reflecting the company's commitment to world-class consumer support.
2025-05-08 20:05:00 GMT Press Release: Paysign, Inc. Reports First -3-
For more than two decades, Paysign has been a trusted partner for major pharmaceutical and healthcare companies, as well as multinational corporations, delivering fully managed programs built to meet their individual business goals. The company's suite of offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable (GPR) debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and copay assistance. For more information, visit paysign.com.
Paysign, Inc.
Condensed Consolidated Statements of Operation (Unaudited)
Three Months Ended
March 31,
---------------------------
2025 2024
----------- --------------
Revenues
Plasma industry $ 9,409,880 $10,368,034
Pharma industry 8,618,653 2,388,644
Other 569,616 433,396
---------- ----------
Total revenues 18,598,149 13,190,074
Cost of revenues 6,907,321 6,250,823
---------- ----------
Gross profit 11,690,828 6,939,251
---------- ----------
Operating expenses
Selling, general and administrative 7,400,759 5,911,198
Depreciation and amortization 1,801,003 1,286,405
---------- ----------
Total operating expenses 9,201,762 7,197,603
---------- ----------
Income (loss) from operations 2,489,066 (258,352)
---------- ----------
Other income
Interest income, net 762,198 731,344
---------- ----------
Income before income tax provision 3,251,264 472,992
Income tax provision 665,164 163,896
---------- ----------
Net income $ 2,586,100 $ 309,096
========== ==========
Income per share
Basic $ 0.05 $ 0.01
========== ==========
Diluted $ 0.05 $ 0.01
========== ==========
Weighted average common shares
Basic 53,576,030 52,844,638
========== ==========
Diluted 55,142,511 54,760,842
========== ==========
Paysign, Inc.
Condensed Consolidated Balance Sheets
March 31, December 31,
2025 2024
(Unaudited) (Audited)
------------- ---------------
ASSETS
Current assets
Cash $ 6,847,021 $ 10,766,982
Restricted cash 104,643,347 111,576,204
Accounts receivable, net 52,234,762 32,639,242
Other receivables 1,048,928 1,606,276
Prepaid expenses and other
current assets 2,379,800 2,247,929
----------- -----------
Total current assets 167,153,858 158,836,633
----------- -----------
Fixed assets, net 1,134,779 1,157,975
Intangible assets, net 25,151,765 12,239,717
Goodwill 5,512,637 --
Operating lease right-of-use asset 2,683,754 2,792,922
Deferred tax asset, net 3,481,233 4,000,950
----------- -----------
Total assets $205,118,026 $179,028,197
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 48,914,973 $ 34,330,217
Operating lease liability,
current portion 472,007 448,008
Other liabilities, current
portion 2,000,000 --
Customer card funding 104,291,641 111,328,270
----------- -----------
Total current liabilities 155,678,621 146,106,495
----------- -----------
Operating lease liability, long-term
portion 2,356,504 2,480,070
Other liabilities, long-term
portion 7,808,637 --
----------- -----------
Total liabilities 165,843,762 148,586,565
----------- -----------
Stockholders' equity
Common stock; $0.001 par value;
150,000,000 shares authorized,
55,082,382 and 54,358,382 issued
at March 31, 2025 and December
31, 2024, respectively 55,082 54,358
Additional paid-in capital 31,253,799 24,632,205
Treasury stock at cost, 934,708
and 834,708 shares,
respectively (2,148,715) (1,772,929)
Retained earnings 10,114,098 7,527,998
----------- -----------
Total stockholders' equity 39,274,264 30,441,632
----------- -----------
Total liabilities and stockholders'
equity $205,118,026 $179,028,197
=========== ===========
Paysign, Inc. Non-GAAP Measures
To supplement Paysign's financial results presented on a GAAP basis, we use non-GAAP measures that exclude from net income the following cash and non-cash items: interest, taxes, depreciation and amortization and stock-based compensation. We believe these non-GAAP measures used by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting, and investors should read them in conjunction with the company's financial statements prepared in accordance with GAAP. The non-GAAP measures we use may be different from, and not directly comparable to, similarly titled measures used by other companies.
"EBITDA" is defined as earnings before interest, taxes, depreciation and amortization expense. "Adjusted EBITDA" reflects the adjustment to EBITDA to exclude stock-based compensation charges.
EBITDA and Adjusted EBITDA are not intended to represent cash flows from operations, operating income or net income as defined by U.S. GAAP as indicators of operating performances. Management cautions that amounts presented in accordance with Paysign's definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate Adjusted EBITDA in the same manner.
Paysign, Inc.
Adjusted EBITDA (Unaudited)
Three Months Ended
March 31,
----------------------------
2025 2024
---------- ----------
Reconciliation of EBITDA and Adjusted
EBITDA to net income:
Net income $ 2,586,100 $ 309,096
Income tax provision 665,164 163,896
Interest income, net (762,198) (731,344)
Depreciation and amortization 1,801,003 1,286,405
---------- ----------
EBITDA 4,290,069 1,028,053
Stock-based compensation 672,318 663,951
---------- ----------
Adjusted EBITDA $ 4,962,387 $ 1,692,004
========== ==========
Adjusted EBITDA per share
Basic $ 0.09 $ 0.03
========== ==========
Diluted $ 0.09 $ 0.03
========== ==========
Weighted average common shares
Basic 53,576,030 52,844,638
========== ==========
Diluted 55,142,511 54,760,842
========== ==========
2025-05-08 20:05:00 GMT Press Release: Paysign, Inc. Reports First -4-
"EBITDA margin" is defined as earnings before interest, income taxes, depreciation and amortization expense as a percentage of the company's revenue and "Adjusted EBITDA margin" reflects the adjustment to EBITDA margin to exclude stock-based compensation expense as a percentage of revenue. A reconciliation of net income margin to EBITDA margin and Adjusted EBITDA margin is provided in the table below.
Three Months Ended March 31,
(As a percentage of Revenue)
------------------------------------
2025 2024
------------------ ----------------
Reconciliation of EBITDA margin
and Adjusted EBITDA margin to
net income margin:
Net income margin 13.9% 2.3%
Income tax provision 3.6% 1.2%
Interest income, net (4.1%) (5.5%)
Depreciation and amortization 9.7% 9.8%
------------- ------------
EBITDA margin 23.1% 7.8%
Stock-based compensation 3.6% 5.0%
------------- ------------
Adjusted EBITDA margin 26.7% 12.8%
============= ============
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508434211/en/
CONTACT: Investor Relations:
888.522.4810
paysign.com/investors
ir@paysign.com
Media Relations:
Alicia Ches
888.522.4850
pr@paysign.com
2025-05-08 20:27:00 GMT *DJ Paysign 1Q Rev $18.6M >PAYS
2025-05-08 20:28:00 GMT *DJ Paysign Raises 2025 View To Rev $72M-$74M >PAYS
2025-05-08 20:28:00 GMT *DJ Paysign Sees 2025 EPS 10c-EPS 12c >PAYS
2025-05-08 20:29:00 GMT *DJ Paysign Sees 2Q Rev $18.5M-$19M >PAYS
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