Paysign Inc (PAYS)

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SA ARTICLE
Paysign: Gaining Traction In The Patient Affordability Space Into 2026 (Hold)
Oct. 01, 2025 7:04 AM ETPaysign, Inc. (PAYS) StockRPAY, CTLP, CTLPP, PAYS

Stella Mwende
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Summary
Paysign posted strong Q2 2025 results, with 33% YoY revenue growth and robust Pharma segment momentum, driven by US tariffs and new client wins.
PAYS is rated a hold, as the stock trades at fair value ($5.83), despite expected high demand for co-payment cards and expanded patient affordability programs.
Pharma segment revenue surged 189% YoY, offsetting a 4.7% YoY decline in the core Plasma segment, which faces ongoing headwinds from transitioning centers.
While PAYS benefits from industry tailwinds and guidance consistency, risks remain due to Plasma's weakness and Pharma revenues still lagging Plasma's overall contribution.
Asian male doctor show a card

halfbottle/iStock via Getty Images

Leading provider of prepaid cards and patient affordability solutions, Paysign, Inc. (NASDAQ:PAYS), recently posted its earnings results, with revenues jumping 33.12% year-over-year (YoY) in Q2 2025. The company was ecstatic about its business prospects for H2 2025 and 2026, indicating the consistency of its results with its guidance. I will discuss why I am rating this stock as a hold in line with the expected high demand from the pharmaceutical sector for the company’s co-payment cards, fueled partly by US tariffs, client increase, and expanded patient affordability programs. However, the company’s stock is trading at a fair valuation, as will be seen herein.

It has been a season of tariffs for the US administration since the start of 2025. PAYS is up 95% (YTD) and has outperformed the S&P 500 index by more than 44% (YoY).

Paysign outperformed the S&P500 over the past year
Seeking Alpha

Pharmaceutical companies with no manufacturing sites in the US are (based on the new tariff system) expected to pay up to 100% tariffs on their drug imports to the US by the beginning of October 2025. Even so, while reports show that the government would “honor the 15% tariff cap” on pharmaceutical products from countries with trade deals such as the EU and Japan, it still means more positives for the American drug industry.

To this end, Paysign recently announced the opening of a 30,000 sq. feet patient support center in Henderson, Nevada, US. While making the announcement, Paysign stated, and I quote,

This expansion not only allows Paysign to scale traditional support services to meet the rapidly growing demand but also allows Paysign to address the pain points pharmaceutical companies often experience in large-scale copay assistance programs by expanding its offerings to provide dedicated, full-time support specialists for individual programs and clients. These dedicated teams provide specialized patient, physician, and pharmacy support customized to each program’s unique requirements, creating an additional layer of value.”

To this end, revenue from the Pharma industry in Q2 2025 grew 189.88% (YoY) to $7.754 million, even as the earnings from the plasma (donor compensation) industry declined 4.7% (YoY) to $10.74 million. Despite accounting for 56% of the company’s revenue, it is clear that there is a positive shift in the Pharma segment. According to PAYS’ earnings call, revenue per patient program increased 83% (YoY), while claims processed surged 80% (YoY). Further, the addition of 7 new patient programs in Q2 2025 means that the overall patient programs may exceed 130 programs by 2026. The company stated that it had 97 active patient affordability programs by Q2 2025, and an additional 40 may be launched by 2026.

However, we need to take into consideration that Paysign on-boarded about “123 transitioning plasma centers” in Q2 2025, which led to the revenue decline and heightened expenses. Still, in the six months ended in June 2025, revenue from the Pharma segment grew 223.34% (YoY) to $16.37 million, while that of the Plasma industry decreased 6.9% (YoY) to $20.15 million. In essence, Paysign’s top-line growth into H2 2025 can be largely attributed to rising demand within the Pharma industry. What we are looking at is the determined growth of patient affordability solutions through prepaid cards in the US and around the globe.

Research also shows that as of 2024, the prepaid card market in the US was valued at $320 billion in 2024. It is expected to cross $575 billion by 2033 (growing at a CAGR of 7.3%). The surge in Paysign’s Pharma numbers can be attributed to the company’s successful price pitch to both US and global drug makers, which makes them stand out from competitors.

Valuation
I will use the EV/Sales multiple to evaluate Paysign since it will consider the company’s growing revenues as well as the volatility of segment earnings, such as the Plasma segment, that showed a decline (as explained in this article). Paysign’s annual revenue since FY 2022 has increased almost 54% to $58.4 million, while gross profit is up 96% (over the same period, 2022-2024).

To begin our calculation, I will underscore the fact that Paysign raised its FY 2025 revenue guidance to the range of $76.5 million to $78.5 million. The midpoint of $77.5 million means that the company is projecting a growth of 32.71% (YoY) in 2026. Paysign’s forward EV/Sales multiple sits at 3.98X. To get the forward EV, I will multiply 3.98 by $77.5 million (forward sales), which will give us, $308.45 million. I will calculate the market capitalization by subtracting Paysign’s debt of $2.7 million from $308.45 million and adding the cash balance of $11.8 million, giving us $317.55 million. PAYS’ total shares outstanding as of June 2025 stood at 54.5 million shares. Dividing the market cap by the share count means the stock’s future price will be $5.83, coinciding with the current price of $5.83.

To get a better picture of this performance, I will compare PAYS with some of its peers.

Fwd. EV/Sales Fwd. Sales Fwd. EV Fwd. Market Cap Out. Share Count Future Share Price Current Share Price Valuation
PAYS 3.98X $77.5 million $308.45 million $317.55 million 54.5 million $5.83 $5.83 0% (trading at fair valuation)
Repay Holdings Corp. (RPAY) 2.56X $330 million $844.8 million $497.9 million 81.5 million $6.11 $5.32 +15% (slightly undervalued)
Cantaloupe, Inc. (CTLP) 2.26X $305 million $689.3 million $691.8 million 73.4 million $9.43 $10.60 -11% (slightly overvalued)
By use of the EV/Sales multiple, we have determined that PAYS is trading at a fair valuation while RPAY is slightly undervalued. CTLP is slightly overvalued, and we may see some downside in H2 2025 (according to this multiple). Both PAYS and RPAY are trading at almost half the stock price of CTLP (as shown in the table), making them suitable alternatives.

Risk
As noted earlier, Paysign is experiencing revenue decline in its main segment- the Plasma market.

Declining Plasma revenues and growing pharma revenues
Paysign Q2 2025 - Sec Filing

The company also stated that 123 plasma centers were transitioning into H2 2025, indicating that we may continue seeing revenue declines before the company sees stability. Much of the company’s momentum is being driven by the patient affordability program, which is essentially the pharma industry that is still below Plasma’s earnings. However, we may see an increase in 2026 since the company indicated its strong confidence in the growth of the pharmaceutical segment. Overall, the continued decline of the plasma segment will hurt Paysign’s stock price.

Bottom Line
I have rated Paysign as a hold in view of expected high demand from the pharmaceutical sector for the company’s co-payment cards, fueled partly by US tariffs, client increase, and expanded patient affordability programs. Still, the company is trading at a fair valuation and is facing revenue decline from its key segment- the Plasma industry. It also seems Paysign is closing down some plasma centers while launching new patient affordability programs that are still raking in relatively lower revenues.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.