Paysign (PAYS) Q2 FY26 earnings call: guidance and Q&A

Inquired about the organic growth rate of patient affordability programs that have been active for 12 months or more, akin to a 'same-store sales' metric.

Management explained that while a mature program might have flat revenue growth if static, they actively add new features and services, and drugs gain new indications, leading to growth in existing programs. They noted it's difficult to generalize due to product-specific factors like new indications or cannibalization by new molecules.

“If we did nothing, if we did absolutely nothing, you would expect, if there were x number of claims 1 year, there would be the same number of claims next year. But we're actually seeing growth in some of our existing programs because we're adding more products and services for those programs.”

asked by Gary Prestopino · answered by Jeffery Baker

Asked for more details on the regulatory approval process for the Apherion platform and the total addressable market (TAM) for the software.

Management stated they are in the regulatory process for the Blood Establishment Computer Software (BECS) donor management system, but could not provide a specific date for approval. They highlighted strong domestic and international interest and quantified the global TAM for blood and plasma software at $3.5 billion today, projected to grow to $7 billion over the next 10 years.

“I mean really the regulatory process is something we're in the process of going through. There's not -- I don't have a crystal ball, so anytime you're in that new process, it kind of is what it is and you just kind of roll with it. I can't really give a date for that at this point in time.”

asked by Gary Prestopino · answered by Mark Newcomer

Questioned the strong implied Q3 program additions given typical seasonality, and how it correlates with the full-year guidance.

Management clarified that Q1 is typically the weakest for new launches due to insurance resets, while Q3 and Q4 are strong. They attributed Q3 strength to sales work from Q1 and Q2 conferences like Asembia, with a 90-day sales cycle for smaller pharmas. They emphasized the rush to launch programs before the Q1 'blizzard' of insurance deductible resets.

“Q3 is normally not a slow quarter for us. Typically, Q1 is our weakest quarter for new program launches because of insurance resetting. So I think if you look at this quarter, we only, the first quarter of this year, we only launched a couple of programs. And that's really what we expect.”

asked by Jacob Stephan · answered by Matthew Turner

Asked about the procurement process for patient affordability programs (RFPs vs. direct awards), Paysign's win rates, and any seasonality in winning new programs.

Management stated that 75% of wins come from RFPs/RFIs, with a win rate exceeding 80%. They noted seasonality in program transitions (avoiding Q1 'blizzard') but less so for new-to-market drugs, which launch based on FDA approval dates. They highlighted Asembia (April/May) as their largest marketing event and other conferences in Oct/Nov.

“Our RFP win rate is pretty high. I don't have the exact numbers in front of me, I'd have to go back and kind of dig that out. But we don't -- I would say our RFI/RFP win rate is north of 80%.”

asked by Peter Heckmann · answered by Matthew Turner

Noted an apparent significant step-down in Q4 EBITDA and margins compared to Q3, asking for reasons beyond normal revenue mix shifts.

Management explained that Q4 last year had many program launches, which are more evenly distributed this year. They cited the holiday season impacting capitalization rates for software development, a higher expected tax rate (closer to 27% vs. Q3's 17%) due to RSU vestings, and anticipated hiring of account managers and claims personnel to prepare for Q1 demand.

“The thing you're going to see in the fourth quarter also, and one of the things I've experienced, is it's a holiday season. And just like anybody else, we have people that take off. So that impacts some of the capitalization rates that we would do on the software development side.”

asked by Peter Heckmann · answered by Jeffery Baker