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    PAYS
    Earnings call· Jun 2026(Q2 FY26)

    Paysign Q2 FY26 earnings call PAYS

    Aug 5, 2026 Source

    Executive summary

    Paysign Q2 FY26 — Record Revenue and Profitability Driven by Patient Affordability

    Paysign delivered a record-setting second quarter, driven by robust growth in its patient affordability segment and a recovery in the plasma business. The company raised its full-year outlook, reflecting strong program momentum and expanding margins, with a strategic focus on scaling its high-margin patient affordability platform while leveraging its cash-generative plasma core.

    Highlights

    5

    • Revenue grew 48% year-over-year to $28.3 million, setting a new record.

    • Net income increased nearly 5-fold year-over-year to $6.8 million, or $0.11 per fully diluted share, a new record.

    • Adjusted EBITDA increased 113% to $9.6 million, or $0.16 per fully diluted share, a new record.

    • Gross margin expanded 170 basis points to 63.3%.

    • Patient affordability revenue rose 89% year-over-year to $14.6 million, with claim volume up approximately 54%.

    Concerns

    3

    • Regulatory approval process for Apherion BECS

    • Seasonality of program launches and transitions

    • Impact of holiday season on Q4 financials

    Guidance & targets

    19
    CategoryTargetConfidence
    Full Year 2026 Revenue
    $114 million to $117 million
    high materiality
    High
    Full Year 2026 Revenue Growth
    39% to 43% year-over-year growth
    high materiality
    High
    Full Year 2026 Gross Profit Margins
    62% and 63%
    medium materiality
    High
    Full Year 2026 GAAP Net Income
    $21.5 million to $23 million
    high materiality
    High
    Full Year 2026 GAAP EPS
    $0.35 to $0.37 per diluted share
    high materiality
    High
    Full Year 2026 Adjusted EBITDA
    $35 million to $38 million
    high materiality
    High
    Full Year 2026 Adjusted EBITDA per share
    $0.57 to $0.61 per diluted share
    high materiality
    High
    Q3 2026 Revenue
    $28.5 million to $30 million
    high materiality
    High
    Q3 2026 Revenue Growth
    32% to 38.9% year-over-year increase
    medium materiality
    High
    Q3 2026 Other Revenue
    approximately $300,000
    low materiality
    High
    Q3 2026 Gross Margins
    61% to 63%
    medium materiality
    High
    Q3 2026 Tax Rate
    17%
    low materiality
    High
    Q3 2026 GAAP Net Income
    $5.7 million to $6.0 million
    high materiality
    High
    Q3 2026 GAAP EPS
    $0.09 to $0.10 per fully diluted share
    high materiality
    High
    Q3 2026 Adjusted EBITDA
    $9.5 million to $10 million
    high materiality
    High
    Q3 2026 Adjusted EBITDA per share
    $0.15 to $0.16 per fully diluted share
    high materiality
    High
    Active Patient Affordability Programs
    165 to 170 active programs
    medium materiality
    High
    Active Plasma Center Count
    slightly increase
    low materiality
    Medium
    Full Year 2026 Patient Affordability Net Additions
    match or surpass the 55 net additions
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Patient Affordability
    Remains the company's principal growth engine, driven by new program wins, deeper utilization, and expansion of pharmaceutical partnerships. Exhibits strong growth, margin expansion, and positive contribution margin.
    Claim volume: approximately 54% higher YoYActive programs: 148New programs launched in Q2: 13Active programs a year ago: 97
    		$14.6 million89%——
    Plasma Donor Compensation
    Contributed to the overall story with expanded margins, moving past prior headwinds. The increase in monthly revenue per center indicates stronger utilization and underlying donor activity, reinforcing that recent center closures were strategic.
    Monthly revenue per center: $7,699Monthly revenue per center a year ago: $7,098Active centers: 561Center closures: 19New center additions: 7
    		$13 million21.4%——

    Operational metrics

    27
    Total Revenue Growth
    48.1%YoY
    Q2 FY26

    Total revenues increased year-over-year.

    Gross Profit Margin
    63.3%expanded 170 bps
    Q2 FY26

    Expanded from 61.6% a year ago, reflecting a greater mix of pharma revenue.

    Total Operating Expenses Growth
    5.5%YoY
    Q2 FY26

    Reported increase from $10.3 million to $10.9 million. Excluding a one-time benefit, growth was 15.1% to $11.9 million.

    Gamma Acquisition Earn-out Liability Benefit
    $990,000
    Q2 FY26

    Related to the carrying value of the Gamma acquisition earn-out liability.

    Selling, General and Administrative Expenses Growth
    4.3%YoY
    Q2 FY26

    Reported increase to $8.5 million. Excluding the one-time benefit, growth was 16.3% to $9.5 million.

    Adjusted Operating Margin
    21.3%expanded 1,300 bps
    Q2 FY26

    Calculated as adjusted operating income divided by revenue, excluding the one-time Gamma earn-out benefit.

    Depreciation and Amortization Increase
    $200,000
    Q2 FY26

    Due primarily to amortization of intangible assets from Gamma acquisition and capitalization of new software development costs.

    Effective Tax Rate
    14.5%from 32.1% YoY
    Q2 FY26

    Lower rate reflects discrete item adjustments primarily related to the increase in stock price, increasing tax benefit from stock-based compensation.

    Adjusted EBITDA per share
    $0.16from $0.08 YoY
    Q2 FY26

    Increased 113% year-over-year.

    Adjusted EBITDA Margin
    34%expanded from 23.7% YoY
    Q2 FY26

    Expanded year-over-year.

    Fully Diluted Share Count
    62 millionvs 57.9 million YoY
    Q2 FY26

    Used in calculating per share amounts.

    Unrestricted Cash
    $27.4 million
    Q2 FY26 end

    Exited the quarter with no bank debt.

    Restricted Cash
    $149 millionincreased $5.2 million from Dec 31, 2025
    Q2 FY26 end

    Driven primarily by customer program deposits for plasma and pharma programs, and higher funds on card.

    Patient Affordability Programs Launched
    13
    Q2 FY26

    New programs launched during the second quarter.

    Patient Affordability Programs Active
    148up from 97 YoY
    Q2 FY26 end

    In line with expectations and demonstrating consistent growth.

    Patient Affordability Programs Net Additions
    51
    last 12 months

    Net pharma patient affordability programs launched over the last 12 months.

    Patient Affordability Programs Net Additions
    55
    FY25

    Total net additions recorded in the prior fiscal year.

    Plasma Centers
    561
    Q2 FY26 end

    Reflects 19 center closures partially offset by 7 new additions, in line with expectations.

    Financial Assistance Channeled
    >$900 millionvs ~$1 billion for full year 2025
    H1 2026

    Reflects widening program base and increased utilization within programs.

    Costs Shielded by Dynamic Business Rules
    >$300 millionvs ~$325 million for full year 2025
    H1 2026

    Shielded clients from costs that co-pay maximizers and accumulator programs would otherwise have diverted.

    Apherion Software TAM
    $3.5 billion
    current

    Total addressable market for blood and plasma software alone, globally.

    RFP Win Rate
    >80%
    current

    Win rate for Request for Proposal/Information (RFP/RFI) processes.

    Sales Cycle
    ~90 days
    current

    Typical sales cycle for smaller pharmaceutical clients.

    Q2 Revenue vs Guidance
    $28.3 millionexceeded high end
    Q2 FY26

    Actual revenue exceeded the company's own guidance range.

    Q2 Gross Margin vs Guidance
    63.3%finished above
    Q2 FY26

    Actual gross margin finished above the company's own guidance range.

    Q2 Adjusted EBITDA vs Guidance
    $9.6 millionexceeded high end
    Q2 FY26

    Actual Adjusted EBITDA exceeded the company's own guidance range.

    Q2 Adjusted Net Margin vs Guidance
    20.4%exceeded top
    Q2 FY26

    Actual Adjusted Net Margin exceeded the company's own guidance range.

    Industry KPIs

    2
    MetricValueDetails
    Payments volume gdv54%%
    Switched processed transactions54%%

    Product announcements

    1
    ProductTypeDetails
    Apherion Technologies Limitedlaunch

    Risks & headwinds

    3
    Regulatory approval process for Apherion BECSOngoing

    No specific timeline given

    Mitigation: Actively going through the regulatory review process; strong interest domestically and internationally.

    Seasonality of program launches and transitionsAnnually, Q1

    Q1 is most constrained for new launches due to insurance plan year transitions and resets.

    Mitigation: Sales efforts in Q1/Q2 set the stage for Q3/Q4 launches; Q3/Q4 rush to get programs live before Q1 'blizzard'.

    Impact of holiday season on Q4 financialsQ4 FY26

    Lower capitalization rates for software development, higher tax rate (closer to 27% vs Q3's 17%) due to RSU vestings and lower deductions.

    Mitigation: Anticipated and factored into Q4 expectations; proactive hiring of account managers and claims personnel to prepare for Q1 demand.

    What to watch in Q3 FY26

    5

    Apherion BECS Regulatory Approval

    Next quarter / Ongoing
    CurrentUnder regulatory review
    TargetFurther milestones or approval decision

    Why it matters

    Approval of the Blood Establishment Computer Software (BECS) is critical for commercializing the Apherion platform and unlocking a significant international market opportunity.

    Our life sciences technology suite, which we bring to market under the Apherion brand, continues to advance through the regulatory review process for our Blood Establishment Computer Software, or BECS, donor management system. And we look forward to sharing additional milestones as that work progresses.

    Q&A highlights

    5

    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

    2 min read5 chapters

    Detailed Narrative

    01

    Patient Affordability Drives Record Performance

    Paysign's patient affordability segment was the primary growth engine, with revenue surging 89% year-over-year to $14.6 million and claim volume increasing approximately 54%. The company launched 13 new programs in Q2, bringing the total active programs to 148, up from 97 a year ago. This growth reflects new program wins, deeper utilization within existing clients, and expansion of pharmaceutical partnerships, contributing to record revenue and net income.

    02

    Dynamic Business Rules (DBR) Technology Impact

    The company's Dynamic Business Rules technology played a significant role in client retention and cost savings. In the first half of 2026, DBR shielded clients from over $300 million in costs that co-pay maximizers and accumulator programs would have otherwise diverted, nearly matching the $325 million saved in the entire year of 2025. This capability is a key factor in pharmaceutical partners consolidating more business with Paysign.

    03

    Plasma Business Recovery and Stability

    The plasma donor compensation business contributed $13 million in revenue, up 21.4% year-over-year from $10.7 million. Monthly revenue per center reached $7,699, the strongest since Q3 2024, indicating underlying donor activity improvement. Paysign served 561 centers at quarter-end, reflecting strategic closures and new additions, suggesting the inventory overhang from 2025 has largely normalized.

    04

    Apherion Platform and International Expansion

    Paysign's life sciences technology suite, Apherion, is advancing through the regulatory review process for its Blood Establishment Computer Software (BECS) donor management system. To support strong international demand, the company established Apherion Technologies Limited, a wholly owned subsidiary in Ireland, positioning itself to pursue the substantial international market for plasma software, estimated at $3.5 billion globally and projected to reach $7 billion in 10 years.

    05

    Operating Leverage and Margin Expansion

    The quarter demonstrated significant operating leverage, with gross profit margin expanding to 63.3% from 61.6% a year ago. Excluding a nonrecurring noncash benefit, adjusted operating margin expanded to 21.3% from 7.5% in Q2 2025. This improvement was driven by a greater mix of higher-margin pharma revenue and efficient growth in call center support and implementation costs, converting roughly half of incremental revenue into adjusted operating income.

    AI-generated summary of the company’s earnings call. Not investment advice.