Paymentus Q2 2025 slides: 42% revenue growth propels billion-dollar run rate

Introduction & Market Context

Paymentus Holdings Inc . (NYSE:PAY) reported robust second-quarter results on August 4, 2025, with revenue surging 41.9% year-over-year to $280.1 million. The bill payment solutions provider’s stock responded positively in aftermarket trading, rising 1.45% to $28.70 following the earnings release.

The company’s Q2 performance marks a significant milestone as Paymentus achieved a billion-dollar annual revenue run rate, solidifying its position in the non-discretionary payments market. This growth comes amid continued expansion across multiple verticals including utilities, government agencies, telecommunications, and financial services.

Quarterly Performance Highlights

Paymentus delivered strong growth across all key financial metrics in the second quarter of 2025. Revenue reached $280.1 million, up 41.9% compared to Q2 2024, while contribution profit grew 22.3% to $93.5 million. Adjusted EBITDA increased 40.7% year-over-year to $31.7 million.

As shown in the following financial highlights from the company’s presentation:

The company processed 175.8 million transactions during the quarter, representing a 25.2% increase from the 140.4 million transactions in the same period last year. This transaction growth, combined with higher average revenue per transaction, drove the substantial revenue increase.

Net income rose 44.8% to $19.3 million, with earnings per share increasing 50% to $0.15 compared to $0.10 in Q2 2024. The company’s detailed financial comparison reveals strong performance across multiple metrics:

Detailed Financial Analysis

While Paymentus demonstrated strong top-line growth, the company’s contribution profit margin decreased from 38.7% in Q2 2024 to 33.4% in Q2 2025. However, this was offset by improved operational efficiency, as operating expenses grew at a much slower rate (11.3%) than revenue (41.9%).

The company’s adjusted EBITDA margin improved significantly, increasing from 29.5% to 33.9% year-over-year, indicating enhanced operational leverage. Paymentus maintained a strong balance sheet with $270 million in cash and cash equivalents, up 8.2% from the previous quarter, and continues to operate with no debt.

Additional financial metrics show the company’s solid financial position:

Free cash flow decreased 45.3% quarter-over-quarter to $22.5 million, down from $41.1 million in Q1 2025. Despite this sequential decline, the company’s working capital increased 6% to $297.4 million, and days sales outstanding improved from 33 to 31 days.

Forward-Looking Statements

Based on its strong performance, Paymentus raised its full-year 2025 guidance across all key metrics. The company now expects annual revenue between $1,123 million and $1,132 million, representing a 4.2% increase from its previous guidance midpoint.

The revised guidance reflects management’s confidence in continued growth and operational execution:

For the third quarter of 2025, Paymentus projects revenue between $278 million and $282 million, with contribution profit of $92-94 million and adjusted EBITDA of $30-32 million. These projections suggest sequential stability compared to Q2 results.

During the presentation, CEO Dushyant Sharma highlighted that the company’s visibility now extends into 2026, indicating confidence in the durability of Paymentus’ growth algorithm and business model.

Strategic Initiatives

Paymentus continues to focus on serving non-discretionary, essential segments of the domestic U.S. economy. The company reported strong bookings in Q2 and an expanding backlog, suggesting continued momentum into future quarters.

The company highlighted several key accomplishments during the quarter, including new client implementations across multiple verticals and strategic channel partnerships in the financial services and telecommunications sectors:

Management emphasized the company’s scale, noting that Paymentus now serves tens of millions of users, processes hundreds of millions of payments, and handles hundreds of billions of dollars in payment volume. These metrics underscore the company’s significant market presence and growth potential.

The company’s investment highlights showcase its differentiated technology platform and proprietary Instant Payment Network (IPN) ecosystem as key competitive advantages:

With its strong Q2 performance and raised guidance, Paymentus appears well-positioned to maintain its growth trajectory through 2025 and into 2026, leveraging its scalable business model and expanding client base across multiple verticals.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.