Paymentus Q4 earnings exceeded expectations, but weak revenue guidance led to a decline in stock price

Investing.com – Paymentus Holdings, Inc. (NYSE:PAY) reported fourth-quarter results that exceeded analyst expectations, but the company’s revenue guidance disappointed investors, leading to a 5.3% decline in stock price in after-hours trading on Monday.

The cloud-based bill payment technology provider announced adjusted earnings per share of $0.20 for the quarter, beating the consensus estimate of $0.16 by $0.04. Revenue reached $330.5 million, up 28.1% year-over-year, surpassing the expected $313.77 million. However, the company’s revenue guidance for the first quarter and full year of 2026 was below Wall Street expectations, triggering a negative market reaction.

Paymentus expects first-quarter revenue of $330 million to $340 million, with a midpoint of $335 million, slightly below the analyst consensus of $334.1 million. More notably, the company’s full-year 2026 revenue guidance is $1.39 billion to $1.41 billion, with a midpoint of $1.4 billion, below the consensus estimate of $1.429 billion.

The company’s fourth-quarter contribution profit was $106.9 million, up 24.0% year-over-year, while adjusted EBITDA increased 46.3% year-over-year to $39.9 million, with a profit margin of 37.3%. Paymentus processed 192.7 million transactions in the quarter, a 16.1% increase year-over-year.

Founder and CEO Dushyant Sharma stated, “Paymentus ended 2025 on a solid note. We continue to execute our long-term strategy, and our fourth-quarter and full-year results once again exceeded our expectations. We finished the year with a healthy backlog of orders, providing us with significant visibility into 2026 and beyond.”

For the full year 2025, revenue totaled $1.196 billion, a 37.3% increase year-over-year, and adjusted EBITDA was $137.4 million, up 45.9%.

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