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1. Company Snapshot

1.a. Company Description

PaySign, Inc.provides prepaid card products and processing services under the PaySign brand for corporate, consumer, and government applications.It offers various services, such as transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through PaySign, a proprietary card-processing platform.


The company also develops prepaid card programs for corporate incentive and rewards, including consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments, and pharmaceutical payment assistance; and payroll or general purpose reloadable cards, as well as gift or incentive cards.In addition, it offers and Per Diem/Corporate Expense Payments that allows businesses, and non–profits and government agencies the ability to control employee spending while reducing administration costs by eliminating the need for traditional expense reports.Further, the company provides payment claims processing and other administrative services; pharmacy-based voucher and copay, and medical claims and debit-based affordability programs; PaySign Premier, a demand deposit account debit card; and payment solution for source plasma collection centers, as well as customer service center and PaySign Communications Suite services.


Its principal target markets for processing services comprise prepaid card issuers, retail and private-label issuers, small third-party processors, and small and mid-size financial institutions in the United States and Mexico.The company was formerly known as 3PEA International, Inc.and changed its name to PaySign, Inc.


in April 2019.PaySign, Inc.was incorporated in 1995 and is based in Henderson, Nevada.

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1.b. Last Insights on PAYS

Paysign, Inc.'s recent struggles can be attributed to concerns over its shifting revenue mix, specifically the decline in its legacy business. Despite impressive 230% revenue growth in the Pharma segment over the past four quarters, the company's strategic focus on Plasma and Patient Affordability programs may be weighing on investor sentiment. The recent 2024 Performance Analysis of Patient Affordability Solutions may have highlighted areas of concern, potentially contributing to the negative outlook.

1.c. Company Highlights

2. PaySign's Q3 Earnings Shine with 41.6% Revenue Growth

PaySign reported a remarkable quarter with record revenue of $21.6 million, up 41.6% year over year, adjusted EBITDA of $5 million, an increase of 78%, and net income of $2.2 million, or $0.04 per fully diluted share, beating estimates of $0.03. The patient affordability business generated $7.9 million in revenue, up 142% from the prior year's quarter, while the plasma donor compensation business saw revenue grow 12.4% year over year to a record $12.9 million. The company's gross profit margins are expected to be approximately 60% for the year.

Publication Date: Nov -26

📋 Highlights
  • tags. Check for duplicates and ensure each insight is distinct. Also, verify that all numbers are accurately represented from the input text. </think> <li><b>Record Revenue Growth: Q3 revenue reached $21.6M, up 41.6% YoY, with adjusted EBITDA jumping 78% to $5M.
  • Patient Affordability Surge: Generated $7.9M in revenue, a 142% YoY increase, driving strong program expansion to 105 active programs.
  • Plasma Donor Revenue Resilience: Segment hit $12.9M (12.4% YoY growth) despite 12 center closures, showing operational resilience.
  • 2025 Guidance Raised: Revenue projected at $80.5–81.5M (38.7% YoY growth midpoint), with adjusted EBITDA expected at $19–20M.
  • BECCS FDA Approval Timeline: Donor management system seeks approval in Q4 2024–Q1 2025 to enter plasma blood market, targeting $20K/month per mature program.

Operational Highlights

The company achieved significant operational efficiencies, expanded its presence in the pharmaceutical space, and integrated dynamic business rules technology into the traditional commoditized pharmacy claims process, saving clients hundreds of millions of dollars. PaySign ended the quarter with 105 active programs and expects to add 20 to 30 more by year-end, bringing the total to 125 to 135 active programs. As Mark Newcomer, President and CEO, noted, the company is making substantial progress and is optimistic about the future.

Guidance and Outlook

PaySign raised its revenue guidance for 2025 to a range of $80.5 million to $81.5 million, reflecting year-over-year growth of 38.7% at the midpoint. The company expects net income estimates to be between $7 million and $8 million for the year, or $0.12 to $0.13 per diluted share, and adjusted EBITDA to be in the range of $19 million to $20 million. Analysts estimate next year's revenue growth at 20.6%, indicating a continued growth trajectory.

Valuation and Metrics

With a P/E Ratio of 37.46, P/B Ratio of 6.19, and P/S Ratio of 3.73, the market is pricing in significant growth expectations. The company's ROE of 19.18% and ROIC of 8.88% indicate a strong ability to generate returns. The EV/EBITDA ratio of 18.54 suggests that the company's valuation is reasonable relative to its earnings before interest, taxes, depreciation, and amortization.

New Initiatives and Future Prospects

The company is exploring new initiatives, including the plasma blood space with a donor management system called BECCS, which is expected to drive future growth. With FDA approval expected in the fourth quarter or first quarter, PaySign is poised to expand its presence in the plasma blood market. As the company continues to deliver substantial growth and long-term shareholder value, investors will be watching closely for progress on these new initiatives.

3. NewsRoom

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Does Paysign (PAYS) Have the Potential to Rally 74% as Wall Street Analysts Expect?

Nov -28

Source: zacks.com

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What Makes Paysign (PAYS) a New Buy Stock

Nov -25

Source: zacks.com

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Paysign, Inc. to Present at the 17th Annual Southwest IDEAS Investor Conference

Nov -13

Source: businesswire.com

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Paysign, Inc. (PAYS) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Paysign, Inc. Reports Third Quarter 2025 Financial Results

Nov -12

Source: businesswire.com

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Paysign (PAYS) to Release Earnings on Wednesday

Nov -05

Source: defenseworld.net

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Paysign to Host Third Quarter 2025 Earnings Call

Oct -14

Source: businesswire.com

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Paysign: A Small-Cap Stock With Big Potential?

Oct -09

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.15%)

6. Segments

Plasma

Expected Growth: 12%

Plasma from PaySign, Inc. growth driven by increasing demand for plasma-derived therapies, expansion into new markets, and strategic partnerships. Additionally, advancements in plasma collection technology and growing awareness of rare diseases contribute to the 12% growth rate.

Pharma

Expected Growth: 14%

PaySign, Inc.'s 14% growth in Pharma is driven by increasing demand for specialty medications, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital healthcare solutions and patient engagement platforms has improved operational efficiency and enhanced customer experience, contributing to the segment's growth.

Other

Expected Growth: 11%

PaySign, Inc.'s 11% growth is driven by increasing adoption of its payment solutions, expansion into new markets, and strategic partnerships. The company's focus on providing innovative payment processing services to underserved markets, such as the prepaid debit card industry, has contributed to its growth. Additionally, its investments in technology and infrastructure have improved operational efficiency, further driving growth.

7. Detailed Products

Prepaid Cards

PaySign offers prepaid cards that can be used for various purposes such as payroll, incentives, and rewards. These cards can be customized to meet specific business needs.

Digital Wallets

PaySign's digital wallets enable users to store and manage their payment cards, loyalty cards, and other credentials digitally, providing a convenient and secure way to make transactions.

Payment Processing

PaySign offers payment processing services that enable businesses to accept various payment methods, including credit/debit cards, ACH, and more.

Disbursements

PaySign's disbursement services enable businesses to make payments to individuals, such as insurance claims, rebates, or refunds, in a secure and efficient manner.

Loyalty and Rewards

PaySign's loyalty and rewards programs help businesses incentivize customers, increase engagement, and drive revenue.

8. PaySign, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

PaySign, Inc. operates in the financial technology industry, which is highly competitive. However, the company's focus on providing prepaid card solutions and payment processing services reduces the threat of substitutes.

Bargaining Power Of Customers

PaySign, Inc.'s customers are primarily businesses and organizations that require prepaid card solutions. The company's strong relationships with its customers and the customized nature of its services reduce the bargaining power of customers.

Bargaining Power Of Suppliers

PaySign, Inc. has a diversified supplier base, which reduces its dependence on any single supplier. The company's strong relationships with its suppliers and the availability of alternative suppliers also reduce the bargaining power of suppliers.

Threat Of New Entrants

The financial technology industry is highly competitive, and new entrants can easily enter the market. However, PaySign, Inc.'s established brand, strong relationships with customers, and customized services create barriers to entry for new entrants.

Intensity Of Rivalry

The financial technology industry is highly competitive, and PaySign, Inc. faces intense competition from established players and new entrants. The company's focus on providing customized prepaid card solutions and payment processing services helps it to differentiate itself from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.91%
Debt Cost 3.95%
Equity Weight 88.09%
Equity Cost 8.86%
WACC 8.27%
Leverage 13.52%

11. Quality Control: PaySign, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A10 Networks

A-Score: 5.4/10

Value: 2.5

Growth: 6.3

Quality: 7.3

Yield: 2.0

Momentum: 7.5

Volatility: 6.7

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PaySign

A-Score: 4.9/10

Value: 3.4

Growth: 6.4

Quality: 7.9

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Growth: 5.1

Quality: 5.5

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A-Score: 4.6/10

Value: 4.8

Growth: 9.0

Quality: 7.4

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

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A-Score: 4.3/10

Value: 7.4

Growth: 7.7

Quality: 6.8

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

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Sterling Check

A-Score: 3.4/10

Value: 3.2

Growth: 7.1

Quality: 2.7

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.33$

Current Price

5.33$

Potential

-0.00%

Expected Cash-Flows