Paymentus Holdings, Inc. Q1 FY2026 earnings call

• Tremendous start of 2026 with record revenue and strong growth exceeding CAGR model across key metrics. - Announced an important product launch transforming service provider-customer interaction. - Continued strong momentum in first quarter with robust bookings, diversified customer base, and better-than-expected seasonal performance. - Discussed drivers of outperformance including launch of new billers, increased transactions, and improved average revenue per transaction. - Mentioned expansion of market share without sacrificing contribution profit per transaction. - Talked about non-GAAP operating expenses increase due to higher sales and marketing expenses as a positive leading indicator for business.

First quarter revenue was $358.4 million, up 30.2% year over year. Contribution profit was $109.7 million, up 25.2% year over year. Adjusted EBITDA was $42.4 million, up 41.5% year over year with a 38.7% margin. Revenue contribution from various verticals like utilities, insurance, telecommunications, etc. was mentioned with strong growth across multiple metrics.

For Q2 26, expected revenues in range of $340 to $350 million, contribution profit $108 to $111 million, adjusted EBITDA $38 to $40 million. For full year 2026, expected revenue 1.425 billion to 1.44 billion, up from previous guidance midpoint; contribution profit 450 to 457 million, up from previous midpoint; adjusted EBITDA 165 to $172 million, up from previous midpoint. Non-GAAP tax rate of 25%. Rule of 40 basis for second quarter 2026 implies range 51 to 55, full year 2026 range 53 to 56.

Q: On new AI product announcements, details on economics and near-term impact on gross/contribution dollars per transaction and longer-term revenue opportunities.

A: Pay-per-use and success-based pricing model remains, with aim to convert interchange expense into revenue, near term no significant impact, longer term Bill Wallet and Billio play role.

Q: On free cash flow, why it was down year over year and expectations for full year.

A: Working capital flip caused short-term difference, working capital in good shape, bullish on full year free cash flow.

Q: On economics of wallet, combination of float revenue, debit interchange, etc.

A: Part of strategy, Bill Wallet is IP-native, working towards converting interchange expense into revenue.

Q: On Q2 guidance seasonality and energy prices impact.

A: Q2 guidance prudent due to seasonality and large enterprise onboarding, energy prices impact modest due to vertical diversification and pricing strategy.

Q: On pipeline and full-year guidance raise.

A: Prudent guidance due to creating long-term shareholder value, business good with strong pipeline and bookings.

Q: On new products changing competition and utilities vertical.

A: Market moving in direction, utilities remains key vertical.

Q: On Bill Wallet distribution and utilities vertical percentage.

A: Bill Wallet allows service providers direct relationship with customers, utilities vertical percentage less than 50% now.

Q: On acquisition of CUBRA by REPAY and competitive dynamics.

A: Market moving in direction, excited about business, no concerns from that perspective