Paysign, Inc. Q1 FY2025 earnings call

Management Statement and Operational Highlights:

• Q1 2025 was a record-setting quarter with revenue growing 41% year-over-year to $18.6 million, net income surging 737% to $2.59 million, adjusted EBITDA jumping 193% to $4.9 million, and gross margin expanding to 62.9%.
• Patient Affordability business continued to outperform with 261% YOY revenue growth, 160%+ increase in claims processed, and 14 new programs added, now supporting 90 active programs.
• Team attended Asembia Summit 2025 in Las Vegas, hosted over 40 meetings, with positive response to solutions and efficient sales cycle (90-120 days).
• Plasma segment acquired Gamma Innovation in late March, which is expected to add $4 million to $5 million in annual cash flow once efficiency measures are fully realized.
• Exited Q1 with 190 employees, up from 132 in Q1 2024, with significant investments in IT and employees to support growth.

Segment Performance: The Patient Affordability segment saw revenues rise 261% year-over-year to $8.6 million, accounting for 46.3% of the quarterly revenue. The Plasma donor compensation segment had revenue of $9.4 million, which was a 9.2% decrease from $10.3 million in Q1 2024, representing approximately 50.5% of the quarterly revenue. The Patient Affordability segment's revenue growth was driven by a 160%+ increase in claims processed and 14 new programs added, while the Plasma segment faced headwinds from plasma supply surpluses and improved center collection efficiencies.

Guidance:

• 2025 total revenues expected to be in the range of $72 million to $74 million, reflecting 25% midpoint year-over-year growth. Plasma revenue estimated at ~57% of total, down 8% to 10% YOY; Pharma revenue ~43% of total, up over 135% YOY.
• Full year gross profit margins expected between 62% to 64%.
• Operating expenses expected $41 million to $43 million, with depreciation and amortization expense ~$8 million and stock-based compensation ~$3.8 million; interest income expected ~$2.9 million.
• Net income expected between $6 million and $7 million or $0.10 to $0.12 per fully diluted share; adjusted EBITDA expected $16 million to $17 million or $0.28 to $0.30 per fully diluted share.
• Q2 2025 total revenue expected $18.5 million to $19 million; Plasma revenues ~54% to 55% of revenue; Patient Affordability ~41% to 42% of revenue; gross profit margins 63% to 64%; operating expenses $10 million to $11 million, with depreciation and amortization ~$2 million and stock-based compensation ~$1 million; adjusted EBITDA $4.5 million to $5 million.

Risks:

• Plasma segment facing headwinds due to continued source plasma supply surpluses and improved collection efficiencies at the center level, expected to persist throughout the rest of the year.