PaySign, Inc. Q2 FY2025 earnings call

Management Statement and Operational Highlights

• Record Results: Second quarter 2025 saw record revenue of $19.1 million, up 33% YOY; gross margins improved 870 basis points to 61.6%; adjusted EBITDA doubled to $4.5 million; net income nearly doubled to $1.4 million.
• Patient Affordability Growth: Revenue grew 190% YOY, with 7 programs launched in Q2, 97 active programs, and a robust pipeline. Planning to open a new state-of-the-art patient services contact center in Q3 to scale support.
• Plasma Business Updates: Added 123 net plasma centers, market share ~50%; facing headwinds from oversupply but anticipating return to growth in 2026; introduced software solutions at the International Plasma Protein Congress.
• Innovation: Proprietary dynamic business rules technology driving savings for pharmaceutical manufacturers by assisting with point-of-sale adjudication.

Segment Performance

• Patient Affordability: Revenue was $7.75 million, up 190% year-over-year, accounting for 40.6% of Q2 2025 revenues. Revenue per program rose over 83%. 7 programs were launched in Q2, with 21 in the first half of the year, 97 active programs, and expecting 30 to 40 more by year-end.
• Plasma Compensation: Revenue was $10.7 million, down 4.7% year-over-year but up 14.2% sequentially. Ended Q2 with 607 centers, having onboarded 123 of 132 awarded centers, with a market share of approximately 50%. Revenue per plasma center declined to $7,098. Gross dollars loaded to cards, total number of loads, and gross spend volume decreased.

Guidance

• Raised 2025 revenue guidance to $76.5 million to $78.5 million, reflecting 32.7% YOY growth at midpoint. Plasma expected to be ~56% of revenue, patient affordability ~40.5%.
• Q3 2025 revenue guidance: $19.5 million to $20.5 million. Gross margins expected ~59% due to plasma mix and new contact center. Adjusted EBITDA expected $4.5 million to $5.0 million.

Risks

• Plasma business facing headwinds from oversupply of sourced plasma and increased collection efficiencies at centers. Closing of 22 underperforming plasma centers, but expecting most donors to continue at nearby centers.

Q: Congrats on the quarter and solid outlook here. Maybe first for me, can you just touch on the 30 to 40 programs that you expect to onboard in pharma? Maybe help us understand better, are these more existing customers or new customers?

A: This is Matt Turner. Happy to take that question, and thanks for asking. It represents a mix of new clients that we will be onboarding as well as additional programs from existing clients. It's a pretty good mix between the 2, I'd say, about 50-50.

Q: On the plasma side, you expect to add kind of 10 to 14 programs through -- centers throughout the remainder of the year. Does that include the 9 that were onboarded after June 30th? Or is that in addition to the full 132?

A: That does include the 9 that we spoke about in the 132.

Q: A couple of questions on the plasma side. First of all, the new centers that you're rolling out, how is their average revenue compared to your business that you have in hand right now?

A: Well, Gary, we expect them to be pretty much in line. It's an existing customer. So we already have their trends that are in our numbers. We don't see a huge discrepancy across the centers. Sometimes geographic locations will vary that. But these centers, it's in the average, and we expect that to be reflected in the numbers going forward.

Q: Could you remind me or remind us in terms of how we think about breaking down revenue within pharma, how should we think about design and program design fees versus monthly maintenance versus claims or transaction fees?

A: Yes. So this is Matt. Thanks for the question, Pete, you hit the nail on the head as far as we have program setup fees, we have monthly management fees and then a variety of different transactional fees across our ecosystem. So every pharmacy claim that comes in, that's a paid claim that generates revenue on that claim. If there are other features or functionality attached to that claim, we talked about dynamic business rules, that's something that rides on top of the claim. There's extra fees for those types of items. So while we're going to make money on every paid claim when it comes in, there's also other products and services overlaid on top of that claim that will generate additional revenue.