PaySign, Inc. Q4 FY2025 earnings call

• Mark Newcomer noted full year 2025 revenue increased 40.5% to $82 million, net income increased 98% to $7.6 million, adjusted EBITDA increased 107% to $19.9 million. Operating margins increased 723 basis points. - Patient affordability business: Annual revenue grew 168% to $33.9 million, claims processed up ~79%. Helped deliver nearly $1 billion in financial assistance to patients in 2025. Added 55 programs in 2025, total active programs 131. Dynamic business rules technology saved clients over $325 million in 2025 and ~$150 million in 2026 so far. - Plasma business: 2025 revenue $45.6 million, 4% increase. Exited 2025 with 595 centers, increase of 115 centers over prior year. Believes business will continue to exhibit revenue growth driven by center-filling excess capacity. Acquired donor management and engagement tools last year, working to integrate BECCS with plasmapheresis devices.

For the full year, revenue increased 40.5% to $82 million. Patient affordability business: Annual revenue grew 168% year-over-year to $33.9 million, with claims processed increasing by approximately 79%. Plasma donor compensation business: In 2025, plasma compensation contributed $45.6 million in revenue, representing a 4% increase over 2024's $43.9 million. Other revenue increased by $671,000, or 36.2%, primarily due to growth in usage and number of cardholders of payroll, retail, and corporate incentive programs.

• Expect 2026 revenue of $106.5 million to $110.5 million, 30% to 35% year-over-year growth, with plasma and pharma contributing equally and other revenue $2.5 million. - Gross profit margins expected to be between 60% to 62%. Operating expenses expected to increase 20% over 2025. Interest income expected ~$3.1 million. Net income estimated to nearly double over 2025, $13 million to $16 million, or $0.21 to $0.26 per diluted share. Adjusted EBITDA expected $30 million to $33 million or 49 cents to 53 cents per diluted share. - First quarter 2026 revenue expected $27 to $27.5 million, 45.2% to 47.8% growth over first quarter 2025. Expect to have 137 active patient affordability programs and 589 plasma centers exiting the quarter. Margins expected to expand, operating margin 20% to 22%, net margin 17% to 19%, adjusted EBITDA margin 34.5% to 36.5%. Fully diluted earnings per share estimated $0.07 to $0.08, adjusted EBITDA per share $0.15 to $0.16.

• Policy-related risks: Most activity around copay accumulator and maximizer programs at state level, limited federal action expected due to ERISA governing employer-sponsored health plans. But demand for dynamic business rules solutions continues to grow, and these dynamics not seen as material threat to business currently.

Q: Jacob Stefan from Lake Street Capital Markets asked about pharma manufacturers' behavior recently.

A: Matt Turner argued no slowdown, everyone's pipelines strong, almost all manufacturers have strong AI push and strong pipelines.

Q: Gary Prestapino from Barrington Research asked about exiting Q1 with 137 pharma programs and 589 plasma centers.

A: Confirmed, with six centers sold to competitor and one closed.

Q: Peter Heckman from DA Davidson asked about plasma revenue growth and BEC system review.

A: Plasma revenue growth due to collection efficiencies from hardware upgrades, BEC system under review, expect feedback within next 60 days.

Q: John Hickman from Lannenberg-Solomon asked about pharma TAM and competition.

A: TAM estimated $500 million to $850 million, in first inning of growth. Competition exists, but Paysign was ahead of disruption, brought pricing transparency and changed how co-pay programs function.

Q: Gary Prestapino from Barrington Research asked about pipeline on patient affordability side and investor hesitation.

A: No guidance on number of programs early in year, will evaluate after Assembia conference. Investor hesitation due to market not fully understanding copay, operating leverage from patient affordability, and this being first public company talking about this where it's not de minimis.