Paysign Reports Record Third Quarter 2026 Revenue of $30.8 Million, Up 43%; Operating Margin More Than Triples to 23.8%
Paysign, Inc. (PAYS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Earnings Release Paysign Reports Record Third Quarter 2026 Revenue of $30.8 Million, Up 43%; Operating Margin More Than Triples to 23.8% Patient Affordability Growth Drives Revenue and Margin Expansion Raises Full Year 2026 Gross Margin, Net Income, GAAP EPS and Adju
Facts are quoted from the filing text and checked against it.
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide a fresh catalyst for the stock, likely prompting buying interest.
Market read
Strong earnings and raised outlook make Paysign a short‑term buying candidate within the health‑tech niche.
What to watch
Potential loss of plasma processing volume from a customer transition could pressure future margins.
Paysign Q3 2026 revenue up 42.6% to $30.80 million; operating margin 23.8%; FY2026 gross margin, net income, GAAP diluted EPS and Adjusted EBITDA guidance raised
Revenue grew 42.6% year over year, led by pharma (patient affordability) revenue up 109.8%. GAAP operating margin rose to 23.8% from 7.3%, and the company raised four full-year profitability guidance items while confirming the revenue range. Offsetting items the filing discloses: a plasma customer's planned transfer of 113 centers' processing in Q4, a 33-center decline in plasma centers over 12 months, and a 1.0% decline in gross dollar load volume.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026GAAP | $30,800,158 | – | 42.6% |
| Pharma industry revenue, Q3 2026GAAP | $16,620,579 | – | 109.8% |
| Plasma industry revenue, Q3 2026GAAP | $13,826,621 | – | 7.5% |
| Other revenue, Q3 2026GAAP | $352,958 | – | – |
| Cost of revenues, Q3 2026GAAP | $10,880,300 | – | 15.2% |
| Gross profit, Q3 2026GAAP | $19,919,858 | – | – |
| Gross profit margin, Q3 2026GAAP | 64.7% | – | 840 basis points |
| Selling, general and administrative expenses, Q3 2026GAAP | $10,291,131 | – | 22.8% |
| Depreciation and amortization, Q3 2026GAAP | $2,309,103 | – | 5.4% |
| Total operating expenses, Q3 2026GAAP | $12,600,234 | – | 19.2% |
| Income from operations, Q3 2026GAAP | $7,319,624 | – | – |
| Operating margin, Q3 2026GAAP | 23.8% | – | – |
| Interest income, net, Q3 2026GAAP | $870,573 | – | – |
| Income tax provision, Q3 2026GAAP | $1,454,503 | – | – |
| Effective tax rate, Q3 2026GAAP | 17.8% | – | – |
| Net income, Q3 2026GAAP | $6,735,694 | – | 204.1% |
| Diluted EPS, Q3 2026GAAP | $0.11 | – | – |
| Basic EPS, Q3 2026GAAP | $0.12 | – | – |
| EBITDA, Q3 2026non-GAAP | $9,628,727 | – | 155.2% |
| Adjusted EBITDA, Q3 2026non-GAAP | $10,984,475 | – | 118.0% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 35.7% | – | – |
| Adjusted operating margin, Q3 2026non-GAAP | 23.8% | – | – |
| Gross dollar load volume, Q3 2026other | down 1.0% | – | – |
| Gross spend volume, Q3 2026other | down 1.3% | – | – |
| Processed claims, Q3 2026other | up approximately 55% year-over-year | – | – |
| Active patient affordability programs, end of Q3 2026other | 167 | – | – |
| Quarterly revenue per patient affordability program, Q3 2026other | $99,524 | – | approximately 32% |
| Plasma centers, end of Q3 2026other | 562 centers | – | – |
| Average monthly revenue per plasma center, Q3 2026other | $8,187 | – | – |
| Total revenues, nine months 2026GAAP | $87,090,653 | – | – |
| Pharma industry revenue, nine months 2026GAAP | $46,949,164 | – | – |
| Plasma industry revenue, nine months 2026GAAP | $38,615,772 | – | – |
| Other revenue, nine months 2026GAAP | $1,525,717 | – | – |
| Cost of revenues, nine months 2026GAAP | $31,054,827 | – | – |
| Gross profit, nine months 2026GAAP | $56,035,826 | – | – |
| Selling, general and administrative expenses, nine months 2026GAAP | $27,752,063 | – | – |
| Depreciation and amortization, nine months 2026GAAP | $7,285,088 | – | – |
| Total operating expenses, nine months 2026GAAP | $35,037,151 | – | – |
| Income from operations, nine months 2026GAAP | $20,998,675 | – | – |
| Operating margin, nine months 2026GAAP | 24.1% | – | – |
| Interest income, net, nine months 2026GAAP | $2,565,639 | – | – |
| Income tax provision, nine months 2026GAAP | $4,633,165 | – | – |
| Net income, nine months 2026GAAP | $18,931,149 | – | – |
| Diluted EPS, nine months 2026GAAP | $0.30 | – | – |
| Basic EPS, nine months 2026GAAP | $0.34 | – | – |
| EBITDA, nine months 2026non-GAAP | $28,283,763 | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $31,185,770 | – | – |
| Adjusted EBITDA margin, nine months 2026non-GAAP | 35.8% | – | – |
| Adjusted operating margin, nine months 2026non-GAAP | 23.0% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Pharma industry (patient affordability)The company states that 62 net new programs launched over the past 12 months drove higher management fees, claim processing fees and related services. Processed claims increased approximately 55% year over year. | $16,620,579 | – | 109.8% |
| Plasma industryThe company attributes the increase to higher average monthly revenue per center of $8,187, up from $7,122, which it says reflects stronger per center utilization. Total net plasma center count decreased by 33 over 12 months to 562 centers. | $13,826,621 | – | 7.5% |
| OtherThe filing does not explain the change in this line. | $352,958 | – | – |
FY2026 outlook
- Revenue$114.0M – $117.0M
- Gross margin63.5% – 64.5%
- NoteRevenue growth (YoY): 39.0% – 43.0%
- NoteNet income: $23.0M – $24.0M
- NoteDiluted EPS: $0.37 – $0.38
- NoteAdjusted EBITDA: $38.5M – $40.0M
- NoteExit 2026 with 190-195 active patient affordability programs and 445–450 plasma centers
Capital returns
- Treasury stock at cost at September 30, 2026: 1,675,203 shares, $(7,340,950); at December 31, 2025: 934,708 shares, $(2,148,715).
- The filing attributes part of the nine-month reduction in unrestricted cash to shares withheld to satisfy employee tax obligations related to equity awards.
- No share repurchase program or dividend is described in the release.
What drove it
- The company states that patient affordability growth, with 167 active programs and quarterly revenue per program of $99,524, drove revenue and margin expansion as that business became a larger share of revenue.
- The company states that the gross profit margin improvement reflected a greater mix of pharma revenue.
- The company states that cost of revenues rose due to network and related costs, call center support costs, a customer service contact center that went live in November 2025, and higher employee costs.
- The company states that the effective tax rate reflected discrete quarterly items and tax benefits from stock-based compensation, with the primary discrete driver being the increase in stock price at September 30, 2026 compared with the same period in the prior year.
- The company states that depreciation and amortization rose mainly from amortization of Gamma acquisition intangibles and continued capitalization of software development and equipment.
Concerns
- After quarter end, a plasma customer notified the company of its intent to move payment processing for 113 centers to another provider by year-end. These centers generated trailing 12-month revenue of $11.3 million and gross profit of $5.2 million. The estimated Q4 impact is $1.5 million in revenue and $700 thousand in gross profit.
- Plasma center count fell to 562 from 595 a year earlier, a decline of 33 centers as stated in the release.
- Gross dollar load volume was down 1.0% and gross spend volume was down 1.3% versus Q3 2025.
- Cost of revenues rose 15.2% and SG&A rose 22.8%, both ahead of revenue growth of 42.6% in the sense that cost growth is reported alongside the revenue growth; the release does not give a cost-to-revenue target.
- The effective tax rate rose to 17.8% from 1.4%.
- Restricted cash and customer card funding balances grew sharply, and the company states these are matched by equal liabilities.
- The release states that the company is unable to reconcile forward adjusted EBITDA guidance to GAAP net income without unreasonable effort, citing stock-based compensation and other non-recurring items.
What to watch
- Q4 2026 revenue and gross profit impact of the 113-center plasma processing transfer, and whether it occurs sooner, involves more centers or has a greater impact than the release anticipates.
- Delivery against the FY2026 ranges: revenue $114.0M – $117.0M, net income $23.0M – $24.0M, diluted EPS $0.37 – $0.38 and Adjusted EBITDA $38.5M – $40.0M.
- Exit counts of 190-195 active patient affordability programs and 445–450 plasma centers.
- Regulatory clearance timing for the proposed software platform, which the company describes as contingent on regulators.
- Gross dollar load and gross spend volume trends, which were negative year over year in Q3.
- Effective tax rate, which the company links partly to stock price movements at period end.
- Operating and free cash flow, which the release does not total.
Balance sheet and cash flow
- Cash at September 30, 2026: $34,539,557, up from $21,067,651 at December 31, 2025; the filing states unrestricted cash increased by $13.47 million in the nine months.
- Restricted cash at September 30, 2026: $201,794,157, up from $143,917,060 at December 31, 2025; the filing states an increase of $57.88 million, including $5.18 million in funds on card and $52.70 million in customer program deposits.
- Customer card funding liability: $200,820,880 at September 30, 2026 versus $143,191,068 at December 31, 2025. The company states it records an equal and corresponding liability for card funds and patient affordability funds received in advance.
- Total assets: $347,474,190 at September 30, 2026 versus $276,253,203 at December 31, 2025.
- Total stockholders' equity: $66,354,762 at September 30, 2026 versus $48,490,171 at December 31, 2025.
- The company reports zero bank debt at quarter end.
- Operating cash flow and free cash flow totals are not printed in the release. Capital investments in intangible and fixed assets, and payments of Gamma acquisition liabilities, are cited qualitatively as offsets to the cash increase.
Analysis
Paysign reported Q3 2026 total revenues of $30,800,158, up 42.6% from $21,596,478 a year earlier. Pharma industry revenue rose 109.8% to $16,620,579 and plasma industry revenue rose 7.5% to $13,826,621, so pharma supplied most of the growth. The company says 62 net new programs over the past 12 months drove higher management, claim processing and related fees, and it ended the quarter with 167 active programs. Revenue per program was $99,524, which the release describes as up approximately 32%, although the prior-year figure for that metric is not printed.
Gross profit margin rose to 64.7% from 56.3%, a reported increase of 840 basis points, and the company attributes this to a greater mix of pharma revenue. GAAP operating income rose to $7,319,624 from $1,581,951, and GAAP operating margin rose to 23.8% from 7.3%. Operating expenses grew 19.2% to $12,600,234, and SG&A grew 22.8%. Net income was $6,735,694, up 204.1%, and diluted EPS was $0.11 against $0.04. The effective tax rate was 17.8% against 1.4%, which the company links to discrete items including the stock price change at September 30, 2026.
The plasma business shows a different pattern. Average monthly revenue per center rose to $8,187 from $7,122, but the center count fell to 562 from 595. Gross dollar load volume was down 1.0% and gross spend volume was down 1.3%. After quarter end, one plasma customer said it will move processing for 113 centers to another provider by year-end. The company puts those centers' trailing 12-month revenue at $11.3 million and gross profit at $5.2 million, with an estimated Q4 impact of $1.5 million in revenue and $700 thousand in gross profit.
For the nine months, revenue was $87,090,653 against $59,272,980, operating income was $20,998,675 against $5,508,624, and Adjusted EBITDA was $31,185,770 against $14,512,453. The company raised FY2026 guidance for gross margin, net income, diluted EPS and Adjusted EBITDA and confirmed the revenue range of $114.0M to $117.0M. The release does not print the prior ranges for these items, so the size of each raise cannot be read from this document. Cash rose to $34,539,557 and restricted cash to $201,794,157, with customer card funding of $200,820,880 on the liability side. The company reports zero bank debt. The release does not print operating or free cash flow totals.
The release contains an internal inconsistency on Adjusted EBITDA. The reconciliation table prints $10,984,475 for Q3 2026, while the highlights and the narrative print $10.98 million and $10.95 million respectively. The table figure is used in this read, and the discrepancy should be checked against the full filing.
Management, verbatim
This was a strong quarter, with patient affordability continuing to compound
Mark Newcomer, President and CEO, Paysign
Revenue, gross margin, net income and Adjusted EBITDA all finished above the high end of our third quarter guidance.
Jeff Baker, Chief Financial Officer, Paysign
Patient affordability is driving our business, and we are seeing demand and momentum continue to build.
Mark Newcomer, President and CEO, Paysign
Not in the filing
stated, not guessed- Prior full-year guidance ranges, so the size of the raises to gross margin, net income, diluted EPS and Adjusted EBITDA cannot be shown. vs_prior_guidance is empty because no previous outlook was provided.
- Sequential (quarter over quarter) figures for Q3 2026 are not printed, so qoq_change is null throughout.
- Year-over-year percentage changes for the nine-month period are not printed, and nine-month gross margin is not stated.
- Prior-year gross profit change, operating income change, interest income change, tax provision change and operating margin change in basis points are not printed.
- Operating cash flow, free cash flow and capital expenditure totals are not printed.
- Prior-year count of active patient affordability programs and the prior-year quarterly revenue per program figure are not printed.
- Other revenue change for Q3 and nine months is not printed, and no driver is given.
- Adjusted EBITDA is printed as $10,984,475 in the reconciliation table, $10.98 million in the highlights and $10.95 million in the narrative. The table figure was used.
- Share price reaction and analyst consensus are not in the documents.
- Dollar amount of prior-year Adjusted EBITDA change is printed as $5.95 million in the narrative; not separately shown as a metric.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Paysign filed a Form 8‑K reporting its Q3 2026 results, including a 42.6% revenue increase and a tripling of operating margin.
Ticker impact
Q3 2026 revenue rose 42.6% to $30.8M and operating margin jumped to 23.8% versus 7.3% a year ago.
likely upward pressure as the market prices in the strong earnings beat and raised guidance
Revenue up over 40% and operating margin more than tripled signal improved profitability; management also raised full‑year guidance, which should support a price rally.
Market effects
Highlights growth in patient‑affordability and healthcare payment processing services.
Positive for U.S. health‑tech and fintech subsectors.
Limited to investors tracking niche health‑payment platforms.
Counterpoint
The revenue surge may be unsustainable if new patient‑affordability programs face regulatory hurdles.
Key entities
- ExecutiveMark Newcomer
President and CEO of Paysign who commented on the results.
