Third Quarter 2026
Filed Nov 2, 2026Paymentus Reports Third Quarter 2026 Financial Results Revenue up 19.8% year-over-year Contribution Profit up 20.6% year-over-year Adjusted EBITDA up 38.6% year-over-year, with record adjusted EBITDA margin of 41.9%
Third-quarter revenue, contribution profit, adjusted EBITDA, net income and free cash flow all increased year-over-year, while adjusted EBITDA margin reached a record 41.9% and the company guided to further revenue, contribution profit and adjusted EBITDA growth in the fourth quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $372.2M | – | 19.8% |
| Cost of revenue, three months ended September 30, 2026GAAP | 278.3M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $93.84M | – | 25.4% |
| Adjusted gross profit, three months ended September 30, 2026non-GAAP | $99.80M | – | 23.1% |
| Contribution profit, three months ended September 30, 2026non-GAAP | $118.5M | – | 20.6% |
| Research and development expense, three months ended September 30, 2026GAAP | 15.29M | – | – |
| Sales and marketing expense, three months ended September 30, 2026GAAP | 32.27M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | 12.75M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $60.31M | – | – |
| Non-GAAP operating expense, three months ended September 30, 2026non-GAAP | $53.03M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | 33.54M | – | – |
| Interest income, net, three months ended September 30, 2026GAAP | 3.22M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | 36.83M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | 9.35M | – | – |
| Net income, three months ended September 30, 2026GAAP | $27.48M | – | – |
| Net income, three months ended September 30, 2026non-GAAP | $33.12M | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $0.22 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $0.21 | – | – |
| Diluted earnings per share, three months ended September 30, 2026non-GAAP | $0.25 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $49.67M | – | 38.6% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 41.9% | – | – |
| Transactions processed, third quarter of 2026other | 219.0 million transactions | – | 20.1% |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $43.62M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $33.98M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $1.09B | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $274.4M | – | – |
| Adjusted gross profit, nine months ended September 30, 2026non-GAAP | $292.3M | – | – |
| Contribution profit, nine months ended September 30, 2026non-GAAP | $346.3M | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | 92.71M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $73.92M | – | – |
| Net income, nine months ended September 30, 2026non-GAAP | $92.45M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $0.57 | – | – |
| Diluted earnings per share, nine months ended September 30, 2026non-GAAP | $0.71 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $140.9M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 40.7% | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $122.9M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $93.93M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter 2026 and Fiscal Year 2026 outlook
- RevenueFourth Quarter 2026: $373 million to $378 million; Fiscal Year 2026: $1,464 million to $1,469 million
- NoteContribution Profit: Fourth Quarter 2026: $120 million to $122 million; Fiscal Year 2026: $466 million to $468 million
- NoteAdjusted EBITDA: Fourth Quarter 2026: $45 million to $50 million; Fiscal Year 2026: $186 million to $191 million
What drove it
- Revenue growth was driven largely by growth in billers and transaction volumes.
- The company cited strong bookings and a sizable backlog.
- Contribution profit excludes interchange, assessment and other network fees paid to payment processors, which Paymentus says are primarily determined by consumer payment channel selection.
- Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of contribution profit.
Concerns
- Sales and marketing expense was 32,265 (in thousands) for the three months ended September 30, 2026, compared with 25,478 (in thousands) in 2025.
- Provision for income taxes was 9,351 (in thousands) for the three months ended September 30, 2026, compared with 4,858 (in thousands) in 2025.
- Paymentus does not reconcile forward-looking contribution profit or adjusted EBITDA guidance to GAAP measures because certain reconciling items are not available and cannot be reasonably estimated.
- Forward-looking performance is subject to risks including biller, financial institution, partner and consumer retention and expansion; timely implementation of bookings; competition; cybersecurity incidents; regulatory developments; and economic challenges.
What to watch
- Fourth Quarter 2026 revenue guidance of $373 million to $378 million.
- Fourth Quarter 2026 contribution profit guidance of $120 million to $122 million.
- Fourth Quarter 2026 adjusted EBITDA guidance of $45 million to $50 million.
- Fiscal Year 2026 revenue guidance of $1,464 million to $1,469 million.
- Fiscal Year 2026 contribution profit guidance of $466 million to $468 million.
- Fiscal Year 2026 adjusted EBITDA guidance of $186 million to $191 million.
- Bookings, backlog, biller growth and transaction volumes.
- The sustainability of adjusted EBITDA margin after reaching 41.9% in the third quarter.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $407,616 (in thousands), compared with $320,908 (in thousands) as of December 31, 2025.
- Restricted cash and cash equivalents as of September 30, 2026: $2,021 (in thousands), compared with $3,630 (in thousands) as of December 31, 2025.
- Total assets as of September 30, 2026: $763,872 (in thousands), compared with $667,885 (in thousands) as of December 31, 2025.
- Total liabilities as of September 30, 2026: $120,629 (in thousands), compared with $107,496 (in thousands) as of December 31, 2025.
- Total stockholders’ equity as of September 30, 2026: $643,243 (in thousands), compared with $560,389 (in thousands) as of December 31, 2025.
- Capitalized internal-use software development costs, net, as of September 30, 2026: $73,772 (in thousands), compared with $70,920 (in thousands) as of December 31, 2025.
- Capitalized internal-use software development costs, three months ended September 30, 2026: $(9,457) (in thousands), compared with $(9,248) (in thousands) in 2025.
Analysis
Paymentus reported third-quarter revenue of $372,175 (in thousands), up 19.8% year-over-year, with growth driven largely by biller and transaction-volume expansion. The company processed 219.0 million transactions, an increase of 20.1% year-over-year. The nine-month revenue result was $1,091,352 (in thousands), compared with $866,049 (in thousands) in the prior-year period.
Profitability expanded faster than revenue in the third quarter. GAAP gross profit was $93,842 (in thousands), up 25.4% year-over-year, while adjusted gross profit was $99,804 (in thousands), up 23.1%. Contribution profit increased 20.6% to $118,467 (in thousands). Adjusted EBITDA increased 38.6% to $49,675 (in thousands), and adjusted EBITDA margin reached a record 41.9%, compared with 36.5% in the prior-year quarter.
GAAP net income was $27,480 (in thousands), compared with $17,744 (in thousands), and diluted GAAP earnings per share was $0.21, compared with $0.14. Non-GAAP net income was $33,118 (in thousands), compared with $22,572 (in thousands), and diluted non-GAAP earnings per share was $0.25, compared with $0.17. Sales and marketing expense increased to 32,265 (in thousands), while general and administrative expense declined to 12,749 (in thousands) from 14,291 (in thousands).
Cash generation remained positive. Net cash provided by operating activities was $43,619 (in thousands) in the quarter and free cash flow was $33,983 (in thousands). Cash and cash equivalents were $407,616 (in thousands) as of September 30, 2026. The company guided fourth-quarter revenue to $373 million to $378 million, contribution profit to $120 million to $122 million, and adjusted EBITDA to $45 million to $50 million. Full-year guidance calls for revenue of $1,464 million to $1,469 million, contribution profit of $466 million to $468 million, and adjusted EBITDA of $186 million to $191 million.
Management pointed to strong bookings and a sizable backlog as support for its confidence in 2026 targets and its outlook for 2027. The key reported operating measures to monitor are continued biller and transaction-volume growth, contribution-profit performance given payment-channel mix, the durability of the 41.9% adjusted EBITDA margin, and execution against the fourth-quarter and full-year targets.
Management, verbatim
Paymentus delivered another strong quarter, with 19.8% year-over-year revenue growth. This revenue performance drove growth in contribution profit and adjusted EBITDA of 20.6% and 38.6%, respectively. Our year-to-date results, combined with strong bookings and a sizable backlog, reinforce our confidence in achieving our 2026 financial targets as well as our outlook for 2027.
Dushyant Sharma, Founder and CEO
Not in the filing
stated, not guessed- Previous outlook was not provided, so comparison of actual results versus prior guidance is unavailable.
- Prior-quarter comparisons were not reported.
- Segment revenue and segment profitability were not reported.
- GAAP gross margin and non-GAAP gross margin were not reported.
- Capital-return activity, including share repurchases and dividends, was not reported.
- Debt balances were not reported.
- Guidance for gross margin, operating expenses and tax rate was not reported.
- A reconciliation of forward-looking contribution profit and adjusted EBITDA guidance to GAAP measures was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.