Paymentus Q2 Earnings Call Highlights

Record Q2 performance: Paymentus reported revenue of $360.7 million, up 28.8% year over year, while adjusted EBITDA rose 54% to $48.8 million. Transaction volume increased 21.4% to 213.4 million. 2026 outlook raised: Management increased its full-year revenue guidance to $1.443 billion–$1.458 billion and adjusted EBITDA guidance to $175 million–$185 million, citing strong bookings, backlog and broad-based customer growth. Enterprise and AI expansion: Growth was supported by large enterprise billers across multiple industries, while Paymentus continues developing its Billeo AI service-commerce suite to expand beyond payments into workflow, data-security and customer-service solutions.

Paymentus NYSE: PAY reported record second-quarter revenue of $360.7 million, up 28.8% from a year earlier, as higher transaction volumes, new biller launches and growth from existing customers helped the billing and payments company exceed its prior guidance. Founder and CEO Dushyant Sharma said the company’s second-quarter results included contribution profit of $118.1 million, up 26.3% year over year, and adjusted EBITDA of $48.8 million, a 54% increase. Paymentus processed 213.4 million transactions during the quarter, up 21.4% from the prior-year period.

“Paymentus delivered another strong quarter,” Sharma said, pointing to record revenue and what he described as substantial bookings and backlog. Management said it believes those factors provide visibility for the remainder of 2026 and into 2027.

Enterprise activity and broad-based growth CFO Sanjay Kalra said second-quarter revenue growth was driven primarily by increased transactions across the business, including newly launched billers and same-store sales from existing customers. Average revenue per transaction rose to $1.69 from $1.59 a year earlier, which Kalra attributed mainly to biller mix, including large enterprise customers launched in the third quarter of 2025 that carry higher average payment amounts. Contribution profit per transaction increased to $0.55 from $0.53 a year earlier. Contribution margin was 32.7%, compared with 33.4% in the prior-year quarter, reflecting the addition of larger, higher-volume enterprise billers. Kalra said that margin change was substantially offset by a year-over-year reduction in operating-expense margin. Non-GAAP operating expenses rose 10.5% to $54.2 million, primarily due to sales and marketing hiring and agency fees related to resellers and partners. Still, the company reported adjusted EBITDA equal to 41.3% of contribution profit, compared with 33.9% a year earlier, and an incremental adjusted EBITDA margin of 69.6%. Paymentus generated $39 million in free cash flow during the quarter. It ended the period with $379.7 million in cash and cash equivalents, up from $342.1 million at the end of the first quarter, and reported no debt.

Management said demand was particularly strong among large enterprise customers, though Kalra emphasized during the question-and-answer session that contribution-profit growth was broad-based across large, midsize and smaller customers rather than concentrated in a single customer type or vertical. The company cited activity across utilities, government agencies, telecommunications, property management, insurance, banking, education, business-to-business, consumer finance and other sectors. Kalra also said implementation timelines have continued to improve as Paymentus gains efficiencies in its processes and as average customer sizes increase.

Raised 2026 outlook Based on first-half performance, bookings and expectations for the rest of th...