Paymentus (NYSE:PAY) Delivers Strong Q4 CY2025 Numbers But Stock Drops

SelfRugger

2026-03-05 13:23:20

Paymentus (NYSE:PAY) Delivers Strong Q4 CY2025 Numbers But Stock Drops

Petr Huřťák

Tue, February 24, 2026 at 6:19 AM GMT+9 3 min read

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                                      StockStory Top Pick

PAY

-5.86%

Digital payment platform Paymentus (NYSE:PAY) reported Q4 CY2025 results exceeding the market’s revenue expectations , with sales up 28.1% year on year to $330.5 million. The company expects next quarter’s revenue to be around $335 million, coming in 0.7% above analysts’ estimates. Its non-GAAP profit of $0.20 per share was 22.9% above analysts’ consensus estimates.

Is now the time to buy Paymentus? Find out in our full research report.

Paymentus (PAY) Q4 CY2025 Highlights:

**Revenue:** $330.5 million vs analyst estimates of $311.1 million (28.1% year-on-year growth, 6.2% beat)

**Pre-tax Profit:** $26.5 million (8% margin)

**Adjusted EPS:** $0.20 vs analyst estimates of $0.16 (22.9% beat)

**Revenue Guidance for Q1 CY2026** is $335 million at the midpoint, roughly in line with what analysts were expecting

**Market Capitalization:** $3.25 billion

“Paymentus ended 2025 on a firm footing as we continued to execute on our long-term strategy, with fourth quarter and full year results that again surpassed our expectations. This included fourth quarter revenue that increased 28.1% year-over-year, with contribution profit and adjusted EBITDA increasing 24.0% and 46.3% year-over-year, respectively. We ended the year with a substantial backlog, giving us considerable visibility as we head into 2026 and beyond,” said Dushyant Sharma, Founder and CEO.

Company Overview

Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Paymentus’s revenue grew at an incredible 31.7% compounded annual growth rate over the last five years. Its growth surpassed the average financials company and shows its offerings resonate with customers, a great starting point for our analysis.

Paymentus Quarterly Revenue

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Paymentus’s annualized revenue growth of 39.5% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

Paymentus Year-On-Year Revenue Growth

This quarter, Paymentus reported robust year-on-year revenue growth of 28.1%, and its $330.5 million of revenue topped Wall Street estimates by 6.2%. Company management is currently guiding for a 21.7% year-on-year increase in sales next quarter.

Story Continues

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Key Takeaways from Paymentus’s Q4 Results

It was good to see Paymentus beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance missed. Overall, we think this was a solid quarter with some key areas of upside. Investors were likely hoping for more, and shares traded down 6.7% to $22.80 immediately after reporting.

Should you buy the stock or not? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

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