Paymentus Holdings, Inc.

Second quarter revenue was $360.7 million, up 28.8% year over year. Contribution profit was $118.1 million, up 26.3% year over year, and adjusted EBITDA was $48.8 million, up 54% year over year, with a 41.3% margin; non-GAAP net income was $32.4 million, or $0.25 per share, versus $19.3 million, or $0.15 per share a year ago. Transactions grew to 213.4 million, up 21.4%, and average price per transaction rose from $1.59 to $1.69. Free cash flow was $39 million, cash and cash equivalents ended at $379.7 million, and the company had no debt. For Q3 2026, management expects revenue of $353 million to $363 million, contribution profit of $112 million to $115 million, and adjusted EBITDA of $40 million to $45 million. For full-year 2026, guidance was raised to revenue of $1.443 billion to $1.458 billion, contribution profit of $460 million to $465 million, and adjusted EBITDA of $175 million to $185 million.

Dushyant Sharma said the quarter showed Paymentus is still early in a long-term growth story, with record revenue, strong bookings, and substantial backlog supporting confidence in 2026 and beyond. He emphasized the company’s expanding role in AI-enabled service commerce through Billeo, BillWallet, and related AI infrastructure, framing Paymentus as more than a billing and payments company. His tone was highly upbeat and confident, repeatedly stressing that the market is moving in Paymentus’ direction and that the company is ahead of its long-term CAGR model.

Sanjay Kalra highlighted that Q2 results exceeded the top end of guidance, with record revenue of $360.7 million, contribution profit of $118.1 million, adjusted EBITDA of $48.8 million, and a record 41.3% adjusted EBITDA margin. He pointed to $39 million in free cash flow, $379.7 million of cash, no debt, and DSO of 27 days, while noting $9.7 million of capitalized software within $11.2 million of cash used in investing and financing activities. He said the company raised full-year guidance by about $18 million for revenue, $9 million for contribution profit, and $11.5 million for adjusted EBITDA, and stressed that guidance remains conservative and visibility-driven.

Analysts focused on what drove accelerating contribution profit, the role of enterprise customers, the AI product suite’s monetization timing, transaction seasonality, bookings composition, and the gap between revenue and contribution profit growth. Management said contribution profit growth was broad-based across small, mid-sized, and large customers and across verticals, not dependent on just a few enterprise accounts. On AI, they said client and prospect reactions have been very positive, traction is improving, and the P&L benefit should show up over the next few years; on bookings, they said the mix is diversified, timelines are improving, and backlog gives visibility into 2027.