An Update on PaySign
PaySign (PAYS) was our third buy candidate for FY26, and that was the last substantive article on the company, although we have been featuring the company in various subsequent weekend updates. So it’s high time for a more comprehensive update, as the company continues to do very well.
We bought twice for our SA Investment Group Portfolio recently (at $3.17 at the end of February and a few days ago at $5.65 in the post-Q1 selloff). We also think the post-Q1 selloff still provides an opportunity.
Paysign Party Is Set To Continue
May 14, 2026, 10:03 AM ET Paysign, Inc. (PAYS) Stock
Summary
Paysign (PAYS) is rated a strong buy under $6, driven by robust pharma segment growth and a resolved plasma inventory correction.
PAYS’s pharma segment grew 81.9% y/y in Q1, surpassing plasma as the largest revenue contributor and expanding gross margins to 65%.
Management reaffirmed FY26 revenue guidance of $106.5M–$110.5M, with increased confidence in achieving the upper end due to Q1 outperformance.
Operating leverage is evident with adjusted EBITDA margin at 37.8%, a strong cash position, and ongoing SaaS/app initiatives supporting future growth.
The shares of Paysign (PAYS) slumped to $3 for reasons we couldn’t fathom, as both its businesses are doing well, more especially its pharma segment, which is still in triple-digit hypergrowth.
So we added to our position recently at $3 and change and were presented another bite at the apple after the stock sold off on what can only be seen as excellent Q1 results.
While not quite in triple-digit growth anymore (the law of large numbers exerting itself), the pharma (patient affordability) segment nevertheless produced another stellar quarter, up 81.9% in its seasonally strongest quarter.
The company’s legacy plasma center segment also chipped in, as it added a lot of centers in FY25, with the revenue per center declining due to excess inventory.
But that inventory now seems to have cleared, and revenue per center increased a little, so despite shedding some centers, we can look forward to a solid performance in this segment where the company has a market-leading position (close to 50%).
Increasing gross margins and strong operating leverage provided the cherries on the cake.
Patient Affordability
Pharma surpassed Plasma as the company’s largest revenue contributor for the first time in the company’s history, growing 81.9% y/y to $15.7M. Keep in mind that Q1 is Patient Affordability’s strongest quarter.
Processed claims increased approximately 49% Y/Y. The segment delivered more than $540M in financial assistance to patients, a significant increase from $320M in the prior-year quarter.
Paysign exited Q1 with 135 active programs, and as of the earnings call date (May 12, 2026), active programs reached 141. Management expects to exit Q2 with 147 to 150 active programs.
Management expects to exceed the 55 net program additions achieved in 2025. The pipeline is split roughly 50-50 between entirely new clients and growth within existing manufacturers.
Management conducted over 50 meetings at the Assembia Specialty Pharmacy Summit (ASX 26), securing new business on-site and reinforcing the demand for high-cost branded therapy support.
Plasma
Revenue was up 25% to $11.7M with the average revenue per center increasing to $6,671 (up from $6,517 in Q1/25).
Average loads per center increased y/y for the first time since the 2024 industry inventory correction, signaling the end of that market overhang.
Paysign exited Q1 with 573 active centers and management anticipates a decline to 555–560 centers by the end of Q2/26, attributed to a customer selling centers to a non-user of Paysign services and the closure of 19 underperforming centers in early May.
Management expects minimal financial impact, as donors typically transition to nearby centers within the same collector’s network.
Strategic Initiatives
Dynamic Business Rules (DBR) continues to provide differentiated value by helping pharmaceutical manufacturers navigate co-pay maximizer and accumulator programs.
Management is in active discussions with the FDA regarding a healthcare-focused SaaS and mobile app suite, though no revenue has been generated yet.
The company is pursuing direct integration with plasmapheresis device manufacturers to eliminate manual steps and reduce human error, from the Q1CC:
In late April, we sponsored the International Plasma Protein Congress in Milan, Italy, where we engaged with plasma collectors, device manufacturers and industry participants from the U.S., Europe and Asia. The conference generated meaningful progress for our Software-as-a-Service suite of solutions, including the discussions with plasma collection companies across all 3 regions and with plasmapheresis device manufacturers regarding direct integration to our platform. Direct integration of our software with plasmapheresis device eliminates manual steps that can introduce human error in the collection process. It also streamlines implementation and reduces friction for collection centers when transitioning to our platform, creating a clear operational benefit. Beyond the U.S., we continue to view Europe and Asia as significant long-term opportunities for our SaaS solutions across the blood and plasma collection industries.
Management believes no other peer companies have built an integrated ecosystem comparable to Paysign’s modules (app, CRM, qualitative analysis, etc.), which reduces friction for collection centers.
Management noted that current IT systems and staffing are well-positioned to handle continued scaling without requiring immediate massive investment.
Finances
Revenue increased 50.8% to $28.04M, exceeding the high end of previously provided guidance.
Net income increased 110% to $5.4M, or $0.09 per fully diluted share, compared to $2.6M ($0.05 per share) in Q1 2025.
Adjusted EBITDA rose 113.4% to $10.6M, or $0.17 per fully diluted share, with margins expanding to 37.8%.
Operating expense grew 25.5% to $11.6M, which is well below the 50.8% revenue growth rate, further illustrating the business’s scaling efficiency.
The operating margin improved by 1,040 basis points to 23.8%, demonstrating significant operating leverage as the company scales.
Gross profit margin expanded to 65% (from 62.9% in Q1 2025), driven by a higher mix of Pharma revenue.
The company exited the quarter with $20.5M in unrestricted cash and zero bank debt. Other than $6M in remaining payments for the Gamma acquisition (payable over three years), the company has no material debt obligations.
With high cash levels, the company is evaluating future uses for funds, including acquisitions, redistribution to shareholders, or maintaining large balances for strategic flexibility.
The effective tax rate increased to 27.2% (versus 20.5% in Q1/25) due to discrete items related to the impact of the company’s rising stock price on stock-based compensation benefits.
Outlook
FY26 revenue reaffirmed at $106.5M to $110.5M (30% to 35% growth).
Net income is expected in the range of $13M to $16M ($0.21 to $0.26 per diluted share).
Adjusted EBITDA is projected at $30M to $33M ($0.49 to $0.53 per diluted share).
Pharma is typically highest in Q1 due to insurance deductible resets and moderates thereafter.
Plasma is typically softest in Q1 and builds through the year as donor activity normalizes post-tax refund season.
Due to the record-breaking start, management expressed increased confidence in achieving the upper end of its 2026 guidance.
Valuation
At $6 per share, the company has a market cap of $326.7M and an EV of $306.2M; the shares sell at 2.8x FY26 EV/S and 9.7x EV/EBITDA (at midpoint of guidance).
Conclusion
Strong growth continues in its pharma segment, and with the inventory correction in the plasma segment gone, the company looks set to continue its strong performance.
The SaaS/app solutions could add further juice, and there was even a hint of a new segment coming during the CC. Add to that expanding margins (as revenue shifts towards the pharma segment, which generates higher margins) and an expanding cash position, and what’s not to like?
Well, a general market selloff looks to be the only thing that can disturb the party.
Verdict: Strong buy under $6.