Paymentus Lifts 2026 Outlook After Record Third-Quarter Revenue

The Tip Desk · November 10, 2026 · 2 min read

Revenue reached a record $372.2 million as year-over-year growth slowed to 19.8% from 28.8% in the second quarter.

Paymentus Holdings (PAY), a provider of cloud-native billing, payment and disbursement software, reported record third-quarter revenue of $372.2 million, up 19.8% from a year earlier. That pace was slower than the 28.8% year-over-year increase in the second quarter, when revenue was $360.7 million.

The company said the increase was driven largely by growth in billers and transaction volumes. It processed 219.0 million transactions in the quarter, up 20.1% from a year earlier, a slower rate than the 21.4% year-over-year increase in the second quarter.

Gross profit was $93.8 million, up 25.4% from a year earlier. Adjusted gross profit was $99.8 million. Contribution profit, which adds other cost of revenue to gross profit, rose 20.6% to $118.5 million.

Adjusted EBITDA increased 38.6% to $49.7 million, a slower rate than the 54.0% year-over-year rise in the second quarter. The adjusted EBITDA margin reached a record 41.9%, compared with 36.5% a year earlier.

Net income was $27.5 million, or $0.21 a share, compared with $17.7 million, or $0.14 a share, a year earlier. Non-GAAP net income was $33.1 million, or $0.25 a share, versus $22.6 million, or $0.17 a share.

Founder and CEO Dushyant Sharma said the revenue performance drove growth in contribution profit and adjusted EBITDA. He said year-to-date results, combined with strong bookings and a sizable backlog, reinforce the company’s confidence in achieving its 2026 financial targets as well as its outlook for 2027.

Paymentus now expects fourth-quarter 2026 revenue of $373 million to $378 million, contribution profit of $120 million to $122 million and adjusted EBITDA of $45 million to $50 million.

Full-year 2026 revenue guidance was raised to $1,464 million to $1,469 million from $1,443 million to $1,458 million. Contribution profit for the full year is now expected at $466 million to $468 million, and adjusted EBITDA at $186 million to $191 million.

Cash and cash equivalents were $407.6 million at September 30, 2026. Free cash flow for the three months ended September 30 was $34.0 million.