Paysign (NASDAQ:PAYS) reported record third-quarter revenue, operating income and adjusted EBITDA as growth in its patient affordability business more than offset slower growth in plasma payment processing.
Revenue rose 42.6% from a year earlier to $30.8 million, while net income climbed to $6.7 million, or $0.11 per diluted share, from $2.2 million, or $0.04 per share. Gross margin expanded to 64.7% from 56.3%, helped by a greater share of revenue from the higher-margin patient affordability business.
President and CEO Mark Newcomer said the company expects margins to continue expanding as patient affordability accounts for more of its revenue. Paysign raised its full-year margin and profitability expectations, even as it prepares to lose payment-processing business at 113 plasma centers in the fourth quarter.
Patient Affordability Drives Growth
Patient affordability revenue increased 109.8% year over year to $16.6 million. The company processed approximately 55% more claims than a year earlier, as existing programs matured and new programs launched.
Paysign added 19 programs during the quarter, ending September with 167 active programs. Average quarterly revenue per program rose to $99,524 from $75,435 a year earlier. CFO Jeff Baker attributed the increase to fees for program management, setup and claims processing, as well as customer service and other billable services.
The company expects to end 2026 with 190 to 195 active patient affordability programs. Newcomer said Paysign’s platform delivered approximately $367 million in financial assistance to patients during the third quarter and more than $1.4 billion during the first nine months of the year.
Newcomer said the company’s dynamic business rules technology saved pharmaceutical clients approximately $82.5 million in the quarter by protecting them from costs associated with copay maximizer and accumulator programs. He put the year-to-date figure at more than $553 million.
During the question-and-answer session, Matt Turner, president of patient affordability, said growth in the number of programs can mask seasonal patterns. Claims are typically strong early in the year when benefits reset and decline later, he said, but new programs added in the third and fourth quarters can lift overall platform utilization.
Plasma Center Transition to Weigh on Fourth Quarter
Plasma revenue rose 7.5% to $13.8 million in the third quarter. Average monthly revenue per center increased to $8,187 from $7,122 a year earlier, primarily because of stronger utilization. Paysign served 562 centers at the end of the quarter.
One customer plans to move payment processing for 113 centers to another provider by year-end. Newcomer said the customer is consolidating the business with an existing banking partner and told Paysign the decision was not related to its service. Paysign will continue processing for some of the customer’s other centers.
Baker said the transition is expected to reduce fourth-quarter revenue by $1.5 million and gross profit by $700,000. The affected centers generated approximately $11.3 million in revenue and $5.15 million in gross profit over the 12 months ended September 2026.
Paysign expects to finish the year serving 445 to 450 plasma centers. Newcomer said the company expects to offset the loss over the next couple of quarters with new centers from existing clients and is also in discussions with prospective customers. Baker said plasma processing has a highly variable cost structure, leaving limited expenses to remove as a result of the transition.
Profitability Outlook Raised
Third-quarter operating margin rose to 23.8% from 7.3% a year earlier, as operating expenses increased 19.2%, well below the pace of revenue growth. Adjusted EBITDA rose 118% to $11 million, with its margin expanding to 35.7% from 23.3%.
Paysign ended the quarter with $34.5 million in unrestricted cash and no bank debt. It also held $201.8 million in restricted cash, an increase Baker attributed primarily to customer program deposits and higher balances loaded onto cards but not yet spent.
For full-year 2026, Paysign said it expects revenue within its existing outlook of $114 million to $117 million. The company now expects gross margin of 63.5% to 64.5%, net income of $23 million to $24 million, or $0.37 to $0.38 per diluted share, and adjusted EBITDA of $38.5 million to $40 million. Baker said those margin and profitability expectations exceed the company’s prior outlook.
Apherion Review Continues
Paysign’s Apherion donor management system remains under regulatory review. Newcomer said the company recently completed in-center testing and submitted the results as part of the process. Turner said Paysign does not have a timeline for a regulatory decision.
Newcomer reported continued interest in Apherion in the U.S. and European Union and said the company is building a European base in Dublin through its subsidiary Apherion Technologies Limited. He also said ongoing discussions with potential customers could help the platform ramp more quickly once approved.
About Paysign (NASDAQ:PAYS)
Paysign, Inc (NASDAQ: PAYS) is a financial technology company that provides payment and prepaid card solutions for businesses and organizations. Its platform supports the issuance, distribution and management of branded prepaid cards and other electronic payment products, helping clients deliver funds to consumers and program participants.
The company serves several specialized markets, including plasma collection centers, pharmaceutical manufacturers and other healthcare-related organizations.
