Key Highlights

  • Revenue rose 19.8% to a record USD 372.2 million, driven largely by growth in billers and transaction volumes.
  • Contribution profit rose 20.6% to USD 118.5 million, and Gross Profit rose 25.4% to USD 93.8 million.
  • Net income was USD 27.5 million, or USD 0.21 per diluted share, compared with USD 17.7 million and USD 0.14.
  • Adjusted EBITDA rose 38.6% to USD 49.7 million, and the company processed 219.0 million transactions, up 20.1%.

Quarter in Numbers

Paymentus Holdings, Inc. (NYSE:PAY), a provider of cloud-native billing, payment, disbursement and AI-enabled Service Commerce solutions, reported third-quarter 2026 Revenue of USD 372.2 million, up 19.8% from the prior year and a quarterly record. Gross profit was USD 93.8 million, up 25.4%, and adjusted gross profit, a non-GAAP measure, was USD 99.8 million, up 23.1%. Contribution profit was USD 118.5 million, up 20.6%.

GAAP Net Income was USD 27.5 million, compared with USD 17.7 million, and diluted GAAP Earnings Per Share were USD 0.21 versus USD 0.14. Non-GAAP net income was USD 33.1 million versus USD 22.6 million, and diluted non-GAAP earnings per share were USD 0.25 versus USD 0.17. Non-GAAP figures apply an assumed tax provision at the company's long-term projected non-GAAP tax rate of 25%.

Profitability and Volume

Adjusted EBITDA reached USD 49.7 million, a 38.6% increase, and the company reported a record adjusted EBITDA Margin of 41.9%. By our calculation that margin equals adjusted EBITDA divided by contribution profit, since USD 49.7 million is about 13.4% of USD 372.2 million of revenue. The company processed 219.0 million transactions, up 20.1%, so Volume growth tracked revenue growth closely.

Founder and chief executive Dushyant Sharma said revenue growth of 19.8% flowed through to contribution profit and adjusted EBITDA growth of 20.6% and 38.6%, and that year-to-date results, strong bookings and a sizable Backlog reinforce confidence in the 2026 financial targets and the 2027 outlook.

Operating Leverage

The gap between revenue growth of 19.8% and adjusted EBITDA growth of 38.6% is the clearest sign of Operating Leverage in the quarter. Contribution profit rose in line with revenue, which suggests the company is retaining a similar share of each revenue dollar after direct costs, while the costs below that line grew more slowly. Revenue per transaction was about USD 1.70 by our calculation.

Fourth-Quarter Guidance Range

For the fourth quarter of 2026, management guides to revenue of USD 373 million to USD 378 million, contribution profit of USD 120 million to USD 122 million and adjusted EBITDA of USD 45 million to USD 50 million. For fiscal 2026 the ranges are revenue of USD 1,464 million to USD 1,469 million, contribution profit of USD 466 million to USD 468 million and adjusted EBITDA of USD 186 million to USD 191 million.

The fourth-quarter revenue midpoint of USD 375.5 million is about 1% above the third-quarter figure by our calculation, and the adjusted EBITDA range of USD 45 million to USD 50 million sits below the USD 49.7 million just reported at the midpoint. The company does not reconcile forward-looking non-GAAP guidance because the excluded items cannot be reasonably estimated. Items to track include biller additions, transaction growth, the margin relationship between contribution profit and EBITDA, and execution against the 2027 outlook.