Paysign, Inc. Annual Report - How They Did This Year

I’m writing this guide to help you understand Paysign’s performance over the past year. My goal is to turn complex financial filings into simple terms so you can decide if this company fits your investment goals.

1. What does this company do?

Think of Paysign as the "digital plumbing" for payments. They partner with banks to issue prepaid cards, earning fees whenever a card is set up, loaded, or used. They serve three main areas:

• Plasma Industry: They help plasma centers pay donors quickly. They serve about 48% of the U.S. plasma market, processing payments for over 400 centers.
• Pharmaceutical Industry: They manage programs that help patients afford expensive medications by covering the gap between insurance and out-of-pocket costs.
• Corporate/General: They provide employee reward cards and "Paysign Premier" digital bank accounts, which include features like mobile check deposits and bill pay.

They also own Apherion™, a platform that helps blood and plasma centers manage operations, inventory, and regulatory reporting.

2. How are they performing?

2025 was a strong year. Paysign grew to 8.4 million cardholders across 670 programs. Most importantly, they are becoming much more profitable.

• Revenue Growth: Total revenue reached $62.8 million, a 40.5% jump from $44.7 million in 2024.
• Profitability: Their profit nearly doubled, rising from $3.8 million in 2024 to $7.55 million in 2025. This represents a profit margin of about 12%.
• The Pharma Engine: The pharmaceutical business was the big story, growing by 167.8% and contributing $14.2 million to total revenue. Because this segment has higher profit margins than their plasma business, it is significantly boosting the company’s overall earnings.

3. Major wins and challenges

• Efficiency: Paysign is getting better at controlling costs. Their gross margin—what they keep after paying for card production and processing fees—improved from 55.1% to 59.4%.
• Tech Investment: They are spending heavily on cybersecurity and platform upgrades, with research and administrative costs rising to $28.5 million. While this makes the business safer, it increases risk; the company must maintain high revenue growth to cover these fixed costs.
• Strategic Growth: They acquired Gamma Innovation LLC for $2.1 million in 2025. This helps them use their own software, reducing reliance on outside vendors.

4. Future Outlook & Risks

• Self-Funding: With $18.4 million in cash and no long-term debt, the company has enough money to fund growth for two years. This means they likely won't issue more shares, which would otherwise reduce your ownership percentage.
• The "Slowdown" Reality: Management expects growth to normalize as the company scales. They are shifting focus from acquiring new plasma centers to increasing revenue per cardholder through digital banking and pharma services.
• Stock Volatility: Because the company is relatively small, the stock price can swing wildly based on analyst reports or market sentiment. Trading can be thin, which may make it harder to buy or sell shares at your preferred price.
• No Dividends: They are reinvesting every penny into growth, specifically by expanding their pharma-tech sales team. Don't expect a cash payout soon.
• Competition: They face pressure from larger companies like InComm Payments and Blackhawk Network. These competitors have more cash and can lower prices to win large contracts.

Final Thought for Investors: Paysign is currently in a "growth-at-all-costs" phase, using its strong cash position to capture more of the pharmaceutical market. If you are looking for a stable, dividend-paying stock, this isn't it. However, if you are interested in a company that is successfully scaling its tech and improving its profit margins, Paysign’s transition from a plasma-focused business to a broader fintech player is the key trend to watch.