Paysign, Inc.

What they do

Paysign provides prepaid card products and processing services for corporate, consumer, and government clients, deriving revenue from the full prepaid card lifecycle. It also offers life science technology solutions under the Apherion brand for blood and plasma collection organizations. Revenue sources include cardholder fees, interchange, program management fees, claims processing, breakage, and settlement income.

Revenue drivers

• Pharma patient affordability — Revenue from pharmaceutical payment assistance programs, including monthly management fees, setup fees, claim processing fees, and other billable services. Q2 2026 revenue was $14.65 million, up 88.9% year-over-year, with 148 active programs.
• Plasma donor compensation — Revenue from donor compensation cards, driven by donations and dollars loaded to cards. Q2 2026 revenue was $13.04 million, up 21.4% year-over-year, with 561 centers and average revenue per center of $7,699.
• Other prepaid card programs — Includes corporate rewards, gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, clinical trials, healthcare reimbursement, and demand deposit accounts. Size not separately disclosed, but a smaller portion of revenue compared to pharma and plasma.

Recent performance

For Q2 2026, total revenue rose 48.1% to $28.25 million from $19.08 million in Q2 2025. Gross margin improved to 63.3% from 61.6%, and operating margin expanded to 24.8% from 7.5%. GAAP net income was $6.76 million, or $0.11 per diluted share, versus $1.39 million, or $0.02 per share, a year earlier. Adjusted EBITDA more than doubled to $9.61 million. Full-year 2025 revenue was $82.0 million with net income of $7.6 million.

Strategy

Management plans to continue investing in technology, sales and marketing, cybersecurity, fraud, customer service, and regulatory compliance in 2026. Focus remains on corporate incentive and expense prepaid cards, including healthcare-related markets like patient affordability, clinical trials, and donor compensation. The company is also targeting new market verticals and aims to sustain growth and margin expansion through product development and operational efficiency.

Risks

• Slowdown in revenue growth — Growth depends on attracting new clients and entering new markets; growth rates will inevitably decline as revenue base increases.
• Regulatory compliance failure — The company operates in a highly regulated environment, and failure by Paysign or its partners to comply could adversely affect results.
• Plasma center consolidation — Net plasma center count declined by 46 in the past 12 months due to customer closures and sales, reducing potential revenue unless utilization improves.
• Bank counterparty risk — If a financial institution holding Paysign's cash were placed into receivership, the company might be unable to access those funds, hurting operations.

Outlook

Management raised full-year 2026 revenue guidance to $114.0-$117.0 million and Adjusted EBITDA to $35.0-$38.0 million. The company expects continued momentum in patient affordability and normalized growth in the plasma market. Available cash and forecast cash flows are expected to sustain operations for at least the next twenty-four months.