SCHEDULE: Franklin Resources Reports 5.1% Stake in Paymentus

Franklin Resources and its subsidiaries report beneficial ownership of 5.1% of Paymentus Holdings' Class A common stock as of June 30, 2025.

Summary

• Franklin Resources, Inc. reports beneficial ownership of 1,798,222 shares, representing 5.1% of Paymentus Holdings, Inc.'s Class A Common Stock.
• Franklin Advisers, Inc., a subsidiary of Franklin Resources, holds sole voting and dispositive power over 1,762,922 shares.
• Fiduciary Trust Company International holds sole voting and dispositive power over 35,300 shares.
• Charles B. Johnson and Rupert H. Johnson, Jr., principal shareholders of Franklin Resources, disclaim any pecuniary interest in the reported securities.
• The filing indicates that the securities are beneficially owned by investment companies or managed accounts of Franklin Resources' investment management subsidiaries.

Sentiment

Score: 5

Explanation: The filing is a standard disclosure of ownership, with no explicit positive or negative sentiment. It reflects routine investment activity.

Positives

• Franklin Resources' investment management subsidiaries exercise voting and investment powers independently, with internal policies preventing information flow between them.
• The filing is made in compliance with SEC guidelines articulated in Release No. 34-39538, ensuring transparency in reporting beneficial ownership.
• The Joint Filing Agreement confirms collaboration among Franklin Resources, Charles B. Johnson, Rupert H. Johnson, Jr., and Franklin Advisers, Inc. for the Schedule 13G filing.

Negatives

• The Principal Shareholders disclaim any pecuniary interest in any of such securities.
• The filing of this Schedule 13G on behalf of the Principal Shareholders, FRI and the FRI Aggregated Affiliates, as applicable, should not be construed as an admission that any of them is, and each of them disclaims that it is, the beneficial owner, as defined in Rule 13d-3, of any of the securities reported in this Schedule 13G.

Risks

• The filing indicates potential risks associated with investment management, as the value of securities can fluctuate based on market conditions and investment decisions.
• The filing includes disclaimers of beneficial ownership, suggesting potential legal and regulatory risks related to ownership attribution.
• The filing mentions potential risks related to compliance with the Exchange Act, including reporting requirements and potential profit disgorgement under Section 16(b).

Future Outlook

There are no explicit forward-looking statements or guidance provided in the filing.

Management Comments

• The Principal Shareholders disclaim any pecuniary interest in any of such securities.
• FRI, the Principal Shareholders, and each of the Investment Management Subsidiaries believe that they are not a 'group' within the meaning of Rule 13d-5 under the Act and that they are not otherwise required to attribute to each other the beneficial ownership of the securities held by any of them or by any persons or entities for whom or for which the Investment Management Subsidiaries provide investment management services.

Industry Context

This filing is a routine disclosure required by the SEC for entities holding more than 5% of a publicly traded company's stock. It reflects the investment activity of a major asset manager, Franklin Resources, in the financial technology sector, as Paymentus Holdings operates in the bill payment technology space.

Comparison to Industry Standards

• BlackRock Inc. often holds similar positions in various publicly traded companies, reflecting its investment strategies.
• Vanguard Group also frequently files 13G statements, indicating significant ownership stakes in different companies.
• State Street Corporation is another major institutional investor that regularly reports its holdings through Schedule 13G filings.

Stakeholder Impact

• Shareholders: The filing provides transparency regarding institutional ownership, which can influence investor confidence.
• Employees: The filing has no direct impact on employees.
• Customers: The filing has no direct impact on customers.
• Suppliers: The filing has no direct impact on suppliers.
• Creditors: The filing has no direct impact on creditors.

Next Steps

• Franklin Resources will continue to monitor its investment in Paymentus Holdings and may adjust its holdings based on market conditions and investment strategies.
• Paymentus Holdings will likely continue to execute its business strategy, with its stock performance potentially influenced by institutional investors like Franklin Resources.

Key Dates

Recommendation

The filing is a routine disclosure of ownership and does not provide sufficient information to warrant a change in investment recommendation. A hold recommendation is appropriate pending further developments.

Keywords

Paymentus Holdings, Franklin Resources, Schedule 13G, Beneficial Ownership, Class A Common Stock, Investment Management, SEC Filing