10-K: Paysign Reports Strong 2025 Growth, Driven by Pharma & Plasma

Paysign, Inc. (PAYS) reported significant revenue and net income growth in 2025, fueled by expansion in its pharmaceutical and plasma industry programs and the acquisition of Gamma Innovation LLC.

Summary

• Total revenues increased 40.5% to $82,028,176 in 2025 from $58,384,552 in 2024.
• Net income grew 97.9% to $7,551,613 in 2025 from $3,815,907 in 2024.
• Gross profit increased 51.3% to $48,716,953 in 2025 from $32,197,334 in 2024, with gross margin improving to 59.4% from 55.1%.
• Pharma industry revenue surged 167.8% to $33,888,631, driven by 55 net new patient affordability programs.
• Plasma industry revenue increased 4.0% to $45,615,640, with 115 net plasma centers added, despite a decline in plasma donations and dollars loaded per center.
• Acquired Gamma Innovation LLC on March 19, 2025, expanding life science technology solutions.
• Managed approximately 670 card programs with 8.4 million cardholders as of December 31, 2025.
• Operating activities provided $52,450,867 in cash in 2025, a significant increase from $22,947,120 in 2024.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, demonstrating significant financial growth and strategic expansion through acquisitions and new program launches, despite some operational headwinds in the plasma sector.

Positives

• Total revenues increased 40.5% year-over-year to $82,028,176.
• Net income nearly doubled, increasing 97.9% to $7,551,613.
• Gross profit rose 51.3% to $48,716,953, with gross margin expanding to 59.4%.
• Pharma industry revenue saw substantial growth of 167.8% ($21,236,219 increase) due to 55 net new patient affordability programs.
• Plasma industry revenue increased 4.0% ($1,736,132 increase) with the addition of 115 net plasma centers.
• Other revenue grew 36.2% ($671,273 increase) from payroll, retail, and corporate incentive programs.
• Income from operations improved significantly by 620.8% to $7,362,839.
• Adjusted EBITDA increased 107.3% to $19,943,694, with Adjusted EBITDA margin improving to 24.3%.
• Cash provided by operating activities increased by $29,503,747 to $52,450,867.
• Successful acquisition of Gamma Innovation LLC, enhancing life science technology solutions.
• Increased cardholder base to 8.4 million across 670 programs.
• Unrestricted cash increased to $21,067,651, and management believes current cash and forecast cash flows are sufficient for the next 24 months.
• Successful settlement of three securities class action complaints for $3,750,000, fully covered by insurance.
• Preliminary approval for settlement of four stockholder derivative actions.

Negatives

• Decline in plasma donations and dollars loaded to cards per center due to elevated plasma inventory levels throughout much of 2025.
• Other income decreased by $446,274, primarily due to implied interest expense from the Gamma acquisition and slightly lower interest rates.
• Increased operating expenses, including compensation and benefits ($3,766,000), stock-based compensation ($1,657,000), and technologies/telecom expense ($833,000).

Risks

• Inability to grow business in future periods, with potential decline in growth rates or margins.
• Operating in a highly regulated environment, where failure to comply with laws and regulations (e.g., anti-money laundering, privacy, bank regulations, consumer protection, card network rules) could adversely affect the business.
• Changes in laws, regulations, credit card association rules, or other industry standards may impose costly compliance burdens or negatively impact the business.
• Data security breaches could expose the company to liability, costly litigation, reputational damage, and increased operating expenses.
• Deficiencies or weaknesses in internal control over financial reporting could adversely affect financial reporting accuracy and investor confidence.
• The industry is highly competitive, with larger competitors potentially having greater resources and more aggressive pricing.
• Reliance on relationships with card issuing banks; failure to maintain or renew these relationships under favorable terms could materially affect operations.
• Dependence on third-party vendors; replacing them could entail unexpected integration costs or less favorable terms.
• Changes in card association or other network rules, fees, or interchange rates could adversely affect the business.
• Inability to successfully manage intellectual property or potential infringement claims.
• The electronic commerce services market may not continue to develop or grow rapidly enough for sustained profitability.
• Failure to respond to rapid technological change or changes in industry standards could lead to product obsolescence.
• Ability to adapt products and services to use Artificial Intelligence (AI) could be impacted by evolving legal and regulatory landscape.
• Acquisitions and the integration of new businesses create risks and may affect operating results.
• Changes in the Bank Secrecy Act and/or the USA PATRIOT Act could impede the ability to circulate easily loaded or issued cards.
• Internal processing errors could result in failing to appropriately reflect transactions in customer accounts or undetected fraud.
• Business is dependent on the efficient and uninterrupted operation of computer network systems and data centers.
• The soundness of other institutions and companies, including bank failures, could adversely affect the company.
• Additional equity or debt financing may be dilutive to existing stockholders or impose terms that are unfavorable.
• Global and regional economic conditions could harm the business.
• Dependence on key personnel; loss of services or inability to attract, develop, integrate, incentivize, and retain qualified employees.
• Stock price volatility.
• Reliance on securities analysts' research and reports; negative evaluations or cessation of coverage could cause stock price decline.
• No intention to pay dividends for the foreseeable future.
• Concentration of ownership among existing directors, executive officers, and principal stockholders may prevent new investors from influencing significant corporate decisions.
• Stock price could decline due to the large number of outstanding shares eligible for future sale.
• Significant costs incurred as a result of operating as a public company, including compliance with the Sarbanes-Oxley Act.
• Operating results may fluctuate in the future due to various factors outside of control.

Future Outlook

Paysign plans to continue investing in technology improvements, sales and marketing, cybersecurity, fraud prevention, customer service, and regulatory compliance in 2026. The company believes its available cash and forecast cash flows will be sufficient to sustain operations and expand into new vertical markets through 2028. It anticipates an inevitable decline in growth rates and potential decline in margins as operating revenues reach higher levels.

Management Comments

• Our in-house customer service center provides the highest quality customer service experience for our clients as training is performed on-site by Paysign staff.
• We believe that our available cash on hand, excluding restricted cash, along with our forecast for revenues and cash flows for the remainder of 2026 and through 2028, will be sufficient to sustain our operations for the next twenty-four months.
• We believe that our properties are adequate and suitable for us to conduct business in the future.
• If we do not raise new capital, we believe that we will still be able to support our existing business and expand into new vertical markets using internally generated funds.
• We do not anticipate any losses with respect to accounts with balances exceeding federally insured limits.
• We expect that IRC Sections 382 and 383 will not significantly impact the utilization of its net operating losses and other tax carryforwards.

Industry Context

StockSavvy.ai notes that Paysign's strong growth in the prepaid card market aligns with broader industry trends, as Javelin Advisory Services forecasts an 8% compound annual growth rate (CAGR) for open-loop prepaid loads from 2025 through 2029, reaching approximately $450 billion. The increasing consumer adoption of open-loop reloadable cards, growing from 20% in 2024 to 27% in 2025, further supports Paysign's strategic focus. The acquisition of Apherion (Gamma Innovation LLC) positions Paysign to capitalize on the growing demand for specialized technology solutions within the blood and plasma collection industry, enhancing its vertically integrated model.

Comparison to Industry Standards

• Javelin Advisory Services 22nd Annual U.S. Open-Loop Prepaid Card Market Forecast, 2025-2029, predicts an 8% compound annual growth rate (CAGR) for total open-loop loads from 2025 through 2029, reaching approximately $450 billion by 2029. Paysign's overall revenue growth of 40.5% significantly outpaces this industry forecast, indicating strong market penetration and execution.
• The cash access category alone is expected to grow at a 9% CAGR, reaching $350 billion by 2026. Paysign's plasma revenue growth of 4.0% is below this specific segment's forecast, but the company noted elevated plasma inventory levels as a mitigating factor.
• Javelin's 2025 North American Payments Insights survey shows the use of open-loop reloadable cards grew significantly from 20% in 2024 to 27% in 2025. Paysign's expansion in cardholders and programs aligns with this trend of increased consumer adoption.

Corporate Governance

Legal Proceedings

• Three securities class action complaints (Yilan Shi v. Paysign, Inc. et al., Lorna Chase v. Paysign, Inc. et al., and Smith & Duvall v. Paysign, Inc. et al.) were filed, alleging violations of Section 10(b) and 20(a) of the Exchange Act related to internal control over financial reporting and financial statements.
• Smith & Duvall was voluntarily dismissed, and Shi and Chase were consolidated into In re Paysign, Inc. Securities Litigation.
• A settlement of $3,750,000 for the Securities Class Action was preliminarily approved on January 4, 2024, and finally approved on April 17, 2024, with the entirety covered by the company's directors-and-officers insurance policy.
• Four stockholder derivative actions (Andrzej Toczek, derivatively on behalf of Paysign, Inc. v. Mark R. Newcomer, et al.; John K. Gray, derivatively on behalf of Paysign, Inc. v. Mark Attinger, et al.; Simone Blanchette, derivatively on behalf of Paysign, Inc. v. Mark Newcomer, et al.; and Mo Jeewa, derivatively on behalf of Paysign, Inc. v. Mark R. Newcomer, et al.) were filed, alleging breach of fiduciary duty, unjust enrichment, waste, and insider trading, largely connected to the issues in the securities class action.
• These derivative actions were consolidated, and a proposed settlement was agreed in principle on October 4, 2024.
• Preliminary approval for the derivative settlement was granted on August 28, 2025, and final approval was granted on December 14, 2025, with the final order and judgment entered on December 16, 2025.

Related Party Transactions

• An employee hired in the first quarter of 2025 is also the principal owner in a technical consulting corporation that the Company engages in providing technology, development and support for the Company and its customers.
• During the year ended December 31, 2025, the Company paid $452,534 in related party expenses to this technical consulting corporation.

Stakeholder Impact

• Shareholders: Positive impact from significant revenue and net income growth, successful legal settlements, and stock repurchase program. Potential dilution risk from future equity financing.
• Employees: Increased compensation and benefits, stock-based compensation, and continued hiring to support growth. Participation in 401(k) plan with matching contributions.
• Customers: Increased customer loyalty, patient adherence rates, reduced administration costs, and streamlined operations through payment solutions. Enhanced donor experience through Apherion solutions.
• Suppliers/Vendors: Continued reliance on third-party vendors for services, with a Vendor Risk Management Program in place.
• Creditors: Improved financial health and liquidity, reducing credit risk.

Next Steps

• Continue to invest additional funds in technology improvements, sales and marketing, cybersecurity, fraud, customer service, and regulatory compliance in 2026.
• Evaluate current and emerging technologies for applicability to existing and future software platforms.
• File definitive Proxy Statement for 2026 Annual Meeting of Stockholders within 120 days of December 31, 2025.
• Monitor the health and soundness of bank relationships.
• Evaluate potential effects of ASU 2024-03, ASU 2025-05, and ASU 2025-06 on consolidated financial statements and disclosures.

Key Dates

Recommendation

The company demonstrated exceptional financial performance in 2025, with substantial revenue and net income growth driven by strategic expansion in high-margin segments like pharma patient affordability and the acquisition of Gamma Innovation LLC. The significant increase in operating cash flow and improved gross and Adjusted EBITDA margins indicate strong operational efficiency and financial health. The successful resolution of major legal proceedings removes significant overhangs. While some risks exist, the overall trajectory and strategic initiatives position Paysign for continued strong performance, making it an attractive investment.

Keywords

Prepaid Cards, Payment Processing, Fintech, Plasma Industry, Pharmaceutical Industry, Patient Affordability, Corporate Incentives, Apherion, SEC Filing, 10-K, Paysign, PAYS, Financial Services, Digital Payments, Corporate Governance, Risk Management, Acquisition