Paymentus Holdings, Inc. announced its second quarter 2025 financial results on August 4, 2025, reporting record revenue of $280.1 million, a 41.9% increase year-over-year. Adjusted EBITDA rose 40.7% to $31.7 million, representing a 33.9% adjusted EBITDA margin.
The company processed 175.8 million transactions during the quarter, marking a 25.2% increase from the prior year. Free cash flow also saw a significant increase, rising over 2,500% year-over-year. However, contribution profit and gross profit grew approximately 22% year-over-year, trailing revenue growth due to a shift in revenue mix towards large enterprise billers with volume discounts, which led to a decline in contribution margin to 31.8% from 37.5%.
Paymentus further raised its full-year 2025 guidance, now expecting revenue between $1,123 million and $1,132 million, and Adjusted EBITDA between $123 million and $127 million. This updated guidance reflects continued confidence in the company's ability to execute on its strategic goals and maintain strong growth, even while managing the evolving dynamics of its client mix.
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