Q2 2026 Paymentus Holdings Inc Earnings Call Transcript
Key Points
- Record Q2 2026 revenue of $360.7 million, up 28.8% year-over-year, exceeding guidance.
- Adjusted EBITDA grew 54% year-over-year to $48.8 million, with a record margin of 41.3%.
- Strong bookings and a substantial backlog provide solid visibility for the remainder of 2026 and into 2027.
- Rule of 40 score improved to 68, up from 56 in the prior year, reflecting strong growth and profitability.
- Innovative AI products like Billeo and BillWallet are gaining positive client feedback, positioning the company for future growth.
- Contribution margin declined to 32.7% from 33.4% in the prior year due to a shift toward larger, higher-volume enterprise clients.
- Third-quarter 2026 revenue guidance implies a slowdown to 15.2% year-over-year growth at the midpoint, down from 28.8% in Q2.
- Non-GAAP operating expenses increased 10.5% year-over-year, driven by higher sales and marketing costs.
- The company faces potential AI disintermediation risk, which it is actively trying to mitigate with its product suite.
- Quarterly variability in revenue per transaction and contribution profit per transaction persists due to customer mix changes.
Good day. Welcome to the second quarter 2026 Paymentus earnings conference call. This call is being recorded. (Operator Instructions)
At this time, I will now turn the call over to David Hanover, Investor Relations. Please go ahead.
Thank you, operator. Good afternoon. Welcome and t hank you for joining the webcast to review our second quarter 2026 results. Our earnings results documents are available on the investor relations section of the paymentus.com website. They include the earnings presentation that we'll make reference to during this webcast. This webcast is being recorded. I hope everyone's had a chance to review those documents.
Our Founder and CEO, Dushyant Sharma, will make some opening comments before Sanjay Kalra, our CFO, discusses the details of the second quarter and our guidance. Following our prepared remarks, we'll take questions.
Let me remind you that our remarks today may include forward-looking statements within the meaning of federal securities laws
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