Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ☐
On November 9, 2026, we issued
a press release regarding our financial results for the third quarter ended September 30, 2026. A copy of the press release is furnished
herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
As provided in General Instruction
B-2 of SEC Form 8-K, the information set forth in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject
to the liabilities of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933,
as amended (the “Securities Act”), or the Exchange Act, whether made before or after the date hereof, except as expressly
set forth by specific reference in such filing to this Current Report on Form 8-K.
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Exhibit 99.1
Earnings Release
Paysign Reports Record Third Quarter
2026 Revenue of $30.8 Million, Up 43%; Operating Margin More Than Triples to 23.8%
Patient Affordability Growth Drives Revenue and Margin Expansion
Raises Full Year 2026 Gross Margin, Net Income, GAAP EPS and Adjusted
EBITDA Guidance
Balance Sheet Supports Continued Investment and Growth Initiatives
HENDERSON, Nev. – November 9, 2026 – (Business Wire) –
Paysign, Inc. (NASDAQ: PAYS), a provider of patient affordability offerings, donor compensation solutions, engagement and
management platforms and integrated payment processing for the life sciences industries, today announced financial results for the third
quarter 2026.
Third Quarter 2026 Financial Highlights
| |
· |
Revenues of $30.80 million in Q3’26, up 42.6% from Q3’25 |
| |
|
|
| |
· |
Pharma revenue increased 109.8% to $16.62 million in Q3’26 versus Q3’25; added 62 net patient affordability programs during the past 12 months, exiting the quarter with 167 active programs |
| |
|
|
| |
· |
Plasma revenue increased 7.5% to $13.83 million in Q3’26 versus Q3’25; total net plasma center count decreased by 33 during the past 12 months, exiting the quarter with 562 centers |
| |
|
|
| |
· |
Gross profit margin was 64.7% in
Q3’26 compared to 56.3% in Q3’25; operating margin increased to 23.8% in Q3’26, up from 7.3% in
Q3’25 |
| |
|
|
| |
· |
GAAP net income of $6.74 million, or $0.11 per fully diluted share in Q3’26 versus GAAP net income of $2.22 million, or $0.04 per fully diluted share in Q3’25 |
| |
|
|
| |
· |
Adjusted EBITDA of $10.98 million in
Q3’26, up 118.0% from $5.04 million for Q3’25 1 |
| |
|
|
| |
· |
Exited the quarter with $34.54 million of unrestricted cash and zero bank debt |
| |
|
|
| |
· |
Confirming full-year 2026 revenue
outlook of $114.0 million to $117.0 million; raising full-year 2026 guidance for Gross Profit Margin, Net Income, GAAP Diluted EPS,
and Adjusted EBITDA 1 |
1Adjusted EBITDA and Adjusted operating margin are non-GAAP metrics used by management to gauge the operating performance of the business – see reconciliation
of net income to Adjusted EBITDA and operating income margin to Adjusted operating margin at the end of the press release.
“This was a strong quarter, with patient affordability continuing
to compound,” said Mark Newcomer, President and CEO of Paysign. “We expanded to 167 active programs and increased the quarterly
revenue per program by approximately 32% to $99,524. As that business becomes a larger share of our total revenue, we’re seeing
gross margin and operating margin expand together, which is translating into higher Adjusted EBITDA.”
“Separately, our plasma business continued to generate consistent
results, supporting investment in our software business,” continued Newcomer. “Subsequent to the end of the quarter, one of
our plasma customers informed us of a decision to move their payment processing for 113 centers to another provider where they have a
banking relationship. We remain their processor for a number of other centers under existing agreements.”
“Patient affordability is driving our business, and we are seeing
demand and momentum continue to build. Plasma remains an important part of our business, and our experience as one of the leading processors
in the industry has given us the insights to understand the challenges plasma centers face. That understanding has shaped a software platform
that we believe, if cleared by regulators, will offer our customers a value-added way to streamline and more effectively operate their
business. The operating and profitability margins for patient affordability are higher than those of our legacy payment processing in
plasma, and as we have diversified our business, our corporate margin profile has improved. We would expect our software platform to further
enhance that dynamic and unlock incremental operating leverage,” Newcomer concluded.
2026 Third Quarter Results
Total revenues increased 42.6%, to $30.80 million, led by strength in patient
affordability. Pharma industry revenue more than doubled, up 109.8% to $16.62 million, as 62 net new programs launched over the past 12
months driving higher management fees, claim processing fees and related services. Processed claims increased approximately 55% year-over-year.
Plasma revenue increased 7.5% to $13.83 million as our centers delivered higher average monthly revenue per center of $8,187, up from
$7,122, reflecting stronger per center utilization. The Company exited the quarter with 562 centers, a decline from 595 centers in the
third quarter of 2025.
Business Key Metrics and Events:
| · | Third quarter 2026 gross dollar load volume was down 1.0% versus third quarter 2025 |
| | | |
| · | Third quarter 2026 gross spend volume was down 1.3% versus third quarter 2025 |
| | | |
| | · | Subsequent to the end of the third quarter, the Company was notified
by a plasma customer of its intent to transition payment processing for 113 centers to another provider by year-end where they have a
banking relationship; these centers generated trailing 12-month revenue of $11.3 million and gross profit of $5.2 million. The fourth
quarter estimated impact is $1.5 million in revenue and $700 thousand in gross profit. |
Cost of revenues increased 15.2% to $10.88 million due to related costs
associated with the growth in the businesses including network and related costs, call center support costs, a new customer service contact
center that went live in November 2025 and higher employee costs. Gross profit margin improved 840 basis points to 64.7% compared to 56.3%
in the third quarter of 2025 as the Company experienced a greater mix of pharma revenue.
Total operating expenses were $12.60 million compared to $10.57 million
in the third quarter of 2025, an increase of 19.2%. Selling, general and administrative expenses increased by 22.8% to $10.29 million.
Of that amount, stock compensation expense increased 7.1% to $1.36 million. Depreciation and amortization expenses increased by $119 thousand,
or 5.4%, due mainly to the amortization of intangible assets from the Gamma acquisition and the continued capitalization of new software
development costs and equipment purchases related to the enhancement to the processing platform. Operating margin was 23.8% compared to
7.3% in the third quarter of 2025.
The company recorded an income tax provision of $1.45 million, resulting
in an effective tax rate of 17.8%. This was an increase from the $30,482 provision recorded during the same period last year where the
effective tax rate was 1.4%. The effective tax rates reflect adjustments for discrete quarterly items and tax benefits from stock-based
compensation. The significant driver in the discrete item adjustments in the third quarter of 2026 was primarily related to the increase
in stock price at September 30, 2026, when compared to the same period in the prior year.
Net income for the quarter totaled $6.74 million, or $0.11 per fully
diluted share, an increase of 204.1% from $2.22 million, or $0.04 per fully diluted share, reported in the third quarter of 2025. On a
non-GAAP basis, EBITDA, defined as earnings before interest, taxes, depreciation and amortization, increased by $5.86 million, or 155.2%,
to $9.63 million. Adjusted EBITDA, which excludes stock-based compensation and change in fair value of contingent consideration from EBITDA
and is used by management to evaluate core operating performance, rose $5.95 million, or 118.0%, to $10.95 million.
Balance Sheet at September 30, 2026
The company’s unrestricted and restricted cash balances increased
by a combined $71.35 million from December 31, 2025, largely related to the improvement in our operating results, growth of existing customer
programs and the launch of new customer programs.
During the nine months ended September 30, 2026, unrestricted cash increased
by $13.47 million to $34.54 million. The increase was attributable to net income, non-cash adjustments, and the timing of operating assets
and liability payments, partially offset by capital investments in intangible and fixed assets, payments of other liabilities associated
with the Gamma acquisition, and shares withheld to satisfy employee tax obligations related to equity awards.
Restricted cash increased $57.88 million to $201.79 million from December
31, 2025, primarily related to an increase in funds on card of $5.18 million and an increase in customer program deposits for our plasma
and pharma customers of $52.70 million. Restricted cash represents customer card funds loaded or available to be loaded on cards for the
Company’s card product programs, as well as funds received in advance from patient affordability clients under prefunded programs
that will be used to pay pass-through reimbursement claims. The Company records an equal and corresponding liability for both card funds
and patient affordability funds received in advance.
2026 Outlook
“Patient affordability momentum carried through the third quarter,
and it shows in the results,” commented Jeff Baker, Chief Financial Officer of Paysign. “Revenue, gross margin, net income
and Adjusted EBITDA all finished above the high end of our third quarter guidance. That strength, combined with the visibility into additional
program launches, gives us confidence we’ll land within our revenue outlook of $114.0 million to $117.0 million but exceed our prior
full-year profitability outlook, even after accounting for the 113 centers that we anticipate transitioning to another provider during
the fourth quarter. Patient affordability’s growth is the kind of diversification we set out to build, giving us a second source
of growth that we believe can help offset changes like this. As we look to 2027, the growth we expect from patient affordability remains
on track, and the transition of these centers does not change that trajectory. Beyond that, we expect our software platform to represent
the next step in that evolution, an incremental opportunity layered on top of our existing business.”
| |
Full Year 2026 |
| Revenue |
$114.0M – $117.0M |
| Revenue growth (YoY) |
39.0% – 43.0% |
| Gross
profit margin |
63.5% – 64.5% |
| Net income |
$23.0M – $24.0M |
| Diluted EPS |
$0.37 – $0.38 |
| Adjusted EBITDA2 |
$38.5M – $40.0M |
Paysign expects to exit 2026 with 190-195 active patient affordability
programs and 445–450 plasma centers.
2 The company is unable to provide a reconciliation
of forward-looking adjusted EBITDA and adjusted EBITDA margin to the most directly comparable GAAP
measure, net income (and net income per diluted share), without unreasonable effort due to the variability, complexity and low visibility
of certain reconciling items. These items include, but are not limited to, stock-based compensation and other non-recurring items, which
could have a material impact on GAAP results.
Third Quarter 2026 Financial Results Conference Call Details
The company will hold a conference call at 5 p.m. Eastern time today, Monday
November 9, 2026, to discuss its third quarter 2026 financial results. The conference call may include forward-looking statements. The
dial-in information for this call is 877.407.2988 (within the U.S.) and +1.201.389.0923 (outside the U.S.). A call replay will be available
until January 25, 2027, and can be accessed by dialing 877.660.6853 (within the U.S.) and +1.201.612.7415 (outside the U.S.), using passcode
13763287. An audio replay and a transcript of the call will be available following the call on the company's website, www.paysign.com,
under Investor Relations, Investor Resources. The earnings release and the financial and other statistical information discussed on the
call, including a reconciliation of any non-GAAP financial measures to the most directly comparable GAAP financial measures, are available
on the company's website, www.paysign.com, under Investor Relations, SEC Filings.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking
under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements,
besides statements of fact included in this release are forward-looking. Such forward-looking statements include, among others, our confirmation
of our full-year 2026 expectations for revenue and increase in 2026 gross profit margin, net income, GAAP Diluted EPS, and Adjusted EBITDA
expectations; our statement that patient affordability is driving our business and that we are seeing demand and momentum continue to
build; our expectation that, as our patient affordability business becomes a larger share of our total revenue, gross margin and operating
margin will expand together, translating into higher Adjusted EBITDA; our expectations regarding the transition of payment processing
for 113 centers of one of our plasma customers to another provider, which we anticipate will occur during the fourth quarter and by year-end,
and our statement that we remain that customer’s processor for a number of other centers under existing agreements; our belief that
our software platform, if cleared by regulators, will offer our customers a value-added way to streamline and more effectively operate
their business, our expectation that our software platform will further enhance our margin dynamic and unlock incremental operating leverage,
and our expectation that our software platform will represent the next step in our evolution, an incremental opportunity layered on top
of our existing business; our belief that the strength we have seen through the third quarter, combined with the visibility into additional
program launches, gives us confidence we will land within the full-year revenue expectation but exceed our prior full-year profitability
outlook, even after accounting for the 113 centers that we anticipate transitioning to another provider during the fourth quarter; our
belief that patient affordability’s growth gives us a second source of growth that can help offset changes like the plasma center
transition; our belief that our balance sheet supports continued investment and growth initiatives; our expectation that we will exit
2026 with 190–195 active patient affordability programs and 445–450 plasma centers; our belief that non-GAAP measures used
by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential
future results; and our expectations for total revenues, revenue growth, gross margin, net income, diluted earnings per share, and Adjusted
EBITDA for full-year 2026. We caution that these statements are qualified by important risks, uncertainties and other factors that could
cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others,
the inability to continue our current growth rate in future periods; the risk that we may not be able to add new patient affordability
programs or retain existing programs at anticipated rates; the risk that plasma center customers may switch to competing providers or
close centers, reducing our revenue, including the risk that the plasma center transition described in this release occurs sooner, involves
more centers or has a greater impact than we anticipate; the risk that our software platform is not cleared by regulators on the timeline
we expect, or at all, or does not achieve market acceptance; the risk that our outlook and guidance may not be achieved due to factors
within or outside our control; that a downturn in the economy could reduce our customer base and demand for our products and services,
which could have an adverse effect on our business, financial condition, profitability and cash flows; operating in a highly regulated
environment; failure by us or business partners to comply with applicable laws and regulations; changes in the laws, regulations, credit
card association rules or other industry standards affecting our business; changes in the regulatory or legislative environment affecting
pharmaceutical patient affordability or copay assistance programs, including potential restrictions on copay accumulator or maximizer
programs; that a data security breach could expose us to liability and protracted and costly litigation; risks related to the integration
of acquisitions, including the Gamma acquisition, and the realization of anticipated benefits therefrom; and other risk factors set forth
in our Annual Report on Form 10-K for the year ended December 31, 2025 and our subsequent Quarterly Reports on Form 10-Q. Except to the
extent required by federal securities laws, the company undertakes no obligation to publicly update or revise any statements in this release,
whether as a result of new information, future events or otherwise.
About Paysign, Inc.
Paysign, Inc. (NASDAQ: PAYS) operates at the intersection of fintech
and healthcare, integrating advanced payment processing and program management with tailored technologies for the plasma, pharmaceutical
and life sciences industries. Their breakthrough patient affordability solutions ensure patients receive the financial assistance they
need to adhere to prescribed therapies by mitigating the effects of copay accumulators and maximizers. Paysign specializes in blood and
plasma donor compensation programs, as well as comprehensive engagement and management platforms optimized for life sciences. Paysign’s
proprietary processing architecture supports physical, virtual, mobile and bank-based payments with real-time transaction intelligence,
enabling efficient, compliant and scalable program delivery. Through advanced reporting, analytics and in-house 24/7 bilingual customer
support, Paysign delivers measurable value, exceptional service and a superior experience for donors, patients, healthcare providers,
pharmaceutical manufacturers and program sponsors across their growing fintech healthcare ecosystem. The company is committed to improving
efficiencies, reducing costs, streamlining communications, increasing program performance and providing actionable insights to those they
serve.
Contacts:
|
Investor Relations:
888.522.4810
paysign.com/investors
ir@paysign.com |
Media Relations:
888.522.4850
pr@paysign.com |
Paysign, Inc.
Condensed Consolidated Statements of Operation (Unaudited)
| | |
Three Months Ended
September 30, | | |
Nine Months Ended September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Revenues | |
| | | |
| | | |
| | | |
| | |
| Plasma industry | |
$ | 13,826,621 | | |
$ | 12,860,478 | | |
$ | 38,615,772 | | |
$ | 33,014,282 | |
| Pharma industry | |
| 16,620,579 | | |
| 7,920,604 | | |
| 46,949,164 | | |
| 24,293,163 | |
| Other | |
| 352,958 | | |
| 815,396 | | |
| 1,525,717 | | |
| 1,965,535 | |
| Total revenues | |
| 30,800,158 | | |
| 21,596,478 | | |
| 87,090,653 | | |
| 59,272,980 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues | |
| 10,880,300 | | |
| 9,446,089 | | |
| 31,054,827 | | |
| 23,676,598 | |
| | |
| | | |
| | | |
| | | |
| | |
| Gross profit | |
| 19,919,858 | | |
| 12,150,389 | | |
| 56,035,826 | | |
| 35,596,382 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | |
| Selling, general and administrative | |
| 10,291,131 | | |
| 8,378,018 | | |
| 27,752,063 | | |
| 23,976,238 | |
| Depreciation and amortization | |
| 2,309,103 | | |
| 2,190,420 | | |
| 7,285,088 | | |
| 6,111,520 | |
| Total operating expenses | |
| 12,600,234 | | |
| 10,568,438 | | |
| 35,037,151 | | |
| 30,087,758 | |
| | |
| | | |
| | | |
| | | |
| | |
| Income from operations | |
| 7,319,624 | | |
| 1,581,951 | | |
| 20,998,675 | | |
| 5,508,624 | |
| | |
| | | |
| | | |
| | | |
| | |
| Other income | |
| | | |
| | | |
| | | |
| | |
| Interest income, net | |
| 870,573 | | |
| 663,666 | | |
| 2,565,639 | | |
| 2,031,024 | |
| | |
| | | |
| | | |
| | | |
| | |
| Income before income tax provision | |
| 8,190,197 | | |
| 2,245,617 | | |
| 23,564,314 | | |
| 7,539,648 | |
| Income tax provision | |
| 1,454,503 | | |
| 30,482 | | |
| 4,633,165 | | |
| 1,350,652 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 6,735,694 | | |
$ | 2,215,135 | | |
$ | 18,931,149 | | |
$ | 6,188,996 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income per share | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | 0.12 | | |
$ | 0.04 | | |
$ | 0.34 | | |
$ | 0.11 | |
| Diluted | |
$ | 0.11 | | |
$ | 0.04 | | |
$ | 0.30 | | |
$ | 0.10 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average common shares | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 56,703,842 | | |
| 54,797,527 | | |
| 56,000,291 | | |
| 54,205,002 | |
| Diluted | |
| 62,719,220 | | |
| 61,770,520 | | |
| 62,368,383 | | |
| 58,955,421 | |
Paysign, Inc.
Condensed Consolidated Balance Sheets
| | |
September 30,
2026 (Unaudited) | | |
December 31,
2025 (Audited) | |
| ASSETS | |
| | | |
| | |
| Current assets | |
| | | |
| | |
| Cash | |
$ | 34,539,557 | | |
$ | 21,067,651 | |
| Restricted cash | |
| 201,794,157 | | |
| 143,917,060 | |
| Accounts receivable, net | |
| 75,773,472 | | |
| 72,191,994 | |
| Other receivables | |
| 345,228 | | |
| 926,529 | |
| Prepaid expenses and other current assets | |
| 2,472,213 | | |
| 1,953,717 | |
| Total current assets | |
| 314,924,627 | | |
| 240,056,951 | |
| | |
| | | |
| | |
| Fixed assets, net | |
| 1,846,519 | | |
| 1,897,892 | |
| Intangible assets, net | |
| 19,636,361 | | |
| 22,346,213 | |
| Goodwill | |
| 4,487,637 | | |
| 4,487,637 | |
| Operating lease right-of-use asset | |
| 5,100,712 | | |
| 5,729,541 | |
| Deferred tax asset, net | |
| 1,478,334 | | |
| 1,734,969 | |
| | |
| | | |
| | |
| Total assets | |
$ | 347,474,190 | | |
$ | 276,253,203 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Accounts payable and accrued liabilities | |
$ | 69,449,438 | | |
$ | 70,542,803 | |
| Customer card funding | |
| 200,820,880 | | |
| 143,191,068 | |
| Operating lease liability, current portion | |
| 910,585 | | |
| 751,503 | |
| Other liabilities, current portion | |
| 1,788,992 | | |
| 1,863,116 | |
| Total current liabilities | |
| 272,969,895 | | |
| 216,348,490 | |
| | |
| | | |
| | |
| Operating lease liability, long-term portion | |
| 4,584,867 | | |
| 5,273,891 | |
| Other liabilities, long-term portion | |
| 3,564,666 | | |
| 6,140,651 | |
| | |
| | | |
| | |
| Total liabilities | |
| 281,119,428 | | |
| 227,763,032 | |
| Common stock; $0.001 par value; 150,000,000 shares authorized, 58,513,071 and 56,021,596 issued at September 30, 2026 and December 31, 2025, respectively | |
| 58,513 | | |
| 56,022 | |
| Additional paid-in capital | |
| 39,626,439 | | |
| 35,503,253 | |
| Treasury stock at cost, 1,675,203 and 934,708 shares, respectively | |
| (7,340,950 | ) | |
| (2,148,715 | ) |
| Retained earnings | |
| 34,010,760 | | |
| 15,079,611 | |
| Total stockholders’ equity | |
| 66,354,762 | | |
| 48,490,171 | |
| | |
| | | |
| | |
| Total liabilities and stockholders’ equity | |
$ | 347,474,190 | | |
$ | 276,253,203 | |
Paysign, Inc. Non-GAAP Measures
To supplement Paysign’s financial results presented on a GAAP
basis, we use non-GAAP measures that exclude from net income the following cash and non-cash items: interest, taxes, depreciation and
amortization and stock-based compensation and change in fair value of contingent consideration. We believe these non-GAAP measures used
by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential
future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting, and investors
should read them in conjunction with the company’s financial statements prepared in accordance with GAAP. The non-GAAP measures
we use may be different from, and not directly comparable to, similarly titled measures used by other companies.
“EBITDA” is defined as earnings before interest, taxes,
depreciation and amortization expense. “Adjusted EBITDA” reflects the adjustment to EBITDA to exclude stock-based compensation
charges and change in fair value of contingent consideration.
The Company uses EBITDA and Adjusted EBITDA as indicators of operating
performance. Neither measure is intended to represent cash flows from operations, operating income or net income as defined by U.S. GAAP.
Management cautions that amounts presented in accordance with Paysign’s definition of Adjusted EBITDA may not be comparable to similar
measures disclosed by other companies because not all companies calculate Adjusted EBITDA in the same manner.
Paysign, Inc.
Adjusted EBITDA (Unaudited)
| | |
Three Months Ended
September 30, | | |
Nine months Ended
September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Reconciliation of Adjusted EBITDA to net income: | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 6,735,694 | | |
$ | 2,215,135 | | |
$ | 18,931,149 | | |
$ | 6,188,996 | |
| Income tax provision | |
| 1,454,503 | | |
| 30,482 | | |
| 4,633,165 | | |
| 1,350,652 | |
| Interest income, net | |
| (870,573 | ) | |
| (663,666 | ) | |
| (2,565,639 | ) | |
| (2,031,024 | ) |
| Depreciation and amortization | |
| 2,309,103 | | |
| 2,190,420 | | |
| 7,285,088 | | |
| 6,111,520 | |
| EBITDA | |
| 9,628,727 | | |
| 3,772,371 | | |
| 28,283,763 | | |
| 11,620,144 | |
| Stock-based compensation | |
| 1,355,748 | | |
| 1,265,591 | | |
| 3,892,007 | | |
| 2,892,309 | |
| Change in fair value of contingent consideration | |
| – | | |
| – | | |
| (990,000 | ) | |
| – | |
| Adjusted EBITDA | |
$ | 10,984,475 | | |
$ | 5,037,962 | | |
$ | 31,185,770 | | |
$ | 14,512,453 | |
“EBITDA margin” is defined as earnings before interest,
income taxes, depreciation and amortization expense as a percentage of the company’s revenue and “Adjusted EBITDA margin”
reflects the adjustment to EBITDA margin to exclude stock-based compensation expense and change in fair value of contingent consideration
as a percentage of revenue. A reconciliation of net income margin to Adjusted EBITDA margin is provided in the table below.
| | |
Three Months Ended
September 30, | | |
Nine Months Ended
September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Reconciliation of adjusted EBITDA margin to net income margin: | |
| | |
| | |
| | |
| |
| Net income margin | |
| 21.9% | | |
| 10.3% | | |
| 21.7% | | |
| 10.4% | |
| Income tax provision | |
| 4.7% | | |
| 0.1% | | |
| 5.3% | | |
| 2.3% | |
| Interest income, net | |
| (2.8% | ) | |
| (3.1% | ) | |
| (2.9% | ) | |
| (3.4% | ) |
| Depreciation and amortization | |
| 7.5% | | |
| 10.1% | | |
| 8.4% | | |
| 10.3% | |
| EBITDA margin | |
| 31.3% | | |
| 17.5% | | |
| 32.5% | | |
| 19.6% | |
| Stock-based compensation | |
| 4.4% | | |
| 5.9% | | |
| 4.5% | | |
| 4.9% | |
| Change in fair value of contingent consideration | |
| 0.0% | | |
| 0.0% | | |
| (1.1% | ) | |
| 0.0% | |
| Adjusted EBITDA margin | |
| 35.7% | | |
| 23.3% | | |
| 35.8% | | |
| 24.5% | |
“Adjusted operating margin” is defined as income from operations
excluding fair value adjustment on contingent consideration as a percentage of the company’s revenue is provided in the table below.
| | |
Three Months Ended
September 30, | | |
Nine Months Ended
September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Reconciliation of adjusted operating margin to operating margin: | |
| | | |
| | | |
| | | |
| | |
| Operating margin | |
| 23.8% | | |
| 7.3% | | |
| 24.1% | | |
| 9.3% | |
| Change in fair value of contingent consideration | |
| – | | |
| – | | |
| (1.1% | ) | |
| – | |
| Adjusted operating margin | |
| 23.8% | | |
| 7.3% | | |
| 23.0% | | |
| 9.3% | |
