Fri, May 9, 12:29 PM (10 days ago)
### Summary of Paysign, Inc. (PAYS) Q1 2025 Financial Performance **Revenue and Profit Margins:** - **Total Revenue:** $18,598,149 (up 41.0% from $13,190,074 in Q1 2024). - **Plasma Industry:** $9,409,880 (down 9.2% from $10,368,034). - **Pharma Industry:** $8,618,653 (up 260.8% from $2,388,644). - **Other:** $569,616 (up 31.4% from $433,396). - **Gross Profit:** $11,690,828 (up 68.5% from $6,939,251). - **Gross Margin:** 62.9% (up from 52.6%). - **Net Income:** $2,586,100 (up 736.7% from $309,096). - **Net Margin:** 13.9% (up from 2.3%). **Operating Expenses:** - **Selling, General, and Administrative Expenses:** $7,400,759 (up 25.2% from $5,911,198). - **Depreciation and Amortization:** $1,801,003 (up 40.0% from $1,286,405). - **Total Operating Expenses:** $9,201,762 (up 27.8% from $7,197,603). **Cash Flow:** - **Net Cash Used in Operating Activities:** $(6,033,177) (down from $8,244,499 in Q1 2024). - **Net Cash Used in Investing Activities:** $(4,443,855) (up from $(2,273,081)). - **Net Cash Used in Financing Activities:** $(375,786) (new expense in Q1 2025). **Key Performance Indicators:** - **Gross Dollar Volume Loaded on Cards:** $407 million (down from $426 million). - **Revenue Conversion Rate:** 4.57% (up from 3.09%). - **Gross Profit Conversion Rate:** 2.87% (up from 1.63%). - **Net Income Conversion Rate:** 0.64% (up from 0.07%). **Future Operations and Uncertainties:** - **Acquisition of Gamma Innovation LLC:** $17,758,637 in total consideration, including cash, equity, and earn-out contingent consideration. - **Legal Proceedings:** Ongoing securities class action and stockholder derivative actions. - **Capital Expenditures:** Continued investment in technology improvements, sales and marketing, cybersecurity, fraud prevention, customer service, and regulatory compliance. - **Liquidity:** Available cash on hand of $6,847,021, excluding restricted cash, along with forecasted revenues and cash flows, is expected to sustain operations for the next 24 months. **Trends and Outlook:** - **Pharma Industry Growth:** Significant increase in pharma revenue due to new patient affordability programs. - **Operational Efficiency:** Improved gross margins and operational efficiencies driven by higher-margin pharma business. - **Future Investments:** Plans to continue investing in technology and market expansion, with potential capital raises to diversify into new verticals. **Conclusion:** Paysign, Inc. demonstrated strong financial health in Q1 2025, driven by significant growth in the pharma industry and operational efficiencies. The company's strategic acquisitions and investments in technology and market expansion position it for continued growth, despite ongoing legal uncertainties and market challenges.