Paymentus: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Nov. 2, 2026, Paymentus (NYSE:PAY) reported record quarterly revenue of $372.2 million, up 19.8% year over year. The electronic bill payment provider is expanding operational leverage while scaling a long-term backlog of enterprise clients. Three key takeaways from the call stand out for long-term investors.

1. Revenue and Backlog Target $2 Billion in Next Two Years

Management outlined a trajectory to reach $2 billion in combined revenue and backlog, which represents committed customer contracts waiting for implementation. The path there combines pipeline conversion rates with expansion across existing billers.

it is quite possible that in the next 18 to 24 months from today, we have the potential to reach approximately $2 billion of revenue and backlog combined.
-- Dushyant Sharma, Founder and Chief Executive Officer

2. Interchange Agreements Turn Processing Costs Into Revenue

The company secured its first major deal to monetize interchange, the processing fees paid during card transactions. That marks the beginning of a shift, turning what has been the company's largest operational cost center into a fee-earning revenue stream.

First, we are pleased to report that this quarter's bookings include a sizable interchange monetization agreement, that will use our instant payment network capabilities. This agreement provides us an opportunity to be in the interchange economy as transactions take place.
-- Dushyant Sharma, Founder and Chief Executive Officer

3. Proprietary Wallet Tech Shields Billers From AI Disintermediation

Service providers are increasingly worried about artificial intelligence agents cutting into their direct customer relationships. To address that, the company built BillWallet, its digital wallet application, and Billeo, its artificial intelligence interaction tool. Together, the two products keep biller identity and payment credentials secure.

And as a reminder, BillWallet preserves service provider and customer identity along with payment credentials allowing all interactions to be secure along with Billeo, which powers intelligent customer interactions.
-- Dushyant Sharma, Founder and Chief Executive Officer

Looking Ahead

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded to 41.9%. Management is leaning into that operating leverage while continuing to fund partner channels and software development to maintain pricing discipline.

This record adjusted EBITDA performance was driven by the same combination of positive factors I talked about earlier. We believe the stronger adjusted EBITDA margin demonstrates the innate leverage in our operating model and its ability to adapt to changing market conditions as we continue to grow.
-- Sanjay Kalra, Chief Financial Officer

As bill processing scales across utility, insurance, and government sectors, leadership is counting on its infrastructure rails to differentiate the business over a multiyear horizon.

The path to get there will not be any easier than it has been or it was during the last 5 years. But we believe we have set a great foundation here for the next 5 years and beyond.
-- Dushyant Sharma, Founder and Chief Executive Officer

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