Paymentus Holdings, Inc.

This call is being recorded. All participants are currently in a listen-only mode. There will be an opportunity to ask questions following management's prepared remarks. 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 thank you for joining the webcast to review our third quarter 2025 results. Our earnings release 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, Dushan Sharma, will make some opening comments before Sanjay Khara, our CFO, discusses the details of the third quarter and our guidance. All in our prepared remarks, we'll take questions. I remind you, that we may make forward-looking statements within the meeting of the Private Securities Litigation Reform Act of 1995 and refer to non-GAAP financial measures during the webcast. Forward-looking statements are based on management's current expectations and assumptions that are subject to risks and uncertainties. Factors that may cause our actual results to differ materially from expectations are detailed in our earnings materials and our SEC filings that are available both on the SEC and our websites. Information about non-GAAP financial measures, including reconciliation to U.S. GAAP, can also be found in our earnings materials that are available on the website. With that, I'd like to turn the call over to Dushon Sharma. Dushon?

DUSHON SHARMA Thanks, David. I'm excited to report that Paymentos delivered another strong quarter with the results exceeding our expectations in all key areas of our business and delivering exceptional year-over-year growth. This outperformance is especially satisfying given the backdrop of our strong performance in the third quarter of last year. In addition, we had a phenomenal quarter of onboarding activities, and we ended the quarter with substantial bookings and a strong backlog, giving us visibility and further confidence, not only for the balance of 2025, but also for 2026. As I mentioned in the past, this high level of visibility enables our management team to focus on creating long-term shareholder value by combining innovation with our steadfast execution. We believe this quarter's results are a great illustration of how we are still able to manage and calibrate our business to meet or exceed our long-term CAGR model of 20 percent top-line growth and 20 to 30 percent adjusted EBITDA dollar growth, despite variability of secondary metrics from quarter to quarter. For example, during the third quarter, as our customer mix is shifting more towards enterprise and larger mid-market clients, our revenue and contribution profit per transaction grows significantly. This also helps demonstrate our vertical expansion strategy that led to higher incremental revenue and contribution profit per transaction. And when you combine this with the tremendous operating leverage we enjoined the business. In Q3, we were able to achieve a strong top line growth and a record quarterly adjusted EBITDA margin, along with an incremental adjusted EBITDA margin nexus of 60%. Related to this, it's also important to remember that we remain in market capture mode. As we increase our market penetration and enter new verticals, because we see a tremendous opportunity to gain share in what is an enormous TAM. We also find ourselves in a very fortunate situation where some of the trends in the industry that we were anticipating are actually coming together. For example, we recently onboarded a large B2B client, and this B2B use case is in a vertical that was new to us. On our platform, they're performing very well. Even though it is early in the full year cycle, we are already seeing significant outperformance beyond our internal modeling. Our go-to-market strategy of being vertical agnostic matched by our vertical agnostic platform engineering is proving to be very sound. Likewise, our approach of supporting bidirectional payment rails is also proving to be a good decision and is delivering results. Our clients are choosing us for outbound payments in addition to implementing us as a central nervous system for revenue receipts. Therefore, this opens up further TAM for paymenters with existing and prospective clients. And as I've also shared previously, even the AI and agent in commerce progress is moving the industry in our direction. The platform capabilities we have been building over the years are going to catalyze even further opportunities for time expansion in existing and prospective client base in coming years. Another exciting and high potential area of our business is the opportunity to monetize interchange in outer years. Interchange cost we incur today is big and is getting bigger as we scale. To us, that represents an incremental untapped total addressable market, and a powerful level to drive meaningful adjusted EBITDA and EPS expansion in outer years. In other words, as I look ahead at the next five years, we are feeling great about the foundation we have built and continue to build for an exciting future. With that, let's review our third quarter results. Revenue was $310.7 billion. an increase of 34.2% year over year, largely driven by increased number of billers and higher transaction values. Contribution profit was $98.3 million, up 22.8% year over year. Adjusted EBITDA, which continues to be a primary financial metric for us, was $35.9 million, a 45.9% year-over-year increase and representing a record 36.5% adjusted EBITDA margin. Once again, the majority of our year-over-year growth in contribution profit fell to our bottom line. Also, we exceeded the rule of 40 for the quarter, coming in at 59. This reflects our team's solid execution and our focus on delivering high-quality earnings together with sustained revenue growth. Now I'll review our third quarter business highlights and accomplishments. Regarding bookings, we continue to be pleased with the pace of bookings we have achieved year to date. Similar to previous quarters, in Q3, we once again saw particular strength in the large enterprise and larger end of mid-market segment. is spread across a broad vertical base. We also continue to show the diversity and wide appeal of our platform by signing clients in several industry verticals, including insurance, government agencies, utilities, telecom, property management, consumer finance, banking, credit unions, and educational institutions, among others. Complementing our direct go-to-market strategy during the quarter, we continued to leverage our partnership ecosystem. This quarter, we added new general partners to our portfolio, including government agencies, telecommunications, and property management industries. At the same time, during the quarter, we onboarded several large enterprises. Onboarding our substantial backlog remains a key priority for us, and our onboarding enhancements incremental investments, as well as improving face-to-face client engagement are driving these successful efforts. In the third quarter, we onboarded clients throughout multiple verticals, including insurance, government agencies, utilities, banking, credit unions, telecommunications, financial services, property management, education, and healthcare. Now, let me turn it over to Sanjay to review our financial results in greater detail.