Paysign Inc. Common Stock (PAYS)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Paysign is a small but growing payments and software infrastructure company. The filed results show momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $28.3 million and net income was $6.8 million, compared with revenue of $19.1 million and net income of $1.4 million in fiscal Q2 2025, the quarter ended 2025-06-30. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $28.0 million and net income was $5.4 million, so the recent run-rate is well above fiscal FY2025, the year ended 2025-12-31, when revenue was $82.0 million and net income was $7.6 million. That is real growth, and the balance sheet looks conservative with a D/E of 0.09, while FairStock reports a 30.82% ROE and 7.7% FCF yield. The business may have switching costs in prepaid programs, but with 226 employees and no clear pricing-power evidence, I cannot call it a wide moat. However, I am not paying 59.54 times earnings and 14.47 times book for a business with a 4.34% ROCE and lumpy profit history. The Graham Number is only $2.50 versus the 2026-10-13 close of $15.48, a huge negative margin of safety. Altman Z of 2.46 and Piotroski 5/9 suggest some financial resilience but not a fortress. The Lynch category is FAST GROWER, based on 94.4% annual profit growth over three years and 29.2% revenue growth, but the FairStock Score is just 32/100. If growth continues and free cash flow proves durable, the premium may be justified; if not, the multiple leaves little room for error. I prefer to watch, not reach.

In plain English: Paysign provides prepaid card programs, digital banking and payment processing for businesses, consumers and government. The business is growing: in the quarter ended 2026-06-30, sales were $28.3 million and net income was $6.8 million, and debt is low. Even so, the stock at $15.48 looks expensive compared with the company's current profits and assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer