PaySignPAYS

Key highlights

• One-time gain boosted profit: Reported earnings were $0.11 per share, but this included a one-time non-cash gain of $990,000 from adjusting the expected cost of an earlier acquisition. Excluding this specific benefit, the operating margin was 21.3% instead of the reported 24.8%, though this still represents a significant jump from 7.5% a year ago.
• Pharma growth accelerating: Revenue from the pharmaceutical division grew 88.9% to $14.65 million as the company added 51 new patient affordability programs over the last year. This division now makes up more than half of total sales, which helps the bottom line because these healthcare programs carry higher profit margins than the rest of the business.
• Plasma center efficiency rising: While the total number of plasma centers dropped from 607 to 561 over the last year, the average monthly revenue earned from each center grew to $7,699 compared to $7,098 previously. This shows the company is making more money from its remaining locations even as some customers closed centers or switched to other providers.
• Full year outlook raised: Management increased its 2026 revenue forecast to a range of $114.0 million to $117.0 million, up from previous expectations. The company also expects adjusted EBITDA, which is a measure of cash profit, to reach between $35.0 million and $38.0 million for the full year.

Our take: A very strong quarter that shows the business is hitting its stride in the high-margin healthcare market. Rapid growth in pharmaceutical programs is quickly changing the company's profit profile for the better. This shift toward more profitable healthcare services strengthens the long-term case for the business.