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What changed in Paymentus Holdings, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Paymentus Holdings, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+455 added−711 removedSource: 10-K (2026-02-24) vs 10-K (2025-03-11)

Top changes in Paymentus Holdings, Inc.'s 2025 10-K

455 paragraphs added · 711 removed · 351 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

278 edited+84 added−326 removed158 unchanged
Biggest changeIn addition to the other risks described herein, factors that may affect our operating results include the following: • fluctuations in demand for our platform; 23 • our ability to attract new billers and financial institutions and retain and increase adoption by our existing billers; • our ability to expand our relationships with our partners and identify and attract new partners; • changes in payment method preferences and channels by consumers, which may affect our revenue and gross margin, particularly as a result of interchange fees; • variations across the industries of our billers, which may affect payment methods used by consumers and average payment amounts and, in turn, our revenue and gross margin, particularly as a result of interchange fees; • the impact of widespread health issues on our operating results, liquidity and financial condition and on our employees, billers, financial institutions, partners, consumers and other key stakeholders; • changes in biller and financial institution preference for cloud-based services as a result of security breaches and incidents in the industry or privacy concerns, or other security or reliability concerns regarding our products; • fluctuations or delays in purchasing decisions in anticipation of new products or product enhancements by us or our competitors; • changes in biller, financial institution and consumer budgets and in the timing of their budget cycles and purchasing decisions; • potential and existing billers and financial institutions choosing our competitors’ products or developing their own solutions in-house; • the development or introduction of new platforms or services that are easier to use or more advanced than our current platform and suite of services; • our ability to adapt to new forms or methods of payment that become widely accepted, including cryptocurrencies and blockchain-based transactions; • the adoption or retention of more entrenched or rival services in the international markets where we compete or plan to compete; • our ability to control costs, including our operating expenses; • rising inflation and our ability to adjust pricing and control our costs, including employee wages and benefits and other operating expenses; • the amount and timing of payment for operating expenses, particularly research and development and sales and marketing expenses, including commissions; • the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges; • the amount and timing of costs associated with recruiting, training and integrating new employees, and retaining and motivating existing employees; • the effects of acquisitions and their integration; • general economic conditions, both domestically and internationally, as well as economic conditions specifically affecting industries in which our billers operate; • the impact of new accounting pronouncements; • changes in the competitive dynamics of our markets; • security breaches of and incidents impacting, technical difficulties with, or interruptions to, the delivery and use of our platform; and • awareness of our brand and our reputation in our target markets.
Biggest changeFactors that may affect our operating results include: • Fluctuations in demand for our platform. • Our ability to attract new billers and financial institutions and retain and increase adoption by existing ones. • Our ability to expand relationships with partners and attract new ones. 23 • Our ability to accelerate implementation and reduce the time between bookings and revenue recognition. • Changes in payment method preferences and channels by consumers, affecting revenue and gross margin, particularly due to interchange fees. • Variations across biller industries, affecting payment methods and average payment amounts, and thus revenue and gross margin, particularly due to interchange fees. • Changes in biller and financial institution preference for cloud-based services due to industry security breaches and incidents, privacy concerns or security or reliability concerns regarding our products. • Fluctuations or delays in purchasing decisions in anticipation of new products or enhancements by us or competitors. • Changes in biller, financial institution and consumer budgets, and the timing of their budget cycles and purchasing decisions. • Potential and existing billers and financial institutions choosing competitors’ products or developing internal solutions. • The development or introduction of new platforms or services that are easier to use or more advanced than ours. • Our ability to adapt to new forms of payment, including cryptocurrencies and blockchain-based transactions. • The adoption or retention of more entrenched or rival services in international markets where we compete or plan to compete. • Our ability to control costs, including operating expenses. • Rising inflation and our ability to adjust pricing and control our costs, including employee wages and benefits and other operating expenses. • The amount and timing of payments for operating expenses, particularly research and development and sales and marketing expenses. • The amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges. • The costs associated with recruiting, training, integrating, retaining and motivating employees. • The effects and integration of acquisitions. • General economic conditions, domestically and internationally, as well as conditions affecting biller industries. • The impact of new accounting pronouncements. • Changes in competitive dynamics. • Security breaches, technical difficulties or interruptions to the delivery and use of our platform. • Awareness of our brand and reputation. • The impact of widespread health issues, such as pandemics, on our operating results, liquidity, financial condition and key stakeholders.
A typical electronic bill payment experience requires the coordination of multiple vendors for bill notification, presentment, various payment channels, call center support, and data 8 and analytics. These vendors lack integration, which results in a fragmented consumer experience and increased cost to the biller.
A typical electronic bill payment experience requires the coordination of multiple vendors for bill notification, presentment, various payment channels, call center support and data and analytics. These vendors lack integration, which results in a fragmented consumer experience and increased cost to 8 the biller.
Billers and financial institutions that are able to access a single, integrated end-to-end solution are able to provide a seamless experience for their consumers. Billers and Consumers Are Underserved by Financial Institutions Traditional financial institutions have been slow to adopt modern digital bill payment technologies and the legacy providers which the financial institutions rely on have failed to innovate.
Billers and financial institutions that are able to access a single, integrated end-to-end solution are able to provide a seamless experience for their consumers. Billers and Consumers Are Underserved by Financial Institutions Traditional financial institutions have been slow to adopt modern digital bill payment technologies, and the legacy providers on which the financial institutions rely have failed to innovate.
Generally, consumers must manually add billers to a financial institution’s system and are generally limited to automated clearing house, or ACH, or other legacy payment channels rather than omni-channel payment capabilities. Ultimately, the lack of optionality and transparency inherent in a financial institution’s bill payment solutions creates an opportunity that we seek to address.
Generally, consumers must manually add billers to a financial institution’s system and are generally limited to automated clearing house (ACH) or other legacy payment channels rather than omni-channel payment capabilities. Ultimately, the lack of optionality and transparency inherent in a financial institution’s bill payment solutions creates an opportunity that we seek to address.
Consumers can view and pay bills through a variety of payment channels and types, engage with their billers, financial institutions and retrieve actionable insights regarding their payments and billing history. Control Over Financial Health: Consumers gain added control and visibility over their financial health on a daily basis through the advanced tools and features we provide.
Consumers can view and pay bills through a variety of payment channels and types, engage with their billers and financial institutions and retrieve actionable insights regarding their payments and billing history. Control Over Financial Health: Consumers gain added control and visibility over their financial health on a daily basis through the advanced tools and features we provide.
We generally control access to and use of our software and other proprietary or confidential information through internal and external controls, including entering into non-disclosure and confidentiality agreements with both our employees and third parties who have access to our software and other confidential information.
We generally control access to and use of our software and other proprietary or confidential information through internal and external controls, including entering into non-disclosure and confidentiality agreements with both our employees and third parties who have access to our software and other proprietary or confidential information.
We are also subject to the rules and standards of Visa, Mastercard, American Express, the National Automated Clearinghouse Association, or NACHA, and INTERAC, a Canadian interbank network, and other payment networks and their participants. In order to provide our payment processing services, we must be registered either indirectly or directly as service providers with the payment networks that we use.
We are also subject to the rules and standards of Visa, Mastercard, American Express, the National Automated Clearinghouse Association (NACHA) and INTERAC, a Canadian interbank network, and other payment networks and their participants. In order to provide our payment processing services, we must be registered either indirectly or directly as service providers with the payment networks that we use.
Available Information We file or furnish periodic reports and amendments thereto, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, proxy statements and other information with the Securities and Exchange Commission, or SEC.
Available Information We file or furnish periodic reports and amendments thereto, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, proxy statements and other information with the Securities and Exchange Commission (SEC).
The trading price of our Class A common stock could decline due to the materialization of any of these risks, and you may lose all or part of your investment. In addition, the risks discussed below include forward-looking statements and our actual results may differ substantially from those discussed in the forward-looking statements.
The trading price of our Class A common stock could decline due to the materialization of any of these risks, and you may lose part or all of your investment. In addition, the risks discussed below include forward-looking statements, and our actual results may differ substantially from those discussed in the forward-looking statements.
We simplify how bills are paid and help billers collect revenue faster and more profitably because our platform is: • Scalable: Enterprise-grade platform capable of supporting transaction growth for billers and financial institutions of all sizes across numerous industry verticals. • Innovative and Learning Platform: Artificial intelligence, or AI, and machine learning, or ML, algorithms power an omni-channel, end-to-end solution that adapts to new technologies and continuously learns from transaction activity. • Flexible: Platform accessible through an array of application program interfaces, or APIs, software development kits, iFrames and fully hosted solutions that provide complete control over the user experience and real-time customer engagement experiences. • Customizable: Leveraging an advanced No Code Low Code (NCLC) framework, we are able to efficiently deploy business-specific workflows, user experiences and tailored analytics, 7 • Configurable: Reconfigurable business logic that allows us to quickly implement new functionality required by new and existing billers as we drive additional innovative solutions to our platform and beyond. • Integrated: Our significant and broad library of integrations to core accounting and billing software systems, including customer information systems, or CIS (which are software systems used to efficiently manage customer processes and data and often include bill pay, customer service and forecasting and analytics tools), and enterprise resource planning, or ERP, systems (which are software systems used to collect, store, manage and interpret data from many business activities, typically including accounting systems), as well as core financial institution processing platforms and certain digital banking providers, helps connect disparate systems across the electronic bill payment value chain. • Extensible: Adaptable to new technologies and emerging payment channels, such as pay-by-text, AI-based virtual assistants and social media payments. • Secure: Multi-layer intrusion detection and prevention system, multi-factor authentication and encryption and tokenization designed for trust and security of transaction activity and information.
We simplify how bills are paid and help billers collect revenue faster and more profitably because our platform is: • Scalable: Enterprise-grade platform capable of supporting transaction growth for billers and financial institutions of all sizes across numerous industry verticals. • Innovative and Learning Platform: Artificial intelligence (AI) and machine learning (ML) algorithms power an omni-channel, end-to-end solution that adapts to new technologies and continuously learns from transaction activity. • Flexible: Platform accessible through an array of application program interfaces (APIs), software development kits, iFrames and fully hosted solutions that provide complete control over the user experience and real-time customer engagement experiences. • Customizable: Leveraging an advanced No Code Low Code framework, we are able to efficiently deploy business-specific workflows, user experiences and tailored analytics. 7 • Configurable: Reconfigurable business logic that allows us to quickly implement new functionality required by new and existing billers as we drive additional innovative solutions to our platform and beyond. • Integrated: Our significant and broad library of integrations to core accounting and billing software systems, including customer information systems (CIS), which are software systems used to efficiently manage customer processes and data and often include bill pay, customer service and forecasting and analytics tools, and enterprise resource planning (ERP) systems, which are software systems used to collect, store, manage and interpret data from many business activities, typically including accounting systems, as well as core financial institution processing platforms and certain digital banking providers, helps connect disparate systems across the electronic bill payment value chain. • Extensible: Adaptable to new technologies and emerging payment channels, such as pay-by-text, AI-based virtual assistants and social media payments. • Secure: Multi-layer intrusion detection and prevention system, multi-factor authentication and encryption and tokenization designed for trust and security of transaction activity and information.
Billers and financial institutions are able to empower consumers with an array of choices: • communications preferences – consumers can choose email, text, phone, portal or otherwise; • language preferences – consumers can select their preferred language for receiving billing information and interact via IVR; 10 • payment scheduling and type – consumers can schedule payments at specific times and use specific payment type to best suit their needs; and • multi-account management – consumers can manage multiple accounts with a single provider in one place.
Billers and financial institutions are able to empower consumers with an array of choices: • communications preferences – consumers can choose email, text, phone, portal or otherwise; • language preferences – consumers can select their preferred language for receiving billing information and interact via IVR; 10 • payment scheduling and type – consumers can schedule payments at specific times and use specific payment types to best suit their needs; and • multi-account management – consumers can manage multiple accounts with a single provider in one place.
Our certificate of incorporation provides that, to the fullest extent permitted by law, none of AKKR or its affiliates, or any of their respective directors, partners, principals, officers, members, managers or employees, including any of the foregoing who serve as our officers or directors (all of whom we refer to as the "Exempted Persons"), has any duty to refrain from engaging directly or indirectly in the same or similar business activities or lines of business as us or any of our affiliates.
Our certificate of incorporation provides that, to the fullest extent permitted by law, none of AKKR or its affiliates, or any of their respective directors, partners, principals, officers, members, managers or employees, including any of the foregoing who serve as our officers or directors (all of whom we refer to as the "Exempted Persons"), 40 has any duty to refrain from engaging directly or indirectly in the same or similar business activities or lines of business as us or any of our affiliates.
Through a single point of integration to our billers’ core financial and operating systems, our mission-critical solutions provide our billers with a payments operating system that helps them collect revenue faster and more profitably and empower their consumers with the information and transparency needed to control their finances. We extend our platform’s reach through our Instant Payment Network®, or IPN.
Through a single point of integration to our billers’ core financial and operating systems, our mission-critical solutions provide our billers with a payments operating system that helps them collect revenue faster and more profitably and empower their consumers with the information and transparency needed to control their finances. We extend our platform’s reach through our Instant Payment Network® (IPN).
Our website is located at www.paymentus.com , and our reports, amendments thereto, proxy statements and other information are also made available, free of charge, on our investor relations website at https://ir.paymentus.com/home/default.aspx as soon as reasonably practicable after we electronically file or furnish such information with the SEC.
Our website is located at www.paymentus.com , and our reports, amendments thereto, proxy statements and other information are also made available, free of charge, on our investor relations website at https://ir.paymentus.com/home/default.aspx as soon as reasonably practicable after we 18 electronically file or furnish such information with the SEC.
We address these inefficiencies through our cloud-native, integrated single-vendor solution. Our platform supports omni-channel and multi-dimensional, electronic billing and payments across multiple commerce channels, including online, mobile, interactive voice response, or IVR, call center, chatbot, retail and voice-based assistants.
We address these inefficiencies through our cloud-native, integrated single-vendor solution. Our platform supports omni-channel and multi-dimensional, electronic billing and payments across multiple commerce channels, including online, mobile, interactive voice response (IVR), call center, chatbot, retail and voice-based assistants.
By using open application programming interfaces, or APIs, software development kit, or SDK, widgets and single-sign-on, or SSO, interfaces, our financial institutions have complete flexibility and control over how they integrate and deliver their services including modern digital bill presentment, payment and money movement services.
By using open application programming interfaces (APIs), software development kit (SDK) widgets and single-sign-on (SSO) interfaces, our financial institutions have complete flexibility and control over how they integrate and deliver their services including modern digital bill presentment, payment and money movement services.
As a result, we and our handling of data are subject to a variety of laws, rules and regulations relating to privacy, data protection and information security, including regulation by various governmental authorities, such as the U.S. Federal Trade Commission, or FTC, and various state, local and foreign agencies.
As a result, we and our handling of data are subject to a variety of laws, rules and regulations relating to privacy, data protection and information security, including regulation by various governmental authorities, such as the U.S. Federal Trade Commission (FTC), and various state, local and foreign agencies.
Sharma and certain of his affiliates, AKKR has the right to nominate (x) five directors to our board of directors for so long as AKKR beneficially owns at least 10% of our outstanding common stock and (y) two directors to our board of directors for so long as AKKR beneficially owns at least 5% but less than 10% of our outstanding common stock.
Sharma and certain of his affiliates, AKKR has the right to nominate (x) five directors to our board of directors for so long as AKKR 39 beneficially owns at least 10% of our outstanding common stock and (y) two directors to our board of directors for so long as AKKR beneficially owns at least 5% but less than 10% of our outstanding common stock.
Many of our billers who use iFrames have in-house IT resources but use our infrastructure for payment processing and Payment Card Industry Data Security Standard, or PCI-DSS compliance. Fully Hosted: We also provide a fully hosted alternative for our billers.
Many of our billers who use iFrames have in-house IT resources but use our infrastructure for payment processing and Payment Card Industry Data Security Standard (PCI-DSS) compliance. Fully Hosted: We also provide a fully hosted alternative for our billers.
Further, we and our billers, financial institutions and partners are subject to a variety of U.S. state and federal laws, rules and regulations related to telemarketing, recording and monitoring of communications, such as the Telephone Consumer Protection Act, or TCPA, the Controlling the Assault of Non-Solicited Pornography and Marketing Act, or CAN-SPAM Act and others, because our platform enables our billers and partners to communicate directly with their consumers, including via e-mail, text messages and calls, and also enables recording and monitoring of calls between our billers, financial institutions and partners and their consumers for training and quality assurance purposes.
Further, we and our billers, financial institutions and partners are subject to a variety of U.S. state and federal laws, rules and regulations related to telemarketing, recording and monitoring of communications, such as the Telephone 17 Consumer Protection Act (TCPA), the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM Act) and others, because our platform enables our billers and partners to communicate directly with their consumers, including via e-mail, text messages and calls, and also enables recording and monitoring of calls between our billers, financial institutions and partners and their consumers for training and quality assurance purposes.
Because our biller platform is developed on a single code base and leverages a Software-as-a-Service, or SaaS, infrastructure, we can rapidly deploy new features and tools to our entire biller base simultaneously.
Because our biller platform is developed on a single code base and leverages a Software-as-a-Service (SaaS) infrastructure, we can rapidly deploy new features and tools to our entire biller base simultaneously.
While competitive factors and their relative importance can vary, in general, we will be assessed on a number of factors including security, reliability, breadth and depth of functionality, ease of deployment and implementation speed, total cost of ownership and return on investment, customer satisfaction, customer service, partnerships, brand awareness and reputation and the ability to provide contextualized and actionable data-driven insights that improve the transaction experience.
While competitive factors and their relative importance can vary, in general, we will be evaluated on a number of factors including security, reliability, breadth and depth of functionality, ease of deployment and implementation speed, total cost of ownership and return on investment, customer satisfaction, customer service, partnerships, brand awareness and reputation and the ability to provide contextualized and actionable data-driven insights that improve the transaction experience.
Our platform is capable of scaling up market to serve large billers, each processing payments for millions of bills per month, while also serving smaller billers, each processing payments for one bill per month.
Our platform is capable of scaling up market to serve large enterprise billers, each processing payments for millions of bills per month, while also serving smaller billers, each processing payments for one bill per month.
We compete on several factors, including: • product features, quality and breadth and depth of functionality; • ease of deployment and implementation speed; • ease of integration with leading billing and enterprise software, customer information systems and banking technology infrastructures; • ability to automate processes; • cloud-based delivery architecture; • advanced security, reliability, customer service and control features; • data asset size and ability to leverage artificial intelligence, or AI, to grow faster and smarter; • regulatory compliance leadership; • brand awareness and reputation; • pricing, total cost of ownership and return on investment; and • consumer satisfaction.
We compete on several factors: • Product features, quality and breadth and depth of functionality. • Ease of deployment and implementation speed. • Ease of integration with leading billing and enterprise software, customer information systems and banking technology infrastructures. • Ability to automate processes. • Cloud-based delivery architecture. • Advanced security, reliability, customer service and control features. • Data asset size and ability to leverage artificial intelligence to grow faster and smarter. • Regulatory compliance leadership. • Brand awareness and reputation. • Pricing, total cost of ownership and return on investment. • Consumer satisfaction.
Over the last decade, U.S. online consumer bill payment volume made through a bank’s bill payment solution has decreased significantly. We believe this reduction is driven by consistent under-investment by financial institutions and legacy providers in their bill payment platforms, resulting in a poor consumer experience.
Over the last decade, the volume of U.S. online consumer bill payments made through a bank’s bill payment solution has decreased significantly. We believe this reduction is driven by consistent under-investment by financial institutions and legacy providers in their bill payment platforms, resulting in a poor consumer experience.
For additional discussion of how intellectual property protection affects our business, see the section titled "Risk Factors—Risks Related to Our Technology and Intellectual Property." 16 Government Regulations Various aspects of our business and service areas are subject to U.S. federal, state, and local regulation, as well as regulation outside the United States.
For additional discussion of how intellectual property protection affects our business, see the section titled "Risk Factors—Risks Related to Our Technology and Intellectual Property". 16 Government Regulations Various aspects of our business and service areas are subject to U.S. federal, state, and local regulation, as well as regulation outside the U.S.
Information contained in, or that can be accessed through, our or the SEC's website is not a part of, and is not incorporated into, this report. 18 Ite m 1A. Risk Factors Investing in our Class A common stock involves a high degree of risk.
Information contained in, or that can be accessed through, our or the SEC's website is not a part of, and is not incorporated into, this report. 19 Ite m 1A. Risk Factors Investing in our Class A common stock involves a high degree of risk.
We offer complementary features to our biller’s employees, including tools for automated case management, configurable reporting and "see what they see" where the customer service employees can see exactly what the consumer sees to quickly resolve problems.
We offer complementary features to our billers' employees, including tools for automated case management, configurable reporting and "see what they see" where the customer service employees can see exactly what the consumer sees to quickly resolve problems.
Because of the ten-to-one voting ratio between our Class B common stock and Class A common stock, AKKR and our founder and chief executive officer, collectively controlled approximately 98% of the voting power of our outstanding common stock as of December 31, 2024 and therefore are able to control all matters submitted to our stockholders, including the election of directors, amendments of our organizational documents, compensation matters and any merger, consolidation, sale of all or substantially all of our assets, or other major corporate transaction requiring stockholder approval.
Because of the ten-to-one voting ratio between our Class B common stock and Class A common stock, AKKR and our founder and chief executive officer collectively controlled approximately 89% of the voting power of our outstanding common stock as of December 31, 2025 and therefore are able to control all matters submitted to our stockholders, including the election of directors, amendments of our organizational documents, compensation matters and any merger, consolidation, sale of all or substantially all of our assets, or other major corporate transaction requiring stockholder approval.
As the industry continues to evolve around changing consumer preferences and the emergence of new payment technologies, data and analytics plays an increasingly important role in improving the full transaction value chain.
As the industry continues to evolve around changing consumer preferences and the emergence of new payment technologies, data and analytics play an increasingly important role in improving the full transaction value chain.
Our Financial Institutions Our network connects our financial institutions to thousands of billers and sources of money movement including virtually every bank and credit union in the US, debit card and credit card payments and multiple digital wallets. The network also enables consumers to make loan payments to our financial institutions from our other network partners.
Our Financial Institutions Our network connects our financial institutions to thousands of billers and sources of money movement including virtually every bank and credit union in the U.S., debit card and credit card payments and multiple digital wallets. The network also enables consumers to make loan payments to our financial institutions from our other network partners.
In addition, in the United States, almost all states regulate money transmission and while our services do not involve the movement of funds directly, there is a risk that a state regulator may misinterpret our services and find we are offering unlicensed money transmission.
In addition, in the U.S., almost all states regulate money transmission, and while our services do not involve the movement of funds directly, there is a risk that a state regulator may misinterpret our services and find we are offering unlicensed money transmission.
Currently, we do not possess any permits or licenses from financial regulators. We believe the licensing requirements of federal and state agencies that regulate or monitor banks or other types of providers of electronic commerce services do not apply to us.
Currently, we do not possess any permits or licenses from financial regulators in the U.S., and we believe the licensing requirements of federal and state agencies that regulate or monitor banks or other types of providers of electronic commerce services do not apply to us.
Our proprietary transactional and behavioral data sets include hundreds of millions of interactions, creates workflow efficiencies and provides insights (such as payment methods depending on bill size and bill type) that strengthen the connection between billers and consumers. Our Platform and Solutions Our biller platform is purpose-built to transform the way billers get paid and engage with their consumers.
Our proprietary transactional and behavioral data sets include hundreds of millions of interactions, create workflow efficiencies and provide insights (such as payment methods depending on bill size and bill type) that strengthen the connection between billers and consumers. Our Platform and Solutions Our biller platform is purpose-built to transform the way billers get paid and engage with their consumers.
Several foreign countries and governmental bodies, including China, Australia, the European Union, or EU, and other countries have also established their own laws, rules and regulations addressing privacy, data protection and information security with regard to the handling and processing of sensitive and personal data obtained from their residents with which we or our billers, financial institutions or partners may need to comply.
Several foreign countries and governmental bodies, including China, Australia, India, Canada, the European Union (EU) and other countries have also established a number of laws, rules and regulations addressing privacy, data protection and information security with regard to the handling and processing of sensitive and personal data obtained from their residents with which we or our billers, financial institutions or partners may need to comply.
If our currently issued patents are maintained until the end of their terms, they will expire between 2025 and 2042. The expiration of these patents is not reasonably likely to have a material adverse effect on our business, financial condition or results of operations.
If our currently issued patents are maintained until the end of their terms, they will expire between 2028 and 2045. The expiration of these patents is not reasonably likely to have a material adverse effect on our business, financial condition or results of operations.
Our long-term international operations strategy involves a variety of risks, including: • changes in regulations and our ability to comply with and obtain any relevant licenses; • currency exchange rate fluctuations and the resulting effect on our revenue and expenses, and the cost and risk of entering into hedging transactions; • reduction in cross-border trade and other adverse impacts resulting from trade sanctions or changes in trade relations, laws or regulations; • potential application of more stringent regulations relating to payments, privacy, data protection and information security, and the authorized use of, or access to, sensitive and personal data; • exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S.
Our long-term international strategy involves a variety of risks, including: • Changes in regulations and our ability to comply with and obtain relevant licenses. • Currency exchange rate fluctuations and the effect on revenue and expenses, as well as the cost and risk of hedging transactions. • Reduction in cross-border trade and other adverse impacts from trade sanctions or changes in trade relations, laws or regulations. • Potential application of more stringent regulations on payments, privacy, data protection, information security and the authorized use of or access to sensitive and personal data. • Exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S.
In 2024, our billers sent hundreds of millions of emails and text messages and had millions of IVR calls using our communications modules.
In 2025, our billers sent hundreds of millions of emails and text messages and had millions of IVR calls using our communications modules.
In the United States, various laws and regulations apply to the security, collection, processing, storage, use, disclosure and other processing of certain types of data, including the Electronic Communications Privacy Act, the Computer Fraud and Abuse Act, the Gramm Leach Bliley Act, and state and local laws relating to privacy and data security.
In the U.S., various laws and regulations apply to the security, collection, processing, storage, use and disclosure of certain types of data, including the Electronic Communications Privacy Act, the Computer Fraud and Abuse Act, the Gramm Leach Bliley Act, and state and local laws relating to privacy and data security.
Our platform was used by approximately 46 million consumers and businesses globally in December 2024 to pay their bills, make money movements and engage with our clients.
Our platform was used by approximately 53 million consumers and businesses globally in December 2025 to pay their bills, make money movements and engage with our clients.
In 2024, the majority of new biller implementations were completed without any code changes or significant development costs.
In 2025, the majority of new biller implementations were completed without any material code changes or significant development costs.
Because we process individually identifiable protected health information in certain cases, we are also subject to certain obligations under the Health Insurance Portability and Accountability Act of 1996, or HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act of 2009, or HITECH, as well as certain state laws and related contractual obligations.
Finally, because we process individually identifiable protected health information in certain cases, we also may be subject to certain obligations as business associates under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH), as well as certain health-related state laws and related contractual obligations.
In addition, as of December 31, 2024, we owned 15 registered U.S. trademarks and one registered trademark in each of the European Union, India, Japan, New Zealand and the United Kingdom. We also held five allowed and four pending trademark applications in the U.S., and one pending trademark application in Canada.
In addition, as of December 31, 2025, we owned 18 registered U.S. trademarks and one registered trademark in each of the European Union, India, Japan, New Zealand and the United Kingdom. We also held two allowed and four pending trademark applications in the U.S. and one pending trademark application in Canada.
For the years ended December 31, 2024 and 2023, AKKR distributed to its investors, on a pro rata basis and for no additional consideration, 15,844,426 shares and 538,888 shares, respectively, of our Class B common stock, some of which was subsequently converted into shares of our Class A common stock.
For the years ended December 31, 2025 and 2024, AKKR distributed to its investors, on a pro rata basis and for no additional consideration, 47,415,984 and 15,844,426 shares, respectively, of our Class B common stock, some of which was subsequently converted into shares of our Class A common stock.
The Consumer Financial Protection Bureau, or CFPB, and several states have provided guidance or prohibitions against the use of convenience or similar "pay-to-pay" fees in certain industries that may impact us and our billers.
Several states have provided guidance or prohibitions against the use of convenience or similar "pay-to-pay" fees in certain industries that may impact us and our billers.
These rules and standards, including PCI-DSS, govern a variety of areas, including how consumers may use their cards, surcharging limitations, the security features of cards, security standards for processing, data protection and information security and allocation of liability for certain acts or omissions, including liability in the event of a data breach.
These rules govern a variety of areas, including how consumers may use their cards, surcharging limitations, the security features of cards, security standards for processing, data protection, information security and allocation of liability in the event of a data breach.
We rely on a combination of patents, copyrights, trademarks, service marks, trade secrets and contractual provisions with our employees, independent contractors, consultants and third parties with whom we have relationships to establish and protect our intellectual property and proprietary rights.
Our success depends, in part, on protecting our intellectual property (IP) and proprietary technology. We rely on a combination of patents, copyrights, trademarks, service marks, trade secrets and contractual provisions with our employees, independent contractors, consultants and third parties with whom we have relationships to establish and protect our IP and proprietary rights.
We are required to comply with the rules of the SEC implementing Sections 302 and 404 of the Sarbanes-Oxley Act, which require management to certify financial and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of internal control over financial reporting.
We are required to comply with SOX Sections 302 and 404, which require management to certify financial and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of internal control over financial reporting.
We may also incur significant costs for using alternative equipment or taking other actions in preparation for, or in reaction to, events that damage the data storage services we use.
We may incur significant costs for using alternative equipment or taking other actions in preparation for, or in reaction to, events that damage the third party services that we use.
In 2024, we processed approximately 597 million payments and an average of 1.6 million payments were made each day using our platform. • Innovative: Our AI-enabled, SaaS architecture is the foundation of our unified platform. Our ML algorithms continuously learn and self-improve from transaction activity on our platform.
In 2025, we processed approximately 724 million payments, and an average of 2.0 million payments were made each day using our platform. • Innovative: Our AI-enabled, SaaS architecture is the foundation of our unified platform. Our ML algorithms continuously learn and self-improve from transaction activity on our platform.
We may elect to take advantage o f the "controlled company" exemption to the corporate governance rules for New York Stock Exchange-listed companies, which could make our Class A common stock less attractive to some investors or otherwise harm our stock price. AKKR controls a majority of the voting power of our outstanding common stock.
We may elect to take advantage of the "controlled company" exemption to the corporate governance rules for New York Stock Exchange-listed companies, which could make our Class A common stock less attractive to some investors or otherwise harm our stock price.
We have obtained or applied for patent protection in the United States and certain countries on certain material aspects of our proprietary technologies and we have registered or applied to register certain of our trademarks in the United States and in specific countries.
We have obtained or applied for patent protection in the U.S. and certain other countries on certain material aspects of our proprietary technologies, and we have registered or applied to register certain of our material trademarks in the U.S. and in certain other countries.
For example, we enable Walmart's consumers to pay their bills either in-store at retail locations or online via Walmart's retail websites or mobile apps, and enable in-person cash payments at more than 90,000 retail locations in the Green Dot network.
For example, we enable Walmart's consumers to pay their bills in-store at retail locations, and enable in-person cash payments at more than 90,000 retail locations in the Green Dot network.
We are subject to the requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the listing requirements of the New York Stock Exchange and other applicable securities rules and regulations.
We are subject to the requirements of the Securities Exchange Act of 1934, as amended, the Sarbanes-Oxley Act (SOX), the Dodd-Frank Wall Street Reform and Consumer Protection Act, the NYSE listing requirements and other securities rules and regulations.
In addition, if we are unsuccessful in establishing, growing or maintaining partnerships, our ability to compete could be impaired, and our operating results may suffer. If we lose one or more of our largest partnerships, we could also lose associated biller relationships or payment channels and our business, operating results and financial condition could be harmed.
If we are unsuccessful in establishing, growing or maintaining partnerships, our ability to compete could be impaired, and our operating results may suffer. Moreover, the loss of one or more of our largest partnerships could result in the loss of associated biller relationships or payment channels, harming our business, operating results and financial condition.
Item 1. Business Overview We are a leading provider of cloud-based bill payment technology and solutions. We deliver our next-generation product suite through a modern technology stack to more than 2,500 biller business and financial institution clients.
Item 1. Business Overview We are a leading provider of cloud-based bill payment technology and solutions. We deliver our next-generation product suite through a modern technology stack to a broad and diverse base of business and financial institution clients.
Even though we have procedures in place designed to ensure our compliance with trade controls, failure to comply with these controls could subject us to both civil and criminal penalties, including substantial fines, possible incarceration of responsible individuals for willful violations, possible loss of our export or import privileges and reputational harm.
Even though we have procedures in place designed to ensure our compliance with trade controls, failure to comply could subject us to civil and criminal penalties, including fines, incarceration, loss of export and import privileges and reputational harm.
In addition, many states in which we operate have enacted laws that protect the privacy and security of sensitive and personal data, such as the California Consumer Privacy Act, or CCPA, as amended by the California Privacy Rights Act, or CPRA, in California.
In addition, to the extent not exempted, many states in which we operate have enacted laws that protect the privacy and security of sensitive and personal data, such as the California Consumer Privacy Act (CCPA), as amended.
Our business will be harmed if any provider of such software or other technologies: • discontinues or limits our access to its software or other technologies; • modifies its terms of service or other legal terms or policies, including fees charged to, or other restrictions on us; • changes how information is accessed by us or our billers, financial institutions or partners or their consumers; • has performance or other problems that affect the perception of our platform, products or services; • establishes exclusive or more favorable relationships with one or more of our competitors; or • develops or otherwise favors its own competitive offerings over our platform or products.
Our business will be harmed if any third-party provider: • Discontinues or limits our access to its software or technologies. • Modifies its terms of service or other legal terms or policies, including fees or other restrictions. • Changes how information is accessed by us or our clients. • Experiences performance or other problems that negatively affect the perception of our platform, products or services. • Establishes exclusive or more favorable relationships with our competitors. • Develops or favors its own competitive offerings over our platform or products.
For additional discussion on governmental regulation and payment network operating rules affecting our business, please see the section titled "Risk Factors—Risks Related to Regulation." Employees and Human Capital Resources As of December 31, 2024, we employed 1,307 full-time employees and a small number of part-time employees.
For additional discussion on governmental regulation and payment network operating rules affecting our business, please see the section titled "Risk Factors—Risks Related to Regulation." Employees and Human Capital Resources As of December 31, 2025, we employed 1,340 full-time employees and a small number of part-time employees. Our employees are located across the U.S., in Canada as well as in India.
Completed and future acquisitions may result in unforeseen operational difficulties and expenditures associated with: • incorporating new businesses and technologies into our infrastructure; • consolidating operational and administrative functions; • coordinating outreach to our community; • maintaining morale and culture and retaining and integrating key employees; 28 • maintaining or developing controls, procedures and policies (including effective internal control over financial reporting and disclosure controls and procedures); and • identifying and assuming liabilities related to the activities of the acquired business before the acquisition, including liabilities for violations of laws and regulations, intellectual property issues, commercial disputes, taxes and other matters.
Completed and future acquisitions may result in unforeseen difficulties and expenditures related to: • Incorporating new businesses and technologies into our infrastructure. • Consolidating operational and administrative functions. • Coordinating outreach to our community. • Maintaining morale and culture and retaining and integrating key employees. • Maintaining or developing controls, procedures and policies, including effective internal control over financial reporting and disclosure controls and procedures. • Identifying and assuming liabilities from the acquired business's pre-acquisition activities, such as legal violations, intellectual property issues and taxes.
Our business could be harmed if we fail to manage our infrastructure to support future growth. The historical growth we have experienced in our business places significant demands on our operational infrastructure. The scalability and flexibility of our platform depends on the functionality of our technology and network infrastructure and its ability to handle increased traffic and demand for bandwidth.
If we cannot manage our infrastructure to support future growth and effectively manage our expanding operations, our business and reputation could be harmed. The growth we have experienced places significant demands on our operational infrastructure. The scalability and flexibility of our platform depend on the functionality of our technology and network infrastructure to handle increased traffic and demand for bandwidth.
If we lose our founder and chief executive officer or other key members of our management team, or if we are unable to attract and retain executives and employees we need to support our operations and growth, our business may be harmed. Our success and future growth depend upon the continued services of our management team and other key employees.
If we lose our founder and chief executive officer or other key management, or cannot attract and retain qualified executives and employees, our business may be harmed. Our success and future growth depend on the continued services of our management team and key employees.
Among other things, these provisions provide that: • we have a dual class common stock structure, with differing voting rights; • the authorized number of directors may be changed only by resolution of the board of directors; • any vacancies on the board of directors and any newly created directorships may only be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum; • our board of directors is divided into three classes, each of which stands for election once every three years; • there is no cumulative voting; • the board of directors may issue "blank check" preferred stock that our board of directors could use to implement a stockholder rights plan; • the board of directors may adopt, alter or repeal our bylaws; • the forum for certain litigation against us is restricted to Delaware; and • stockholders seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide notice in writing in a timely manner, and also meet specific requirements as to the form and content of a stockholder’s notice.
These provisions include: • Our dual class common stock structure with differing voting rights. • The board of directors is divided into three classes, each standing for election once every three years. • Vacancies on the board and newly created directorships can only be filled by a majority vote of directors then in office, even if less than a quorum. • The authorized number of directors can only be changed by board resolution. • The absence of cumulative voting. • The board's ability to issue "blank check" preferred stock to implement a stockholder rights plan. • The board's power to adopt, alter or repeal our bylaws. • Requirements for stockholders seeking to present proposals or nominate directors to provide timely notice and meet specific form and content requirements. 41 • The forum for certain litigation against us is restricted to Delaware.
Our employees are located across the United States, in Canada as well as in India. None of our employees are represented by a labor union or are party to a collective bargaining agreement. We believe that we have good relationships with our employees. Our employees are our most critical assets.
None of our employees are represented by a labor union or are party to a collective bargaining agreement. We believe that we have good relationships with our employees. Our employees are our most critical assets.
These claims could result in litigation and could require us to make our software source code freely available, purchase a costly license or cease offering the implicated products or services.
These claims could result in costly litigation, requiring us to: • Make our source code freely available. • Purchase a costly license or cease offering the implicated products or services. • Re-engineer our platform, which is costly and time-consuming.
Additional provisions will become effective on such date when AKKR and its affiliates cease to beneficially own in the aggregate, directly or indirectly, at least 50% of the voting power of our capital stock, which, among other things, provide that: • stockholders may not call special meetings of stockholders or act by written consent; • directors may only be removed from office for cause and with the affirmative vote of at least a majority of the voting power of our outstanding capital stock; and • amending certain provisions of our certificate of incorporation and bylaws will be subject to super-majority voting thresholds.
Additional provisions will become effective when AKKR ceases to beneficially own at least 50% of the voting power of our common stock, including: • Stockholders may not call special meetings or act by written consent. • Directors may only be removed for cause and with the affirmative vote of at least a majority of the voting power of our outstanding capital stock. • Amending certain provisions of our certificate of incorporation and bylaws will be subject to super-majority voting thresholds.
Any decline in available funding or access to our cash and liquidity resources could, among other risks, adversely impact our ability to meet our operating expenses, financial obligations or fulfill our other obligations, result in breaches of our contractual obligations or result in violations of federal or state wage and hour laws.
Any decline in available funding or access to liquidity could adversely impact our ability to meet operating expenses and financial obligations, potentially resulting in breaches of contractual obligations or violations of wage and hour laws.
Any provision of our certificate of incorporation or bylaws, or under any applicable state law, that has the effect of delaying or deterring a change in control could limit the opportunity for our stockholders to receive a premium for their shares of our common stock, and could also affect the price that some investors are willing to pay for our Class A common stock.
Any provision of our organizational documents or state law that delays or deters a change in control could limit the opportunity for stockholders to receive a premium for their shares and could also affect the price investors are willing to pay for our Class A common stock.
Sales of a substantial number of shares of our Class A common stock, particularly sales by our directors, executive officers and principal stockholders, or the perception that such sales may occur could cause the market price of our Class 47 A common stock to fall or make it more difficult for you to sell your Class A common stock at a time and price that you deem appropriate.
Sales of a substantial number of shares of our Class A common stock, particularly by directors, executive officers and principal stockholders, or the perception that such sales may occur, could cause the market price of our Class A common stock to fall.
As we scale our business, we expect to continue to expend substantial financial and other resources on: • sales and marketing, including an expansion of our sales organization and new initiatives in order to drive further expansion of our IPN and partner ecosystem; • our technology infrastructure, including systems architecture, scalability, availability, performance and security; • product development, including investments in our product development team and the development of new products and new functionality for our AI-enabled platform; • regulatory compliance and risk management; • acquisitions or strategic investments; • expansion into new channels, verticals and international markets; and • general administration, including increased legal and accounting expenses associated with being a public company.
These investments include: • Sales and marketing, including expansion of our sales team and initiatives to drive expansion of our IPN and partner ecosystem. • Our technology infrastructure, including systems architecture, scalability, availability, performance and security. • Product development, including investments in our product development team and the development of new products and new functionality for our AI-enabled platform. • Regulatory and legal compliance and risk management to support growth and new product offerings. • Acquisitions or strategic investments. • Expansion into new channels, verticals and international markets. 21 • General administration, including increased legal and accounting expenses as a public company.
In addition, a new or revised visa program, and in particular one that limits the availability of H1-B and other visas, may impact our ability to recruit, hire, retain or effectively collaborate with qualified skilled personnel, including in the areas of AI and machine learning, and payment systems and risk management, which could adversely impact our business, operating results and financial condition.
Additionally, a new or revised visa program, particularly one limiting H1-B and other visas, may impact our ability to recruit, hire, retain or effectively collaborate with qualified personnel, including those with expertise in AI, ML, payment systems and risk management, which could adversely affect our business, operating results and financial condition.
Furthermore, up to 1,193,880 shares of Class A common stock may be issuable pursuant to warrant agreements with JPMC Strategic Investments I Corporation. These shares will become eligible for sale in the public market to the extent permitted by the vesting terms of the warrant, and Rule 144.
In addition, up to 1,193,880 shares of Class A common stock may be issuable under warrant agreements with JPMC Strategic Investments I Corporation, which will become eligible for sale in the public market.
Risks Related to Our Business and Industry Our historical growth rate may not be sustainable or indicative of our future growth. Our historical growth rate, including in payment volumes, may not be sustainable or indicative of our future growth.
Risks Related to Our Business, Industry and Growth Our historical growth rate may not be sustainable or indicative of our future growth, and a failure to attract and retain billers and financial institutions could materially harm our business. Our historical growth rate, including in payment volumes, may not be sustainable or indicative of our future growth.
Our platform enables our billers and partners to communicate directly with their consumers, including via email, text messages and telephone calls. Our platform also enables recording and monitoring of calls between our billers and partners and their consumers for training and quality assurance purposes. On occasion we also send communications directly to consumers.
Our platform enables our clients and partners to communicate with consumers via email, text messages and telephone calls, and to record and monitor calls for training and quality assurance purposes. We also send communications directly to consumers.
We rely on integration of our end-to-end electronic bill payment solution into third-party software products, which enables us to power such software products’ bill payment capabilities. We also rely on strategic partners, such as U.S. Bank, JPMorgan Chase and a major payroll solutions provider, and industry-expert partners to refer new billers to our platform.
We rely on integration of our end-to-end electronic bill payment solution into third-party software products for a portion of our customer base, which enables us to power such software products’ bill payment capabilities. We also rely on strategic partners, such as JPMorgan Chase, U.S.
However, as an emerging growth company, our independent registered public accounting firm will not be required to audit the effectiveness of our internal control over financial reporting until we are no longer an emerging growth company.
Because we no longer qualify as an emerging growth company as of December 31, 2025, our independent registered public accounting firm is now required to audit the effectiveness of our internal control over financial reporting.
Our ability to attract new billers and financial institutions, retain revenue from existing billers and financial institutions or increase adoption of our platform by both new and existing billers is impacted by a number of factors, including: • our transaction fees and certain of our billers’ ability to pass them on to consumers; • our ability to timely expand the functionality and scope of our platform; • our ability to execute timely implementations of new billers and financial institutions to meet their expectations; • our ability to maintain the rates at which our billers and financial institutions pay us and continue to use our platform; • competitive factors, including the introduction of competing solutions, discount pricing and other strategies that may be implemented by our competitors; • our ability to maintain high-quality customer support for billers, financial institutions and consumers; • our ability to attract and retain strategic partners, software partners, resellers, referral partners and IPN partners; • our ability to expand into new industries and market segments; • actual or perceived privacy or security breaches or incidents; • the frequency and severity of any system outages, technological changes or similar issues; • our ability to successfully identify and acquire or invest in businesses, products or technologies that we believe could complement or expand our platform; • our ability to increase awareness of our brand and successfully compete with other companies; • our ability to expand internationally; and 19 • our focus on long-term value over short-term results, meaning that we may make strategic decisions that may not maximize our short-term revenue or profitability if we believe that the decisions are consistent with our mission and will improve our financial performance over the long-term.
Our ability to attract new billers and financial institutions, retain revenue from existing ones or increase adoption of our platform is impacted by many factors, including: • Our transaction fees and our billers’ ability to pass them on to consumers or willingness to absorb them. • Our ability to timely expand the functionality and scope of our platform. • Our ability to execute timely implementations of new billers and financial institutions and to meet their expectations. • Our ability to maintain biller and financial institution payment rates and platform usage. • Competitive factors, such as competing solutions, discount pricing and other strategies. • Our ability to provide high-quality customer support for billers, financial institutions and end-users. • Our ability to attract and retain strategic partners, software partners, resellers, referral partners and instant payment network partners. • Our ability to develop new product offerings or expand into new industries and market segments. • Actual or perceived privacy violations, security breaches or other related incidents. • The frequency and severity of system outages, technological changes or similar issues. • Our ability to identify and acquire or invest in complementary businesses, products or technologies. • Our ability to increase brand awareness and successfully compete with other companies. • Our ability to expand internationally. • Our focus on long-term value, which may lead to strategic decisions that do not maximize short-term revenue or profitability. 20 We rely on partnerships for a portion of our revenue; if we fail to establish, grow or maintain them, our ability to compete and our operating results will be impaired.
We serve billers of all sizes that primarily provide non-discretionary services across a variety of industry verticals, including utilities, financial services, insurance, government, telecommunications, real estate management, education, consumer finance, healthcare and small business. We also serve financial institutions by providing them with a modern platform that their customers use for bill payment, account-to-account transfers and person-to-person transfers.
We serve billers of all sizes that primarily provide non-discretionary services across a variety of industry verticals, including utilities, financial services, insurance, government, telecommunications, real estate management, education, consumer finance, healthcare, business to business (B2B) and small business.
As a result of these conditions or in the event that worsen, some of our clients may defer anticipated implementations or reevaluate the development of technology resources, which could delay expected revenue recognition. Furthermore, inflationary pressures led to higher average bills, particularly in the utility sector, and increased interchange fees.
In addition, these economic conditions, or a worsening thereof, could cause clients to defer anticipated implementations or reevaluate development of technology resources, which may delay expected revenue recognition. Inflationary pressures also lead to higher average bills, especially in the utility sector, and increased interchange fees.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLocation Type Square Footage (approximate) Lease Expiration Charlotte, North Carolina Corporate Headquarters 26,700 March 31, 2027 Richmond Hill, Canada Office space 56,000 March 31, 2031 Richmond Hill, Canada Office space 4,050 May 31, 2030 Dallas, Texas Office space 10,100 March 15, 2027 Santa Clara, California Office space 3,900 September 30, 2027 New York, New York Office space 700 December 31, 2024 (1) Gurugram, India Office space 19,800 February 1, 2029 Mohali, Punjab, India Office space 4,850 December 31, 2025 Bangalore, India Office space 4,100 December 31, 2025 (1) Month to month lease of desk space in a co-working and flexible office concept building.
Biggest changeLocation Type Square Footage (approximate) Lease Expiration Charlotte, North Carolina Corporate Headquarters 26,700 March 31, 2027 Richmond Hill, Canada Office space 56,000 March 31, 2031 Richmond Hill, Canada Office space 4,050 May 31, 2030 Dallas, Texas Office space 10,100 March 15, 2027 Santa Clara, California Office space 3,900 September 30, 2027 Gurugram, India Office space 19,800 February 1, 2029 Mohali, Punjab, India Office space 12,000 January 31, 2031 Mohali, Punjab, India Office space 4,850 December 31, 2025 (1) Bengaluru, India Office space 6,000 September 19, 2028 44 (1) Month to month lease of space in office building.
We believe that our facilities are adequate for our needs and believe that we should be able to renew any of the above leases or secure alternative suitable property without an adverse impact on our operations. 54
We believe that our facilities are adequate for our needs and believe that we should be able to renew any of the above leases or secure alternative suitable property without an adverse impact on our operations.
Item 2. Properties We are headquartered in Charlotte, North Carolina. We lease office space in Charlotte, North Carolina; Richmond Hill, Canada (part of the Greater Toronto Area); Dallas, Texas; Santa Clara, California; New York, New York and in Gurugram, Mohali and Bangalore, India. The table below sets forth certain information regarding these properties, all of which are leased.
Item 2. Properties We are headquartered in Charlotte, North Carolina. We lease office space in Charlotte, North Carolina; Richmond Hill, Canada (part of the Greater Toronto Area); Dallas, Texas; Santa Clara, California; and in Gurugram, Mohali and Bengaluru, India. The table below sets forth certain information regarding these properties, all of which are leased.
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We also lease several smaller properties on a month-to-month basis.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeIn addition, if current or future government regulations are interpreted or enforced in a manner adverse to our business, including among other things, those related to security and privacy laws, we may be subject to investigations, enforcement actions, penalties, damages, material limitations on our business, and reputational harm.
Biggest changeIn addition, if current or future government regulations are interpreted, adopted or enforced in a manner adverse to our business, we may be subject to investigations, enforcement actions, penalties, damages, material limitations on our business, and reputational harm. Furthermore, we may become subject to stockholder inspection demands under Delaware law and derivative or other similar litigation.
Although the results of legal proceedings and claims cannot be predicted with certainty, we believe we are not currently party to any legal proceedings which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results or financial condition. Ite m 4. Mine Safety Disclosures Not applicable. 55 PART II
Although the results of legal proceedings and claims cannot be predicted with certainty, we believe we are not currently party to any legal proceedings which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results or financial condition. Ite m 4. Mine Safety Disclosures Not applicable. 45 PART II
Furthermore, we may become subject to stockholder inspection demands under Delaware law and derivative or other similar litigation. From time to time as appropriate, we accrue liabilities related to legal claims in our financial statements.
From time to time as appropriate, we accrue liabilities related to legal claims in our financial statements.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIssuer Purchases of Equity Securities Except as may have been previously reported in filings with the SEC, there were no repurchases of equity securities during the year ended December 31, 2024. We do not have any publicly announced or other repurchase plans regarding our Class A common stock.
Biggest changeWe do not have any publicly announced or other repurchase programs regarding our Class A common stock.
Stock Performance Graph The following graph and table compare the total stockholder return from May 26, 2021, the date on which our Class A common stock commenced trading on NYSE through December 31, 2024, based on an initial investment of $100 in each of: • our Class A common stock; • the Standard and Poor's 500 Stock Index, or S&P 500 Index; and • the Standard and Poor's 500 Information Technology Index, or S&P Information Technology.
Stock Performance Graph The following graph and table compare the total stockholder return from May 26, 2021, the date on which our Class A common stock commenced trading on NYSE, through December 31, 2025, based on an initial investment of $100 in each of: • our Class A common stock; • the Standard and Poor's 500 Stock Index (S&P 500 Index); and • the Standard and Poor's 500 Information Technology Index (S&P Information Technology).
The performance graph and table shall not be deemed "soliciting material" or to be "filed" with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act. 56 May 26, 2021 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Paymentus Holdings, Inc. $ 100.00 $ 166.57 $ 38.14 $ 85.10 $ 155.57 S&P 500 Index 100.00 113.71 91.60 113.80 140.32 S&P Information Technology 100.00 125.60 89.29 139.65 189.48 We will neither make nor endorse any predictions as to future stock performance or whether the trends depicted in the graph above will continue or change in the future.
The performance graph and table shall not be deemed "soliciting material" or to be "filed" with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act. 46 May 26, 2021 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 Paymentus Holdings, Inc. $ 100.00 $ 166.57 $ 38.14 $ 85.10 $ 155.57 $ 149.29 S&P 500 Index 100.00 113.71 91.60 113.80 140.32 164.53 S&P Information Technology 100.00 125.60 89.29 139.65 189.48 235.66 We will neither make nor endorse any predictions as to future stock performance or whether the trends depicted in the graph above will continue or change in the future.
Recent Sales of Unregistered Securities Except as may have been previously reported in our filings with the SEC, there were no sales of unregistered securities during the fiscal year ended December 31, 2024.
Recent Sales of Unregistered Securities Except as may have been previously reported in our filings with the SEC, there were no sales of unregistered securities during the fiscal year ended December 31, 2025. Issuer Purchases of Equity Securities There were no repurchases of equity securities during the quarter ended December 31, 2025.
Holders Based on the records of our transfer agent, as of March 6, 2025, there were 28 record holders of our Class A common stock and 34 record holders of our Class B common stock.
Holders Based on the records of our transfer agent, as of February 19, 2026, there were 28 record holders of our Class A common stock and 37 record holders of our Class B common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe increase in free cash flow for the year ended December 31, 2023 compared to 2022 was primarily as a result of an increase in cash generated from operations. 63 Results of Operations The following table sets forth our results of operations for the periods presented: Year Ended December 31, Change 2024 versus 2023 2024 2023 2022 $ % (in thousands) Revenue $ 871,745 $ 614,490 $ 497,001 $ 257,255 41.9 % Cost of revenue (1) 633,575 432,148 347,323 201,427 46.6 % Gross profit 238,170 182,342 149,678 55,828 30.6 % Gross margin 27.3 % 29.7 % 30.1 % Operating expenses Research and development (1) 51,334 44,248 41,220 7,086 16.0 % Sales and marketing (1) 105,052 83,996 73,295 21,056 25.1 % General and administrative (1) 36,927 36,005 38,139 922 2.6 % Total operating expenses 193,313 164,249 152,654 29,064 17.7 % Income (loss) from operations 44,857 18,093 (2,976 ) 26,764 147.9 % Interest income, net 8,742 7,019 1,663 1,723 24.5 % Other income 345 12 5 333 n/m Income (loss) before income taxes 53,944 25,124 (1,308 ) 28,820 114.7 % (Provision for) benefit from income taxes (9,775 ) (2,802 ) 795 (6,973 ) 248.9 % Net income (loss) $ 44,169 $ 22,322 $ (513 ) $ 21,847 97.9 % (1) Stock-based compensation expense was allocated in cost of revenue and operating expenses as follows: Year Ended December 31, 2024 2023 2022 (in thousands) Cost of revenue $ 251 $ 156 $ — Research and development 3,100 1,990 1,647 Sales and marketing 5,639 2,808 1,736 General and administrative 3,865 4,436 3,353 Total stock-based compensation $ 12,855 $ 9,390 $ 6,736 The following table presents the components of our consolidated statements of operations for the periods presented as a percentage of revenue: Year Ended December 31, 2024 2023 2022 Revenue 100.0 % 100.0 % 100.0 % Cost of revenue 72.7 % 70.3 % 69.9 % Gross profit 27.3 % 29.7 % 30.1 % Operating expenses Research and development 5.9 % 7.2 % 8.3 % Sales and marketing 12.1 % 13.7 % 14.7 % General and administrative 4.2 % 5.9 % 7.7 % Total operating expenses 22.2 % 26.8 % 30.7 % Income (loss) from operations 5.1 % 2.9 % (0.6 )% Interest income, net 1.0 % 1.1 % 0.3 % Other income 0.0 % 0.0 % 0.0 % Income (loss) before income taxes 6.1 % 4.0 % (0.3 )% (Provision for) benefit from income taxes (1.1 )% (0.5 )% 0.2 % Net income (loss) 5.0 % 3.5 % (0.1 )% 64 Comparison of the Years Ended December 31, 2024 and 2023 Revenue The increase in revenue was primarily driven by an increase in the number of transactions processed, which was driven by the implementation of new billers and increased transactions from our existing billers.
Biggest changeCash generated from operations increased in 2025 compared to 2024 primarily due to stronger operating performance associated with the scaling of our business, as well as improvements in working capital management. 53 Results of Operations The following table sets forth our results of operations for the periods presented: Year Ended December 31, Change 2025 versus 2024 2025 2024 2023 $ % (in thousands) Revenue $ 1,196,507 $ 871,745 $ 614,490 $ 324,762 37.3 % Cost of revenue (1) 900,165 633,575 432,148 266,590 42.1 % Gross profit 296,342 238,170 182,342 58,172 24.4 % Gross margin 24.8 % 27.3 % 29.7 % Operating expenses Research and development (1) 61,474 51,334 44,248 10,140 19.8 % Sales and marketing (1) 111,928 105,052 83,996 6,876 6.5 % General and administrative (1) 47,400 36,927 36,005 10,473 28.4 % Total operating expenses 220,802 193,313 164,249 27,489 14.2 % Income from operations 75,540 44,857 18,093 30,683 68.4 % Interest income 9,506 8,742 7,019 764 8.7 % Other income 229 345 12 (116 ) (33.6 )% Income before income taxes 85,275 53,944 25,124 31,331 58.1 % Provision for income taxes 18,338 9,775 2,802 8,563 87.6 % Net income $ 66,937 $ 44,169 $ 22,322 $ 22,768 51.5 % (1) Stock-based compensation expense was allocated in cost of revenue and operating expenses as follows: Year Ended December 31, 2025 2024 2023 Cost of revenue $ 287 $ 251 $ 156 Research and development 3,903 3,100 1,990 Sales and marketing 6,695 5,639 2,808 General and administrative 9,936 3,865 4,436 Total stock-based compensation $ 20,821 $ 12,855 $ 9,390 The following table presents the components of our consolidated statements of operations for the periods presented as a percentage of revenue: Year Ended December 31, 2025 2024 2023 Revenue 100.0 % 100.0 % 100.0 % Cost of revenue 75.2 % 72.7 % 70.3 % Gross profit 24.8 % 27.3 % 29.7 % Operating expenses Research and development 5.1 % 5.9 % 7.2 % Sales and marketing 9.4 % 12.1 % 13.7 % General and administrative 4.0 % 4.2 % 5.9 % Total operating expenses 18.5 % 22.2 % 26.8 % Income from operations 6.3 % 5.1 % 2.9 % Interest income 0.8 % 1.0 % 1.1 % Other income 0.0 % 0.0 % 0.0 % Income before income taxes 7.1 % 6.1 % 4.0 % Provision for income taxes 1.5 % 1.1 % 0.5 % Net income 5.6 % 5.0 % 3.5 % Comparison of the Years Ended December 31, 2025 and 2024 54 Revenue The increase in revenue was primarily driven by an increase in the number of transactions processed, which was driven by the implementation of new billers and increased transactions from our existing billers.
Transaction fees are fees collected for each transaction processed through our platform, on either a fixed basis or variable basis based on the transaction value, with the actual fees dependent on type of transaction, payment or transaction channel and industry vertical.
Transaction fees are fees collected for each transaction processed through our platform, on either a fixed basis or variable basis based on the transaction value, with the actual fees dependent on the type of transaction, payment or transaction channel and industry vertical.
We expect our sales and marketing expenses to increase in absolute dollars alongside revenue growth, but they may fluctuate as a percentage of revenue from period to period. General and Administrative General and administrative expenses consist primarily of personnel-related expenses, including stock-based compensation expenses for finance, risk management, legal and compliance, human resources, information technology and facilities personnel.
We expect our sales and marketing expenses to increase in absolute dollars alongside revenue growth, but they may fluctuate as a percentage of revenue from period to period. General and Administrative 49 General and administrative expenses consist primarily of personnel-related expenses, including stock-based compensation expenses for finance, risk management, legal and compliance, human resources, information technology and facilities personnel.
We acquire new billers through direct sales channels, software and strategic partnerships and our Instant Payment Network, or IPN, which together promote rapid adoption of our platform through partnerships with leading business networks. Through these channels, our platform reaches millions of consumers, driving transaction growth. Our revenue is predictable to a certain degree.
We acquire new billers through direct sales channels, software and strategic partnerships and our Instant Payment Network (IPN), which together promote rapid adoption of our platform through partnerships with leading business networks. Through these channels, our platform reaches millions of consumers, driving transaction growth. Our revenue is predictable to a certain degree.
If we raise additional financing by the incurrence of indebtedness, we may be subject to increased fixed payment obligations and could be subject to additional restrictive covenants, such as limitations on our ability to incur additional debt, and other operating restrictions that could adversely impact our ability to conduct our business or execute our growth strategy.
If we raise additional financing by the incurrence of indebtedness, we may be subject to increased fixed payment obligations and could be subject to additional restrictive covenants, such as limitations on our 55 ability to incur additional debt, and other operating restrictions that could adversely impact our ability to conduct our business or execute our growth strategy.
We use contribution profit to measure the amount available to fund our operations after interchange and assessment fees, which are directly linked to the number of transactions we process and thus our revenue and gross profit. There are limitations to the use of the non-GAAP measures presented in this report.
We use contribution profit to measure the amount available to fund our operations after interchange and assessment fees, which are directly linked to the number of transactions we process and 51 thus our revenue and gross profit. There are limitations to the use of the non-GAAP measures presented in this report.
Internal-use Software Development Costs Internal-use software development costs consist of personnel costs, including related benefits, incurred to develop functionality for our platform, as well as certain upgrades and enhancements that are expected to result in enhanced functionality. We capitalize certain software development costs for new offerings as well as upgrades to our existing software platforms.
Internal-use Software Development Costs Internal-use software development costs consist of personnel costs, including related benefits, incurred to develop functionality for our platform, as well as certain upgrades and enhancements that are expected to result in enhanced functionality. We capitalize certain software development costs for new offerings as well as upgrades to our existing software 57 platforms.
Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge is recorded to goodwill to the extent the carrying value exceeds 68 the fair value, limited to the amount of goodwill.
Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge is recorded to goodwill to the extent the carrying value exceeds the fair value, limited to the amount of goodwill.
Adjusted EBITDA We define adjusted EBITDA as net income before interest income (expense), net, other income (expense), depreciation and amortization of acquisition-related intangible assets and capitalized software development costs, and income taxes, adjusted to exclude the effects of net foreign exchange gain (loss), stock-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations.
Adjusted EBITDA We calculate adjusted EBITDA as net income before interest income (expense), net, other income (expense), depreciation and amortization of acquisition-related intangible assets and capitalized software development costs, and income taxes, adjusted to exclude the effects of net foreign exchange gain (loss), stock-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations.
We will continue to leverage emerging technologies and invest in the development of more features and better functionality for consumers. 60 Key Performance and Non-GAAP Measures We use the following metrics to measure our performance, identify trends affecting our business, prepare financial projections and make strategic decisions.
We will continue to leverage emerging technologies and invest in the development of more features and better functionality for consumers. 50 Key Performance and Non-GAAP Measures We use the following metrics to measure our performance, identify trends affecting our business, prepare financial projections and make strategic decisions.
In particular, we exclude interchange and assessment fees in the presentation of contribution profit because we believe inclusion is less directly reflective of our operating performance as we do not control the payment channel used by consumers, which is the primary determinant of the amount of interchange and assessment fees.
In particular, we exclude interchange, assessment and other network fees in the presentation of contribution profit because we believe inclusion is less directly reflective of our operating performance as we do not control the payment channel used by consumers, which is the primary determinant of the amount of interchange, assessment and other network fees.
The increase in 2024 was primarily driven by growth in transaction count and volume driven by the addition of new billers and financial institutions and increased transactions from our existing billers and financial institutions.
The increase in 2025 was primarily driven by growth in transaction count and volume driven by the addition of new billers and financial institutions and increased transactions from our existing billers and financial institutions.
We amortize these development costs over the estimated useful life of three to five years on a straight-line basis. We believe there are two key estimates within the internal-use capitalized software development balance, which are the determination of the useful life of the software and the determination of the amounts to be capitalized.
We amortize these development costs over the estimated useful life on a straight-line basis. We believe there are two key estimates within the internal-use capitalized software development balance, which are the determination of the useful life of the software and the determination of the amounts to be capitalized.
A discussion of changes in our results of operations from fiscal year 2022 to fiscal year 2023 and a discussion of our liquidity and capital resources for 2022 has been omitted from this Annual Report on Form 10-K but may be found under the heading "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Comparison of the Years Ended December 31, 2023 and 2022" and "—Liquidity and Capital Resources—"Sources and Uses of Funds" and "—Historical Cash Flows" in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 5, 2024, which is available free of charge on the SECs website at www.sec.gov and our website at https://ir.paymentus.com/home/default.aspx .
A discussion of changes in our results of operations from fiscal year 2023 to fiscal year 2024 and a discussion of our liquidity and capital resources for 2024 have been omitted from this Annual Report on Form 10-K but may be found under the heading "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Comparison of the Years Ended December 31, 2024 and 2023" and "—Liquidity and Capital Resources—"Sources and Uses of Funds" and "—Historical Cash Flows" in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 11, 2025, which is available free of charge on the SEC's website at www.sec.gov and our website at https://ir.paymentus.com/home/default.aspx .
Transactions Processed Year Ended December 31, 2024 2023 2022 (in millions) Transactions processed 597.0 458.2 366.8 We define transactions processed as the number of revenue generating payment transactions, such as checks, credit card and debit card transactions, automated clearing house, or ACH, items and emerging payment types, which are initiated and generally processed through our platform during a period.
Transactions Processed Year Ended December 31, 2025 2024 2023 (in millions) Transactions processed 724.0 597.0 458.2 We define transactions processed as the number of revenue generating payment transactions, such as checks, credit card and debit card transactions, automated clearing house (ACH) items and emerging payment types, which are initiated and generally processed through our platform during a period.
Our platform was used by approximately 46 million consumers and businesses globally in December 2024 to pay their bills, make money movements and engage with our clients.
Our platform was used by approximately 53 million consumers and businesses globally in December 2025 to pay their bills, make money movements and engage with our clients.
In circumstances where we have minimum revenue or transaction commitments, determining the appropriate accounting treatment of fixed and variable consideration may require considerable judgment. We will evaluate our accounts receivable portfolio to determine if an allowance for credit losses is necessary.
In circumstances where we have minimum revenue or transaction commitments, determining the appropriate accounting treatment of fixed and variable consideration, including the assessment of the risk of revenue reversal to ensure revenue is not overstated, may require considerable judgment. We will evaluate our accounts receivable portfolio to determine if an allowance for credit losses is necessary.
Net cash provided by operating activities mainly consists of our net income (loss) adjusted for certain non-cash items, including depreciation and amortization, stock-based compensation, other non-cash income and expense items, and net changes in operating assets and liabilities. Net cash provided by operating activities for the year ended December 31, 2024 was $63.6 million.
Net cash provided by operating activities mainly consists of our net income adjusted for certain non-cash items, including depreciation and amortization, stock-based compensation, other non-cash income and expense items, and net changes in operating assets and liabilities. Net cash provided by operating activities for the year ended December 31, 2025 was $162.1 million.
Our ability to attract new, and maintain existing, billers and financial institutions and drive adoption of our platform will depend on a number of factors, including the effectiveness and pricing of our products, offerings of our competitors and the effectiveness of our marketing efforts.
Our client base includes a broad and diverse range of billers and financial institutions. Our ability to attract new, and maintain existing, billers and financial institutions and drive adoption of our platform will depend on a number of factors, including the effectiveness and pricing of our products, offerings of our competitors and the effectiveness of our marketing efforts.
The number of transactions also includes account-to-account and person-to-person transfers. The number of transactions processed during the year ended December 31, 2024 increased approximately 30.3% as compared to 2023. The number of transactions processed during the year ended December 31, 2023 increased approximately 24.9% as compared to 2022.
The number of transactions also includes account-to-account and person-to-person transfers. The number of transactions processed during the year ended December 31, 2025 increased approximately 21.3% as compared to 2024. The number of transactions processed during the year ended December 31, 2024 increased approximately 30.3% as compared to 2023.
We believe that existing unrestricted cash and cash equivalents will be sufficient to support our working capital and capital expenditure requirements for at least the next 12 months. Since inception, we have financed operations primarily through the sale of equity securities and revenue from payment transaction fees.
We believe that existing unrestricted cash and cash equivalents will be sufficient to support our working capital, capital expenditure and other commitments described in the "Contractual Obligations and Other Commitments" section below, for at least the next 12 months. Since inception, we have financed operations primarily through the sale of equity securities and revenue from payment transaction fees.
Contribution Profit Year Ended December 31, 2024 2023 2022 (in thousands) Gross profit $ 238,170 $ 182,342 $ 149,678 Plus: other cost of revenue 73,898 58,606 51,622 Contribution profit $ 312,068 $ 240,948 $ 201,300 In general, contribution profit is driven by the number of transactions we process offset by network fees associated with processing those transactions.
Contribution Profit Year Ended December 31, 2025 2024 2023 (in thousands) Gross profit $ 296,342 $ 238,170 $ 182,342 Plus: other cost of revenue 89,967 73,898 58,606 Contribution profit $ 386,309 $ 312,068 $ 240,948 In general, contribution profit is driven by the number of transactions we process offset by network fees associated with processing those transactions.
Net cash provided by operating activities for the year ended December 31, 2023 was $68.8 million. Net income was $22.3 million, adjusted for non-cash charges of $46.1 million consisting primarily of depreciation and amortization, stock-based compensation, amortization of capitalized contract acquisition costs and warrants cost, and non-cash lease expense, which contributed positively to operating activities.
Net cash provided by operating activities for the year ended December 31, 2024 was $63.6 million. Net income was $44.2 million, adjusted for non-cash charges of $52.1 million consisting primarily of depreciation and amortization, stock-based compensation, amortization of capitalized contract acquisition costs and warrants cost, and non-cash lease expense, which contributed positively to operating activities.
While we do not anticipate any significant changes to this three to five-year estimate, a change in this estimate could produce a material impact on our financial statements.
While we do not anticipate any significant changes to the estimated useful life, a change in this estimate could produce a material impact on our financial statements.
To properly and prudently evaluate our business, we encourage you to review the consolidated financial statements and related notes included elsewhere in this report and to not rely on any single financial measure to evaluate our business.
We also urge you to review the reconciliation of these non-GAAP financial measures included below. To properly and prudently evaluate our business, we encourage you to review the consolidated financial statements and related notes included elsewhere in this report and to not rely on any single financial measure to evaluate our business.
Contribution profit for the year ended December 31, 2024 increased approximately 29.5% as compared to 2023 and increased approximately 19.7% for the year ended December 31, 2023 as compared to 2022.
Contribution profit for the year ended December 31, 2025 increased approximately 23.8% as compared to 2024 and increased approximately 29.5% for the year ended December 31, 2024 as compared to 2023.
Adjusted Gross Profit Year Ended December 31, 2024 2023 2022 (in thousands) Gross profit $ 238,170 $ 182,342 $ 149,678 Stock-based compensation 251 156 — Amortization of capitalized software development costs 17,911 13,341 8,761 Amortization of acquisition-related intangibles 3,313 3,314 3,316 Adjusted gross profit $ 259,645 $ 199,153 $ 161,755 Adjusted gross profit for the year ended December 31, 2024 increased 30.4% as compared to 2023 and increased 23.1% for the year ended December 31, 2023 as compared to 2022.
Adjusted Gross Profit Year Ended December 31, 2025 2024 2023 (in thousands) Gross profit $ 296,342 $ 238,170 $ 182,342 Stock-based compensation 287 251 156 Amortization of capitalized software development costs 22,520 17,911 13,341 Amortization of acquisition-related intangibles 2,209 3,313 3,314 Adjusted gross profit $ 321,358 $ 259,645 $ 199,153 Adjusted gross profit for the year ended December 31, 2025 increased 23.8% as compared to 2024 and increased 30.4% for the year ended December 31, 2024 as compared to 2023.
Overview We are a leading provider of cloud-based bill payment technology and solutions. We deliver our next-generation product suite through a modern technology stack to more than 2,500 biller business and financial institution clients.
Overview As a leading provider of cloud-based bill payment technology and solutions, we deliver our next-generation product suite through a modern technology stack to a broad and diverse base of business and financial institution clients.
Net income was $44.2 million, adjusted for non-cash charges of $55.4 million consisting primarily of depreciation and amortization, stock-based compensation, amortization of capitalized contract acquisition costs and warrants cost, and non-cash lease expense, which contributed positively to operating activities. This was decreased by net cash outflows of $36.0 million for changes in our operating assets and liabilities.
Net income was $66.9 million, adjusted for non-cash charges of $66.7 million consisting primarily of depreciation and amortization, stock-based compensation, amortization of capitalized contract acquisition costs and warrants cost, and non-cash lease expense, which contributed positively to operating activities. This was further supported by net cash inflows of $28.5 million for changes in our operating assets and liabilities.
We have observed that consumers demand a frictionless electronic bill payment experience and increasingly prefer more flexible and innovative digital payment options. We expect this trend to continue, providing us with a greater opportunity to provide next-generation bill and digital payment technology and power more transactions, further fueling our growth.
We expect this trend to continue, providing us with a greater opportunity to provide next-generation bill and digital payment technology and power more transactions, further fueling our growth.
Our non-GAAP measures may not be comparable to similarly titled measures of other companies; other companies, including companies in our industry, 61 may calculate non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes.
Our non-GAAP measures may not be comparable to similarly titled measures of other companies; other companies, including companies in our industry, may calculate non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes. These non-GAAP measures should not be considered in isolation from or as a substitute for financial measures prepared in accordance with GAAP.
We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position will be sustainable upon examination by the taxing authority, including resolution of any related appeals or litigation processes.
Our tax positions are subject to income tax audits by multiple tax jurisdictions such as U.S., Canada and India. We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position will be sustainable upon examination by the taxing authority, including resolution of any related appeals or litigation processes.
These supplemental non-GAAP measures include contribution profit, adjusted gross profit, adjusted EBITDA and free cash flow. Contribution Profit We calculate contribution profit as gross profit plus other cost of revenue. Other cost of revenue equals cost of revenue less interchange and assessment fees paid by us to our payment processors.
Contribution Profit We calculate contribution profit as gross profit plus other cost of revenue. Other cost of revenue equals cost of revenue less interchange, assessment and other network fees paid by us to our payment processors.
A valuation allowance is established if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
A valuation allowance is established if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2025, our valuation allowance was immaterial and related primarily to specific foreign tax credits.
We serve billers of all sizes that primarily provide non-discretionary services across a variety of industry verticals, including utilities, financial services, insurance, government, telecommunications, real estate management, education, consumer finance, healthcare and small business. We also serve financial institutions by providing them with a modern platform that their customers use for bill payment, account-to-account transfers and person-to-person transfers.
We serve billers of all sizes that primarily provide non-discretionary services across a variety of industry verticals, including utilities, financial services, insurance, government, telecommunications, real estate management, education, consumer finance, healthcare, business to business (B2B) and small business.
Off-Balance Sheet Arrangements We have not entered into any off-balance sheet arrangements and do not have any holdings in variable interest entities. Critical Accounting Policies and Estimates Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with GAAP.
Critical Accounting Policies and Estimates Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with GAAP.
Any future indebtedness we incur may result in terms that could be unfavorable to equity investors. 65 Historical Cash Flows The following table summarizes our consolidated cash flows: Year Ended December 31, 2024 2023 2022 (in thousands) Net cash provided by (used in) Operating activities $ 63,634 $ 68,828 $ 19,867 Investing activities (36,761 ) (34,299 ) (34,560 ) Financing activities (207 ) (1,195 ) (37,283 ) Effects of foreign exchange on cash (450 ) 176 (168 ) Net increase (decrease) in cash, cash equivalents and restricted cash $ 26,216 $ 33,510 $ (52,144 ) Net Cash Provided by Operating Activities Our primary source of operating cash is revenue from payment transaction fees.
Historical Cash Flows The following table summarizes our consolidated cash flows: Year Ended December 31, 2025 2024 2023 (in thousands) Net cash provided by (used in) Operating activities $ 162,127 $ 63,634 $ 68,828 Investing activities (36,518 ) (36,761 ) (34,299 ) Financing activities (10,577 ) (207 ) (1,195 ) Effects of foreign exchange on cash 95 (450 ) 176 Net increase in cash, cash equivalents and restricted cash $ 115,127 $ 26,216 $ 33,510 Net Cash Provided by Operating Activities Our primary source of operating cash is revenue from payment transaction fees.
The increase in amortization for 2024 and 2023 was driven by the additional capitalization of software costs. 62 Adjusted EBITDA Year Ended December 31, 2024 2023 2022 (in thousands) Net income (loss) — GAAP $ 44,169 $ 22,322 $ (513 ) Interest income, net (8,742 ) (7,019 ) (1,663 ) Other income (1) (213 ) — — Provision for (benefit from) income taxes 9,775 2,802 (795 ) Amortization of capitalized software development costs 27,586 21,349 14,621 Amortization of acquisition-related intangibles 8,081 8,380 8,176 Depreciation 817 871 1,266 EBITDA $ 81,473 $ 48,705 $ 21,092 Adjustments Foreign exchange gain (132 ) (12 ) (5 ) Stock-based compensation 12,855 9,390 6,736 Other nonrecurring expenses (2) — — 769 Adjusted EBITDA $ 94,196 $ 58,083 $ 28,592 (1) Other income consists of a remeasurement adjustment relating to the purchase price of a prior acquisition.
The increase in amortization for 2025 was primarily due to expansion of the amortizable base associated with capitalized software. 52 Adjusted EBITDA Year Ended December 31, 2025 2024 2023 (in thousands) Net income — GAAP $ 66,937 $ 44,169 $ 22,322 Interest income (9,506 ) (8,742 ) (7,019 ) Other income (1) — (213 ) — Provision for income taxes 18,338 9,775 2,802 Amortization of capitalized software development costs 33,304 27,586 21,349 Amortization of acquisition-related intangibles 7,088 8,081 8,380 Depreciation 666 817 871 EBITDA $ 116,827 $ 81,473 $ 48,705 Adjustments Foreign exchange gain (229 ) (132 ) (12 ) Stock-based compensation 20,821 12,855 9,390 Adjusted EBITDA $ 137,419 $ 94,196 $ 58,083 (1) Other income consists of a remeasurement adjustment relating to the purchase price of a prior acquisition.
If circumstances relating to specific billers change or unanticipated changes occur in the general business environment, our estimate of the recoverability of receivables could be further adjusted. Business Combinations Upon acquisition of a company, we determine if the transaction is a business combination, which is accounted for using the acquisition method of accounting.
If circumstances relating to specific billers change or unanticipated changes occur in the general business environment, our estimate of the recoverability of receivables could be further adjusted.
General and Administrative Expenses The marginal increase in general and administrative expenses was primarily due to increases in professional fees and legal fees, which were offset by lower cost of insurance premiums of certain business policies. Interest income, net The changes in interest income, net was a result of higher cash balances held with banks.
General and Administrative Expenses The increase in general and administrative expenses was primarily due to increases in employee-related costs, including higher stock-based compensation, professional and legal fees and insurance premiums of certain business policies. Interest income Interest income increased due to higher cash balances held with banks.
Net cash used in financing activities for the year ended December 31, 2023 consisted of $1.7 million of payments on other financing obligations, $0.1 million of payments on finance leases, offset by $0.6 million proceeds from exercise of stock-based awards by employees. 66 Contractual Obligations and Other Commitments The following table summarizes our contractual obligations and commitments in cash as of December 31, 2024: Total Less than 1 Year 1 - 3 Years 3 - 5 Years More than 5 Years Operating lease liabilities (1) 9,046 2,424 3,833 1,853 936 Purchase obligations (2) 10,943 7,716 3,227 Other (3) 412 412 20,401 10,552 7,060 1,853 936 (1) Consists of operating lease liabilities for office space.
Net cash used in financing activities for the year ended December 31, 2024 consisted of $0.5 million of payments related to holdback liabilities settlement offset by $0.3 million of proceeds from exercise of stock-based awards by employees. 56 Contractual Obligations and Other Commitments The following table summarizes our contractual obligations and commitments in cash as of December 31, 2025: Total Less than 1 Year 1 - 3 Years 3 - 5 Years More than 5 Years Operating lease liabilities (1) 7,286 2,571 2,800 1,774 141 Purchase obligations (2) 14,753 9,252 5,501 — — 22,039 11,823 8,301 1,774 141 (1) Consists of operating lease liabilities for office space.
Free Cash Flow Year Ended December 31, 2024 2023 2022 (in thousands) Net cash provided by operating activities $ 63,634 $ 68,828 $ 19,867 Purchases of property and equipment (457 ) (600 ) (1,257 ) Other intangible assets acquired — — (280 ) Capitalized internal-use software development costs (36,119 ) (33,699 ) (29,763 ) Free cash flow $ 27,058 $ 34,529 $ (11,433 ) Net cash used in investing activities $ (36,761 ) $ (34,299 ) $ (34,560 ) Net cash used in financing activities $ (207 ) $ (1,195 ) $ (37,283 ) The decrease in free cash flow for the year ended December 31, 2024 compared to 2023 was primarily as a result of a decrease in cash generated from operations, together with increases in capitalized software development costs.
Free Cash Flow Year Ended December 31, 2025 2024 2023 (in thousands) Net cash provided by operating activities $ 162,127 $ 63,634 $ 68,828 Purchases of property and equipment (361 ) (457 ) (600 ) Capitalized internal-use software development costs (36,737 ) (36,119 ) (33,699 ) Free cash flow $ 125,029 $ 27,058 $ 34,529 The increase in free cash flow for the year ended December 31, 2025 compared to 2024 was primarily the result of an increase in cash generated from operations.
In addition, our modern platform architecture allows us to provide integration, implementation, maintenance and upgrades at no additional cost to billers. Impact of Economic and Inflationary Trends The United States economy experienced inflationary conditions in 2022 and 2023, with some moderation throughout 2024. Interest rates remained relatively stable in 2024, and were cut near the end of the year.
In addition, our modern platform architecture allows us to provide integration, implementation, maintenance and upgrades at no additional cost to billers. Impact of Economic and Inflationary Trends The U.S. economy experienced prolonged economic uncertainty and inflationary conditions in 2022 and into 2023, followed by partial stabilization in 2024.
Net cash used in investing activities for the year ended December 31, 2023 consisted of $33.7 million of capitalized internal-use software development costs and $0.6 million of purchases of property and equipment. Net Cash Used in Financing Activities Cash used in financing activities consists primarily of option exercises and payments related to holdback liabilities related to acquisitions.
Net Cash Used in Investing Activities Net cash used in investing activities for the year ended December 31, 2025 consisted of $36.7 million of capitalized internal-use software development costs, $0.4 million of purchases of property and equipment, offset by $0.6 million of net change in interest-bearing deposits.
Net cash used in financing activities for the year ended December 31, 2024 consisted of $0.5 million of payments related to holdback liabilities settlement offset by $0.3 million proceeds from the exercise of stock options.
Net Cash Used in Financing Activities Net cash used in financing activities for the year ended December 31, 2025 consisted of $10.7 million of payments of taxes withheld on net settled vesting of restricted stock units, offset by $0.2 million of proceeds from the exercise of stock options.
This includes the transition from an emerging growth company to a large accelerated filer for SEC compliance. We expect that 59 our general and administrative expenses will increase in absolute dollars, but they may fluctuate as a percentage of revenue from period to period.
We expect that our general and administrative expenses will increase in absolute dollars, but they may fluctuate as a percentage of revenue from period to period. Over the longer term, we expect general and administrative expenses to decrease as a percentage of revenue as we leverage the scale of our business.
The increase for both years was primarily driven by the addition of new billers and increased transactions from our existing billers. Non-GAAP Measures We use supplemental measures of our performance that are derived from our consolidated financial information but which are not presented in our consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP.
Non-GAAP Measures We use supplemental measures of our performance that are derived from our consolidated financial information but which are not presented in our consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). These supplemental non-GAAP measures include contribution profit, adjusted gross profit, adjusted EBITDA and free cash flow.
We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, in assessing the need for a valuation allowance. 69 Our tax positions are subject to income tax audits by multiple tax jurisdictions such as USA, Canada and India.
We previously released our domestic valuation allowance in 2024 based on sustained profitability. We continue to monitor all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, in assessing the need for a valuation allowance.
(2) Consists of purchase obligations which were not recognized on the balance sheet as of December 31, 2024, related primarily to infrastructure services and IT software and maintenance service costs. (3) Consists of Acquisition holdback payments due to the former owners of PROFIT.
(2) Consists of purchase obligations which were not recognized on the balance sheet as of December 31, 2025, related primarily to infrastructure services and IT software and maintenance service costs. Off-Balance Sheet Arrangements We have not entered into any off-balance sheet arrangements and do not have any holdings in variable interest entities.
Research and Development Expenses The increase in research and development expenses was primarily due to increased amortization of capitalized internal-use software development costs, an increase in employee-related costs, including an increase in stock-based compensation and an increase in subscription cost for operational third party services.
Research and Development Expenses Research and development expenses increased primarily due to an increase in employee-related costs, including benefits, driven by increased headcount, higher stock-based compensation and increases in annual compensation, a rise in cloud computing services expenses, reflecting higher utilization of our cloud-based infrastructure and increased data processing demands, an increase in the amortization of capitalized internal-use software development costs and an increase in expenses related to third-party software and technology licenses.
Over the longer term, we expect general and administrative expenses to decrease as a percentage of revenue as we leverage the scale of our business. Factors Affecting Our Performance Increased Adoption of Electronic Bill Payment Solutions As the number of financial transactions online continues to increase, electronic bill payment is becoming a greater share of the bill payment market.
Factors Affecting Our Performance Increased Adoption of Electronic Bill Payment Solutions As the number of financial transactions online continues to increase, electronic bill payment is becoming a greater share of the bill payment market. We have observed that consumers demand a frictionless electronic bill payment experience and increasingly prefer more flexible and innovative digital payment options.
(2) Other nonrecurring expenses represent an estimated liability booked in 2022 related to the cost of terminating a commercial contract. As adjusted EBITDA is a measure of profitability, it is generally expected to move in line with revenue, contribution profit, gross profit and adjusted gross profit.
As adjusted EBITDA is a measure of profitability, it is generally expected to move in line with revenue, contribution profit, gross profit and adjusted gross profit. Adjusted EBITDA increased 45.9% for the year ended December 31, 2025 compared to 2024 and increased 62.2% for the year ended December 31, 2024 compared to 2023.
The increase in 2024 was primarily driven by growth in transaction count and volume driven by the addition of new billers and financial institutions and increased transactions from our existing billers and financial institutions.
The increase in 2025 was primarily driven by the addition of new billers and financial institutions and increased activity from existing billers. The year-over-year change in growth rate reflects a shift in biller mix, including the onboarding of large enterprise billers that typically contribute higher payment volumes relative to transaction counts.
Stock-based Compensation We measure and recognize stock-based compensation expense for all stock-based awards, including grants of restricted stock units, or RSUs, and options to purchase stock granted to employees, outside directors and consultants based on the estimated fair value of the awards on the grant date of the award with the compensation expense recognized on a straight‑line basis over the vesting period of the award.
Stock-based Compensation We recognize stock-based compensation expense for all awards, primarily restricted stock units (RSUs), based on their grant-date fair value. For RSUs, this is the market closing price of our Class A common stock on the grant date.
Income Taxes The change in provision for income taxes, as well as the increase in our effective tax rate, which increased to 18.1% for the year ended December 31, 2024 as compared to 11.2% for the same period in the prior year, was primarily due to an increase in taxable income after utilizing a significant amount of net operating losses (NOLs), which were previously subject to a full valuation allowance.
Income Taxes For the year ended December 31, 2025, the effective tax rate increased to 21.5% compared to 18.1% for the same period in the prior year. The rate for the current period was in line with the U.S. federal statutory rate of 21%.
This was increased by net cash inflows of $0.4 million for changes in our operating assets and liabilities. Net Cash Used in Investing Activities Cash used in our investing activities consists primarily of cash paid for capitalized internal-use software development costs and purchases of property and equipment and change in interest-bearing deposits.
This was decreased by net cash outflows of $32.7 million for changes in our operating assets and liabilities.
While inflationary conditions have stabilized, elevated costs—particularly in the utility sector—and higher interchange fees continue to impact our operations. To mitigate these pressures, we are proactively adjusting our pricing strategies; however, the timing of these adjustments typically lags behind the inflationary effects experienced by our clients.
Inflationary pressures also lead to higher average bills, especially in the utility sector, and increased interchange fees. We may be unable to fully adjust our pricing to address these pressures, and our adjustments typically lag behind the impact of inflation on clients, rising bill amounts and increased interchange fees.
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Gross domestic product showed growth, reflecting an improving economic environment. However, the impacts of prior years' inflation and economic uncertainty persists and may continue to pose challenges to our performance through 2025. In addition, the introduction of new tariffs or the escalation of trade disputes with other countries could potentially affect our future performance.
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We also serve financial institutions by providing them with a modern platform that their customers use for bill payment, account-to-account transfers and person-to-person transfers.
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We remain 58 committed to monitoring the economic landscape closely and will implement further pricing adjustments as needed to address ongoing market dynamics and maintain the resilience of our business. Components of Results of Operations Revenue We generate substantially all of our revenue from payment transaction fees.
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Although inflation continued to moderate in 2025, the economy was still affected by lingering cost pressures and uneven economic conditions.
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We expect that cost of revenue will increase in absolute dollars alongside revenue growth, but it may fluctuate as a percentage of revenue from period to period, as our transaction mix changes and we continue to invest in growing our business across all geographical segments, including through the potential acquisition of other businesses.
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While we continued to achieve significant growth in transaction volume and revenue during this period, these macro trends required a sustained focus on operational efficiencies and proactive pricing adjustments to mitigate the impact of rising external costs, such as interchange and processor fees.
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We had more than 2,500 billers and financial institution clients as of December 31, 2024, including billers of all sizes and across numerous vertical markets and financial institutions of all sizes.
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Despite some improvement, overall economic uncertainty remains elevated in 2026 and could continue to adversely affect our results. Ongoing uncertainty regarding tariffs or trade disputes may further exacerbate these risks. 48 In addition, these economic conditions or a worsening thereof, could cause clients to defer anticipated implementations or reevaluate development of technology resources, which may delay expected revenue recognition.
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These non-GAAP measures should not be considered in isolation from or as a substitute for financial measures prepared in accordance with GAAP. We also urge you to review the reconciliation of these non-GAAP financial measures included below.
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Additionally, ongoing wage pressures due to inflation are placing short-term pressure on our margins, posing challenges for expense management. Continued economic uncertainty and inflationary conditions could have a material adverse impact on our business, operating results and financial condition. Components of Results of Operations Revenue We generate substantially all of our revenue from payment transaction fees.
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The increase in 2023 was primarily driven by the addition of new billers and increased transactions from our existing billers, together with improvements resulting from disinflation in the utility sector on a year over year basis, pricing improvements from customers related to our inflation management and the implementation of certain cost improvement measures.
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We anticipate that cost of revenue will increase in absolute dollars for the foreseeable future as we expand our operations. However, cost of revenue as a percentage of total revenue may vary between periods due to shifts in transaction mix, continued investment in our expansion, and the potential integration of acquired businesses or technologies.
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For 2023 and 2024, contribution profit increased at a slower rate than transactions processed due to a continued mix shift to larger, high volume clients.
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Adjusted EBITDA increased across the presented periods, primarily reflecting higher transaction counts and volumes. This growth was attributable to the addition of new billers and financial institutions, combined with increased activity from existing partners.
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Adjusted EBITDA increased 62.2% for the year ended December 31, 2024 compared to 2023 and increased 103.1% for the year ended December 31, 2023 compared to 2022.
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Cost of Revenue, Gross Profit and Gross Margin The increase in cost of revenue was directly attributable to higher revenue and transaction volumes, as these costs are predominantly variable and consist mainly of interchange and processor fees. Gross margin decreased as a result of a customer mix shift toward high-volume enterprise billers.
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Adjusted EBITDA increased from 2022 to 2023 due to growth in transaction count and volume driven by the addition of new billers and financial institutions and increased transactions from our existing billers and financial institutions, together with improvements resulting from disinflation in the utility sector on a year over year basis, pricing improvements from customers related to our inflation management, the implementation of certain cost improvement measures and lower general and administrative expenditures primarily driven by lower insurance premiums and acquisition related costs.
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This effect was partially mitigated by benefits from economies of scale.
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Cash generated from operations decreased in 2024 compared to 2023 primarily due to increased income taxes and investment in working capital during 2024 as we scaled significantly.
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Sales and Marketing Expenses The growth in sales and marketing expenses was primarily due to increases in reseller commissions and marketing expenses, which were offset by lower employee-related costs.
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Cost of Revenue, Gross Profit and Gross Margin The increase in cost of revenue was driven by the increase in revenue and transactions processed, as it consists primarily of interchange fees and processor costs, as well as other direct costs associated with making our platform available to our billers.
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The change in the provision for income taxes and the variance from the federal statutory rate were primarily driven by a combination of factors, including (1) permanent differences for disallowed compensation pursuant to Internal Revenue Code (IRC) Section 162(m), (2) the impact of state taxes, (3) discrete benefits recognized for excess tax deductions on stock-based compensation, and (4) the finalization of prior year Canadian and U.S.
Removed
Gross margin experienced a decrease, driven by changes in customer mix resulting primarily from the addition of large, high-volume enterprise billers with lower margins in our biller mix. This decline was partially offset by cost improvement initiatives and the realization of economies of scale.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeOur market risk exposure is primarily the result of fluctuations in interest rates and foreign currency exchange rates. Interest Rate Risk Our unrestricted cash and cash equivalents consist of bank deposits and money market funds with original maturities of three months or less. Our cash and cash equivalents are held for working capital purposes.
Biggest changeOur market risk exposure is primarily the result of fluctuations in interest rates and foreign currency exchange rates. Interest Rate Risk Our unrestricted cash and cash equivalents consist of bank deposits and money market funds, and term deposits with original maturities of three months or less.
While we have generated substantially all of our revenue from billers in the United States, we have foreign currency risks related to revenue denominated in other currencies, such as the Canadian dollar. In addition, we have significant operations outside of the United States, particularly in Canada and India, where expenses are denominated in the local currency.
While we have generated substantially all of our revenue from billers in the United States, we have foreign currency risks related to revenue denominated in other currencies, such as the Canadian dollar. In addition, we have significant operations outside of the U.S., particularly in Canada and India, where expenses are denominated in the local currency.
As of December 31, 2024, we do not believe that a hypothetical 10% increase or decrease in the relative value of the U.S. dollar to other applicable currencies would have a material effect on operating results. 70
As of December 31, 2025, we do not believe that a hypothetical 10% increase or decrease in the relative value of the U.S. dollar to other applicable currencies would have a material effect on operating results. 59
As of December 31, 2024, we do not believe that a hypothetical 10% relative change in interest rates would have had a material impact on the value of our cash equivalents, investment portfolio or expenses. Foreign Currency Exchange Risk Certain of our operations are conducted in foreign currencies.
As of December 31, 2025, we do not believe that a hypothetical 10% relative change in interest rates would have had a material impact on the value of our cash equivalents, term deposits or result of operations. Foreign Currency Exchange Risk Certain of our operations are conducted in foreign currencies.
We do not enter into investments for trading or speculative purposes. Interest income associated with our cash equivalents and our investment portfolio are subject to market risk due to changes in interest rates. In addition, we have no variable interest rate indebtedness.
Interest income associated with our cash equivalents and term deposits are subject to market risk due to changes in interest rates. In addition, we have no variable interest rate indebtedness.
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We also maintain term deposits with original maturities exceeding three months, which are classified within prepaid expenses and other assets. Our cash and cash equivalents are held for working capital purposes. We do not enter into investments for trading or speculative purposes.

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