Q3 2025 Paysign Inc Earnings Call

November 12, 2025

Operator: 2025 Earnings Conference Call. After the speaker's remarks, there will be a question and answer session. As a reminder, this conference call is being recorded. The comments on today's call regarding Paysign's financial results will be on a GAAP basis unless otherwise noted. Paysign's earnings release was disseminated to the SEC earlier today and can be found on the investor relations section of our website, paysign.com, which includes reconciliations of non-GAAP measures to GAAP reported amounts. Additionally, as set forth in more detail in the earnings release, I would like to remind everyone that today's call will include forward-looking statements regarding Paysign's future performance. Actual performance could differ materially from these forward-looking statements.

At the Speakers' remarks, there will be a question and answer session.

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As a reminder, this conference call is being recorded the comments on today's call regarding <unk> financial results will be on a GAAP basis, unless otherwise noted.

<unk> earnings release was disseminated to the S. E. C earlier today and can be found on the Investor Relations section of our website pay Si dot com, which includes reconciliations of non-GAAP measures to GAAP reported amounts. Additionally, as set forth in more detail in the earnings release I would like to remind everyone that today's call will include forward looking statements.

Jacob Stephan: Okay. Understood. I appreciate all the color, nice work.

Jeff Baker: Thank you. The other thing I will say, Jacob, is you can't look—I appreciate you calling us out—you cannot look sequentially at these numbers. You have to look on a year-over-year basis. Last year, we did $56,700 in the fourth quarter revenue per program. That will be up year-over-year—that will be up year-over-year versus last year. This year, we did in the third quarter $75,434. Last year, we did just under $50,000. You have to look at this business on a year-over-year basis. Sequential numbers are absolutely meaningless.

Gardner <unk> future performance actual performance could differ materially from these forward looking statements information about the factors that could affect future performance is summarized at the end of pace as the earnings release and in its recent SEC filings and lastly, a replay of this call will be available until February 12 2026.

Operator: Information about the factors that could affect future performance is summarized at the end of Paysign's earnings release and in its recent SEC filings. Lastly, a replay of this call will be available until 12 February 2026. Please see Paysign's Q3 2025 earnings call announcement for details on how to access the replay. It is now my pleasure to turn the call over to Mr. Mark Newcomer, President and CEO. Please go ahead.

Please see pay science third quarter 2025 earnings call announcement for details on how to access the replay.

It is now my pleasure to turn the call over to Mr. Mark Newcomer President and CEO. Please go ahead.

Jacob Stephan: Okay. Very helpful. Thank you.

Jeff Baker: Yep.

Operator: Thank you. Our next question comes from the line of Gary Prestipino with Barrington Research. Please proceed with your question.

Thank you and good afternoon, everyone. I appreciate you joining us as we review our third quarter 2025 results.

Mark Newcomer: Thank you, good afternoon, everyone. I appreciate you joining us as we review our Q3 2025 results. I'm Mark Newcomer, President and CEO of Paysign. Joining me today is our CFO, Jeff Baker. Also on the call are Matt Turner, President of patient affordability, and Matt Lanford, our Chief Payments Officer, both of whom will be available for Q&A following our prepared remarks. I'm pleased to report another outstanding quarter of growth for Paysign. Earlier today, we announced record revenue of $21.6 million, up 41.6% year over year. Adjusted EBITDA reached a record $5 million, an increase of 78%, and net income rose 54% to $2.2 million or $0.04 per fully diluted share. Alongside these financial results, we achieved meaningful operational efficiencies that Jeff will discuss in more detail shortly.

I'm, Mark newcomer President and CEO of <unk>, joining me today is our CFO, Jeff Baker.

Gary Prestopino: Hi, everyone. Well, first of all, could you kind of tell us what a mature program would do on an average revenue basis versus you say $75,000 now, but you've obviously got some programs that are just coming into the mix or have just come into the mix. What does a mature program do per quarter?

Also on the call are Matt Turner, President and patient affordability, and Matt Lanford, our chief payments officer, both of whom will be available for Q&A following our prepared remarks.

I'm pleased to report another outstanding quarter of growth for pace on earlier today, we announced record revenue of $21 6 million up 41, 6% year over year adjusted EBITDA reached a record $5 million, an increase of 78% and net income rose 54% to <unk>.

Jeff Baker: Gary, it really depends. I don't mean to skip or overlook the question, but I mean, we have programs that do $2,000 a month, and we have programs that do 20x that. It really depends on the program. When it's mature, I mean, we see it coming into the numbers, and there are things that a drug may do. It may get another indication, which causes the claims to go up on a year-over-year basis. Some of the programs, it's just pretty much flat year-over-year. Once it becomes mature, it's really hard to say. To just say what a mature program is, it's too variable.

$2 2 million or four cents per fully diluted share alongside these financial results, we achieved meaningful operational efficiencies that Jeff will discuss in more detail shortly.

Okay.

Our patient affordability business continues its exceptional growth trajectory generating $7 9 million in revenue up 142% from the prior year's quarter.

Mark Newcomer: Our patient affordability business continues its exceptional growth trajectory, generating $7.9 million in revenue, up 142% from the prior year's quarter. We ended the quarter with 105 active programs and expect to add 20 to 30 more by year-end, including 13 launched in October. This would bring us to 125 to 135 active programs by the end of the year, compared to 76 at the end of 2024, a clear indicator of our sustained momentum and future growth potential. During the quarter, we announced the opening of our new 30,000 square foot patient support center, a major milestone for Paysign. This expansion quadruples our support capacity, enabling us to meet growing demand and deliver an exceptional service experience for our clients, patients, and providers.

We ended the quarter with 105 active programs and expect to add 20 to 30 more by year end, including 13 launched in October.

This would bring us to a 125 to 135 active programs by the end of the year compared to 76 at the end of 2020 for a clear indicator of our sustained momentum and future growth potential.

Gary Prestopino: Well, how about this? Is there a difference between a specialty versus just a regular retail program in terms of the average revenues?

During the quarter, we announced the opening of our new 30000 square foot patient support center, a major milestone for pace on this expansion quadruples, our support capacity, enabling us to meet growing demand and deliver an exceptional service experience for our clients patients and providers.

Matt Turner: Yeah. Hi, Gary. This is Matt. When you look at the different product suites that those programs would use, we would typically value a specialty program as being worth more money provided it has the appropriate indications. Again, it's all in the mix, right? I could name off 20 drugs right now that you've never once heard of, right? You've never heard of these drugs. I could name off five that you've heard of, and you'd be like, oh, if you have that drug because I've seen 500 TV ads for it, you've got to be making a ton of money with that drug. That could be right, or it could be wrong. It depends on the patient population of that drug. How old are they? Are they mostly on Medicare? Are they mostly on Medicaid?

This facility also supports a growing high value offering dedicated patient support representatives, which has become increasingly popular across our client base.

Mark Newcomer: This facility also supports a growing high-value offering, dedicated patient support representatives, which has become increasingly popular across our client base. Our growth is driven by comprehensive product offerings, best-in-class service, transparent pricing, and our proprietary dynamic business rules technology. By integrating dynamic business rules into the traditional commoditized pharmacy claims process, our pharmaceutical clients save hundreds of millions of dollars while unlocking new revenue streams across the patient affordability ecosystem. Our success in specialty pharmaceutical programs continues to open doors in the retail pharmaceutical space where higher claims volumes and multi-product manufacturer engagements present significant opportunities. Expanding our presence in this area remains a top priority of our sales teams. Our pipeline remains robust, fueled by both new and existing clients across retail and specialty.

Our growth is driven by comprehensive product offerings and best in class service transparent pricing and our proprietary dynamic business rules technology by integrating dynamic business rules and to the traditional Commoditized pharmacy claims process, our pharmaceutical clients save hundreds of millions of dollars, while unlocking new revenue streams across.

Matt Turner: It's a very complex thing to look at this and say, okay, well, I've heard of insert name of giant drug, and you think of the golf people talking about their psoriatic arthritis. You think, oh, well, that's a great drug. Yeah, that could be because that's not impacting the lion's share of the patients taking that drug who aren't 70 years old on Medicare. That could be a good one. I could bring up other drugs that you've heard about that are cancer therapies or for Alzheimer's. Even though those are huge drugs for their companies, for the manufacturer, they're not going to make us any money. You really have to look at how big a program is going to be based on what's the patient population, right? What's the cohort of the patient population that can utilize our products?

The patient affordability ecosystem.

Our success in specialty pharmaceutical programs continues to open doors, and the retail pharmaceutical space, where higher claims volumes and multi product manufacturer engagements presents significant opportunities expanding our presence in this area remains a top priority of our sales teams our pipeline remains robust fueled by both new and existing.

Clients across retail and specialty we anticipate activity from new drug launches and transition programs already in the queue with sales cycle holding steady at roughly 90 days, a strong signal of consistent execution and demand our mission extends well beyond payments, we're redefining how financial support is delivered across <unk>.

Mark Newcomer: We anticipate activity from new drug launches and transition programs already in the queue, with sales cycle holding steady at roughly 90 days, a strong signal of consistent execution and demand. Our mission extends well beyond payments. We're redefining how financial support is delivered across healthcare, removing cost barriers to treatment, and generating measurable savings for patients and our pharmaceutical partners alike. The continued strength of our Patient Affordability business underscores the power and scalability of our model. Turning to our plasma donor compensation business, revenue grew 12.4% year-over-year to a record $12.9 million, despite a net loss of 12 centers, leaving us with a total of 595 active centers at quarter end.

<unk> care, removing cost barriers to treatment and generating measurable savings for patients and our pharmaceutical partners alike. The continued strength of our patient affordability business underscores the power and scalability of our model.

Matt Turner: What other additional pieces can we stack on top of that? Mark talked about dynamic business rules. That's in the specialty space. We currently don't have that active on any of our retail programs. A specialty program utilizing dynamic business rules is going to be far more profitable to us and have higher top-line revenue numbers than a retail program that could be doing 10 times the claim volume. You really have to understand the drug specifically, their patient populations, and the cohorts of those patients that would potentially utilize copay inside of the overall eco or the overall numbers of the patients.

The patient affordability ecosystem, our success in specialty pharmaceutical programs continues to open doors and the retail pharmaceutical space for higher claims volumes and multi product manufacturer engagements presents significant opportunities expanding our presence in this area remains a top priority of our sales teams our pipeline remains robust.

Turning to our plasma donor compensation business revenue grew 12.4% year over year to a record $12 9 million. Despite a net loss of 12 centers, leaving us with a total of 595 active centers at quarter end as we have previously discussed the plasma industry continues to face an oversupply of source plasma which we.

Mark Newcomer: As we have previously discussed, the plasma industry continues to face an oversupply of sourced plasma, which we expect to normalize in the H1 of 2026. Encouragingly, average donor compensation per donation increased during the quarter, and that trend is carried into Q4. Combined with positive client discussions, we see potential for organic growth at the center level sooner than previously anticipated. We are executing on our strategy to expand our role in the blood and plasma ecosystem, evolving from a trusted payments provider to a technology partner. Our Software as a Service engagement platform, which includes a donor app, plasma specific CRM, and a donor management system, also known as a Blood Establishment Computer System or BECS, continues to generate strong interest both domestically and internationally.

Past fueled by both new and existing clients across retail and specialty we anticipate activity from new drug launches and transition programs already in the queue with sales cycle holding steady at roughly 90 days, a strong signal of consistent execution and demand our mission extends well beyond payments where reader.

We expect to normalize in the first half of 2026 Encouragingly average donor compensation per donation increased during the quarter and that trend has carried into Q4.

Combined with positive client discussions, we see potential for organic growth at the center level sooner than previously anticipated.

Gary Prestopino: Okay. I mean, that's helpful in that you can't really peg a drug to, or it's hard for us to ascertain what's going to add where. You just want to, on a drug basis or a program basis or retail versus specialty, as Jeff said, just look at the average revenue per program quarter over quarter, right?

Finding how financial support is delivered across health care, removing cost barriers to treatment and generating measurable savings for patients and our pharmaceutical partners alike. The continued strength of our patient affordability business underscores the power and scalability of our model.

We are executing on our strategy to expand our role in the blood and plasma ecosystem evolving from a trusted payments provider to a technology partner our software as a service engagement platform, which includes a donor app plasma specific CRM and a donor management system also known as a blood establishing.

Matt Turner: Yeah. I think, look, if we were able to—if our clients would let us just come out and tell you, we won this brand, I think you guys would be in a much better situation, right? Because you'd say, oh, hey, seen it on TV, and the people that take that drug are—most of them are going to be under 65. Hey, Paysign's probably going to do really well with that. Or, hey, this is an oncology product, and it's tiered towards breast cancer. In that instance, hey, we're probably going to do really well with that program. You can also look at the information coming out of the manufacturers as far as how big is that drug, how much revenue are they generating from it. Unfortunately, we can't do that.

Computer system or BACS continues to generate strong interest both domestically and internationally as we await FDA five 10-K clearance for the <unk>. We are actively showcasing the platform to the blood and plasma industry, who are eager to find efficient user friendly cost effective alternatives to the current offer.

Mark Newcomer: As we await FDA 510(k) clearance for the BECS, we are actively showcasing the platform to the blood and plasma industry who are eager to find efficient, user-friendly, cost-effective alternatives to the current offerings. The reception has been overwhelmingly positive, reinforcing our confidence in the long-term opportunity for this business line. In summary, Q3 was a stellar quarter of strong execution and innovation. We're scaling efficiently, expanding into new markets, and delivering transformative value across both patient affordability and plasma, two sectors where we're redefining expectations and disrupting the status quo. I'm incredibly proud of our team's continued focus and discipline. Their dedication to delivering results with purpose continues to drive our momentum. Looking ahead, we remain confident in our growth trajectory and firmly committed to building long-term value for our shareholders. With that, I'll turn it over to Jeff for a closer look at the financials.

We expect to normalize in the first half of 2026 Encouragingly average donor compensation per donation increased during the quarter and that trend has carried into Q4.

Hence the reception has been overwhelmingly positive reinforcing our confidence in the long term opportunity for this business line.

Combined with positive client discussions, we see potential for organic growth at the center level sooner than previously anticipated.

In summary, Q3 was a stellar quarter of strong execution and innovation, we're scaling efficiently expanding into new markets and delivering transformative value across both patient affordability and plasma to sectors, where we're redefining expectations and disrupting the status quo.

We are executing on our strategy to expand our role in the blood and plasma ecosystem.

All being from a trusted payments provider to a technology partner or software as a service engagement platform, which includes a donor app plasma specific C. O R M and a donor management system also known as a blood establishment computer system or BACS continues to generate strong interest both domestically and internationally.

Matt Turner: Almost every one of our master services agreements requires us to not disclose who our clients are, and the brands that we represent. It's certainly not for trying on our part to get them to allow us to talk about those brands. I think if you look back at previous earnings calls where we've been able to discuss specific brands or discuss specific clients, if you kind of chat GPT some questions out there, you might be able to get a better indication of the types of programs that we have running right now.

I'm incredibly proud of our team's continued focus and discipline their dedication to delivering results with purpose continues to drive our momentum looking ahead, we remain confident in our growth trajectory and firmly committed to building long term value for our shareholders with that I'll turn it over to Jeff for a closer look at the financials.

As we await F D. A five 10-K clearance for the banks, we are actively showcasing the platform to the blood and plasma industry, who are eager to find efficient user friendly cost effective alternatives to the current offerings. The reception has been overwhelmingly positive reinforcing our confidence in the long term.

Thank you Mark good afternoon, everyone as Mark said, we had another strong quarter as we continue to build momentum heading into 2026, we had some nice wins in our patient affordability business from both new relationships, bringing us multiple programs to existing customers, bringing us additional programs.

Jeff Baker: Thank you, Mark. Good afternoon, everyone. As Mark said, we had another strong quarter as we continue to build momentum heading into 2026. We had some nice wins in our patient affordability business from both new relationships bringing us multiple programs to existing customers bringing us additional programs. Our plasma business posted year-over-year growth during the quarter with the additions of the new centers we won in Q2. We exited the quarter with 595 active plasma centers and 105 active patient affordability programs. More importantly, we ended October with 118 active patient affordability programs, with additional programs being added weekly. Our consolidated gross profit margins continued to improve on a year-over-year basis despite the new plasma centers weighing on the margin due to their lack of maturity.

Gary Prestopino: Okay. Mark, you mentioned something about this BECCS, which I hadn't heard of at all. Maybe you could go into that and how that is going to help you going forward.

<unk> opportunity for this business line.

Our plasma business posted year over year growth during the quarter with the additions of the new centers, we won in the second quarter.

Mark Newcomer: Yeah. That is what we refer to as a blood establishment computer system or a BECCS. It's really a donor management system, and it allows us to place into the plasma blood space. We have a suite of products that we have built out as a software as a service that is, we're dealing with a donor app, a plasma-specific CRM, and the donor management system. What that allows us to do is gain a, it's really an additional business line that is going to allow us, once approved with the FDA, it is going to allow us to start running down that path.

We exited the quarter with 595 active plasma centers and 105 active patient affordability programs.

More importantly, we ended October with 118 active patient affordability programs with additional programs being added weekly.

Our consolidated gross profit margins continue to improve on a year over year basis. Despite the new plasma centers Wayne on the margin due to their lack of maturity.

We expect improvement from these levels as the new centers mature over the next six to nine months.

Jeff Baker: We expect improvement from these levels as the new centers mature over the next 6 to 9 months. We also expect improvement in our consolidated gross profit margins as we ramp up our new customer service contact center that we opened in September. As our business continues to grow and we continue to make the necessary investments in people and infrastructure to ensure the success of our growing business, we expect our operating margins and Adjusted EBITDA margins to continue to expand on a year-over-year basis, demonstrating the operating leverage inherent in our business. In summary, we could not be more excited about the prospects of our business for the remainder of this year and throughout 2026. I encourage everyone to read our 10-Q for more details about our financial results, which is expected to be filed tomorrow morning before the market opens.

We also expect improvement in our consolidated gross profit margins as we ramp up our new customer service contact center that we opened in September.

Gary Prestopino: Okay, thank you.

As our business continues to grow and we continue to make the necessary investments in people and infrastructure to ensure the success of our growing business. We expect our operating margins and adjusted EBITDA margins to continue to expand on a year over year basis, demonstrating the operating leverage inherent in our business.

Operator: Thank you. Our next question comes from the line of Peter Heckmann with DA Davidson. Please proceed with your question.

Our plasma business posted year over year growth during the quarter with the additions of the new centers. We won in the second quarter, we exited the quarter with 595 active plasma centers and 105 active patient affordability programs.

Peter Heckmann: Hey, good afternoon. Thanks for taking the question. I'm just curious, in the plasma business, it's probably hard to disaggregate, but I guess, have you sensed any uptick in donors given some of the issues around withholding SNAP benefits as a part of the government shutdown? Conversely, what type of headwind are you feeling in terms of just the increased ICE activity with detaining immigrants and deporting immigrants in terms of donors? On a net basis, do you think those offset each other, or could you just comment on any dynamics you're seeing?

In summary, we cannot be more excited about the prospects of our business for the remainder of this year and throughout 2026, I encourage everyone to read our 10-Q for more details about our financial results, which is expected to be filed tomorrow morning before the market opens.

More importantly, we ended October with 118 active patient affordability programs with additional programs being added weekly.

Our consolidated gross profit margins continue to improve on a year over year basis. Despite the new plasma centers Wayne on the margin due to their lack of maturity.

Now turning your attention to the results for the third quarter revenue and adjusted EBITDA results exceeded the guidance. We provided last quarter third quarter 2025, total revenues of $21 $6 million increased $6 $3 million or 41, 6% and adjusted EBITDA of 5 million.

We expect improvement from these levels as the new centers mature over the next six to nine months. We also expect improvement in our consolidated gross profit margins as we ramp up our new customer service contact center that we opened in September.

Jeff Baker: Now turning your attention to the results for Q3. Revenue and Adjusted EBITDA results exceeded the guidance we provided last quarter. Q3 2025 total revenues of $21.6 million increased $6.3 million or 41.6%. Adjusted EBITDA of $5 million increased $2.2 million or 78.1%. Plasma revenue increased 12.4% to $12.9 million, while our revenue per plasma center declined to $7,122 as the new plasma centers added in Q2 have not reached full maturity and our legacy centers continue to be impacted by the industry-wide oversupply of plasma.

<unk> increased $2 $2 million or <unk> 78, 1%.

Jeff Baker: All right. I peed on the latter question. I can tell you we haven't seen any change. Remember, when you give plasma, you have to present an ID so they can track you and do everything else. People that are here illegally in the states without the proper identification aren't giving plasma. There has been zero impact related to the change of our immigration population. As for the other with the shutdown, the shutdown's only been around a couple of weeks. I haven't seen—maybe Mark's seen—but we really haven't seen any change in the donors on that. Mark, what have you seen, anything?

Plasma revenue increased 12, 4% to $12 $9 million, while our revenue per plasma center declined to $7122 as the new plasma centers added in the second quarter have not reached full maturity and our legacy centers continue to be impacted by the industry wide oversupply of plasma.

In summary, we could not be more excited about the prospects of our business for the remainder of this year and throughout 2026, I encourage everyone to read our 10-Q for more details about our financial results, which is expected to be filed tomorrow morning before the market opens.

Gross dollars loaded to cards increased 21% total number of loads increased 19, 3% and gross spend volume increased 19, 2% due mainly to the new centers added in the second quarter.

Jeff Baker: Gross dollars loaded to cards increased 21%, total number of loads increased 19.3%, and gross spend volume increased 19.2%, due mainly to the new centers added in Q2. Patient affordability revenues increased 142% to $7.9 million and accounted for 36.7% of quarterly revenues. This is a significant increase from the 21.5% of revenue that pharma represented just during the same period last year. We added 8 net programs exiting the quarter with 105 pharma patient affordability programs and grew the number of claims processed by over 60% versus the same period last year. Gross profit margin for the quarter improved 72 basis points to 56.3%.

Now turning your attention to the results for the third quarter revenue and adjusted EBITDA results exceeded the guidance. We provided last quarter third quarter 2025, total revenues of $21.6 million increased $6.3 million or 41, 6% and adjusted EBITDA 5 million.

Patient affordability revenues increased 142% to $7.9 million and accounted for 36, 7% of quarterly revenues.

Mark Newcomer: No, we haven't seen it.

Jacob Stephan: Okay. Haven't seen it yet. All right.

<unk> increased $2 $2 million or 78.1%.

This is a significant increase from the 21, 5% of revenue that pharma represented just during the same period last year. We added eight net programs exited in the quarter with 105 pharma patient affordability programs and grew the number of claims processed by over 60% versus the same peer.

Mark Newcomer: No, and not really expecting to at this point. Obviously, we've seen in the past, we've seen kind of it looks like it's starting to loosen up a little bit coming into the fourth quarter, and we expect it to loosen up probably the second half of the year. That is around the donor—that is around the donor, what we're doing with the donors in regards to payments. We're seeing the payments that we're sending out are starting to go up, and we would expect that to continue for probably the next six to 12 months.

<unk> revenue increased 12.4% to $12 $9 million, while our revenue per plasma center declined to $7122 as the new plasma centers added in the second quarter have not reached full maturity and our legacy centers continue to be impacted by the industry wide oversupply of plasma.

<unk> last year.

Profit margin for the quarter improved 72 basis points to 56, 3% S.

Gross dollars loaded to cards increased 21% total number of loads increased 19, 3% and gross spend volume increased 19, 2% due mainly to the new centers added in the second quarter.

SG&A, excluding depreciation and amortization and stock based compensation improved by 410 basis points to 32, 9% of revenue while total operating expenses improved by 210 basis points to 48, 9% of revenue.

Jeff Baker: SG&A, excluding depreciation and amortization and stock-based compensation, improved by 410 basis points to 32.9% of revenue, while total operating expenses improved by 210 basis points to 48.9% of revenue. Having made significant investments in our employee base over the past year to support the continued growth in our businesses, compensation and benefits increased 20.3% to $7.2 million. We exited this quarter with 222 employees versus 162 during the same period last year. Stock compensation increased 32% to $1.3 million related to the issuance of additional restricted stock units for new hires and employee retention. Depreciation and amortization expense increased 39.9% to $2.2 million due primarily to the amortization of continued enhancements in our technology platform.

Patient affordability revenues increased 142% to $7.9 million and accounted for 36, 7% of quarterly revenues.

Having made significant investments in our employee base over the past year to support the continued growth in our businesses compensation and benefits increased 23% to $7 $2 million.

Peter Heckmann: Okay. I see. Just on that latter question on the donor management CRM engagement platform, I guess, any insights into the timing for when that approval might come through? In terms of just sizing that opportunity, is that something where there's hundreds of customers, and each system could be hundreds of thousands of dollars? How should we be thinking about that in terms of the potential benefit?

This is a significant increase from the 21.5% of revenue that pharma represented just during the same period last year. We added eight net programs exited in the quarter with 105 pharma patient affordability programs and grew the number of claims processed by over 60% versus the same peer.

We exited this quarter with 222 employees versus 162 during the same period last year.

Stock compensation increased 32% to $1 $3 million related to the issuance of additional restricted stock units for new hires and employee retention.

<unk> last year.

Gross profit margin for the quarter improved 72 basis points to 56.3%.

Depreciation and amortization expense increased 39, 9% to $2 $2 million due primarily to the amortization of continued enhancements in our technology platform.

Mark Newcomer: Yeah. I mean, we were expecting to get through the FDA approval sometime in fourth quarter, going into first quarter. We obviously didn't expect the shutdown, and we certainly didn't expect it to last as long as it has. Obviously, that will push us back probably first quarter, second quarter, hopefully the earlier. Regarding how to think about it, no, there's not. In the US market, you can—it's a readily available number of how many clients are out there. I wouldn't call it hundreds of clients in the US market. However, there is, it's on a center-by-center basis that we would license, but it's early days, and I don't really want to get into the model by which we're going to go out at this point in time.

SG&A, excluding depreciation and amortization and stock based compensation improved by 410 basis points to 32.9% of revenue while total operating expenses improved by 210 basis points to 48.9% of revenue.

Net income for the quarter was $2 $2 million or four cents per fully diluted share versus $1.4 million or three cents per fully diluted share for the same period last year positively impacting net income was a lower income tax provision, resulting mainly from the recent changes in tax code offset by lower net interest <unk>.

Jeff Baker: Net income for the quarter was $2.2 million or $0.04 per fully diluted share versus $1.4 million or $0.03 per fully diluted share for the same period last year. Positively impacting net income was a lower income tax provision resulting mainly from the recent changes in tax code offset by lower net interest income mainly related to the implied interest expense of future cash payments for the Gamma acquisition. Q3 Adjusted EBITDA, which is a non-GAAP measure that adds back stock compensation to EBITDA, was $5 million or $0.08 per diluted share versus $2.8 million or $0.05 per diluted share for the same period last year.

Having made significant investments in our employee base over the past year to support the continued growth in our businesses compensation and benefits increased 23% to $7.2 million.

Come mainly related to the implied interest expense of future cash payments for the Gama acquisition.

We exited this quarter with 222 employees versus 162 during the same period last year.

Third quarter, adjusted EBITDA, which is a non-GAAP measure that adds back stock compensation to EBITDA was $5 million or eight cents per diluted share versus $2 $8 million or five cents per diluted share for the same period last year, the fully diluted share count for the quarters used in calculating the per share amount was 61.

Stock compensation increased 32% to $1.3 million related to the issuance of additional restricted stock units for new hires and employee retention.

Peter Heckmann: All right. Well, just stay tuned. Appreciate it.

Depreciation and amortization expense increased 39.9% to $2.2 million due primarily to the amortization of continued enhancements in our technology platform.

Mark Newcomer: Yep, you're welcome.

Jeff Baker: The fully diluted share count for the quarters used in calculating the per share amounts was 61.8 million and 56.1 million respectively, an increase of 5.7 million shares. Regarding the health of our company, we exited the quarter with an adjusted unrestricted cash balance of $16.9 million and 0 debt as we generated strong operating cash flow and continued to experience operational benefits of our Gamma acquisition. Just a reminder, the adjustment to our unrestricted cash balances reflects the short-term impact of our account receivable and account payable balances related to our pharma patient affordability business. Turning your attention to our revised guidance for 2025, which now incorporates Q3 actuals.

One 8 million and $56 1 million respectfully and increase of $5 7 million shares.

Operator: Thank you. As a reminder, if there are any additional questions, you may press star one on your telephone keypad to join the queue. We have reached the end of the question-and-answer session. I'd like to turn the floor back to Mark Newcomer for closing remarks.

Regarding the health of our company, we exited the quarter with an adjusted unrestricted cash balance of $16 $9 million and zero debt as we generated strong operating cash flow and continue to experience operational benefits of our gamma acquisition.

Mark Newcomer: Thank you. Obviously, we're proud of our progress, optimistic about the future, dedicated to delivering substantial growth, and long-term shareholder value. We look forward to updating you again next quarter. Thank you.

Just a reminder, the adjustment to our unrestricted cash balances reflects the short term impact of our accounts receivable and accounts payable balances related to our pharma patient affordability business.

Income mainly related to the implied interest expense of future cash payments for the Gama acquisition.

Third quarter, adjusted EBITDA, which is a non-GAAP measure that adds back stock compensation to EBITDA was $5 million or eight cents per diluted share versus $2.8 million or five cents per diluted share for the same period last year, the fully diluted share count for the quarters used in calculating the per share amounts was 61.

Operator: Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Now turning your attention to our revised guidance for 2025, which now incorporates Q3 actuals.

We are raising our revenue guidance to a range of $85 million to $81.5 million, reflecting year over year growth of 38, 7% at the midpoint.

Jeff Baker: We are raising our revenue guidance to a range of $80.5 to $81.5 million, reflecting year-over-year growth of 38.7% at the midpoint. Plasma is estimated to make up approximately 57% of total revenue, representing a modest year-over-year growth, while pharma patient affordability revenue is expected to make up approximately 41% of total revenue, representing year-over-year growth of over 155%. Full year gross profit margins are expected to be approximately 60%. We expect operating expenses to be between $41.5 million and $42.5 million, with depreciation and amortization expense of approximately $8.4 million and stock-based compensation of approximately $4.3 million.

1.8 million and 56.1 million respectfully and increase of $5 7 million shares.

Plasma is estimated to make up approximately 57% of total revenue representing a modest year over year growth, while pharma patient affordability revenue is expected to make up approximately 41% of total revenue representing year over year growth of over 155%.

Regarding the health of our company, we exited the quarter with an adjusted unrestricted cash balance of $16.9 million and zero debt as we generated strong operating cash flow and continue to experience operational benefits of our gamma acquisition.

Full year gross profit margins are expected to be approximately 60% we.

We expect operating expenses to be between $41 $5 million and $42.5 million with depreciation and amortization expense of approximately $8 $4 million and stock based compensation of approximately $4.3 million.

Now turning your attention to our revised guidance for 'twenty twenty-five, which now incorporates Q3 actuals, we are raising our revenue guidance to a range of $85 million to $81.5 million, reflecting year over year growth of 38.7% at the midpoint.

We expect interest income to be approximately $2 $6 million.

Jeff Baker: We expect interest income to be approximately $2.6 million, our full year tax rate to be 18.7%, and our fully diluted share count to be 59.76 million shares. Taking all the factors above into consideration, we have raised our net income estimates to be between $7 to 8 million for the year, or $0.12 to $0.13 per diluted share. Adjusted EBITDA is now expected to be in the range of $19 to 20 million, or $0.32 to $0.34 per diluted share. With that, I would like to turn the call back over to the moderator for questions and answers.

Our full year tax rate to be 18, 7% and our fully diluted share count to be 59.76 million shares.

[noise] plasma is estimated to make up approximately 57% of total revenue representing a modest year over year growth, while pharma patient affordability revenue is expected to make up approximately 41% of total revenue representing year over year growth of over 155%.

Taking all of the factors above into consideration.

We have raised our net income estimates to be between 7 million and $8 million for the year or 12 cents to 13 cents per diluted share adjusted.

Adjusted EBITDA is now expected to be in the range of 19 million to $20 million or 32 cents to 34 cents per diluted share.

Full year gross profit margins are expected to be approximately 60%.

We expect operating expenses to be between $41.5 million and $42.5 million with depreciation and amortization expense of approximately $8.4 million and stock based compensation of approximately $4.3 million.

With that I would like to turn the call back over to the moderator for questions and answers.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Our first question comes from the line of Jacob Stephan with Lake Street Capital Markets. Please proceed with your question.

We expect interest income to be approximately $2.6 million.

Confirmation tone will indicate your line is in the question queue.

You may if I start in to remove yourself from the queue for participants using speaker equipment and may be necessary to pick up the handset before pressing the star keys.

Our full year tax rate to be 18.7% and our fully diluted share count to be 59.76 million shares.

Taking all of the factors above into consideration.

Our first question comes from the line of Jacob Stefan with Lake Street Capital Markets. Please proceed with your question.

We have raised our net income estimates to be between 7 million and $8 million for the year or 12 cents to 13 cents per diluted share adjusted.

Hey, guys I appreciate you taking the questions congrats on a nice quarter here.

Jacob Stephan: Hey, guys. Appreciate you taking the questions. Congrats on a nice quarter here. Maybe just first, you know, wondering if you could help us think through some of the comments Mark made on, you know, retail versus specialty pharmacy. Do you have a current mix number you maybe could give us, or, I mean, maybe you could talk through pipeline mix a little bit as well between the two?

Maybe just first I'm wondering if you could help us think through some of the comments Marc made on retail versus specialty pharmacy do you have a current mix number you maybe could give us or I mean, maybe you could talk through.

Adjusted EBITDA is now expected to be in the range of 19 million to $20 million or 32 cents to 34 cents per diluted share.

With that I would like to turn the call back over to the moderator for questions and answers.

Pipeline mix, a little bit as well between the two.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two to remove yourself from the queue for participants using speaker equipment, it may be necessary to pick up the handset.

Hi, This is Matt turnover, we don't I don't have that information in front of me. We can you know Jeff can can follow back up with you on that and we'd probably want to give more of a maybe a percentage.

Matt Turner: Hi, this is Matt Turner. I don't have that information in front of me. We can, you know, Jeff can follow back up with you on that. We'd probably wanna give, you know, more of a, maybe a percentage there. We do have a decent mix right now of retail versus specialty. As you look at the pipeline moving into next year, there is the addition of more retail programs. I don't know the exact number if you were to look at overall program count. It's a higher percentage moving into next year in the pipeline, and that would kind of be all stages of the pipeline that would have a retail versus a specialty component.

There, but we do have a decent mix right now of retail versus specialty as you look at the pipeline moving into next year.

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Our first question comes from the line of Jacobs Stefan with Lake Street Capital markets. Please proceed with your question.

There is the addition of more retail programs I don't know the exact number if you were to look at overall program count.

Hey, guys I appreciate you taking the questions congrats on a nice quarter here.

But.

It's a higher percentage moving into next year and the pipeline that would kind of be all stages of the pipeline that would have a retail versus a specialty component.

Okay got it maybe so it sounds like this is al.

Jacob Stephan: Okay. Got it. Maybe it sounds like this is a little bit bigger opportunity, maybe, you know, higher claims volumes on the retail side. Maybe you could just kind of elaborate on that a little bit.

A little bit bigger opportunity, maybe higher claims volumes on the retail side.

Maybe you could just kind of elaborate on that a little bit.

Hi, This is Matt turnover, we don't I don't have that information in front of me. We can you know Jeff can can follow back up with you on that and we'd probably want to give a more of a maybe a percentage.

Yeah, so our retail products due to their cost and the <unk>.

Matt Turner: Yeah. Retail products, due to their cost and the propensity are to be prescribed, you know, 'cause they're dealing with a lot more what I would call generic types of ailments. You tend to see just a higher percentage of people be prescribed those drugs. Sometimes it's for acute issues, sometimes it's for chronic. You know, if you, if you were to look at the retail programs right now that we have, we, you know, we have some in the, you know, in like the pulmonary space, so some inhalers, things like that. There's a component of people who will be written inhaler because they have asthma, and they're gonna have an inhaler every day for the rest of their life.

For pension they are to be prescribed you know because they are dealing with a lot more what I would call generic types of elements.

There, but we do have a decent mix right now of retail versus specialty as you look at the pipeline moving into next year.

You tend to see just a higher percentage of people be prescribed those drugs, sometimes it's for acute.

There is the addition of more retail programs I don't know the exact number if you were to look at overall program count.

Issues, sometimes it's for chronic.

You. If you were to look at their retail programs right now that we have we you know we have some Andy.

But it's.

It's a higher percentage moving into next year in the pipeline and that would kind of be all stages of the pipeline that would add a retail versus a specialty component.

No.

And like the pulmonary space, so some inhalers things like that.

There is a component of people, who will be a retina inhaler, because they have asthma and theyre going to have an inhaler everyday for the rest of our life and then you have people that come down with bronchitis and they'll use it for a month or two and then they're off of it so that the mix that you see of utilization tends to be a little bit higher so you get a higher patient counts.

Okay got it maybe so it sounds like this is a.

Matt Turner: Then you'll have people that come down with bronchitis, and they'll use it for a month or 2, and then they're off of it. The mix that you see of utilization tends to be a little bit higher, so you get a higher patient count inside of those programs. Whereas the specialty drug, a lot of times, you know, the number of people that are taking that drug is obviously lower because it's a specialty product, and you don't typically get an acute indication for a specialty drug that we would represent, or that would have a program with us. Just the ability to onboard more patients in the programs tend to be higher with retail products than it does with specialty.

A little bit bigger opportunity, maybe you know higher claims volumes on the retail side.

Maybe you could just kind of elaborate on that a little bit.

Yeah, so retail products due to their cost and the <unk>.

Inside of those programs, whereas the specialty drugs a lot of times you know the number of people that are taking that drug is obviously lower because it's a specialty product.

Propensity or to be prescribed you know because they are dealing with a lot more what I would call generic types of ailments yields and you tend to see just a higher percentage of people be prescribed those drugs, sometimes it's for acute.

And you don't typically get an acute.

Indication for a specialty drug that we would represent or that would have a program with us. So just the ability to onboard more patients in the programs tend to be higher with retail products than it does with specialty.

Issues, sometimes it's for chronic.

If you if you were to look at their retail programs right now that we have we you know we have some and the Oh.

So that's why you'll see the increased claim volumes as well as the offer value on a retail product is going to be substantially different so patients for.

Matt Turner: That's why you'll see the increased claim volumes as well as the offer value on a retail product is gonna be substantially different. Patients will not necessarily burn through their out-of-pocket max on a retail product like they would on a specialty product. A specialty product is $25,000 and a patient has an, you know, a $7,000 out-of-pocket max, they can get through their entire out-of-pocket maximum, you know, in a couple of fills. Whereas with a retail product where the offer value is, say, $200 or $300, they could use that 12 times a year. Instead of only getting two or three claims for that patient in a specialty space, we would get 12 in a retail space.

And like the pulmonary space, so some inhalers things like that.

There is a component of people, who will be a retina inhaler, because they have asthma and theyre going to have an inhaler everyday for the rest of your life and then you have people that come down with bronchitis and they'll use it for a month or two and then they're off of it so that the mix that you see of utilization tends to be a little bit higher so you get a higher patient counts are inside.

Well not necessarily burned through their out of pocket Max on.

On our retail products like they would on a specialty product specialty product is $25000 and a patient hasn't.

7000, our out of pocket Max they can get through their entire out of pocket maximum in a couple of sales, whereas with a retail product where the offer value of say two or $300. They could use that 12 times a year. So instead of only getting two or three claims for that patient on a specialty space, we would get 12 and a retail space.

Inside of those programs, whereas the specialty drugs a lot of times you know the number of people that are taking that drug is obviously lower because it's a specialty product a and you don't typically get an acute.

Okay got it that's very helpful.

Jacob Stephan: Okay, got it. That's very helpful. Maybe a second one. Jeff, you kinda talked a little bit about gross profit margins expanding, as, you know, the patient success center continues to ramp. I'm wondering if you could kinda help us think through, you know, current capacity utilized and maybe, you know, where you expect to be with these 22-ish new centers online in the H2 or in the last Q4 here.

Maybe a second one Jeff you kind of talked a little bit about gross profit margins expanding as you know the patient success center continues to ramp.

So that's why you'll see the increased claim volumes as well as the offer value on a retail product is going to be substantially different so patients.

I'm wondering if you could kind of help us think through current capacity utilized in and maybe as you know where you expect to be with with these.

Well not necessarily burned through their out of pocket Max on a retail product like they would on a specialty product, especially product is $25000 and a patient has a $7000 out of pocket Max they can get through their entire out of pocket maximum in a couple of sales, whereas with a retail product where the.

22 ish new centers online in the second half or in the last quarter here.

Yes.

Well I think in your kind of mix in the centers.

Jeff Baker: Well, I think you're kinda mixing. The centers, we didn't say there would be 22. We were saying in the H2 of the year on the patient affordability pharma side, where we would add between 20 and 30. The centers, we don't really, you know, we're going into the end of the year, don't really expect those to change too much, you know, plus or minus a couple here or there. But the comment about the maturity of those relates to those centers coming up to the average of our core base. There are fees that typically don't kick in for, you know, 90-plus days afterwards, where we start to see the benefit of a fully, you know, mature centers.

We didn't say there would be 'twenty, two we were saying in the second half of the year on the plan on the patient affordability pharma side.

After value was say two or $300. They could use that 12 times a year. So instead of only getting two or three claims for that patient on a specialty space, we would get 12 and a retail space.

Where we would add between 20 and 30.

The centers, we don't really we're going into the end of the year don't really expect those to change too much plus or minus a couple of here or there.

Okay got it that's very helpful.

And but the comment about the maturity of those relates to those centers coming up to the average of our our core base.

Maybe a second one Jeff you kind of talked a little bit about gross profit margins expanding as you know the patient success Center continues to ramp up I'm wondering if you could kind of help us think through current capacity utilized in and maybe as you know where you expect to be with with these.

So there are fees that typically don't kick in for 90, plus days afterwards, where we start to see the benefit of a fully mature centers. The centers have been open for quite some time, but from our revenue opportunity. It just takes time for that to come through for example in.

22 ish new centers online in the second half or in the last quarter here.

Jeff Baker: The centers have been open for quite some time, but from our revenue opportunity, it just takes time for it to come through. For example, inactivity fees and things of that nature. As those become more mature, as we see, also see a return to growth, et cetera, I expect the gross profit margins in the plasma business to improve from where they were this quarter.

Yes.

Well, there's this I.

I think in your kind of mix in the centers.

Activity fees or things of that nature, so as those become more mature as we see also see a return to growth et cetera, I expect our gross profit margin.

We didn't say there would be 'twenty, two we were saying in the second half of the year on the plot on the patient affordability pharma side.

Where we would add between 20 and 30 the centers. We don't really you know we're going into the end of the year don't really expect those to change too much you know plus or minus a couple here or there.

And the plasma business too.

Two to improve from where they were this quarter.

And but the comment about the maturity of those relates to.

Okay got it.

Jacob Stephan: Okay. Got it. Then maybe just last one. I think when you kinda run the numbers as you look at Q4 here and what you're communicating with pharma revenue growth, it implies a sequential step down in average quarterly revenue per program. Maybe you could kinda help us think through what the difference is between last year when it was actually a sequential step up from Q3 to Q4, and maybe contrast that with what you see this year.

And then maybe just last one.

You know I think when you kind of run the numbers as you look at Q4 here and what you're communicating with pharma revenue growth.

Those centers coming up to the average of our our core base.

So there are fees that typically don't kick in for 90, plus days afterwards, where we start to see the benefit of a fully mature centers. The centers have been opened for quite some time, but from our revenue opportunity. It just takes time for that to come through for example, <unk>.

It implies a sequential step down in average quarterly revenue.

Our program maybe.

Maybe you could kind of help us think through what the differences between last year. When it was actually a sequential step up from Q3 to Q4 in.

Activity fees or things of that nature, so as those become more mature as we see also see a return to growth et cetera, I expect our gross profit margin.

And maybe contrast that with what you've seen this year.

Yes, I made last year.

Jeff Baker: Yeah. I mean, last year, we had more newer programs with fewer claims. Now, this year, we have a lot more programs with claims. The claims will fall off in H2 of the, you know, year. It's a seasonal business, as Matt alluded to earlier.

Had more newer programs with fewer claims now this year, we have a lot more programs with claims and the claims will fall off in the second half a year, it's a seasonal seasonal businesses, Matt alluded to earlier.

And the plasma business too.

Two to improve from where they were this quarter.

Okay got it.

Whenever they can reset so that's the that's the difference.

And then maybe just last one.

Jacob Stephan: Yeah

Jeff Baker: When everything resets. That's the difference. You know, we just have, we have more, we have It's a mix issue where the mix is more geared towards claims versus, you know, initial launch fees.

You know I think when you kind of run the numbers as you look at Q4 here and what you're communicating with pharma revenue growth.

We just have we have more.

We are.

The mix issue, where where the.

Mix is more geared towards claims versus.

It implies a sequential step down in average quarterly revenue.

Initial launch fees.

Our program maybe.

Okay understood I appreciate all the color and nice work.

Maybe you could kind of help us think through what the differences between last year. When it was actually a sequential step up from Q3 to Q4.

Jacob Stephan: Okay. Understood. I appreciate all the color. Nice work.

Thank you and then the other thing I will say Jacob.

Jeff Baker: Thank you. The other thing I will say, Jacob, is you can't look, but I appreciate you calling us out. You cannot look sequentially at these numbers. You have to look on a year-over-year basis. Last year, we did $56,700 in the Q4 revenue per program. That will be up year over year versus there, versus last year. This year, we did in the Q3, $75,434. Last year we did, you know, just under $50,000. You have to look at this business on a year-over-year basis. Sequential numbers are absolutely meaningless.

You can't look.

And maybe contrast that with what you see this year.

But I appreciate you calling this out you cannot look sequentially at these numbers.

Yeah, I made last year, we had more newer programs with fewer claims now this year, we have a lot more programs with claims and the claims will fall off in the second half a year, it's a seasonal seasonal businesses, Matt alluded to earlier.

You have to look on a year over year basis. So last year, we did $56700 in the fourth quarter revenue per program that will be up year over year that will be up year over year versus there versus last year. This year, we did in the third quarter 75434.

Whenever they reset so that's the that's the difference.

Sure.

Last year, we did just under 50000. So you have to look at this business on a year over year basis sequential numbers are absolutely meaningless.

Yes, we just have we have more.

It's a mix issue where where the.

Mix is more geared towards claims versus.

Okay very helpful. Thank you.

Jacob Stephan: Okay. Very helpful. Thank you.

Yep.

Initial launch.

Jeff Baker: Yep.

Thank you.

Yes.

Our next question comes from the line of Gary <unk> with Barrington Research. Please proceed with your question.

Okay.

Operator: Thank you. Our next question comes from the line of Gary Prestopino with Barrington Research. Please proceed with your question.

I appreciate all the color and nice work.

Thank you and then the other thing I will say Jacob as you cant look but.

Hi, everyone.

Gary Prestopino: Hi, everyone. Well, first of all, could you kind of tell us what a mature program would do in an average revenue basis versus, you know, you say $75,000 now, but you've got obviously got some programs that are just coming into the mix or have just come into the mix? What does a mature program do per quarter?

Is there.

But I appreciate you calling this out you cannot look sequentially at these numbers.

Well first of all could you kind of tell us.

What a mature program would do in an average revenue.

You have to look on a year over year basis of last year, we did $56700 in the fourth quarter revenue per program that will be up year over year that will be up year over year versus there versus last year. This year, we did in the third quarter 75434.

Basis.

Versus what you say 75000, now, but you've got obviously you got some.

Programs that are just coming into the mix or have just come in the next what is a mature program do per.

Per quarter.

Gary It really it really depends I don't I don't mean to.

Last year, we did just under 50000. So you have to look at this business on a year over year basis sequential numbers are absolutely meaningless.

Jeff Baker: Gary, it really depends. I don't mean to, you know, skip the or overlook the question, but I mean, we have programs that do $2,000 a month, and we have programs that do, you know, 20x that. It really depends on the program. When it's mature, I mean, we see it coming into the numbers and, you know, there are things that a drug may do and may get another indication which causes the claim to go up on a year-over-year basis. Some of the programs, it's just, you know, pretty much flat year-over-year once it becomes mature. It's really hard to say, but to say what a mature program is, it's too variable.

Skipped or overlooked a question, but I mean, we have we have programs that that do $2000 a month and we have programs that do.

Okay very helpful. Thank you.

20 ex that.

Yep.

It's just it really depends on the program. So when its mature I mean, we see it coming into the numbers and other things that a drug may do it may get another indication, which causes that the claims that go up on a year over year basis. Some some of the programs. It's just.

Thank you. Our next question comes from the line of Gary recipe No with Barrington Research. Please proceed with your question.

Hi, everyone.

Is there well first of all could you kind of tell us.

What a mature program would do in an average revenue.

Pretty much flat year over year once it becomes mature and it's really hard to say, but just to say what a mature program as is.

Basis.

Versus what you say 75000, now, but you've got obviously you got some.

It's too variable.

Programs that are just coming into the mix or have just come in the next what is a mature program do.

Well how about how about this is there a difference between our specialty versus just a regular retail program in terms of the average revenues.

Gary Prestopino: Well, how about this? Is there a difference between a specialty versus just a regular retail program in terms of the average revenues?

Per quarter.

Gary It really it really depends I don't I don't mean that.

Yes, Hi, Gary This is Matt so when you look at the different <unk>.

Skipped or overlooked a question, but I mean, we have we have programs that that do $2000. A month then we have programs that do you know 20 acts that.

Matt Turner: Yeah. Hi, Gary. This is Matt. When you look at the different product suites that those programs would use, you know, we would typically value a specialty program as being worth more money, provided it has the appropriate indications. Again, it's all in the mix, right? I, you know, I could name off 20 drugs right now that you've never once heard of, right? You've never heard of these drugs. I could name off 5 that you've heard of, and you'd be like, Oh, if you have that drug, because I've seen 500 TV ads for it, you've got to be making a ton of money with that drug. That could be right or it could be wrong. It depends on the patient population of that drug. How old are they? Are they mostly on Medicare?

Product suites that those programs would use.

We would typically value a specialty program.

It just.

As being worth more money provided it has the appropriate indications.

It really depends on the program so when its mature I mean, we see it coming into the numbers and you know there are things that a drug may do it may get another indication, which causes that the claims that go up on a year over year basis. Some some of the programs. It's just.

But again, it's all in the mix right. So you know I can name off 20 drugs right now that you've never once heard off right you've you've never heard of these drugs and then I can name off five that you've heard of and you'd be like Oh, well. If you have that drug because I've seen 500, TV ads for you've got to be making a ton of money with that drug.

Pretty much flat year over year once it becomes mature and it's really hard to say, but just to say what a mature program as is.

And that could be right or it could be wrong. It depends on the patient population of that drug how old are they mostly on Medicare are they mostly on Medicaid.

But it's.

It's too variable.

Well how about how about this is there a difference between our specialty versus just a regular retail program in terms of the average revenues.

Matt Turner: Are they mostly on Medicaid?

It's a very complex thing to look at this and say, okay, well I've heard of insert name of giant drug.

Gary Prestopino: Yeah

Matt Turner: It's a very complex thing to look at this and say, "Okay, well, I've heard of insert name of giant drug," you know, and you think of golf, you know, the golf people talking about their psoriatic arthritis. You think, "Oh, well, that's a great drug." Yeah, that could be because that's not impacting, you know, the lion's share of the patients taking that drug aren't 70 years old on Medicare. That could be a good one. I could bring up other drugs that you've heard about that are cancer therapies and, you know, or for Alzheimer's. Even though those are huge drugs for their companies, right, for the manufacturer, they're not gonna make us any money. You really have to look at how big a program's gonna be based on what's the patient population, right?

Yeah, Hi, Jerry this is Matt so when you look at the different product suites that those programs would use.

Thank.

Golf, the golf people talking about their psoriatic arthritis, and you think Oh, well, that's a great drug, yes that could be because thats not impacting.

We would typically value a specialty program as being worth more money provided it has the appropriate indications.

The lion's share of the patients taking that drove our 70 years old non Medicare.

So that can be a good one, but then I could bring up other drugs that you've heard about that our cancer therapies and you know our for all timers and even though those are huge drugs for their companies right for the manufacturer theyre not going to make us any money. So you really have to look at how big a program is going to be based on what.

But again, it's all in the mix right. So I you know I can name off 20 drugs right now that you've never once heard off right you've you've never heard of these trucks and I can name off five that you've heard of <unk>.

And you'd be like Oh, well, if you have that drug because I've seen 500, TV ads for you've got to be making a ton of money with that drug.

The patient population right, what's the cohort of the patient population that can utilize our products and then what other.

And that could be Ryder can be wrong. It depends on the patient population of that drug how old are they mostly on Medicare are they mostly on Medicaid.

Matt Turner: What's the cohort of the patient population that can utilize our products? What other, you know, additional pieces can we stack on top of that? Like Mark talked about dynamic business rules. That's in the specialty space. We currently don't have that active on any of our retail programs. A specialty program utilizing dynamic business rules is gonna be far more profitable to us and have higher top-line revenue numbers than a retail program that could be doing 10 times the claim volume. You really have to understand the drugs specifically, their patient populations, and the cohorts of those patients that would potentially utilize copay inside of the overall, or, you know, the overall numbers of the patients.

Additional pieces can we stack on top of that Mark talked about dynamic business rules. That's in the specialty space. We currently don't have that active on any of our retail programs. So a specialty program utilizing dynamic business rules is going to be far more profitable to us and have higher top line revenue numbers than a retail.

It's a very complex thing to look at this and say, okay, well I've heard of insert name of giant drug.

Think of golf.

Golf people talking about their psoriatic arthritis, and you think Oh, well, that's a great drug yes that could be because that's not impacting.

The lion's share of the patients taking that drug art 70 years old non Medicare.

Program that could be doing 10 times the claim volume so it's it's a.

So that could be a good one, but then I could bring up other drugs that you've heard about that our cancer therapies and you know our for all timers and even though those are huge drugs for their companies right for the manufacturer, they're not going to make us any money. So you really have to look at how big a program is going to be based on what's the.

It you really have to understand the drugs specifically their patient populations. The cohorts are those patients that would potentially utilize copay inside of the overall <unk>.

Even though the overall numbers of the patients.

Okay.

That's helpful and then you can't really.

Gary Prestopino: Okay. I mean, that's helpful in that you can't really, you know, peg a drug to, or it's hard for us to ascertain what's gonna add where. You're just on a, on a drug basis or a program basis or retail versus specialty. As Jeff said, just look at the average revenue per program quarter-over-quarter, right?

The patient population right, what's the cohort of the patient population that can utilize our products and then what other you know.

Peg a drug to our users.

It's hard for us to ascertain what's gonna add way or you just don't want a drug basis, or a program basis or retail versus specialty.

Jeff said just look at the average revenue.

Or.

Program quarter over quarter right.

Yeah, and I think look if we were able to if our clients with let US just come out and tell you. We won this brand.

Matt Turner: Yeah. I think, look, if our clients would let us just come out and tell you, We won this brand.

Program that could be doing 10 times the claim volume. So it's it's a it you really have to understand the drugs specifically their patient populations. The cohorts are those patients that would potentially utilize copay inside of the overall.

I think you guys would be in a much better situation right, because you'd say oh <unk> seen that on television and the people that take that drug or most of them are going to be under 65. So hey, Ryan Asos is probably going to do really well with that or hey, This is an oncology product and its you know its tiered.

Gary Prestopino: Right

Matt Turner: I think you guys would be in a much better situation, right? Because you'd say, Oh, hey, seen it on TV. The people that take that drug are, you know, most of them are gonna be under 65. Hey.

Gary Prestopino: Right

Matt Turner: we, you know, Paysign's probably gonna do really well with that. Hey, this is an oncology product, and it's, you know, it's tiered towards breast cancer. You know, in that instance, hey, we're probably gonna do really well with that program. You can also look at the information coming out of the manufacturers as far as how big is that drug? How much revenue are they generating from it? Unfortunately, we don't, we can't do that. Almost every one of our master services agreements requires us to not disclose who our clients are and the brands that we represent. It's certainly not for trying on our part to get them to allow us to talk about those, you know, those brands.

Tiered towards breast cancer.

Even though the overall numbers of the patients.

So in that instance, hate we're probably going to do really well with that program and you can also look at the information coming out of the manufacturers to far as how big is that drug how much revenue are they generating from it.

I mean, that's that's helpful and that you can't really.

Peg a drug to it's hard for us to ascertain what's gonna add where you just want to on a drug basis or a program basis or retail versus specialty.

Unfortunately.

We don't we don't we can't do that almost every one of our master services agreements requires us to not disclose who our clients are and the brands that we represent and it's certainly not for trying on our part to get them to allow us to talk about those those brands and I think if you look back at previous.

Jeff said just look at the average revenue.

Per program.

Program quarter over quarter right.

Yeah, and I think look if we were able to if our clients with let US just come out and tell you. We won this brand.

Earnings calls, where we've been able to discuss specific brands or discuss specific client.

Matt Turner: I think if you look back at previous earnings calls where we've been able to discuss specific brands or discuss specific clients, if you know, you kinda ChatGPT some questions out there, you might, you know, you might be able to get a better indication of the types of programs that we have running right now.

I think you guys would be in a much better situation right, because you'd say oh <unk> seen that on television and the people that take that drug or most of them are going to be under 65, So hey, Ryan.

If you can chat GPT some some questions out there you might.

Might be able to get a better indication of the types of programs that we have running right now.

So, there's probably going to do really well with that or hey, This is an oncology product and its you know its tiered towards breast cancer.

Okay and then just.

Mark you mentioned something about this backs.

Gary Prestopino: Okay. Just, Mark, you mentioned something about this BECS, which hadn't heard of that at all. Maybe you could go into that and how that is gonna help you going forward?

Yes.

I hadn't heard of that at all so maybe you could go into that and how that is going to help you going forward.

Yes.

Fortunately.

That is what we referred to as the blood establishment computer system or effects, it's really a donor management system and it allows us to place into the plasma blood space.

Mark Newcomer: That is what we refer to as a blood establishment computer system or a BECS. It's really a donor management system. It allows us to place into the plasma blood space. We have a suite of products that we have built out. It's a Software as a Service that is, you know, we are dealing with a donor app, a plasma specific CRM, and the donor management system. What that allows us to do is it's really an additional business line that is going to allow us, once approved with the FDA, to start running down that path.

We have a suite of products that we have built out a software as a service.

Allow us to talk about those you know those brands and I think if you look back at previous earnings calls, where we've been able to discuss specific brands or discuss specific client.

That is.

We're dealing with a donor plasma specific CRM and the donor management system and so what that allows us to do is gain or if it's really an additional business line.

If you you know you can chat GPT summer some questions out there you might you might be able to get a better indication of the types of programs that we have running right now.

That is going to allow us once approved with the FDA.

It is going to allow us to start running down that path.

Okay and then just.

Mark you mentioned something about this backs, which.

Okay.

Thank you.

Gary Prestopino: Okay. Thank you.

I hadn't heard of that at all so could they maybe you could go into that and how that is going to help you going forward.

Thank you.

Our next question comes from the line of Peter Heckmann with D. A Davidson. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Peter Heckmann with D.A. Davidson. Please proceed with your question.

Yes.

What we referred to as the blood establishment computer system or a box, it's really a donor management system and it allows us to place into the plasma blood space. We have a suite of products that we have built out it's a software as a service.

Hey, good afternoon. Thanks for taking the question I'm just curious in the plasma business probably hard to do.

Peter Heckmann: Hey, good afternoon. Thanks for taking the question. I'm just curious, in the plasma business, it's probably hard to disaggregate, but I guess, have you sensed any uptick in donors, given some of the issues around withholding SNAP benefits as a part of the government shutdown? Conversely, what type of headwind are you feeling in terms of just the increased ICE activity with detaining immigrants and deporting immigrants in terms of donors? You think on a net basis, do you think those offset each other, or could you just comment on any dynamics you're seeing?

Disaggregate, but.

Uh huh.

I guess have you sensed any.

Any uptick in.

Donors given.

That is.

Some of the issues around withholding snap benefits.

We're dealing with a donor plasma specific CRM and the donor management system and so what that allows us to do is gain or if it's really an additional business line.

Uh huh.

As part of the government shutdown and then Conversely.

What type of headwind are you feeling in terms of just the increase.

That is going to allow us once approved with the FDA. It is going to allow us to start running down that path.

Oh this activity with detaining immigrants and deporting immigrants in terms of our daughters.

Okay.

On a net basis do you think those offset each other or could you just comment on any dynamics you're seeing.

Thank you.

Our next question comes from the line of Peter Heckmann with D. A Davidson. Please proceed with your question.

Yeah.

Pete on the latter question I can tell you.

Matt Turner: I, Pete, on the, on the latter question, I can tell you, we haven't seen any change. Remember, when you give plasma, you have to present an ID, they can track you and do everything else. People that are here illegally in the States, without the proper identification aren't given plasma. There's been zero impact related to the change of our immigration population. As for the other, with the shutdown, the shutdown's only been around, you know, a couple of weeks. I haven't seen, maybe Mark's seen, we really haven't seen any change.

Hey, good afternoon. Thanks for taking the question I'm just curious in the plasma business, it's probably hard to do.

We haven't seen any change remember when you when you give plasma there you have to present an I'd.

Disaggregate, but.

Uh huh.

<unk>.

So they can track you and do everything else. So people that are here illegally in the states.

I guess have you sensed any.

Any uptick in AR.

Without the proper identification or given plasma so there's been zero impact related to the change of our.

Donors given.

Some of the issues around withholding snap benefits.

Yes.

Our immigration population as for the the other with the shutdown. The shutdown has only been around a couple of weeks, we haven't seen maybe mark scene, but we really haven't seen any change.

As part of the government shutdown and then Conversely.

What type of headwind are you feeling in terms of just the increase.

This activity with detaining immigrants and deporting immigrants in terms of of donors.

In the.

And the donors on that Martin have you what have you seen anything we haven't seen we haven't seen it.

Peter Heckmann: The donors on that. Mark, would have you seen anything?

On a net basis do you think those offset each other or could you just comment on the dynamics youre seeing.

Mark Newcomer: No, we haven't seen it.

Okay.

Alright.

Peter Heckmann: Okay. Haven't seen it yet. All right.

And not really not really expecting to at this point.

Yeah.

Mark Newcomer: No. Not really, not really expecting to at this point. You know, you know, obviously, we've seen in the past, you know, we've seen kind of, It looks like it's starting to loosen up a little bit, coming into Q4, and we expect it to loosen up, probably H2 of the year. That is around the donor, what we're doing with the donors in regards to payments. We're seeing the payments that we're sending out, are starting to go up. We would expect that to continue for probably the next 6 to 12 months.

I am Pete on the on the latter question I can tell you.

You know, we obviously we've seen in the past.

We haven't seen any change remember when you when you give plasma there you have to present in I D.

We've seen.

Kind of.

It looks like it's starting to loosen up a little bit coming into the fourth quarter and we expect it to loosen up.

So they can track you and do everything else. So people that are here illegally in the states are without the proper identification art given plasma so there's been zero impact related to the change of R.

Probably the second half of the year and that is around.

The donor.

That is around the.

Our immigration population as for the the other with the shutdown. The shutdown has only been around you know a couple of weeks, we haven't seen maybe mark scene, but we really haven't seen any change.

The donor what we're doing with the donors in regards to payments. So we're seeing the payments that we're sending out.

Are starting to go up.

And the.

And we would expect that to continue for probably the next six to 12 months.

And the donors on that Mark May have you what have you seen any no we haven't seen we haven't seen it.

Okay I see and then just on that latter question on the on the water management CRM engagement platform I guess any insight into the timing for when that approval might come through and then in terms of like just sizing that opportunity is that.

Okay Alright.

Alright.

Peter Heckmann: Okay. I see. Just on that latter question on the donor management CRM engagement platform, I guess, any insights into the timing for when that approval might come through? In terms of, like, just sizing that opportunity, is that something where there's, you know, hundreds of customers and each system could be, you know, hundreds of thousands of dollars? How should we be thinking about that in terms of the potential benefit?

And not really not really expecting to at this point.

You know, we obviously we've seen in the past.

We've seen kind of it looks like it's starting to loosen up a little bit coming into the fourth quarter and we expect it to loosen up.

Where there is.

Hundreds of customers in each system could be.

Hundreds of thousands of dollars or how should we be thinking about that in terms of the potential benefit.

Probably the second half of the year and that is around the the donor.

Yes, I mean, we were expecting to get through the FDA approval sometime in fourth quarter going into first quarter. We obviously didn't expect to shut down.

That is around the the donor what we're doing with the donors in regards to payments. So we're seeing the payments that we're sending out are starting to go up.

Mark Newcomer: Yeah, I mean, we were expecting to get through the FDA approval sometime in Q4. Going into Q1, we obviously didn't expect the shutdown, we certainly didn't expect it to last as long as it has. Obviously, that'll push us back probably Q1, Q2, the earlier. Regarding how to think about it, no, there's not You know, in the US market, you can You know, it's a readily available number of how many clients are out there. I wouldn't call it hundreds of clients in the US market. However, there are, you know, you know, there is, it's on a center-by-center basis that we would license. It's early days, I don't really wanna get into the model by which we're gonna go out at this point in time.

And we certainly didn't expect it to last as long as it has obviously that'll push us back probably first quarter second quarter.

And we would expect that to continue for probably the next six to 12 months.

Hopefully.

Earlier.

Regarding how to think about it.

No there's not.

Okay I see and then just on that latter question on the on the donor management CRM engagement platform I guess any insight into the timing for when that approval might come through and then in terms of like just sizing that opportunity is that something where there is.

The U S market you can readily available number of how many clients are out there I wouldn't call. It hundreds of clients in the U S. Market. However, there are you know.

There is also on a center by center basis that we would license, but it's early days and I don't really want to get into the model by which we're going to go out at this point in time.

Hundreds of customers in each system could be.

Hundreds of thousands of dollars or how should we be thinking about that in terms of the potential benefit.

Alright, well just stay tuned I appreciate it.

Peter Heckmann: All right. We'll just stay tuned. Appreciate it.

Yes.

Youre welcome.

Yeah, I mean, we were expecting to get through the FDA approval sometime in fourth quarter going into first quarter. We obviously didn't expect to shut down.

Mark Newcomer: Yep. You're welcome.

Thank you.

And as a reminder, if there are any additional questions. You May press star one on your telephone keypad to join the queue.

Operator: Thank you. As a reminder, if there are any additional questions, you may press star one on your telephone keypad to join the queue. We have reached the end of the question and answer session. I'd like to turn the floor back to Mark Newcomer for closing remarks.

And we certainly didn't expect it to last as long as it has obviously that'll push us back probably first quarter second quarter.

And we have reached the end of the question and answer session I would like to turn the floor back to Mark newcomer for closing remarks.

Hopefully the earlier and regarding how to think about it no theres not.

Thank you.

In the U S market you can.

Obviously, we're proud of our progress optimistic about the future dedicated delivering substantial growth and long term shareholder value.

Mark Newcomer: Thank you. Obviously, we're proud of our progress, optimistic about the future, dedicated to delivering substantial growth and long-term shareholder value, and we look forward to updating you again next quarter. Thank you.

Readily available number of how many clients are out there I wouldn't call. It hundreds of clients in the U S market.

And we look forward to updating you again next quarter. Thank you.

However, there are you know there is also on a center by center basis that we would would license, but it's early days and I don't really want to get into the model by which we're going to go out at this point in time.

Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

Operator: Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Alright, well just stay tuned I appreciate it.

Yes.

Youre welcome.

Thank you.

And as a reminder, if there are any additional questions. You May press star one on your telephone keypad to join the queue.

And we have reached the end of the question and answer session I would like to turn the floor back to Mark newcomer for closing remarks.

Thank you obviously, we're proud of our progress optimistic about the future dedicated delivering substantial growth and long term shareholder value.

And we look forward to updating you again next quarter. Thank you.

Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

Okay.

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