Adams Street Partners Exits Entire Stake in Paymentus Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Complete Exit: Adams Street Partners LLC disclosed in its SEC filing dated May 15, 2026, that it sold its entire stake of 223,506 shares in Paymentus Holdings, with an estimated transaction value of $5.88 million, indicating a loss of confidence in the company.
- Declining Asset Value: The fund's quarter-end position in Paymentus fell by $7.06 million, reflecting the impact of both trading and stock price changes, highlighting increased volatility in its investment portfolio.
- High Portfolio Concentration: As of March 2026, Adams Street held only three stocks and did not purchase any shares in the first quarter, demonstrating a highly concentrated investment strategy, with BillionToOne making up 52% of its overall portfolio.
- Growth Potential for Paymentus: Despite Adams Street's exit, Paymentus reported a record first-quarter revenue surge of 30.2% year-over-year to $358.4 million, and the recent launch of AI-native service tools is expected to further drive its rapid growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PAY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PAY
Wall Street analysts forecast PAY stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 23.480
Low
38.00
Averages
39.33
High
40.00
Current: 23.480
Low
38.00
Averages
39.33
High
40.00
About PAY
Paymentus Holdings, Inc. is a provider of cloud-based bill payment technology and solutions for more than 2,500 billers and financial institutions across North America. The Company’s artificial intelligence (AI)-driven software-as-a-service (SaaS) platform provides a single-vendor solution. Its proprietary Instant Payment Network (IPN) connects its IPN partners’ platforms and billers to its integrated billing, payment, and reconciliation capabilities. Its platform for financial institutions reconnects financial institutions with their customers by providing a real-time financial hub where consumers can consolidate their financial obligations, pay bills, move money in real time and improve their understanding of their own financial position. Its solution offers electronic bill presentment across numerous channels, including Web, mobile, text, portable document format (PDF), email, interactive voice response (IVR), chatbot, social media and through its IPN partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Companies with Strong Cash Flow Performance
- Planet Fitness Performance Decline: Despite a free cash flow margin of 19.2%, Planet Fitness has experienced weak same-store sales over the past two years, indicating limited expansion opportunities in core markets, with capital intensity expected to rise and free cash flow margin contracting by 5.5 percentage points, negatively impacting valuation.
- Wabtec Growth Potential: With a free cash flow margin of 13.1%, Wabtec has achieved a 9.1% annual sales growth over the past five years, benefiting from improved operating profits and efficiency, while share buybacks have propelled annual earnings per share growth to 19.9%, showcasing strong market performance in the railway sector.
- Paymentus Market Share Increase: Founded in 2004, Paymentus has a free cash flow margin of 8.2%, with annual revenue growth of 40.2% over the past two years, significantly enhancing profitability, as evidenced by a 51% annual growth in earnings per share outpacing revenue growth, indicating increased market share in the bill payment sector.
- Cautious Investment Advice: While Wabtec and Paymentus demonstrate strong growth potential, the performance decline of Planet Fitness and the anticipated rise in capital intensity raise concerns about its investment value, prompting investors to exercise caution in their evaluations.
See More
Adams Street Partners Exits Entire Stake in Paymentus Holdings
- Complete Exit: Adams Street Partners LLC disclosed in its SEC filing dated May 15, 2026, that it sold its entire stake of 223,506 shares in Paymentus Holdings, with an estimated transaction value of $5.88 million, indicating a loss of confidence in the company.
- Declining Asset Value: The fund's quarter-end position in Paymentus fell by $7.06 million, reflecting the impact of both trading and stock price changes, highlighting increased volatility in its investment portfolio.
- High Portfolio Concentration: As of March 2026, Adams Street held only three stocks and did not purchase any shares in the first quarter, demonstrating a highly concentrated investment strategy, with BillionToOne making up 52% of its overall portfolio.
- Growth Potential for Paymentus: Despite Adams Street's exit, Paymentus reported a record first-quarter revenue surge of 30.2% year-over-year to $358.4 million, and the recent launch of AI-native service tools is expected to further drive its rapid growth.
See More
Adams Street Partners Exits Entire Stake in Paymentus Holdings
- Stake Change: Adams Street Partners LLC reported in its SEC filing dated May 15, 2026, that it sold its entire stake of 223,506 shares in Paymentus Holdings, with an estimated transaction value of $5.88 million, indicating a weakening confidence in the company.
- Asset Management Impact: This transaction resulted in a $7.06 million decrease in the fund's quarter-end position value, reflecting not only stock price fluctuations but also a 2.26% change in its 13F reportable assets due to trading activities.
- Business Context: Paymentus Holdings is a leading provider of cloud-based electronic bill payment solutions, employing over 1,300 people; despite reporting a 30.2% year-over-year revenue increase to $358.4 million in Q1, Adams Street's exit may undermine market confidence.
- Portfolio Concentration: Adams Street now holds only three stocks, with its largest holding, BillionToOne, comprising 52% of its overall portfolio, highlighting a highly concentrated investment strategy that may increase investment risk.
See More
Adams Street Partners Exits Entire Paymentus Stake for $5.9 Million
- Share Sale Details: Adams Street Partners LLC reported in its SEC filing dated May 15, 2026, that it sold its entire stake of 223,506 shares in Paymentus Holdings for an estimated $5.88 million, based on the average closing price during the first quarter, indicating a significant reduction in confidence in the stock as the fund's quarter-end position fell by $7.06 million.
- Portfolio Concentration: As of the end of March, Adams Street Partners maintained a highly concentrated portfolio with only three stocks, where its largest holding, BillionToOne, constituted 52% of its total assets under management, highlighting a risky reliance on a limited number of investments.
- Paymentus Performance Review: Despite Adams Street's exit from Paymentus, the company reported robust growth in its recent earnings release, with first-quarter revenue surging 30.2% year-over-year to $358.4 million and adjusted earnings rising 50% to $0.21 per share, indicating strong operational momentum.
- Market Outlook Analysis: The recent launch of AI-native Service Commerce tools by Paymentus is expected to further drive growth, and while it was not included in the current top investment stocks identified by analysts, its innovative capabilities in electronic bill payment may attract future investor interest.
See More
Paymentus Holdings Reports Record Q1 2026 Earnings and Raises Full-Year Guidance
- Strong Performance: Paymentus reported Q1 2026 revenue of $358.4 million and contribution profit of $109.7 million, with adjusted EBITDA at $42.4 million, exceeding expectations and achieving a Rule of 40 score of 64%, indicating robust market performance and growth potential.
- New Product Launch: The company introduced the AI-native Service Commerce platform, Billeo, featuring BillWallet and AI360, aimed at transforming how service providers interact with customers, which is expected to lay the groundwork for future revenue growth.
- Guidance Upgrade: Management raised the full-year 2026 revenue guidance to $1.425 billion to $1.44 billion, with contribution profit projected at $450 million to $457 million and adjusted EBITDA at $165 million to $172 million, reflecting confidence in future performance and strong market demand.
- Optimistic Market Outlook: Despite macroeconomic challenges, management expressed optimism regarding future cash flow and profitability, emphasizing a continued prudent approach to guidance to ensure the creation of long-term shareholder value.
See More
Paymentus Q1 Earnings Exceed Expectations with Strong Revenue Growth
- Earnings Beat: Paymentus reported a Q1 non-GAAP EPS of $0.21, exceeding expectations by $0.03, which reflects the company's ongoing improvement in profitability and strengthens investor confidence.
- Significant Revenue Growth: The company achieved Q1 revenue of $358.44 million, marking a 30.1% year-over-year increase and surpassing market expectations by $22.58 million, indicating strong demand and an increase in market share in the payment solutions sector.
- Stock Price Surge: Following the earnings report, Paymentus shares rose 5.4% in after-hours trading, reflecting investor optimism regarding the company's future growth prospects, which may attract more institutional investors.
- Positive Future Outlook: Paymentus expects revenue to reach $1.41 billion in 2026 while expanding its enterprise footprint and margin targets, demonstrating the company's confidence in future growth and strategic positioning.
See More
Analysis of Companies with Strong Cash Flow Performance
- Planet Fitness Performance Decline: Despite a free cash flow margin of 19.2%, Planet Fitness has experienced weak same-store sales over the past two years, indicating limited expansion opportunities in core markets, with capital intensity expected to rise and free cash flow margin contracting by 5.5 percentage points, negatively impacting valuation.
- Wabtec Growth Potential: With a free cash flow margin of 13.1%, Wabtec has achieved a 9.1% annual sales growth over the past five years, benefiting from improved operating profits and efficiency, while share buybacks have propelled annual earnings per share growth to 19.9%, showcasing strong market performance in the railway sector.
- Paymentus Market Share Increase: Founded in 2004, Paymentus has a free cash flow margin of 8.2%, with annual revenue growth of 40.2% over the past two years, significantly enhancing profitability, as evidenced by a 51% annual growth in earnings per share outpacing revenue growth, indicating increased market share in the bill payment sector.
- Cautious Investment Advice: While Wabtec and Paymentus demonstrate strong growth potential, the performance decline of Planet Fitness and the anticipated rise in capital intensity raise concerns about its investment value, prompting investors to exercise caution in their evaluations.
See More
Adams Street Partners Exits Entire Stake in Paymentus Holdings
- Complete Exit: Adams Street Partners LLC disclosed in its SEC filing dated May 15, 2026, that it sold its entire stake of 223,506 shares in Paymentus Holdings, with an estimated transaction value of $5.88 million, indicating a loss of confidence in the company.
- Declining Asset Value: The fund's quarter-end position in Paymentus fell by $7.06 million, reflecting the impact of both trading and stock price changes, highlighting increased volatility in its investment portfolio.
- High Portfolio Concentration: As of March 2026, Adams Street held only three stocks and did not purchase any shares in the first quarter, demonstrating a highly concentrated investment strategy, with BillionToOne making up 52% of its overall portfolio.
- Growth Potential for Paymentus: Despite Adams Street's exit, Paymentus reported a record first-quarter revenue surge of 30.2% year-over-year to $358.4 million, and the recent launch of AI-native service tools is expected to further drive its rapid growth.
See More
Adams Street Partners Exits Entire Stake in Paymentus Holdings
- Stake Change: Adams Street Partners LLC reported in its SEC filing dated May 15, 2026, that it sold its entire stake of 223,506 shares in Paymentus Holdings, with an estimated transaction value of $5.88 million, indicating a weakening confidence in the company.
- Asset Management Impact: This transaction resulted in a $7.06 million decrease in the fund's quarter-end position value, reflecting not only stock price fluctuations but also a 2.26% change in its 13F reportable assets due to trading activities.
- Business Context: Paymentus Holdings is a leading provider of cloud-based electronic bill payment solutions, employing over 1,300 people; despite reporting a 30.2% year-over-year revenue increase to $358.4 million in Q1, Adams Street's exit may undermine market confidence.
- Portfolio Concentration: Adams Street now holds only three stocks, with its largest holding, BillionToOne, comprising 52% of its overall portfolio, highlighting a highly concentrated investment strategy that may increase investment risk.
See More
Adams Street Partners Exits Entire Paymentus Stake for $5.9 Million
- Share Sale Details: Adams Street Partners LLC reported in its SEC filing dated May 15, 2026, that it sold its entire stake of 223,506 shares in Paymentus Holdings for an estimated $5.88 million, based on the average closing price during the first quarter, indicating a significant reduction in confidence in the stock as the fund's quarter-end position fell by $7.06 million.
- Portfolio Concentration: As of the end of March, Adams Street Partners maintained a highly concentrated portfolio with only three stocks, where its largest holding, BillionToOne, constituted 52% of its total assets under management, highlighting a risky reliance on a limited number of investments.
- Paymentus Performance Review: Despite Adams Street's exit from Paymentus, the company reported robust growth in its recent earnings release, with first-quarter revenue surging 30.2% year-over-year to $358.4 million and adjusted earnings rising 50% to $0.21 per share, indicating strong operational momentum.
- Market Outlook Analysis: The recent launch of AI-native Service Commerce tools by Paymentus is expected to further drive growth, and while it was not included in the current top investment stocks identified by analysts, its innovative capabilities in electronic bill payment may attract future investor interest.
See More
Paymentus Holdings Reports Record Q1 2026 Earnings and Raises Full-Year Guidance
- Strong Performance: Paymentus reported Q1 2026 revenue of $358.4 million and contribution profit of $109.7 million, with adjusted EBITDA at $42.4 million, exceeding expectations and achieving a Rule of 40 score of 64%, indicating robust market performance and growth potential.
- New Product Launch: The company introduced the AI-native Service Commerce platform, Billeo, featuring BillWallet and AI360, aimed at transforming how service providers interact with customers, which is expected to lay the groundwork for future revenue growth.
- Guidance Upgrade: Management raised the full-year 2026 revenue guidance to $1.425 billion to $1.44 billion, with contribution profit projected at $450 million to $457 million and adjusted EBITDA at $165 million to $172 million, reflecting confidence in future performance and strong market demand.
- Optimistic Market Outlook: Despite macroeconomic challenges, management expressed optimism regarding future cash flow and profitability, emphasizing a continued prudent approach to guidance to ensure the creation of long-term shareholder value.
See More
Paymentus Q1 Earnings Exceed Expectations with Strong Revenue Growth
- Earnings Beat: Paymentus reported a Q1 non-GAAP EPS of $0.21, exceeding expectations by $0.03, which reflects the company's ongoing improvement in profitability and strengthens investor confidence.
- Significant Revenue Growth: The company achieved Q1 revenue of $358.44 million, marking a 30.1% year-over-year increase and surpassing market expectations by $22.58 million, indicating strong demand and an increase in market share in the payment solutions sector.
- Stock Price Surge: Following the earnings report, Paymentus shares rose 5.4% in after-hours trading, reflecting investor optimism regarding the company's future growth prospects, which may attract more institutional investors.
- Positive Future Outlook: Paymentus expects revenue to reach $1.41 billion in 2026 while expanding its enterprise footprint and margin targets, demonstrating the company's confidence in future growth and strategic positioning.
See More
