Paymentus Holdings (PAY) Rose Following Strong Results and Increased Guidance

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Paymentus Holdings, Inc. (NYSE:PAY). Paymentus Holdings, Inc. (NYSE:PAY) is a technology company that offers cloud-based bill payment technology and solutions. The one-month return of Paymentus Holdings, Inc. (NYSE:PAY) was -12.15%, and its shares gained 54.10% of their value over the last 52 weeks. On September 11, 2025, Paymentus Holdings, Inc. (NYSE:PAY) stock closed at $32.90 per share, with a market capitalization of $4.121 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Paymentus Holdings, Inc. (NYSE:PAY) in its second quarter 2025 investor letter:

“In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring either asset managers or specialized insurance companies.Paymentus Holdings, Inc. (NYSE:PAY), a provider of cloud-based bill payment technology and solutions, advanced 25%. The company reported a strong quarter and raised guidance. They have been able to leverage their platform for a diverse set of industries and customers. New business bookings, backlog and pipeline all remain solid. During the quarter, we opportunistically added to the position.”

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Paymentus Holdings, Inc. (NYSE:PAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Paymentus Holdings, Inc. (NYSE:PAY) at the end of the second quarter, which was 21 in the previous quarter. In the second quarter of 2025, Paymentus Holdings, Inc. (NYSE:PAY) reported revenue of $280.1 million, up 41.9% year-over-year and contribution profit of $93.5 million, which was up 22.3%. While we acknowledge the risk and potential Paymentus Holdings, Inc. (NYSE:PAY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Paymentus Holdings, Inc. (NYSE:PAY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Paymentus Holdings, Inc. (NYSE:PAY) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.