Paymentus' (PAY) Q1 results were solid with beats across the board and healthy momentum that is seen continuing into the rest of the year, Wedbush Securities said in a research note Tuesday.

Paymentus also raised its 2025 outlook as it "looks to capitalize on elevated demand across new and existing client within an important part of essential discretionary domestic spend despite the macro chaos," Wedbush said.

The company's Q1 revenue beat comes as it is benefitting from a "new large customer base to drive higher transaction levels per customer which came in at $1.59 vs. $1.55 in the prior quarter," the investment firm said.

Paymentus' management noted that its about $250 million cash balance gives it "ample liquidity to pursue [mergers and acquisitions] and other inorganic growth opportunities to fuel its 20% long-term [compound annual growth rate] trajectory," Wedbush said.

The investment firm kept Paymentus' outperform rating and lifted its price target to $40 from $38.

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