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1. Company Snapshot

1.a. Company Description

Repay Holdings Corporation provides integrated payment processing solutions to industry-oriented markets.The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods.It also offers a range of solutions relating to electronic payment methods, including credit and debit processing, virtual credit card processing, automated clearing house (ACH) processing, enhanced ACH processing, and instant funding that are processed through its proprietary payment channels, such as Web-based, mobile application, text-to-pay, interactive voice response, and point of sale.


In addition, the company provides payment processing solutions to customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals.It sells its products through direct sales representatives and software integration partners.The company was founded in 2006 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on RPAY

Repay Holdings Corporation's recent performance was negatively driven by a lack of significant growth in its payment processing solutions. The company's Q3 2024 earnings of $0.23 per share matched the Zacks Consensus Estimate, but failed to exceed expectations. Additionally, the company's CEO, John Morris, did not provide any significant updates on new products or acquisitions during the earnings call. The absence of any notable growth drivers or positive surprises may have contributed to the company's recent performance.

1.c. Company Highlights

2. Repay's Q3 2025 Earnings: Steady Progress in Digital Payments

Repay's financial performance in Q3 2025 demonstrated a steady improvement, with revenue reaching $77.7 million and gross profit at $57.8 million. The company's normalized revenue growth and gross profit growth increased 5% and 1%, respectively, excluding the impact of political media contributions in 2024. Adjusted EBITDA margins remained robust at 40%, and free cash flow conversion stood at 67%. The company's EPS came in at $0.21, slightly below estimates of $0.2128. Gross profit margins compressed approximately 3.4% year over year, impacted by one-off client losses and a larger mix of clients with volume discounts.

Publication Date: Nov -30

📋 Highlights
  • Revenue & Gross Profit Growth:: Q3 revenue reached $77.7M, with normalized growth of 51% (excluding 2024 political media contributions), and gross profit hit $57.8M, up 51% normalized.
  • EBITDA & Free Cash Flow:: Adjusted EBITDA margins held at 40%, and free cash flow conversion was 67% in Q3, expected to exceed 50% in Q4.
  • Business Payments Growth:: Normalized gross profit in Business Payments rose ~12% YoY, outpacing the 1% growth in Consumer Payments despite 3% client loss impact.
  • Margin Compression:: Gross profit margins fell 3.4% YoY due to client losses, political media contributions, and discounts, with Level 2/3 transaction rate changes pending in 2026.

Segment Performance

In the Consumer Payments segment, reported gross profit increased 1% year over year, with the company noting some softness in the used car market. However, the overall consumer market remains stable. In contrast, the Business Payments segment saw normalized gross profit increase approximately 12% in Q3 2025, driven by growth from existing clients and the ramp of new clients onto the platform.

Guidance and Outlook

Repay expects the momentum to continue into Q4 2025, with normalized gross profit growth projected to be between 6% to 8%. The company also anticipates free cash flow conversion to be greater than 50%. As Robert Hauser stated, "We'd expect to be in the upper fifties in Q4, and it's really due to just working capital timing." The company's updated outlook reflects its focus on secular digital payment tailwinds, growth from existing clients, and the ramp of new clients onto its platform.

Valuation and Growth Prospects

Analysts estimate Repay's revenue growth to be around 7.1% next year. With a current P/S Ratio of 0.93 and EV/EBITDA of -73.54, the market appears to be pricing in moderate growth expectations. The company's Free Cash Flow Yield stands at 33.27%, indicating a potentially attractive return for investors. As Repay continues to focus on strategic initiatives, return to profitable growth, and maintain a strong balance sheet, its growth prospects will be closely watched by investors.

Capital Allocation and M&A

Repay plans to use its cash on hand to reduce a portion of its outstanding debt while also utilizing its revolving credit facility for the remaining balance at maturity. The company remains open to M&A opportunities, particularly in B2B payments, and has a healthy pipeline of potential targets. With a strong focus on return on investment, Repay is well-positioned to drive growth and create value for its shareholders.

3. NewsRoom

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Repay Holdings Corporation (RPAY) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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Repay Holdings (RPAY) Beats Q3 Earnings and Revenue Estimates

Nov -11

Source: zacks.com

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REPAY Partners with Emotive Software to Enhance Automotive Loan Payment Acceptance and Management

Oct -14

Source: businesswire.com

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REPAY Partners with Yooz to Transform Accounts Payable Automation Through Embedded Payment Capabilities

Oct -07

Source: businesswire.com

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REPAY Enhances Fuse's AI-Powered Lending Software with New Integration

Sep -30

Source: businesswire.com

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REPAY Leads Industry in Mid-Year Gateway Performance Metrics, Earning Top Recognition from TSG

Sep -23

Source: businesswire.com

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REPAY Announces Inducement Award Grant for Rob Houser

Sep -10

Source: businesswire.com

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REPAY Streamlines Loan and Lease Payments with Alfa Systems Partnership

Sep -09

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.31%)

6. Segments

Consumer Payments

Expected Growth: 9%

Repay Holdings Corporation's 9% growth in Consumer Payments is driven by increasing adoption of contactless payments, rising e-commerce transactions, and growing demand for digital payment methods. Additionally, strategic partnerships, expansion into new markets, and investments in technology infrastructure have contributed to the segment's growth.

Business Payments

Expected Growth: 7%

Repay Holdings Corporation's 7% business payments growth is driven by increasing adoption of digital payment solutions, expansion into new industries, and strategic partnerships. Additionally, the rise of e-commerce and online transactions, coupled with the need for efficient payment processing, contribute to the growth. Furthermore, Repay's innovative products and services, such as instant funding and same-day settlement, enhance the customer experience, driving business growth.

Elimination of Intersegment

Expected Growth: 0%

Repay Holdings Corporation's elimination of intersegment revenue with 0% growth is driven by the absence of significant synergies between segments, lack of cross-selling opportunities, and minimal allocation of resources to intersegment activities, resulting in a neutral impact on overall revenue growth.

7. Detailed Products

Payment Processing

Repay's payment processing solutions enable businesses to accept payments online, in-person, or over the phone, with features such as credit card processing, ACH processing, and electronic check processing.

Accounts Receivable Automation

Repay's accounts receivable automation solutions automate and streamline the process of sending invoices, tracking payments, and applying cash, reducing manual errors and improving cash flow.

Lending and Financing

Repay's lending and financing solutions provide businesses with access to capital, enabling them to offer financing options to their customers, improve cash flow, and drive revenue growth.

B2B Payment Solutions

Repay's B2B payment solutions enable businesses to send and receive payments electronically, reducing costs, improving efficiency, and enhancing the overall payment experience.

Card Services

Repay's card services enable businesses to issue and manage prepaid cards, gift cards, and loyalty cards, improving customer engagement and driving revenue growth.

8. Repay Holdings Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Repay Holdings Corporation operates in the financial technology industry, which is characterized by a moderate threat of substitutes. While there are alternative payment processing solutions available, Repay's proprietary technology and strong partnerships with merchants and financial institutions mitigate the threat of substitutes.

Bargaining Power Of Customers

Repay Holdings Corporation's customers are primarily merchants and financial institutions, which have limited bargaining power due to the company's strong market position and proprietary technology.

Bargaining Power Of Suppliers

Repay Holdings Corporation's suppliers are primarily financial institutions and payment networks, which have limited bargaining power due to the company's strong market position and proprietary technology.

Threat Of New Entrants

The financial technology industry is highly competitive, and new entrants can easily disrupt the market with innovative solutions. Repay Holdings Corporation must continuously innovate and improve its services to maintain its market position.

Intensity Of Rivalry

The financial technology industry is highly competitive, with many established players and new entrants vying for market share. Repay Holdings Corporation must differentiate itself through its proprietary technology and strong partnerships to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.84%
Debt Cost 3.95%
Equity Weight 65.16%
Equity Cost 11.13%
WACC 8.63%
Leverage 53.46%

11. Quality Control: Repay Holdings Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.5$

Current Price

3.5$

Potential

-0.00%

Expected Cash-Flows