Repay Holdings Corporation

What they do

Repay provides proprietary, integrated payment technology that reduces the complexity of electronic payments for businesses in specific vertical markets. The Consumer Payments segment offers an end-to-end bill payment platform including bill design and presentment, communication services, debit and credit card processing, ACH processing, loan disbursement, and the RCS clearing and settlement platform, serving utilities, personal loans, automotive loans, government, receivables management, financial institutions, credit unions, mortgage servicing, consumer healthcare, insurance, and diversified retail. The Business Payments segment provides accounts payable automation, debit and credit card processing, virtual credit card processing, and ACH processing for businesses, serving retail automotive, education, field services, governments and municipalities, healthcare, media, HOA management, and hospitality.

Revenue drivers

• Consumer Payments — This segment provides an end-to-end bill payment platform including bill design and presentment, communication services, and payment processing solutions, and includes the RCS clearing and settlement platform for ISOs and payment facilitators. It serves verticals such as utilities, personal loans, automotive loans, government, receivables management, financial institutions, credit unions, mortgage servicing, consumer healthcare, insurance, and diversified retail. Its relative size is not specified in the excerpts provided.
• Business Payments — This segment provides payment processing solutions including accounts payable automation, debit and credit card processing, virtual credit card processing, and ACH processing, enabling clients to collect payments from or send payments to other businesses. It serves verticals such as retail automotive, education, field services, governments and municipalities, healthcare, media, HOA management, and hospitality. Its relative size is not specified in the excerpts provided.
• Volume-based discount fees — Most revenues are derived from volume-based payment processing fees, called discount fees, and other related fixed per transaction fees. As clients process increased volumes of payments, revenues increase based on the fees charged for processing those payments.
• Professional services — The Consumer Payments segment provides professional services to clients for customization and configuration of the product suite offering, which also generates revenue.

Recent performance

For the second quarter of 2026, Repay reported revenue of $100.7 million, up 33% year over year, with net loss of $11.5 million and Adjusted EBITDA of $36.3 million. Organic revenue growth was approximately 6%, with Consumer Payments organic growth of 4% and Business Payments normalized organic growth of 19%. The KUBRA acquisition, completed in June 2026, contributed approximately $21 million of revenue during the quarter, representing 5% year-over-year growth compared to June 2025. Free Cash Flow was $27.4 million with a conversion rate of 75%, and net cash provided by operating activities was $40.2 million. For the full year 2025, revenue was $309.3 million and net loss was $256.7 million, which included a $138.9 million goodwill impairment loss in the fourth quarter of 2025 primarily related to the Consumer Payments segment.

Strategy

Repay completed the KUBRA acquisition in June 2026 and immediately began executing on the integration, positioning the company as a leading Consumer Bill Payment and Communication Services platform in the United States and Canada. Management intends to accelerate organic growth into double-digits in the second half of 2026 and create value from KUBRA contributions and realized synergies. The company is focused on reaching over 352 software partners across Consumer and Business Payment verticals, including 54 partners from KUBRA, and has accelerated its AP supplier network to over 731,000, an increase of approximately 66% year-over-year. Management reiterates its 2026 outlook that includes KUBRA contributions and emphasizes strong execution towards run-rate synergies.

Risks

• Goodwill impairment — Repay recorded a $103.8 million goodwill impairment in Q2 2025 and a $138.9 million goodwill impairment in Q4 2025 primarily related to the Consumer Payments segment, and further impairments could occur if performance does not improve.
• Macroeconomic sensitivity — Management notes that heightened inflation, evolving U.S. trade policies, supply chain issues, and slower growth may adversely affect payment volumes from the consumer loan market, the receivables management industry, and consumer and commercial spending.
• Integration risk from KUBRA acquisition — The company completed the KUBRA acquisition in June 2026 and is in the early stages of integration, which carries execution risk and could affect the realization of expected synergies and contributions.
• Reliance on volume-based fees — Most revenues are derived from volume-based discount fees and fixed per-transaction fees, making results sensitive to the dollar amount volume and number of transactions processed by clients.

Outlook

Management reiterates its 2026 outlook that includes KUBRA contributions and states confidence in achieving the outlook. The company expects organic growth to accelerate into double-digits in the second half of 2026 as it works through implementations and continues sales momentum. Management also expects to create value from KUBRA contributions and realized synergies, with teams in place for growth.