Financial Performance - REPAY reported Q3 2025 revenue of $77.7 million, a 2% decline year-over-year from $79.1 million in Q3 2024[2] - Gross profit for Q3 2025 was $57.8 million, down 6% from $61.6 million in Q3 2024, resulting in a gross profit margin of 74%[14] - The net loss for Q3 2025 was $6.6 million, compared to a net income of $3.2 million in Q3 2024[2] - Adjusted EBITDA for Q3 2025 was $31.2 million, reflecting a decrease from $35.1 million in Q3 2024[2] - Free Cash Flow for Q3 2025 was $20.8 million, with a Free Cash Flow Conversion rate of 67%[2] - Revenue for the three months ended September 30, 2025, was $77,725,000, a decrease of 1.8% compared to $79,145,000 for the same period in 2024[26] - Net loss attributable to the Company for the three months ended September 30, 2025, was $(6,414,000), compared to a net income of $3,243,000 for the same period in 2024[26] - Total operating expenses for the three months ended September 30, 2025, were $80,734,000, an increase of 1.1% from $79,820,000 in 2024[26] - Free cash flow for Q3 2025 was $20,784,000, compared to $48,818,000 in Q3 2024, indicating a significant decline[36] - For the nine months ended September 30, 2025, revenue was $230,676,000, a decrease of 1.8% from $234,771,000 in the same period of 2024[35] - Adjusted Net Income for the nine months ended September 30, 2025, was $57,610,000, down from $65,385,000 in 2024, reflecting a decrease of 11.5%[35] - The company reported a loss from operations of $111,533,000 for the nine months ended September 30, 2025, compared to a loss of $6,600,000 in the same period of 2024[35] Segment Performance - Consumer Payments segment revenue grew by 4% year-over-year to $71.7 million, while Business Payments segment revenue declined by 21% to $12.0 million[14] - Normalized revenue growth increased by 5% year-over-year, while normalized gross profit growth was up 1%[8] - Gross profit growth in the Consumer Payments segment was 1%, while Business Payments saw a decline of 31%, leading to a total gross profit decline of 6%[39] - The normalized gross profit growth for the Business Payments segment was 12%, indicating a recovery in that area despite overall declines[39] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $95,691,000, down from $189,530,000 as of December 31, 2024[28] - Net cash provided by operating activities for the nine months ended June 30, 2025, was $67,795,000, compared to $115,838,000 for the same period in 2024[30] - Free cash flow conversion for Q3 2025 was 67%, down from 139% in Q3 2024[36] - The company retired $73.5 million of convertible notes and repurchased $15.6 million of outstanding shares during Q3 2025[1] Impairment and Expenses - The Company reported an impairment loss of $103,781,000 for the nine months ended June 30, 2025[30] - The company reported a non-cash goodwill impairment loss primarily related to the Consumer Payments segment, highlighting challenges in that market[41] - Amortization expenses for the nine months ended September 30, 2025, totaled $75,507,000, compared to $78,126,000 for the same period in 2024[40] - The amortization of acquisition-related intangibles for the three months ended September 30, 2025, was $25,375,000, slightly up from $25,119,000 in the same period of 2024[40] Shareholder Information - The Company had a weighted-average share count of 82,579,954 for basic shares as of September 30, 2025[26] - Weighted average shares of Class A common stock outstanding decreased from 94,074,811 in Q3 2024 to 87,868,105 in Q3 2025[43] Future Outlook - REPAY expects normalized gross profit growth of 6% to 8% and Free Cash Flow Conversion to be above 50% in Q4 2025[13] - The company added five new integrated software partners, bringing the total to 291 as of the end of Q3 2025[13]

Core Insights - Repay Holdings Corporation (NASDAQ:RPAY) is highlighted as a promising investment opportunity among NASDAQ stocks priced under $5, particularly following its recent partnership with Emotive Software [1][2] Group 1: Partnership and Integration - Repay Holdings announced a collaboration with Emotive Software, an automotive finance and compliance platform, to integrate payment automation and loan management capabilities [1][2] - This partnership aims to enhance the efficiency of automotive sales and finance companies by combining Repay's payment technology with Emotive's loan management into a unified platform [1][2] Group 2: Benefits of the Integration - The integration is expected to expand loan payment automation, providing significant advantages to dealerships and lenders utilizing the Emotive platform [2] - Repay's advanced automation ensures that payments are processed and tracked instantly, allowing automotive lenders and dealerships to offer borrowers flexible payment options [2] Group 3: Company Overview - Repay Holdings Corporation operates as a payments technology company, offering integrated payment processing solutions for both consumers and businesses through its Consumer Payments and Business Payments segments [3]

Group 1: AI and Technology Market Insights - AI remains a key market driver alongside technology, with a focus on fundamentals and an all-tech-driven market [1] - The current market is supported by cash flows and operating profits rather than debt, indicating a sustainable build-out for AI infrastructure [2] - Investment opportunities are shifting towards infrastructure plays as the market recognizes the scale of necessary infrastructure for technology deployment [2] Group 2: Clean Energy Fuels Corp. (NASDAQ:CLNE) - Clean Energy Fuels Corp. is launching its second heavy-duty truck demo program featuring the 2026 Freightliner Cascadia Gen 5 with the Cummins X15N natural gas engine [8] - The new demo program follows the success of the previous Peterbilt X15N demo truck program, which was well-received for its performance and cost savings [9] - The program aims to showcase the capabilities of the new truck and promote the integration of low-carbon fueling options through Clean Energy's nationwide RNG stations [10][11] Group 3: Repay Holdings Corporation (NASDAQ:RPAY) - Repay Holdings Corporation announced a partnership with Emotive Software to enhance automotive finance and compliance through integrated payment technology [12] - The collaboration aims to automate loan payment processing and provide flexible payment options for automotive lenders and dealerships [13] - Repay specializes in integrated payment processing solutions for both consumers and businesses across two segments: Consumer Payments and Business Payments [14]

Core Insights - REPAY Holdings Corporation announced a new integration with Yooz, enhancing its payment solutions and financial automation capabilities [1] Group 1: Company Developments - The collaboration with Yooz aims to reduce accounting errors and mitigate the risk of delinquent or inaccurate payments [1] - This integration reflects REPAY's commitment to fostering more trusting and meaningful relationships with organizations [1]

Core Insights - Repay Holdings Corporation (NASDAQ:RPAY) is identified as one of the most undervalued technology stocks by analysts [1] - The company announced a new integration with Fuse, enhancing its digital payment technology for banks and financial institutions [1] Group 1: Integration and Technology - The integration with Fuse's AI-powered loan origination system improves automation capabilities for lenders, allowing for more efficient management of consumer and auto loans [2] - This integration enables automatic updates of transaction logs following payments made via card, ACH, or digital wallet, thereby reducing errors and increasing efficiency [2][3] - The advanced automation reduces the risk of manual errors and miscalculations, while also generating detailed data for compliance checks and issue identification [3] Group 2: Company Overview - Repay Holdings Corporation specializes in integrated payment processing solutions, facilitating electronic payments for consumers and businesses in the US [4]

Core Insights - Repay Holdings Corporation (NASDAQ: RPAY) has been recognized as the most reliable gateway provider by TSG (The Strawhecker Group) based on key performance metrics [1] - The recognition is based on mid-year data from TSG's Global Experience Monitoring (GEM) platform, which evaluates real card transactions [1] Performance Metrics - REPAY's gateway achieved the highest authorization rate among competitors [1] - The company also recorded the lowest gateway minute outage, indicating superior reliability in its payment solutions [1]

Core Points - Repay Holdings Corporation announced the appointment of Robert S. Houser as Chief Financial Officer [1] - The company will grant Mr. Houser restricted stock valued at $700,000 as an inducement for his employment [1] - The award was approved by the Compensation Committee [1]

Core Viewpoint - Repay Holdings (RPAY) is showing a significantly improving earnings outlook, making it an attractive option for investors as analysts continue to raise their earnings estimates for the company [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Repay Holdings' earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements, with Zacks 1 Ranked stocks averaging a +25% annual return since 2008 [3]. - The current-quarter earnings estimate is $0.20 per share, reflecting a -13.0% change from the previous year, but has increased by 13.79% over the last 30 days with no negative revisions [6]. - For the full year, the earnings estimate is $0.85 per share, showing a -7.6% change from the prior year, with a 5% increase in the consensus estimate over the past month [7][8]. Zacks Rank and Investment Potential - Repay Holdings has achieved a Zacks Rank 2 (Buy) due to favorable estimate revisions, indicating strong potential for outperformance compared to the S&P 500 [9]. - The stock has risen 7.3% over the past four weeks, suggesting that further upside may still be possible, making it a candidate for portfolio addition [10].

Summary of Repay (RPAY) FY Conference Call - August 13, 2025 Company Overview - Repay is an integrated payment technology company that provides payment processing solutions for both consumer and B2B payments, with a focus on embedding technology into various software platforms [1][4] - The company has approximately 286 software integrations, with 80% of its business related to consumer bill pay and 20% to business payments [5][6] Key Financial Highlights - Q2 results showed solid progress with sequential growth, returning to high single-digit to low double-digit growth rates [2][35] - Revenue increased, with normalized gross profit margins at 42% on an EBITDA basis [36][39] - Free cash flow was reported at 71%, with a goal to maintain over 60% as the year progresses [36] - The company ended the quarter with over $160 million in cash and has repurchased $38 million in stock year-to-date [39][41] Strategic Focus and Market Position - Repay is focusing on the accounts payable (AP) side of the business, which is seen as a significant growth opportunity [11][12] - The company has a vendor network of approximately 440,000, which is expected to drive synergies and growth [12][16] - A strategic review was conducted to optimize the go-to-market strategy, including enhancing the sales force and client engagement activities [20][25] Competitive Advantages - Repay owns its own clearing and settlement engine, providing a cost advantage over competitors who rely on third-party processors [27][29] - The company is positioned to benefit from market consolidation, which may disrupt competitors and create new opportunities [30] Growth Opportunities - The company is investing in enterprise sales and has seen positive bookings, particularly in the automotive and healthcare sectors [56][57] - Emerging markets, such as mortgage payments, are being targeted for growth, with potential partnerships with card networks to facilitate new payment flows [61][62] Future Outlook - Repay aims to return to growth after experiencing client losses in the previous quarter, with expectations of positive sequential growth in Q3 and Q4 [50][54] - The company is considering capital allocation strategies, including potential M&A opportunities, particularly in the B2B space [46][47] Management Changes - A new CFO, Rob Hauser, will join the company, bringing extensive experience in the payment space [49] Additional Insights - The company emphasizes the importance of cost-effective payment solutions to meet consumer demands, particularly in the mortgage payment sector [62][65] - Repay is optimistic about its growth trajectory, supported by a strong balance sheet and ongoing investments in technology and sales [58][66]

Group 1: Earnings Performance - Repay Holdings reported quarterly earnings of $0.20 per share, matching the Zacks Consensus Estimate, but down from $0.22 per share a year ago [1] - The company had a revenue of $75.63 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.25% and up from $74.91 million year-over-year [2] - Over the last four quarters, Repay Holdings has not surpassed consensus EPS estimates [1] Group 2: Stock Performance and Outlook - Repay Holdings shares have declined approximately 32.5% year-to-date, contrasting with the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.20 on revenues of $77.41 million, and for the current fiscal year, it is $0.86 on revenues of $309.31 million [7] Group 3: Industry Context - The Financial Transaction Services industry, to which Repay Holdings belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Repay Holdings' stock performance [5][6]