Repay (US:RPAY)2025-05-12 20:09Financial Performance - Total revenue for Q1 2025 was $77,325,000, a decrease of 4.3% compared to $80,720,000 in Q1 2024[10] - Net loss for Q1 2025 was $8,168,000, compared to a net loss of $5,365,000 in Q1 2024, representing a 52.5% increase in losses year-over-year[10] - Total revenue for the three months ended March 31, 2025, was $77.325 million, a decrease from $80.720 million in the same period of 2024, representing a decline of approximately 3.0%[32] - The net loss attributable to the Company for the three months ended March 31, 2025, was $7.947 million, compared to a net loss of $5.212 million in the same period of 2024[37] - The Company reported a net loss of $8.2 million for the three months ended March 31, 2025, compared to a net loss of $5.4 million for the same period in 2024[109] - Adjusted Net Income for the same period was $20.3 million, representing a 9.2% year-over-year decrease from $22.4 million in 2024[139] - Net loss attributable to the Company increased by 51.8% year-over-year, reaching $7.9 million in 2025 compared to $5.2 million in 2024[139] Revenue Breakdown - Revenue from direct relationships in the Consumer Payments segment was $69.254 million for Q1 2025, down from $73.311 million in Q1 2024, indicating a decrease of about 5.0%[32] - Consumer Payments segment represented approximately 86% of total revenue for the three months ended March 31, 2025, while Business Payments segment accounted for approximately 14%[90][91] - Consumer Payments segment revenue decreased by $4.2 million or 5.5% year-over-year, totaling $71.9 million for the three months ended March 31, 2025[122] - Business Payments segment revenue increased to $11.0 million for the three months ended March 31, 2025, compared to $9.7 million for the same period in 2024[93] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q1 2025 were $165,466,000, down from $189,530,000 at the end of 2024, a decrease of 12.7%[8] - Net cash provided by operating activities was $2,503,000 for Q1 2025, a significant decrease from $24,801,000 in Q1 2024[16] - As of March 31, 2025, the Company had $165.5 million in cash and cash equivalents, with an available borrowing capacity of $250.0 million under the Second Amended Credit Agreement[143] - Net cash used in investing activities was $10.5 million in 2025, consistent with $11.1 million in 2024, primarily for software development[148] - Net cash used in financing activities was $19.5 million in 2025, compared to $3.0 million in 2024, due to payments under the TRA and tax withholding related to shares vesting[149] Expenses and Costs - Operating expenses for Q1 2025 totaled $80,945,000, a decrease of 2.7% from $83,224,000 in Q1 2024[10] - Costs of services were $18.7 million for the three months ended March 31, 2025, a decrease of $0.5 million or 2.6% from $19.2 million in the same period of 2024[111] - Depreciation and amortization expenses decreased by $1.7 million or 6.3%, totaling $25.3 million for the three months ended March 31, 2025, down from $27.0 million in 2024[113] - Selling, general and administrative expenses remained flat at $37.0 million for the three months ended March 31, 2025, compared to the same period in 2024, reflecting a 0.0% change[112] Assets and Liabilities - Total assets decreased to $1,535,392,000 as of March 31, 2025, down from $1,571,908,000 at the end of 2024, a decline of 2.3%[8] - Total liabilities decreased to $768,194,000 as of March 31, 2025, down from $798,739,000 at the end of 2024, a reduction of 3.8%[8] - Total equity decreased to $767,198,000 as of March 31, 2025, down from $773,169,000 at the end of 2024, a decline of 0.8%[8] - The Tax Receivable Agreement (TRA) balance at the end of the period was $190.4 million, reflecting a decrease from $203.6 million at the beginning of the period[52] - The Company had TRA payables for related parties of $25.5 million as of March 31, 2025, down from $27.5 million as of December 31, 2024[70] Interest and Borrowings - The Company incurred interest expense of $3,107,000 in Q1 2025, compared to $912,000 in Q1 2024, indicating a substantial increase in borrowing costs[10] - The Company incurred interest expense of $2.1 million on convertible senior notes for the three months ended March 31, 2025[64] - The estimated fair value of borrowings as of March 31, 2025, was $456.189 million, reflecting the amortized cost of the revolving credit facility and convertible senior notes[44] - As of March 31, 2025, total borrowings amounted to $507.5 million, with a carrying value of $497.6 million after accounting for debt issuance costs[65] Tax and Compliance - The effective tax rate for the Company was 5.2% for the three months ended March 31, 2025, compared to (6%) for the same period in 2024[79] - The Company recorded an income tax benefit of $0.5 million for Q1 2025, while an income tax expense of $0.3 million was recorded for Q1 2024[79] - The Company recognized adjustments of $0.5 million for deferred tax assets related to the income tax benefit for the three months ended March 31, 2025[80] Shareholder Activities - The company purchased a total of 465,103 shares of Class A common stock during the three months ended March 31, 2025, at an average price of $6.76 per share[170] - The company has a Share Repurchase Program approved for up to $50 million of its outstanding Class A common stock, with no expiration date[170] Risk Factors and Economic Conditions - The Company continues to monitor macroeconomic conditions, including inflation and potential recession impacts, which may affect payment volumes and overall financial performance[101] - The company believes the effects of inflation on its results of operations and financial condition have not been significant, but future impacts cannot be assured[161] - There have been no material changes in risk factors since the last annual report for the year ended December 31, 2024[169]