Repay (US:RPAY)2025-11-10 21:11Financial Performance - Total revenue for the three months ended September 30, 2025, was $77.725 million, a decrease of 1.7% from $79.145 million in the same period of 2024[11]. - The net loss attributable to the Company for the three months ended September 30, 2025, was $6.414 million, compared to a net income of $3.243 million in the same period of 2024[11]. - The Company reported a net loss of $6.617 million for the three months ended September 30, 2025, compared to a net income of $3.215 million in the same period of 2024[98]. - For the nine months ended September 30, 2025, the net loss was $122,817,000, compared to a net loss of $6,387,000 for the same period in 2024[20]. - The increase in net loss attributable to the company was primarily due to client losses and political media spending associated with the 2024 election cycle[167]. Revenue Breakdown - Direct relationships revenue for the Consumer Payments segment was $69.340 million for the three months ended September 30, 2025, compared to $66.772 million in 2024, an increase of 3.5%[39]. - The Consumer Payments segment represented approximately 85% of total revenue for the three months ended September 30, 2025, compared to 81% in the same period of 2024[96]. - The Business Payments segment accounted for approximately 15% of total revenue for the three months ended September 30, 2025, down from 19% in the same period of 2024[97]. - Consumer Payments segment revenue for the nine months ended September 30, 2025, was $214.1 million, a slight decrease of $0.5 million or 0.2% from $214.6 million in 2024[145]. - Business Payments segment revenue for the nine months ended September 30, 2025, was $33.9 million, down $1.6 million or 4.5% from $35.6 million in 2024[147]. Expenses and Losses - Operating expenses for the three months ended September 30, 2025, totaled $80.734 million, up from $79.820 million in the prior year, reflecting an increase of 1.1%[11]. - The Company reported a loss from operations of $3.009 million for the three months ended September 30, 2025, compared to a loss of $675,000 in the same period of 2024[11]. - Total operating expenses for Q3 2025 were $80.7 million, an increase from $79.8 million in Q3 2024, leading to a loss from operations of $3.0 million[116]. - Total operating expenses for the nine months ended September 30, 2025, increased to $342.2 million, up 41.8% from $241.4 million in 2024[158]. - The company incurred a non-cash impairment loss of $103.8 million for the nine months ended September 30, 2025, primarily due to a $103.2 million goodwill impairment in the Consumer Payments segment[131]. Assets and Liabilities - Total assets as of September 30, 2025, were $1.333 billion, down from $1.572 billion as of December 31, 2024, representing a decrease of 15.2%[9]. - Total liabilities decreased to $711.075 million as of September 30, 2025, from $798.739 million at the end of 2024, a reduction of 10.9%[9]. - The Company’s total stockholders' equity decreased to $622.414 million as of September 30, 2025, from $773.169 million at the end of 2024, a decline of 19.5%[9]. - Total cash, cash equivalents, and restricted cash at the end of the period was $141,908,000, compared to $215,255,000 at the end of the same period in 2024[20]. - As of September 30, 2025, total borrowings amounted to $425.8 million, with a fair value of $397.6 million[52]. Cash Flow and Financing - Cash provided by operating activities for the nine months ended September 30, 2025, was $67,795,000, down from $115,838,000 in 2024[20]. - Net cash provided by operating activities was $67.8 million for the nine months ended September 30, 2025, compared to $115.8 million for the same period in 2024, reflecting a decrease of approximately 41.5%[173]. - Net cash used in financing activities was $130.2 million for the nine months ended September 30, 2025, compared to $10.7 million for the same period in 2024, showing a significant increase of approximately 1,116%[175]. - The company entered into a Second Amended Credit Agreement establishing a $250.0 million senior secured revolving credit facility, with $0 drawn against it as of September 30, 2025[63][64]. - The company expects that cash flow from operations, current cash and cash equivalents, and available borrowing capacity will be sufficient to fund operations and planned capital expenditures for the next twelve months and the following five years[169]. Share Repurchase Program - The company repurchased treasury shares amounting to $38,405,000 during the nine months ended September 30, 2025[20]. - The company repurchased approximately 3.1 million shares for $15.6 million during the three months ended September 30, 2025, with $23.0 million remaining under the Share Repurchase Program[171]. - The board of directors approved an increase in the Share Repurchase Program from $50 million to $75 million on May 8, 2025[197]. - The Share Repurchase Program has no expiration date and may be modified, suspended, or discontinued at the company's discretion[197]. - The total approximate dollar value of shares that may yet be purchased under the Share Repurchase Program is $22,967,359[197]. Tax and Interest - The effective tax rate for the three and nine months ended September 30, 2025, was 18.5% and 2.8%, respectively, with an income tax benefit of $1.8 million and $3.6 million recorded for the same periods[85]. - The Company recognized deferred tax assets of $1.8 million and $3.6 million for the three and nine months ended September 30, 2025, related to the income tax benefit from net operating losses[86]. - The company is exposed to interest rate risk due to its floating rate debt, which may increase costs and reduce net income[188]. - Interest expense increased to $9.3 million for the nine months ended September 30, 2025, compared to $4.7 million for the same period in 2024, due to a higher outstanding principal balance under convertible senior notes[133]. - The Company’s interest expense on the convertible senior notes was $6.2 million for the nine months ended September 30, 2025[67].