Repay (US:RPAY)2025-11-10 21:08Financial 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]