Repay (RPAY) - 2025 Q4 - Annual Results

Revenue and Profitability - Reported revenue for Q4 2025 was $78.6 million, approximately flat compared to Q4 2024, while gross profit declined by 2% year-over-year to $58.3 million[2] - Normalized revenue and gross profit growth increased by 10% and 9% year-over-year, respectively, with Consumer Payments revenue and gross profit growth at 8% and 6%[8] - Business Payments segment reported normalized revenue and gross profit growth of approximately 41% and 73% year-over-year[8] - Revenue for Q4 2025 was $78,585 thousand, a slight increase from $78,271 thousand in Q4 2024, while total revenue for the year ended December 31, 2025, was $309,261 thousand, down from $313,042 thousand in 2024[28] - For the year ended December 31, 2025, revenue was $309,261,000, a decrease from $313,042,000 in 2024, representing a decline of 1.3%[35] - Total revenue growth for the Consumer segment was 8%, while Business Payments experienced a decline of 17%, leading to a total revenue growth of 0%[40] Net Loss and Expenses - The net loss for Q4 2025 was $148.3 million, impacted by a non-cash goodwill impairment loss of $138.9 million in the Consumer Payments segment[3] - Total operating expenses for Q4 2025 were $221,774 thousand, significantly higher than $79,441 thousand in Q4 2024, primarily due to an impairment loss of $138,907 thousand[28] - Net loss for Q4 2025 was $148,271 thousand, compared to a net loss of $3,958 thousand in Q4 2024, with a total net loss for the year of $271,088 thousand, up from $10,345 thousand in 2024[28] - The total operating expenses for the year 2025 were $563,983,000, significantly higher than $320,812,000 in 2024, largely due to a non-cash impairment loss of $242,688,000[35] - The net loss for the year 2025 was $271,088,000, compared to a net loss of $10,345,000 in 2024, indicating a dramatic increase in losses[35] Cash Flow and Conversion - Free Cash Flow for Q4 2025 was $13.8 million, with a Free Cash Flow Conversion rate of 43%[2] - Free cash flow for Q4 2025 was $13,779,000, down from $23,459,000 in Q4 2024, showing a decrease of 41.5%[38] - Free cash flow conversion for Q4 2025 was 43%, compared to 64% in Q4 2024, indicating a decline in efficiency[38] - The Free Cash Flow Conversion rate is expected to improve to 45% in 2026[10] Future Outlook - For full year 2026, the company expects reported revenue between $340 million and $346 million, reflecting a growth of approximately 10%-12%[10] - Adjusted EBITDA for full year 2025 was $128.6 million, with an outlook for 2026 between $136.5 million and $141.5 million[10] Shareholder Information - The company repurchased treasury shares amounting to $38,549 thousand during the year ended December 31, 2025[31] - The weighted-average shares of Class A common stock outstanding decreased to 82,108,224 as of December 31, 2025, from 88,392,571 as of December 31, 2024[28] Asset and Liability Changes - Cash and cash equivalents decreased to $115,692 thousand as of December 31, 2025, down from $189,530 thousand as of December 31, 2024[30] - Total assets decreased to $1,199,749 thousand as of December 31, 2025, from $1,571,908 thousand as of December 31, 2024[30] - Total liabilities decreased to $717,967 thousand as of December 31, 2025, compared to $798,739 thousand as of December 31, 2024[30] Impairment Loss - The company reported a significant increase in impairment loss, totaling $242,688 thousand for the year ended December 31, 2025, compared to no impairment loss in 2024[31] - The amortization of acquisition-related intangibles is expected to recur in future periods, impacting future financial results[44] Operational Metrics - The company added three new integrated software partners, bringing the total to 294 software relationships by the end of Q4 2025[13] - The AP supplier network accelerated to over 602,000, marking an increase of approximately 67% year-over-year[13] - Adjusted Net Income for Q4 2025 was $16,752,000, down from $22,433,000 in Q4 2024, reflecting a decrease of 25.0%[36] - Normalized gross profit growth for the Consumer segment was 6%, while Business Payments saw a significant increase of 73%[41] - The normalized revenue growth for Business Payments was 10%, indicating a recovery from previous declines[40] - Total depreciation and amortization for the year ended December 31, 2025, was $102,046,000, slightly down from $103,710,000 in 2024[42]