Financial Data and Key Metrics Changes - In Q4 2025, REPAY achieved revenue of $78.6 million and gross profit of $58.3 million, with normalized revenue growth of 10% and gross profit growth of 9% year-over-year [15][16] - Adjusted EBITDA was $32.4 million, representing approximately 41% of Adjusted EBITDA margins, while free cash flow was $13.8 million, resulting in a 43% free cash flow conversion [16][20] - The company reported a non-cash goodwill impairment charge of $138.9 million related to the consumer payments segment [16] Business Line Data and Key Metrics Changes - In the consumer payments segment, Q4 revenue increased by 8% and gross profit increased by 6% year-over-year [6][16] - The business payments segment saw normalized revenue increase of 41% and gross profit increase of 73% year-over-year in Q4 [8][16] - The supplier network in the business payments segment grew to 602,000 suppliers, an increase of over 65% year-over-year [8] Market Data and Key Metrics Changes - The company noted stable trends in the auto and personal loans markets, with no significant changes reported in healthcare or mortgage sectors [29][30] - The upcoming midterm elections are expected to positively impact revenue by $8 million to $10 million, contributing approximately 3 percentage points to reported growth year-over-year [22] Company Strategy and Development Direction - REPAY is focused on improving operations, go-to-market strategies, and overall organizational leadership to support growth in 2026 [5][19] - The company plans to allocate capital towards organic growth opportunities, strategic M&A, and partnerships to enhance long-term growth and cash flow [23][24] - Investments in AI and automation are prioritized to streamline processes and enhance client experiences [12][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit reported revenue growth in 2026, driven by existing client growth and new client ramp-up [19][21] - The company anticipates a lower year-over-year growth in Q1 2026 due to delayed client implementations but expects a return to strong double-digit normalized growth in the second half of the year [21] - Management highlighted the importance of political media contributions in the upcoming year, which are expected to provide a revenue boost [22] Other Important Information - REPAY has approximately $116 million in cash on the balance sheet and a pro forma total liquidity of approximately $219 million [17][18] - The company is committed to maintaining strong cash generation to support liquidity and financial flexibility while balancing capital deployment [26] Q&A Session Summary Question: Insights on major end markets like auto, personal loans, healthcare, and mortgage - Management noted stable trends in auto and personal loans, with no significant changes in healthcare or mortgage markets [29][30] Question: Impact of tax refunds on volumes and repayment activity - Management observed a seasonal uplift in payment volume related to tax refunds, indicating normal patterns [35] Question: Update on M&A pipeline and focus areas - Management confirmed a healthy pipeline for potential M&A opportunities in both consumer and business payments, with a focus on partnerships that complement existing business units [41] Question: Growth expectations for the business payments segment - Management indicated expectations for high teens growth in the business payments segment, influenced by the political year and upcoming midterm elections [55] Question: Consumer segment initiatives contributing to growth - Management stated that initiatives in the consumer segment are included in the 2026 forecast, with no outsized contributors expected [56]

Financial Data and Key Metrics Changes - In Q4 2025, REPAY achieved revenue of $78.6 million, reflecting a 10% normalized year-over-year growth, while gross profit was $58.3 million, with a 9% growth on a normalized basis [13][14] - Adjusted EBITDA margins were approximately 41%, and free cash flow conversion was 43% [5][14] - Reported net income was impacted by a non-cash goodwill impairment charge of $138.9 million related to the consumer payments segment [14] Business Line Data and Key Metrics Changes - Consumer payments segment saw revenue increase of 8% and gross profit increase of 6% year-over-year [5][14] - Business payments segment experienced a significant increase, with normalized revenue up 41% and gross profit up 73% year-over-year [7][14] Market Data and Key Metrics Changes - The supplier network in the business payments segment grew to 602,000 suppliers, an increase of over 65% year-over-year [8] - The company added 14 software partners and integrations during 2025, exiting the year with over 294 total partners [9] Company Strategy and Development Direction - REPAY is focused on improving operations, go-to-market strategies, and overall organizational leadership to support growth in 2026 [4] - The company plans to allocate capital towards organic growth opportunities, strategic M&A, and partnerships to enhance long-term growth and cash flow [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of $340 million to $346 million for 2026, representing 10%-12% reported revenue growth [17] - The company anticipates a strong midterm election cycle to positively impact revenue by $8 million-$10 million, contributing approximately 3 percentage points of reported growth year-over-year [19] Other Important Information - REPAY's pro forma total liquidity is approximately $219 million, which includes $140 million of undrawn revolver capacity [16] - The company is committed to implementing its capital allocation strategy to achieve double-digit reported growth and strong profitability in 2026 [22] Q&A Session Summary Question: Insights on major end markets like auto, personal loans, healthcare, and mortgage - Management noted stable trends in auto and personal loans, with no significant changes observed in healthcare or mortgage markets [25][26] Question: Impact of tax refunds on volumes and repayment activity - Management indicated a seasonal uplift in payment volume related to tax refunds, consistent with previous years [31] Question: Contribution of float income to growth and margins - Float income from customer deposits in the B2B business played a significant role in Q4 results, with stable contributions expected moving forward [32][33] Question: Update on M&A pipeline and focus on consumer vs. business payments - Management confirmed a healthy pipeline for potential M&A opportunities in both consumer and business payments, focusing on selective investments [37] Question: Growth expectations for the business payment segment - Management anticipates high teens growth for the business payments segment, influenced by the political year and expected revenue contributions from political media [49][50]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved 10% revenue growth and 9% gross profit growth on a normalized year-over-year basis, excluding political media contributions from 2024 [5][14] - Adjusted EBITDA margins were 41%, and free cash flow conversion was 43% [5][15] - Q4 revenue was $78.6 million, and gross profit was $58.3 million, with gross profit margins at approximately 74.2% [13][14] Business Line Data and Key Metrics Changes - In the consumer payment segment, Q4 revenue increased by 8% and gross profit increased by 6% year-over-year [5][14] - The business payments segment saw normalized revenue increase by 41% and gross profit increase by 73% year-over-year [7][14] - The supplier network in the business payments segment grew to 602,000 suppliers, a 65% increase year-over-year [8] Market Data and Key Metrics Changes - The company noted stable trends in the auto and personal loans markets, with no significant changes reported in healthcare or mortgage sectors [26][27] - The political media contributions are expected to positively impact revenue by $8 million to $10 million in 2026, contributing approximately 3 percentage points to reported growth year-over-year [20] Company Strategy and Development Direction - The company is focused on improving operations, go-to-market strategies, and overall organizational leadership to support growth in 2026 [4][10] - Strategic changes in 2025 included executive changes, process streamlining, and investments in automation and AI to enhance operational efficiency [10][11] - The company plans to allocate capital towards organic growth opportunities, strategic M&A, and partnerships to boost long-term growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit reported revenue growth in 2026, driven by existing client growth and new client ramp-up [18][22] - The first quarter of 2026 is expected to show lower year-over-year growth due to delayed client implementations, with a return to strong double-digit normalized growth anticipated in the second half of the year [20][22] - The company is positioned to leverage AI capabilities to enhance productivity and streamline client onboarding processes [11][12] Other Important Information - The company ended 2025 with approximately $116 million in cash and a pro forma total liquidity of about $219 million [16][17] - The company has $23 million remaining under its existing share repurchase program for 2026 [21] Q&A Session Summary Question: Insights on major end markets like auto, personal loans, healthcare, and mortgage - Management noted stable trends in auto and personal loans, with no significant changes in healthcare or mortgage markets [26][27] Question: Any upcoming customer renewals in 2026 - Management indicated no major renewals outside of standard auto-renewals that are already embedded in guidance [28] Question: Impact of tax refunds on volumes and repayment activity - Management observed a seasonal uplift in payment volume during tax refund season, consistent with previous years [32][33] Question: Contribution of float income to growth and margins - Float income from customer deposits in the B2B business contributed positively to fourth-quarter results, with stable expectations for 2026 [34][35] Question: Update on M&A pipeline and focus areas - Management confirmed a healthy M&A pipeline with opportunities in both consumer and business payments, focusing on partnerships that complement existing business units [39] Question: Growth expectations for the business payment segment - Management anticipates high teens growth for the business payments segment, influenced by the political year and expected contributions from political media [52][53]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved revenue of $77.7 million, reflecting a 5% normalized year-over-year growth, while gross profit was $57.8 million, with a 1% increase on a normalized basis [13][14] - Adjusted EBITDA was $31.2 million, representing approximately 40% adjusted EBITDA margins, and free cash flow was $20.8 million, resulting in a 67% free cash flow conversion [15][16] - The company reported a gross profit margin compression of approximately 3.4% year-over-year due to client losses and increased volume discounts [14][15] Business Line Data and Key Metrics Changes - In the consumer payments segment, gross profit increased by 1% year-over-year, with a single-digit increase when excluding the impact of client losses [14][15] - The business payments segment saw a normalized gross profit increase of 12% year-over-year, with over 20% growth when excluding the impact of client losses [10][15] - The supplier network in the business payments segment grew to over 540,000 suppliers, a 60% year-over-year increase [11] Market Data and Key Metrics Changes - The company added five new software partners in Q3, bringing the total partnership network to 291 across consumer and business payment segments [6][11] - The company is focusing on increasing TotalPay adoption and has seen double-digit growth in its accounts payable platform, particularly in healthcare and hospitality verticals [10][11] Company Strategy and Development Direction - The core growth strategy focuses on optimizing digital payment flows and embedding payment technology into software platforms [4][5] - The company is investing in AI tools and automation to enhance client onboarding and improve operational efficiency [5][6] - Capital allocation priorities include organic growth investments, managing CapEx, and maintaining a strong balance sheet while being open to M&A opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to sustainable growth as they exit 2025, with expectations of 6%-8% normalized gross profit growth in Q4 [17][18] - The company anticipates ongoing margin pressures due to a mix of larger clients with volume discounts and higher transaction values [18] - Management highlighted a stable consumer environment, with some softness noted in the automotive sector [36] Other Important Information - The company repurchased approximately 3% of its outstanding shares in August, totaling $38 million year-to-date, and reduced debt by retiring $73.5 million of convertible notes [12][16] - As of September 30, the company had approximately $96 million in cash and access to $250 million in undrawn revolver capacity, totaling $346 million in liquidity [16] Q&A Session Summary Question: Free cash flow outlook into 2026 - Management expects free cash flow conversion to be in the upper 50s for Q4 2025, with a strong 67% conversion in Q3 [22][23] Question: Political media spend headwind - The headwind from political media contributions in Q4 last year was $4.6 million in gross profit, with an annual impact of approximately $11.75 million [23] Question: Visa Commercial Enhanced Data Program - Management discussed the transition from level two to level three data requirements, which will impact interchange rates and associated fees [28][31] Question: Consumer payments softness - Management noted stable consumer conditions overall but identified softness in the automotive-to-used car segment [36] Question: M&A pipeline and targets - Management indicated a healthy pipeline for M&A opportunities in both consumer and B2B segments, while also focusing on capital allocation priorities [38]

Financial Data and Key Metrics Changes - In Q3 2025, revenue was $77.7 million, with a normalized revenue growth of 5% year-over-year, and gross profit was $57.8 million, with a gross profit growth of 1% [12][14] - Adjusted EBITDA was $31.2 million, representing approximately 40% adjusted EBITDA margins, and free cash flow was $20.8 million, resulting in a 67% free cash flow conversion [14][15] - The company had approximately $96 million in cash and $250 million in undrawn revolver capacity, totaling $346 million in liquidity [15] Business Line Data and Key Metrics Changes - Consumer payments segment reported a gross profit increase of 1% year-over-year, with a single-digit growth when excluding the impact of client losses [14][13] - Business payments segment saw a normalized gross profit increase of 12% year-over-year, with over 20% growth when excluding the impact of client losses [9][14] - The supplier network in the business payments segment increased to over 540,000 suppliers, growing approximately 60% year-over-year [10] Market Data and Key Metrics Changes - The company added five new software partners, bringing the total partnership network to 291 across consumer and business payment segments [6] - The company experienced a stable consumer marketplace, with noted softness in the automotive-to-used car segment [35] Company Strategy and Development Direction - The core growth strategy focuses on optimizing digital payment flows and embedding payment technology into software platforms [4] - The company is enhancing its go-to-market strategies, automating processes, and deploying AI tools to build a scalable future [5][6] - The strategic focus is on increasing TotalPay adoption and prioritizing resources towards accounts payable opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to sustainable growth as they exit the year, with expectations for sequential improvement in normalized growth in Q4 [4][16] - The company anticipates ongoing margin pressures due to a mix of larger clients with volume discounts and higher transaction values [17][18] - The updated Q4 outlook expects normalized gross profit growth of 6%-8% and free cash flow conversion to be greater than 50% [16][18] Other Important Information - The company repurchased approximately 3% of its outstanding shares in August, totaling $38 million year-to-date [11][15] - Management is open to M&A opportunities to accelerate growth potential [19] Q&A Session Summary Question: Free cash flow outlook into 2026 - Management expects free cash flow conversion to be in the upper 50s for Q4, with a strong 67% conversion in Q3 [21] Question: Political media spend headwind for Q4 - The headwind for Q4 last year was $4.6 million in gross profit, with an annual impact of around $11.75 million [22] Question: Visa Commercial Enhanced Data Program - Management discussed the transition from level two to level three data requirements, which may affect interchange rates [27][30] Question: Consumer payments softness - Management noted stability in the consumer marketplace but identified softness in the automotive-to-used car segment [35] Question: M&A pipeline - Management sees a healthy pipeline for M&A opportunities in both consumer and B2B segments [37]

Financial Data and Key Metrics Changes - In Q3 2025, Repay reported revenue of $77.7 million, reflecting a 5% normalized year-over-year growth, while gross profit was $57.8 million, with a 1% increase on a normalized basis [13][14] - Adjusted EBITDA was $31.2 million, representing approximately 40% adjusted EBITDA margins, and free cash flow was $20.8 million, resulting in a 67% free cash flow conversion [15][16] - The company had approximately $96 million in cash and $250 million in undrawn revolver capacity, totaling $346 million in liquidity [16] Business Line Data and Key Metrics Changes - Consumer payments segment gross profit increased by 1% year-over-year, with a noted impact of approximately 3% from client losses [14][15] - Business payments segment saw a normalized gross profit increase of 12% year-over-year, with over 20% growth when excluding the impact of client losses [10][15] - The supplier network in the business payments segment grew to over 540,000 suppliers, a 60% increase year-over-year [11] Market Data and Key Metrics Changes - The company added five new software partners, bringing the total partnership network to 291 across consumer and business payment segments [6] - The automotive-to-used car market showed some softness, consistent with previous observations [34] Company Strategy and Development Direction - Repay's core growth strategy focuses on optimizing digital payment flows and embedding payment technology into software platforms [4] - The company is investing in AI tools and automation to enhance client onboarding and improve operational efficiency [5] - Capital allocation priorities include organic growth investments, managing CapEx, and maintaining a strong balance sheet [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to sustainable growth, expecting normalized gross profit growth of 6%-8% in Q4 2025 [17][18] - The company anticipates continued margin pressures due to a mix of larger clients with volume discounts and increased ACH and check volumes [18] - Management highlighted a healthy M&A pipeline and openness to acquisitions to accelerate growth potential [36] Other Important Information - The company repurchased approximately 3% of its outstanding shares in August, totaling $38 million year-to-date [12][16] - Repay retired $73.5 million of its 2026 convertible notes at a discount, reducing total outstanding debt to $434 million [16] Q&A Session Summary Question: Free cash flow outlook into 2026 - Management expects Q4 free cash flow conversion to be in the upper 50s, with a strong 67% conversion in Q3 [21] Question: Political media spend headwind - The headwind for Q4 last year was $4.6 million in gross profit, with an annual impact of approximately $11.75 million [22] Question: Visa Commercial Enhanced Data Program - Management discussed changes in data requirements for B2B transactions and the potential impact on interchange rates [26][30] Question: Consumer payments softness - Management noted stability in the consumer marketplace but identified softness in the automotive-to-used car segment [34] Question: M&A targets and pipeline - Management indicated a healthy pipeline for M&A opportunities in both consumer and B2B segments [36] Question: Nature of net working capital affecting free cash flow - Management clarified that the lower free cash flow conversion is due to timing of working capital and margin compression [41]