Repay Holdings Reports Q1 2025 Financial Results

Repay Holdings ( (RPAY) ) has released its Q1 earnings. Here is a breakdown of the information Repay Holdings presented to its investors.

Repay Holdings Corporation, a leading provider of vertically-integrated payment solutions, operates primarily in the financial technology sector, offering services that simplify electronic payments for businesses and consumers. In its first quarter of 2025, Repay Holdings reported a slight decline in revenue and gross profit compared to the previous year, with revenue reaching $77.3 million and gross profit at $58.7 million. The company also announced an increase in its share repurchase program authorization to $75 million, reflecting confidence in its long-term growth strategy.

Key financial metrics for the quarter showed a net loss of $8.2 million, a decrease in adjusted EBITDA to $33.2 million, and a significant drop in free cash flow to negative $8 million. Despite these challenges, the Business Payments segment experienced a 12% year-over-year growth in normalized gross profit, driven by new enterprise customers and successful monetization efforts. The Consumer Payments segment, however, saw a 5% decline in gross profit due to previously announced client losses.

Strategically, Repay Holdings accelerated its accounts payable supplier network by 40% year-over-year and added new software partners, enhancing its integrated solutions portfolio. The company also expanded its client base by adding 14 new credit unions, bringing the total to 343. Looking ahead, Repay Holdings anticipates sequential quarterly growth in normalized gross profit and expects free cash flow conversion to exceed 60% by the fourth quarter of 2025.

In conclusion, Repay Holdings remains focused on executing its core growth strategy, emphasizing profitable growth and operational efficiency. The company is optimistic about delivering value to shareholders and achieving positive organic results throughout 2025, despite the current financial challenges.