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Repay Holdings Corp (RPAY)
NASDAQ:RPAY
Top Page
Repay Holdings
(NASDAQ:RPAY)
54Neutral
Positive Factors
Market Positioning
RPAY's integrated payments offering is well-positioned to address large, underserved end-markets with largely nondiscretionary volume.
Strategic Review
The company has launched a comprehensive strategic review aimed at assessing alternatives to enhance shareholder value, including a potential sale or take-private transaction.
Negative Factors
Client Losses
Organic gross profit growth decelerated to -9% YoY, negatively impacted by additional client losses and headwinds in business payments.
Financial Performance
RPAY’s 4Q24 revenue and gross profit fell short of Street estimates, indicating a weaker financial performance for the quarter.
Repay Holdings (RPAY) vs. S&P 500 (SPY)
Market Cap
$541.52M
Dividend YieldN/A
Average Volume (3M)600.01K
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth5.53%
EPS Growth90.89%
CountryUS
Employees512
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-0.12
Shares Outstanding88,798,200
10 Day Avg. Volume982,301
30 Day Avg. Volume600,010
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.73
Price to Cash Flow (P/CF)4.00
P/FCF Ratio5.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.95Price Target Upside73.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Repay Holdings Business Overview & Revenue Model
Company DescriptionRepay Holdings (RPAY) is a financial technology company offering integrated payment processing solutions primarily focused on serving small to medium-sized businesses. The company operates across various sectors, including automotive, healthcare, personal finance, and education. Its core products and services revolve around providing end-to-end payment solutions that include card processing, ACH processing, and instant funding capabilities. Repay Holdings is known for its robust technology platform that simplifies the payment process for both merchants and consumers.
How the Company Makes MoneyRepay Holdings generates revenue through transaction fees charged to merchants for processing payments. The company earns money each time a card or ACH transaction is processed through its platform. Additionally, Repay Holdings offers value-added services such as instant funding and payment automation, which also contribute to its revenue. Key partnerships with financial institutions and technology providers enhance its service offerings and expand its market reach. The company's growth is further supported by its strategic acquisitions, which help broaden its client base and increase transaction volume.
Repay Holdings Financial Statement Overview
Summary
Repay Holdings demonstrates robust revenue growth and strong cash flow management, which are key strengths in its financial profile. However, persistent operational losses and negative profit margins pose challenges. The balance sheet is stable, with manageable leverage, but improving profitability will be crucial for enhancing overall financial health.Income Statement
Repay Holdings shows a positive revenue growth trend with a 5.54% increase from 2023 to 2024 and consistent growth over the past years. However, profitability remains a challenge, evidenced by negative EBIT and net income margins, indicating ongoing operational inefficiencies and cost management issues.65
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.67, suggesting balanced leverage. The equity ratio of 48.44% denotes a solid equity base, although the negative net income impacts the ROE, which stands at -1.33% for 2024. Overall, the balance sheet reflects financial stability but with profitability concerns.72
Positive
Cash Flow
Repay Holdings displays strong cash flow generation with a significant increase in free cash flow, growing by 279.96% from 2023 to 2024. Both operating and free cash flow to net income ratios are positive, highlighting effective cash management despite net losses.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 313.04M | 296.63M | 279.23M | 219.26M | 155.04M | Gross Profit |
| 313.04M | 226.92M | 214.40M | 163.77M | 113.59M | EBIT |
| -7.77M | -111.41M | 24.08M | -69.08M | -37.03M | EBITDA |
| 100.66M | 78.27M | 65.34M | 43.72M | -54.47M | Net Income Common Stockholders |
| -10.16M | -110.49M | 8.74M | -56.04M | -46.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 189.53M | 118.10M | 64.89M | 50.05M | 91.13M | Total Assets |
| 1.57B | 1.52B | 1.63B | 1.69B | 1.11B | Total Debt |
| 508.51M | 443.04M | 461.88M | 459.57M | 267.08M | Net Debt |
| 318.99M | 324.95M | 396.98M | 409.52M | 175.95M | Total Liabilities |
| 798.74M | 689.04M | 698.51M | 772.80M | 553.80M | Stockholders Equity |
| 761.27M | 815.13M | 894.56M | 874.00M | 509.31M |
| Cash Flow | Free Cash Flow | |||
| 149.10M | 39.25M | 34.68M | 29.82M | 4.21M | Operating Cash Flow |
| 150.09M | 103.61M | 74.22M | 53.33M | 28.49M | Investing Cash Flow |
| -44.85M | -24.09M | -39.54M | -397.34M | -145.98M | Financing Cash Flow |
| -12.67M | -28.94M | -17.46M | 313.84M | 186.10M |
Repay Holdings Technical Analysis
Negative
5.74
Price Trends
7.27
Negative
7.65
Negative
8.38
Negative
Market Momentum
-0.43
Positive
19.31
Positive
4.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPAY, the sentiment is Negative. The current price of 5.74 is below the 20-day moving average (MA) of 6.86, below the 50-day MA of 7.27, and below the 200-day MA of 8.38, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 19.31 is Positive, neither overbought nor oversold. The STOCH value of 4.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RPAY.
Repay Holdings Risk Analysis
Repay Holdings disclosed 44 risk factors in its most recent earnings report. Repay Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Repay Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $162.08B | 56.97 | 17.43% | 0.67% | 13.73% | 9.93% | |
78 Outperform | $12.43B | 23.89 | 34.88% | 0.70% | 11.19% | 51.03% | |
77 Outperform | $118.99B | 31.61 | 83.72% | 1.89% | 7.09% | 11.51% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% | |
54 Neutral | $541.52M | ― | -1.29% | ― | 5.53% | 90.89% |
* Technology Sector Average
Performance Comparison
RPAY
Repay Holdings
5.74
-5.15
-47.29%
ADP
Automatic Data Processing
292.44
51.64
21.45%
INTU
Intuit
586.71
-71.89
-10.92%
PAYC
Paycom
206.66
21.28
11.48%
Repay Holdings Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -19.38% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted steady growth in adjusted EBITDA and free cash flow conversion, strong performance in the business payments segment, and expansion through new partnerships. However, these positives were counterbalanced by declines in the consumer payments segment, client losses, and a lack of a 2025 outlook due to an ongoing strategic review.Highlights
Profitable Growth
Repay Holdings Corporation closed out the year with another quarter of profitable growth. Adjusted EBITDA increased approximately 9%, and free cash flow conversion improved to 64% in Q4. Full-year results showcased gross profit growth of 6%, adjusted EBITDA growth of 11%, and free cash flow conversion from 42% in 2023 to 75% in 2024.
Business Payments Segment Growth
The business payments segment gross profit grew 60% year over year in Q4 and 40% for the full year. Growth was driven by strength in the core AP business and contributions from the political media vertical.
Expansion and New Partnerships
Repay Holdings Corporation added four new software partnerships, bringing the total to 180. The company also integrated with Worth.ai to enhance merchant underwriting and onboarding processes.
Strong Sales Pipeline
Several new clients were added, including 16 new credit unions, bringing the total to 329. The business payments segment signed several new enterprise clients, including Fairview Health Services.
Lowlights
Consumer Payments Segment Challenges
The consumer payments segment gross profit declined approximately 5% during Q4. This decline was due to client losses and macro impacts in the auto and ARM verticals.
Client Losses and Strategic Migration
Q4 gross profit growth was impacted by select client losses and strategic technology migration of targeted business payment volumes to the total pay solution. A large client in the B2B segment was acquired, affecting AR softness.
Lack of 2025 Outlook
Due to the strategic review, the company refrained from providing a 2025 outlook. The strategic review includes consideration of various strategic alternatives, including M&A, a take-private or sale of the company.
Company Guidance
During the fourth quarter of 2024, Repay Holdings Corporation demonstrated profitable growth with a 9% increase in adjusted EBITDA and an improvement in free cash flow conversion to 64%. For the full year, the company reported a 6% growth in gross profit, an 11% increase in adjusted EBITDA, and a rise in free cash flow conversion from 42% in 2023 to 75% in 2024. The business payments segment saw a notable 60% year-over-year growth in gross profit for Q4, while the consumer payments segment added 16 new credit unions, bringing the total to 329. Additionally, the company expanded its software partnerships to 180, with four new partnerships added in the consumer payment segment. Repay Holdings also signed several new enterprise clients, including Fairview Health Services, and maintained a strong focus on strategic growth areas like accounts receivable management and credit card servicing industries. Despite facing some client losses and macroeconomic challenges, the company remains committed to improving operations and shareholder value through a comprehensive strategic review.Repay Holdings Corporate Events
Executive/Board ChangesFinancial Disclosures
Repay Holdings Sets 2025 Executive Bonus Structure
Neutral
Mar 4, 2025
On February 26, 2025, Repay Holdings Corporation’s Compensation Committee approved the terms and objectives for the 2025 annual cash bonuses for its executive officers. These bonuses are structured with 75% based on company financial performance, measured by Adjusted EBITDA or a combination of Gross Profit and Adjusted EBITDA for business unit leaders, and 25% based on individual performance goals. The bonus awards range from 50% to 200% of the target bonus amount, depending on the achievement of performance goals.
Business Operations and StrategyFinancial Disclosures
Repay Holdings Announces Strategic Review Amidst Growth
Neutral
Mar 3, 2025
On March 3, 2025, Repay Holdings Corporation reported its financial results for the fourth quarter and full year 2024, highlighting a 2% gross profit growth in Q4 and 6% for the full year. The company also announced a strategic review process to explore potential alternatives for enhancing shareholder value. Despite a decline in Consumer Payments, the Business Payments segment saw significant growth, particularly in the political media vertical. The strategic review aims to strengthen REPAY’s market position and explore opportunities such as mergers, acquisitions, or structural changes.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.