Repay Holdings (RPAY) AI Stock Analysis

• Market Cap: $241.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -0.58%
• EPS Growth: -57.43%
• Country: US
• Employees: 465
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.19
• Shares Outstanding: 81,584,350
• 10 Day Avg. Volume: 1,799,223
• 30 Day Avg. Volume: 1,365,884
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 3.43
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 5.69
• 1Y Price Target: $5.60
• Price Target Upside: 101.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.9
• Revenue Forecast (FY): $341.53M

• Rating: 50 Neutral
• Price Target: $3.00 ▲(7.91% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

Overall score reflects a mixed profile: financial performance is weighed down by inconsistent profitability and a sharp 2025 earnings setback despite strong free cash flow and improving leverage. Technicals are bearish with price below key moving averages and negative MACD. The earnings call provides some support via normalized growth, strong EBITDA margins, and cash flow, but is tempered by client-loss headwinds and margin compression; valuation remains difficult to assess given negative earnings and no dividend yield.

Positive Factors

Consistent positive free cash flow

Sustained positive free cash flow across recent years indicates the business can fund operations, invest in growth, and service capital without relying heavily on external funding. That cash generation underpins deleveraging, buybacks, and resilience through revenue cyclicality, improving long-term financial flexibility.

Meaningful deleveraging and balance sheet improvement

A materially lower debt-to-equity ratio reflects active debt reduction and stronger balance-sheet flexibility. Coupled with actions like retiring convertible notes and limited buybacks, improved leverage lowers covenant and refinancing risk, giving management headroom to execute growth initiatives and absorb shocks.

High adjusted EBITDA margins from operations

Sustained high adjusted EBITDA margins indicate a scalable payments platform with strong operating leverage and value-added services. Such margin profiles support reinvestment in partnerships and technology, and reduce the break-even dependency on revenue growth, improving profitability durability if revenue stabilizes.

Negative Factors

Large 2025 impairment and headline net loss

A major goodwill impairment signals that past acquisition assumptions no longer hold and indicates persistent challenges recovering expected cash flows from that segment. Even though non-cash, it materially erodes equity, may affect covenants and investor confidence, and highlights execution or market mix risks requiring structural fixes.

Decelerating revenue growth trend

Slowing top-line expansion weakens the multi-year thesis for scaling fixed-cost leverage in payments. If growth stalls, the company faces tougher tradeoffs between reinvestment and margin maintenance; slower revenue ramps also make free cash flow and EBITDA targets harder to sustain without increased share of higher-margin services.

Client churn and margin compression pressures

Client attrition and shifting payment mix toward lower-margin rails create structural pressure on unit economics. Persistent churn reduces lifetime value and raises customer acquisition needs; margin compression from pricing and mix changes can erode the high adjusted EBITDA baseline, making profitability less robust over time.

Repay Holdings Business Overview & Revenue Model

Company Description

Repay Holdings Corporation provides integrated payment processing solutions to industry-oriented markets. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit processing, virtual credit card processing, automated clearing house (ACH) processing, enhanced ACH processing, and instant funding that are processed through its proprietary payment channels, such as Web-based, mobile application, text-to-pay, interactive voice response, and point of sale. In addition, the company provides payment processing solutions to customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals. It sells its products through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Repay primarily makes money by charging fees tied to the volume and type of payments it processes and by monetizing payment-enabled software relationships. Its key revenue streams generally include: (1) Transaction-based payment processing revenue: Repay earns fees when end customers make payments through its network—such as loan repayments for consumer finance clients or invoice payments for B2B—across payment rails like card and ACH. Fees are typically driven by payment volume, payment method (e.g., card vs. ACH), and the pricing terms negotiated with merchants/billers and financial institution partners. (2) Value-added and platform revenues: Repay offers integrated payment experiences embedded within software and operating workflows (including integrations with third-party vertical software providers and Repay’s own payment-enabled solutions). These arrangements can generate revenue through platform/service fees, gateway/enablement fees, or other recurring charges associated with providing payment functionality, reporting, reconciliation, and related operational tools. (3) Partner- and ecosystem-driven distribution: Repay commonly distributes its solutions through partnerships with vertical software platforms, lenders/servicers, payment networks, and other intermediaries that route payment traffic to Repay. These relationships can expand its merchant base and processed volume; economics are typically shared via negotiated pricing and partner arrangements. Revenue is therefore most directly influenced by processed payment volume, mix of payment types, client retention and growth in its target verticals, and the depth of integration/embedded distribution through software and channel partners.

Repay Holdings Financial Statement Overview

Summary

Mixed fundamentals: revenue has grown over time but slowed recently, profitability is volatile with significant losses (including a very large 2025 loss), and returns on equity are negative. Offsetting this, cash generation is a relative strength with positive operating cash flow and free cash flow, and leverage improved (lower debt-to-equity by 2025).

Income Statement

Revenue has expanded over time (from $155M in 2020 to $313M in 2024), but growth has decelerated in recent years (~5–10%). Profitability is the core issue: net results swung from a modest profit in 2022 to losses in 2023–2024, and 2025 shows a very large loss with deeply negative margins. While 2024 maintained strong gross margin (~77%) and positive EBITDA margin (~32%), the earnings profile remains volatile and the latest year indicates significant deterioration.

Balance Sheet

Leverage looks manageable with debt-to-equity improving meaningfully by 2025 (~0.32 vs. ~0.67 in 2024), suggesting deleveraging and/or equity support. However, returns on equity are negative in most years and extremely weak in 2025, reflecting ongoing losses and value erosion risk. Overall balance sheet risk is moderate, but profitability pressure undermines balance-sheet quality.

Cash Flow

Cash generation is a relative strength: operating cash flow and free cash flow are positive across the period, with free cash flow stepping up notably in 2024–2025 (2024: ~$105M; 2025: ~$91M). Cash flow has generally covered reported losses (free cash flow exceeds net losses in 2023–2024, and is positive again in 2025), indicating good cash conversion. The main watch-out is year-to-year volatility (e.g., lower free cash flow in 2023 vs. 2024), but the overall trajectory is supportive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	309.26M	313.04M	296.63M	279.23M	219.26M
Gross Profit	129.97M	241.41M	226.92M	214.40M	163.77M
EBITDA	101.86M	100.66M	58.48M	127.04M	35.26M
Net Income	-256.72M	-10.16M	-110.49M	12.84M	-50.08M
Balance Sheet
Total Assets	1.20B	1.57B	1.52B	1.63B	1.69B
Cash, Cash Equivalents and Short-Term Investments	115.69M	189.53M	118.10M	64.89M	50.05M
Total Debt	436.88M	508.51M	443.04M	461.88M	459.57M
Total Liabilities	717.97M	798.74M	689.04M	698.51M	772.80M
Stockholders Equity	484.43M	761.27M	815.13M	894.56M	874.00M
Cash Flow
Free Cash Flow	91.11M	105.24M	39.25M	34.68M	29.82M
Operating Cash Flow	91.11M	150.09M	103.61M	74.22M	53.33M
Investing Cash Flow	-41.98M	-44.85M	-24.09M	-39.54M	-397.33M
Financing Cash Flow	-130.19M	-12.67M	-28.94M	-17.46M	313.84M

Repay Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.78 is below the 20-day moving average (MA) of 2.92, below the 50-day MA of 3.25, and below the 200-day MA of 4.33, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 35.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RPAY.

Repay Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	71 Outperform	$1.60B	26.33	9.84%	―	10.58%	-45.52%
PAYS	63 Neutral	$177.24M	38.90	19.18%	―	32.61%	-8.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IIIV	60 Neutral	$681.44M	308.05	0.58%	―	-23.69%	-95.61%
PRTH	58 Neutral	$406.49M	7.81	-43.23%	―	9.51%	―
RPAY	50 Neutral	$241.50M	-1.22	-17.60%	―	-0.58%	-57.43%
BKKT	47 Neutral	$272.92M	-0.64	-139.50%	―	101.97%	58.61%

Repay Holdings Corporate Events

Repay Holdings Reports 2025 Results and Sets 2026 Outlook

On March 9, 2026, Repay Holdings reported fourth-quarter and full-year 2025 results showing flat reported revenue at $78.6 million and a 2% decline in gross profit, reflecting tough comparisons to 2024 political media volumes. The company posted a Q4 net loss of $148.3 million, driven largely by a $138.5 million non-cash goodwill impairment in its Consumer Payments segment following share price declines and changes in valuation assumptions.

Despite headline pressure, normalized Q4 revenue and gross profit rose 10% and 9% year over year, as Consumer Payments grew mid‑single to high‑single digits and Business Payments delivered about 41% normalized revenue growth and 73% normalized gross profit growth. Repay expanded its software partner base to 294, grew its AP supplier network 67% to more than 602,000, and set a 2026 outlook targeting 10%–12% reported revenue growth, higher adjusted EBITDA and stronger free cash flow conversion, underscoring management’s confidence in the company’s long‑term growth trajectory.

The most recent analyst rating on (RPAY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Repay Holdings stock, see the RPAY Stock Forecast page.

Repay Holdings Sets 2026 Executive Bonus Plan Framework

On February 19, 2026, Repay Holdings’ compensation committee set the 2026 annual cash bonus framework for executive officers, tying individual targets to 50%–100% of base salary. For the performance period from January 1 to December 31, 2026, 75% of each bonus will depend on company financial results and 25% on individual performance.

Adjusted EBITDA will serve as the sole company financial metric, with payouts ranging from zero to 200% of target based on achieving threshold, target, or maximum performance levels. This structure reinforces the company’s emphasis on profitability and disciplined growth, closely linking executive pay to financial outcomes and personal execution, which may influence leadership decisions and stakeholder alignment in 2026.

The most recent analyst rating on (RPAY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Repay Holdings stock, see the RPAY Stock Forecast page.

Repay Holdings Announces Co‑Founder and President’s Departure

Repay Holdings Corporation, a provider of integrated payment processing solutions for specialized industry verticals, operates a proprietary technology platform designed to reduce the complexity of electronic transactions. The company focuses on enhancing payment experiences for consumers and businesses through tailored, integrated capabilities.

On February 10, 2026, Repay Holdings said it had mutually agreed with co‑founder and President Shaler Alias that he would leave his role and the board effective February 27, 2026, with severance under his employment agreement. The company, which announced the leadership change publicly on February 12, 2026, will not immediately replace the President position, leaving CEO John Morris and the existing executive team to oversee operations and strategy while Alias remains an invested shareholder pursuing personal and philanthropic interests.

The most recent analyst rating on (RPAY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Repay Holdings stock, see the RPAY Stock Forecast page.