Repay Holdings (RPAY) AI Stock Analysis

• Market Cap: $472.55M
• Dividend Yield: N/A
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 2.26%
• EPS Growth: 85.37%
• Country: US
• Employees: 465
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Infrastructure
• EPS (TTM): 0.22
• Shares Outstanding: 89,221,214
• 10 Day Avg. Volume: 1,540,308
• 30 Day Avg. Volume: 2,091,642
• PEG Ratio: -0.71
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.61
• Enterprise Value/Market Cap: 2.35
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 5.00
• 1Y Price Target: $6.78
• Price Target Upside: 41.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 54 Neutral
• Price Target: $5.00 ▲(4.60%Upside)

Repay Holdings is grappling with profitability issues and negative net income, which are major concerns. However, strong cash flow generation and strategic investments in growth, highlighted by the recent increase in the share repurchase program, provide some optimism. Technical indicators suggest short-term positive momentum, but the valuation remains a significant risk factor due to a negative P/E ratio. The mixed earnings call results reflect both challenges and growth opportunities.

Positive Factors

Cash Flow

Free cash flow conversion is expected to be above 60%.

Growth Strategy

The company expects sequential quarterly acceleration in normalized gross profit growth, including high-single to low-double-digit growth.

Monetization Opportunities

There is potential for Repay Holdings to capitalize on incremental monetization opportunities, such as targeting non-card payment volumes.

Negative Factors

Client Losses

Recent customer attrition needs to be addressed to assure investors it is not indicative of a trend.

Financial Performance

In Q1, revenue and gross profit declined 4% and 5% y/y, respectively.

Stock Performance

The stock is down 48% year-to-date and is trading approximately five times below its three-year average.

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 Holdings generates revenue through a combination of transaction fees, subscription fees, and gateway service charges. The company earns transaction fees by processing payments on behalf of its clients, which include a percentage of the transaction value. Additionally, Repay offers subscription-based services for access to its payment platforms and value-added features, contributing to a steady revenue stream. Key revenue streams include partnerships with financial institutions and businesses in target sectors, where Repay integrates its solutions to offer seamless payment processing. Strategic acquisitions and collaborations further support its earnings by expanding its market presence and service offerings.

Repay Holdings Financial Statement Overview

Summary

Repay Holdings faces profitability challenges with consistent net losses and negative EBIT. However, strong gross profit margins and positive cash flow metrics provide some stability. Debt levels are manageable, but improvements in profitability are essential for long-term growth.

Income Statement

Repay Holdings has shown inconsistent revenue growth, with a declining trend from 2024 to TTM. The gross profit margin is strong but the consistent negative net income and EBIT margins indicate profitability challenges. The EBITDA margin remains positive but volatile.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting balanced leverage, though the equity ratio has slightly decreased over time. Return on equity is negative due to persistent net losses, posing a risk.

Cash Flow

Free cash flow has shown positive growth, and operating cash flow exceeds net income, indicating strong cash generation despite negative earnings. The free cash flow to net income ratio is favorable, highlighting efficient cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
309.65M	313.04M	296.63M	279.23M	219.26M	155.04M
	Gross Profit
238.52M	241.41M	226.92M	214.40M	163.77M	113.59M
	EBIT
-8.89M	-7.77M	-111.41M	24.08M	-69.08M	-37.03M
	EBITDA
95.92M	100.66M	78.27M	65.34M	43.72M	-54.47M
	Net Income Common Stockholders
-12.89M	-10.16M	-110.49M	8.74M	-56.04M	-46.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
165.47M	189.53M	118.10M	64.89M	50.05M	91.13M
	Total Assets
1.54B	1.57B	1.52B	1.63B	1.69B	1.11B
	Total Debt
508.90M	508.51M	443.04M	461.88M	459.57M	267.08M
	Net Debt
343.43M	318.99M	324.95M	396.98M	409.52M	175.95M
	Total Liabilities
768.19M	798.74M	689.04M	698.51M	772.80M	553.80M
	Stockholders Equity
755.72M	761.27M	815.13M	894.56M	874.00M	509.31M
Cash Flow		Free Cash Flow
126.74M	149.10M	102.88M	34.68M	29.82M	4.21M
	Operating Cash Flow
127.79M	150.09M	103.61M	74.22M	53.33M	28.49M
	Investing Cash Flow
-44.26M	-44.85M	-24.09M	-39.54M	-397.34M	-145.98M
	Financing Cash Flow
-29.17M	-12.67M	-28.94M	-17.46M	313.84M	186.10M

Repay Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.78
• 50DMA: Positive
• 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 4.78 is above the 20-day moving average (MA) of 4.78, above the 50-day MA of 4.50, and below the 200-day MA of 6.79, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 37.86 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
CTLP	80 Outperform	$720.36M	12.08	28.20%	―	12.51%	390.09%
CLMB	77 Outperform	$486.79M	24.81	22.21%	0.64%	42.25%	65.02%
LYTS	75 Outperform	$495.67M	23.12	10.42%	1.21%	17.89%	-23.37%
PUBM	72 Outperform	$560.08M	131.96	1.94%	―	3.62%	-53.21%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
PRTH	61 Neutral	$677.90M	―	57.39%	―	15.76%	82.78%
RPAY	54 Neutral	$472.55M	―	-1.64%	―	2.26%	85.37%

Repay Holdings Corporate Events

Repay Holdings Conducts Annual Stockholders Meeting

On June 12, 2025, Repay Holdings Corporation conducted its annual stockholders meeting where three key proposals were voted on. The stockholders elected directors for terms expiring in 2026, approved executive compensation on a non-binding advisory basis, and ratified the appointment of Grant Thornton, LLP as the independent registered public accountant for the fiscal year ending December 31, 2025.

The most recent analyst rating on (RPAY) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Repay Holdings stock, see the RPAY Stock Forecast page.

Repay Holdings Boosts Share Repurchase Program

On May 12, 2025, Repay Holdings announced its first quarter financial results for 2025, highlighting a strategic focus on growth despite a reported decline in gross profit due to client losses. The company concluded its strategic review process and increased its share repurchase program authorization to $75 million, signaling confidence in future growth and shareholder value. The Business Payments segment showed a 12% year-over-year growth, while the Consumer Payments segment experienced a decline. The company anticipates improved free cash flow conversion and gross profit growth throughout 2025.

The most recent analyst rating on (RPAY) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Repay Holdings stock, see the RPAY Stock Forecast page.

Repay Holdings CFO Timothy Murphy Resigns

On April 21, 2025, Timothy J. Murphy announced his resignation as Chief Financial Officer of Repay Holdings Corporation, effective May 15, 2025, to pursue an opportunity outside the payments industry. Thomas E. Sullivan, the current Chief Accounting Officer, will serve as the Interim CFO until a permanent replacement is found. Murphy, who played a pivotal role in REPAY’s public listing and acquisitions, is leaving on good terms, with the company expressing gratitude for his contributions.