Repay Holdings (RPAY) AI Stock Analysis

• Market Cap: $361.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 5.53%
• EPS Growth: 90.89%
• Country: US
• Employees: 465
• Sector: Technology
• Sector Strength: 64
• Industry: Software - Infrastructure
• EPS (TTM): -0.12
• Shares Outstanding: 88,798,200
• 10 Day Avg. Volume: 1,430,086
• 30 Day Avg. Volume: 1,392,722
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.68
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.10
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.67
• Price Target Upside: 116.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Repay Holdings' overall score reflects its strong revenue and cash flow growth, essential strengths in its financial performance, yet offset by ongoing profitability challenges. Technical analysis indicates bearish sentiment, with key indicators suggesting oversold conditions. The valuation is unattractive due to a negative P/E ratio and lack of dividends. Earnings call insights were mixed, with notable growth in some areas but significant challenges and uncertainties in others.

Positive Factors

Future Growth

The migration of RPAY’s AP clients to its TotalPay solution is intended to position the company to serve more client needs and boost monetization, supporting future growth.

Market Positioning

RPAY's integrated payments offering is well-positioned to address large, underserved end-markets, with largely nondiscretionary volume like loan repayments.

Strategic Review

The potential for RPAY to attract bids at a healthy premium to current trading levels could provide downside protection to its stock price, despite near-term challenges.

Negative Factors

Client Losses

Repay has experienced client losses which are no fault of the company, yet they still negatively impact growth.

Financial Performance

RPAY’s 4Q24 revenue and gross profit fell short of Street estimates, indicating a weaker financial performance for the quarter.

Profit Growth

RPAY's organic gross profit growth has been decelerating, raising concerns it will take longer to meaningfully accelerate core gross profit growth.

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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 4.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4 is below the 20-day moving average (MA) of 4.62, below the 50-day MA of 5.58, and below the 200-day MA of 7.50, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 32.08 is Neutral, neither overbought nor oversold. The STOCH value of 19.88 is Positive, 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
CLMB	77 Outperform	$484.55M	25.93	21.95%	0.63%	32.27%	48.97%
CTLP	72 Outperform	$584.28M	40.06	8.36%	―	12.88%	2.89%
PUBM	68 Neutral	$480.76M	42.93	4.36%	―	9.08%	43.58%
LYTS	66 Neutral	$451.51M	21.12	10.42%	1.32%	17.89%	-23.37%
Sector *	59 Neutral	$10.65B	10.45	-6.56%	3.01%	7.31%	-12.18%
RPAY	59 Neutral	$361.64M	―	-1.29%	―	5.53%	90.89%
PRTH	45 Neutral	$577.31M	―	57.39%	―	16.42%	50.85%

Repay Holdings Corporate Events

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.

Spark’s Take on RPAY Stock

According to Spark, TipRanks’ AI Analyst, RPAY is a Neutral.

Repay Holdings’ overall stock score of 63 reflects its financial strengths in revenue and cash flow growth, tempered by ongoing profitability challenges. The stock’s technical indicators suggest negative momentum, while its valuation is unattractive due to a negative P/E ratio and no dividend yield. Despite positive developments in recent earnings, such as growth in adjusted EBITDA and strategic expansions, concerns over segment declines and a lack of future outlook weigh on the stock.

To see Spark’s full report on RPAY stock, click here.

Repay Holdings Sets 2025 Executive Bonus Structure

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.

Repay Holdings Announces Strategic Review Amidst Growth

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.