Repay Holdings Corp (RPAY)
NASDAQ:RPAY
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Repay Holdings
(NASDAQ:RPAY)
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Rating:56Neutral
Price Target:
$3.50
▼(-14.84% Downside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak profitability (large net losses) despite healthy gross margins, partially offset by improved balance-sheet risk and positive cash generation. The earnings call adds support via raised adjusted EBITDA margin guidance and clear 2026 targets, while technicals and valuation are neutral-to-weak given mixed momentum and a negative P/E with no dividend support.
Positive Factors
High Adjusted EBITDA Margins
Sustained high adjusted-EBITDA margins (Q1 ~43% and a raised full-year ~42% guide) point to durable operating leverage from payment processing economics and platform revenues. If maintained, these margins underpin cash flow generation and fund growth, M&A and deleveraging over the medium term.
Negative Factors
Large Net Losses
Despite strong gross margins, outsized operating and net losses mean the company lacks current earnings power to justify its asset base. Persistent negative net margins can erode equity and require sustained margin or revenue improvements to avoid recurring capital raises or credit pressure over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High Adjusted EBITDA Margins
Sustained high adjusted-EBITDA margins (Q1 ~43% and a raised full-year ~42% guide) point to durable operating leverage from payment processing economics and platform revenues. If maintained, these margins underpin cash flow generation and fund growth, M&A and deleveraging over the medium term.
Read all positive factors
Repay Holdings (RPAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$332.97M
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth1.00%
EPS Growth-2032.50%
CountryUS
Employees465
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-3.06
Shares Outstanding82,800,950
10 Day Avg. Volume1,799,223
30 Day Avg. Volume1,365,884
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.64
Price to Sales (P/S)1.01
P/FCF Ratio3.43
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit1.27
Enterprise Value/Ebitda-1.88
Forecast
1Y Price Target
$5.00Price Target Upside21.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.92
Revenue Forecast (FY)$341.28M
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 ...
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 Holdings Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial picture: revenue growth (4% Q1), strong Business Payments momentum (+18% YoY), high adjusted EBITDA margins (~43%) and raised full-year margin guidance. Management highlighted product innovation (AI, digital wallet), immediate accretion from a strategic investment, and a transformational Kubra acquisition expected to double revenue and expand scale. Key risks include near-term margin pressure from card network data program changes, modest Q1 free cash flow and active cash uses, integration and regulatory risk around Kubra, and elevated leverage near-term. Overall, the positives — including upgraded EBITDA outlook, clear growth guidance, and strategic scale from Kubra — outweigh the manageable lowlights.Positive Updates
Q1 Revenue Growth
Total Q1 revenue of $80.8 million, representing 4% year-over-year growth. Business Payments revenue +18% YoY; Consumer Payments revenue +4% YoY. Normalized revenue (ex-political media) increased ~16% in Q1.
Negative Updates
Near-Term Gross Profit Impact from Card Network Data Changes
Changes to enhanced data programs (Level 2/Level 3 / CEDP) produced an expected near-term negative impact on gross profit margins, primarily in Business Payments (AR). Management stated this impact was baked into 2026 guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Q1 Revenue Growth
Total Q1 revenue of $80.8 million, representing 4% year-over-year growth. Business Payments revenue +18% YoY; Consumer Payments revenue +4% YoY. Normalized revenue (ex-political media) increased ~16% in Q1.
Read all positive updates
Company Guidance
Repay's 2026 guidance calls for revenue of $340–$346 million (10–12% reported growth; ~7–9% normalized ex–political media), adjusted EBITDA of $141–$146 million (about a 42% margin after a recent raise), and a free cash flow conversion target of 45% (net interest included); management expects $8–$10 million of incremental political media revenue (≈3 percentage points of reported growth) weighted to Q3–Q4. In Q1 the company reported $80.8 million of revenue (+4% YoY), adjusted EBITDA of $34.4 million (~43% margin), adjusted net income of $19.4 million ($0.22/share), and free cash flow of $5.4 million (16% conversion); quarter-end cash was ~$44 million, total debt included $288 million of 2029 convertible notes (2.875% coupon) plus a $110 million revolver draw, and net leverage was ~2.7x. Management expects the Kubra acquisition to close in Q2 (which would approximately double revenue based on 2025 Kubra results, reach >40% of U.S./Canadian households monthly and process >$130 billion of annual volume), to deliver cost and revenue synergies and free cash flow accretion, and to drive the combined company back below 3x net leverage within ~18 months of closing.Repay Holdings Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 312.73M | 309.26M | 313.04M | 296.63M | 279.23M | 219.26M |
| Gross Profit | 234.84M | 232.02M | 241.41M | 226.92M | 214.40M | 163.77M |
| EBITDA | -159.36M | -160.96M | 100.66M | 58.48M | 127.04M | 35.26M |
| Net Income | -258.72M | -256.72M | -10.16M | -110.49M | 12.84M | -50.08M |
Balance Sheet | ||||||
| Total Assets | 1.14B | 1.20B | 1.57B | 1.52B | 1.63B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 43.77M | 115.69M | 189.53M | 118.10M | 64.89M | 50.05M |
| Total Debt | 9.68M | 436.88M | 508.51M | 443.04M | 461.88M | 459.57M |
| Total Liabilities | 665.54M | 717.97M | 798.74M | 689.04M | 698.51M | 772.80M |
| Stockholders Equity | 478.00M | 484.43M | 761.27M | 815.13M | 894.56M | 874.00M |
Cash Flow | ||||||
| Free Cash Flow | 60.81M | 91.11M | 105.24M | 39.25M | 34.68M | 29.82M |
| Operating Cash Flow | 105.43M | 91.11M | 150.09M | 103.61M | 74.22M | 53.33M |
| Investing Cash Flow | -65.40M | -41.98M | -44.85M | -24.09M | -39.54M | -397.33M |
| Financing Cash Flow | -162.42M | -130.19M | -12.67M | -28.94M | -17.46M | 313.84M |
Repay Holdings Technical Analysis
Positive
4.11
Price Trends
3.32
Positive
3.29
Positive
3.93
Negative
Market Momentum
0.06
Negative
59.00
Neutral
88.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPAY, the sentiment is Positive. The current price of 4.11 is above the 20-day moving average (MA) of 3.55, above the 50-day MA of 3.32, and above the 200-day MA of 3.93, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 88.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RPAY.
Repay Holdings Risk Analysis
Repay Holdings disclosed 46 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $401.96M | 38.55 | 21.74% | ― | 43.38% | 66.05% | |
75 Outperform | $1.67B | 24.40 | 10.01% | ― | 7.19% | -36.03% | |
65 Neutral | $513.07M | 9.09 | -51.19% | ― | 8.83% | ― | |
62 Neutral | $560.03M | 24.77 | 4.95% | ― | -10.20% | -95.64% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $332.97M | -1.24 | -46.76% | ― | 1.00% | -2032.50% | |
50 Neutral | $490.74M | -1.15 | -116.83% | ― | -58.96% | -44.30% |
* Technology Sector Average
RPAY
Repay Holdings
3.88
-0.93
-19.33%
IIIV
I3 Verticals
20.36
-4.35
-17.60%
PAYS
PaySign
7.27
2.82
63.37%
PRTH
Priority Technology Holdings
6.39
-2.14
-25.09%
PAYO
Payoneer
5.20
-1.61
-23.64%
BKKT
Bakkt Holdings, Inc. Class A
10.87
-0.77
-6.62%
Repay Holdings Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Repay Holdings Lifts 2026 Outlook on Q1 Growth
Positive
May 4, 2026
Repay Holdings reported first-quarter 2026 results on May 4, 2026, showing revenue of $80.8 million, up 4% year over year, with Consumer Payments revenue up 4% and Business Payments revenue up 18%, while net loss widened modestly to $10 million an...
Business Operations and Strategy
Repay Holdings Adopts Stockholder Rights Plan to Deter Takeovers
Neutral
Apr 14, 2026
On April 13, 2026, Repay Holdings’ board declared a dividend of one preferred share purchase right for each outstanding Class A common share and adopted a limited-duration stockholder rights plan in response to significant recent accumulatio...
Business Operations and StrategyFinancial Disclosures
Repay Holdings Reports 2025 Results and Sets 2026 Outlook
Positive
Mar 9, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.