Earnings call transcript: Repay Holdings beats Q4 2025 forecasts, stock rises

Repay Holdings Corp. (RPAY) reported better-than-expected financial results for the fourth quarter of 2025, with earnings per share (EPS) of $0.19 surpassing the forecast of $0.17. Revenue reached $78.6 million, exceeding expectations of $76.8 million. Following the announcement, the company’s stock rose by 3.4% in after-hours trading, reflecting investor optimism.

Repay Holdings delivered solid results in Q4 2025, marking a return to normalized growth. The company’s consumer and business payments segments both showed significant year-over-year improvements. The business payments segment, in particular, experienced a 41% increase in normalized revenue growth, excluding political media contributions. This performance underscores the company’s successful operational improvements throughout the year.

Repay Holdings reported an EPS of $0.19, which was 11.76% above the forecast of $0.17. The revenue of $78.6 million exceeded the anticipated $76.8 million by 2.34%. This marks a positive surprise for the company, continuing a trend of beating expectations in recent quarters.

Following the earnings announcement, Repay Holdings’ stock rose by 3.4% in after-hours trading, increasing from $2.94 to $3.04. This movement reflects a positive investor sentiment, with the stock trading closer to its 52-week low of $2.56, suggesting potential for further recovery. According to InvestingPro analysis, the stock appears undervalued at current levels, with a Fair Value of $4.25 indicating significant upside potential. The company is featured on InvestingPro’s Most Undervalued stocks list, with analysts setting price targets ranging from $3.50 to $10.

Looking ahead, Repay Holdings has set optimistic projections for the upcoming quarters and fiscal years. The company forecasts EPS of $0.22 for Q2 2026 and $0.25 for Q3 2026, with annual EPS expectations of $0.98 for FY 2026. Revenue is projected to reach $341.4 million for FY 2026, indicating continued growth.

"Our Q4 2025 performance highlights our ability to achieve strong financial results while investing in growth initiatives," said the CEO of Repay Holdings. "We remain committed to delivering value to our shareholders through operational excellence and strategic partnerships."

During the earnings call, analysts inquired about the company’s strategy for expanding its supplier network and enhancing software partnerships. Management emphasized its focus on leveraging technology to drive growth and improve operational efficiencies.

Overall, Repay Holdings’ Q4 2025 earnings report reflects a strong performance, with positive market reaction and a favorable outlook for future growth. InvestingPro assigns the company a "FAIR" financial health score of 2.06, with particularly strong marks for cash flow and relative value. For investors seeking comprehensive analysis, RPAY is one of 1,400+ US equities covered by InvestingPro’s detailed Pro Research Reports, which transform complex Wall Street data into clear, actionable intelligence through intuitive visuals and expert analysis.

Moderator/Conference Call Operator, Call Moderator: Good afternoon. I’d like to welcome everyone to REPAY’s Q4 2025 earnings conference call. This call is being recorded today, March ninth, 2026. I’d like to turn the session over to Stuart Grisanti, Head of Investor Relations at REPAY. Stuart, you may begin.

Stuart Grisanti, Head of Investor Relations, REPAY: Thank you. Good afternoon, and welcome to REPAY’s Q4 2025 earnings conference call. With us today are John Morris, Co-founder and Chief Executive Officer, and Rob Hauser, Chief Financial Officer. During this call, we will be making forward-looking statements about our beliefs and estimates regarding future events and results. Those forward-looking statements are subject to risks and uncertainties, including those set forth in the SEC filings related to today’s results and in our most recent Form 10-K. Actual results may differ materially from any forward-looking statements that we make today. Forward-looking statements speak only as of today, and we do not assume any obligation or intend to update them except as required by law. In an effort to provide additional information to investors, today’s discussion will also reference certain non-GAAP financial measures.

Reconciliations and other explanations of those non-GAAP financial measures can be found in today’s press release and an earnings supplement, each of which are available on the company’s IR site. With that, I will now turn the call over to John.

John Morris, Co-founder and Chief Executive Officer, REPAY: Thanks, Stuart. Good afternoon, everyone, and thank you for joining us today. REPAY delivered on its promise to improve growth as the company exited 2025. During the Q4, REPAY returned to solid normalized growth while continuing to generate strong profitability and free cash flow. This performance underscores the progress of REPAY’s strategic initiatives and operational improvements.

Throughout 2025, REPAY underwent the necessary improvements to strengthen our operations, go-to-market, and overall organizational leadership. As we proceed through 2026, we are well-positioned to continue our momentum while supporting and optimizing our clients’ digital payment flows. On today’s call, we plan to go over the 3 main topics. First, a review of the Q4. Second, a summary of our progress and achievements during 2025. Lastly, our 2026 outlook to drive growth into the future. First, a review of the Q4.

Repay closed out the year accelerating our normalized growth. In Q4, we achieved 10% revenue growth and 9% gross profit growth on a normalized year-over-year basis, which excludes the political media contributions during 2024. Adjusted EBITDA margins were 41% and free cash flow conversion was 43%, while reinvesting into several organic growth initiatives. Within the consumer payment segment, Q4 revenue increased 8% and gross profit increased 6% year-over-year. Our growth is built on steady payment streams with existing clients, plus incremental contributions as we process more of our clients’ total payment volumes and the ramp of new clients across the verticals we serve. We increased our consumer software partnerships to 189, while also further enhancing many existing integrations, leading to better client and consumer experiences.

Deeper integrations address the pain points across our consumer payments verticals by combining REPAY’s flexible payment processing capabilities directly within our clients’ existing workflows. Clients offer the convenience of modern payment modalities to seamlessly accept and track payments while enhancing their operational efficiency. The newly announced integration with Emotive Software, an all-in-one automotive finance and compliance platform, is one of the many examples of how REPAY is building on our software partnerships to build a healthy core consumer bookings pipeline. Throughout 2025, our bookings have gained momentum, giving us confidence to the full year 2026. Additionally, our consumer payments teams are focused on client implementations to help reduce go-live timelines and provide sustainable growth as our clients continue to expand with us. Now turning to our business payments segment.

In Q4, normalized revenue increased 41% and gross profit increased 73% year-over-year, while excluding the political media contributions during 2024. Throughout 2025, our business payments strategic focus was on our core AP platform. Our go-to-market and partnerships prioritized the vast AP opportunities, leading to many new client wins in the healthcare and hospitality verticals. We escalated on several monetization initiatives like float income, expanded our enhanced ACH offering, and increased TotalPay adoption with both new and existing clients. In Q4, we increased our supplier network to 602,000 suppliers, increasing over 65% year-over-year. We exited the quarter with 105 software partners and embedded integrations.

This represents adding over 240,000 suppliers during 2025, leading to great momentum to our hospitality vertical and while building on many software relationships such as Yooz, which serves a broad spectrum of organizations across multiple industries. Businesses and organizations across verticals are looking for ways to modernize AP processes and improve payment security. REPAY’s advanced AP platform provides these capabilities. An innovative way that organizations are adopting AP platforms is with our recently announced referral partnership with West Virginia University Gold & Blue Enterprises. GBE clients can leverage REPAY’s platform to donate their earned rebates to the university’s NIL fund. Overall, we are pleased with the business payments momentum from our partnerships and direct sales teams. We expect our AP initiatives to continue building traction during 2026 and beyond.

Now on to our next topic, a review of the 2025 achievements and progress. Repay went through challenges during 2025 while also making important changes to reinforce our core foundation for a scaled future. We changed key executives, streamlined processes, and worked on ways to deploy automation and AI. During 2025, we allocated resources towards our sales and customer support teams to pursue enterprise clients across our verticals. Repay added 14 software partners and integrations during 2025 and exited the year with over 294 total partners. We began rolling out new product capabilities like Dynamic Wallet, where iOS and Android users can tap and pay and access statement activity directly within their digital wallet experience. Our continued investment in product and technology is about providing best-in-class performance and reliability for our existing clients and prospective clients.

We strive to achieve exceptional experiences for our clients and customers. From this, we are proud to be recognized by The Strawhecker Group for Best Gateway Uptime in 2026. REPAY earned fir