Repay Holdings expands share repurchase program to $75 million

ATLANTA - Repay Holdings Corporation (NASDAQ: RPAY), a prominent provider of integrated payment processing solutions, has announced an increase in its share repurchase program, now authorizing up to $75 million in buybacks of its Class A common stock. This expansion, up from the previous $50 million, comes as the company aims to leverage its financial health and market conditions to enhance shareholder value. According to InvestingPro data, REPAY maintains a healthy current ratio of 2.69 and generated substantial free cash flow of $149.1 million in the last twelve months, suggesting strong financial flexibility for this initiative.

The CEO of REPAY, John Morris, stated that this move reflects the Board’s belief in the company’s continued profitable growth and ability to generate free cash flow. Morris emphasized that REPAY’s capital allocation strategy prioritizes a robust balance sheet and investments that drive shareholder value, suggesting that the increased repurchase authorization will allow for more disciplined capital management. This aligns with InvestingPro analysis, which shows the company achieved 5.53% revenue growth and maintains a GOOD Financial Health score, despite recent market volatility. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with 12 additional ProTips available for subscribers.

The repurchase program enables the company to buy back shares on the open market, through private transactions, or by other means, contingent on market conditions and corporate requirements. The program’s structure is designed to comply with the pricing and volume stipulations of Rule 10b-18, and REPAY may also establish Rule 10b5-1 plans to manage the repurchases.

However, the program does not compel REPAY to acquire a specific number of shares, and it can be adjusted, paused, or terminated at the company’s discretion.

REPAY’s integrated payment technology platform is tailored to meet the unique transaction processing needs of various verticals, aiming to simplify electronic payments for clients while enhancing the user experience for consumers and businesses.

The forward-looking statements included in the press release, such as those regarding the company’s growth, capital allocation, and share repurchase plans, are based on current management beliefs and are subject to business and economic uncertainties. Factors that could impact these forward-looking statements include changes in the consumer loan market, payment processing industry, and regulatory environment, as well as the company’s growth strategies and data security risks.

Investors are cautioned not to place undue reliance on these statements as predictors of future performance. The information provided is based on the statement released by Repay Holdings Corporation and does not necessarily reflect future results.

In other recent news, Repay Holdings Corporation has announced several key developments impacting its financial and operational strategies. The company is preparing for its first-quarter earnings report, scheduled for May 12, 2025, which will be closely watched by investors for insights into its financial health and strategic direction. In executive news, CFO Tim Murphy will step down on May 15, 2025, with Thomas Sullivan stepping in as interim CFO. This transition comes as Repay sets executive bonus targets for 2025, with incentives tied to financial performance metrics like Adjusted EBITDA and Gross Profit.

Analysts have been active in reassessing their outlook on Repay. DA Davidson reaffirmed its Buy rating and $12 price target, expressing confidence in the company’s value despite the executive changes. Meanwhile, Benchmark adjusted its price target to $8 from $12, maintaining a Buy rating and clarifying misconceptions about Repay’s credit exposure. Canaccord Genuity also revised its price target to $12, highlighting the company’s robust margins and cash flow while noting challenges in top-line growth due to external factors.

These developments underscore the dynamic environment in which Repay operates, with analysts offering varied perspectives on its potential. The investment community will be keenly observing the upcoming earnings call for further clarity on Repay’s financial strategies and performance.

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