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ATLANTA - Repay Holdings Corporation (NASDAQ:RPAY) reported third-quarter revenue that exceeded analyst expectations while posting an unexpected loss.
The payment solutions provider generated $77.7 million in revenue for Q3 2025, beating the consensus estimate of $76.93 million, despite a 2% year-over-year decline.
The company reported a loss of $0.08 per share, compared to a profit of $0.04 per share in the same quarter last year. On an adjusted basis, Repay posted earnings of $0.21 per share. The stock dipped 1.3% following the announcement.
"During the third quarter, REPAY achieved solid normalized growth with strong Adjusted EBITDA margins and robust Free Cash Flow generation," said John Morris, Chief Executive Officer of REPAY. "We opportunistically deployed capital towards our organic growth initiatives, repurchased shares, and retired a significant portion of convertible notes."
Despite the headline revenue decline, normalized revenue growth increased 5% year-over-year when excluding political media spending impacts from the 2024 election cycle. The company’s Business Payments segment showed particularly strong performance with normalized gross profit growth of approximately 12% year-over-year.
Free Cash Flow reached $20.8 million for the quarter, representing a 67% Free Cash Flow Conversion rate. During Q3, the company retired $73.5 million of convertible notes and repurchased $15.6 million of outstanding shares.
Repay refined its outlook for fiscal 2025, projecting 6-8% normalized gross profit growth in the fourth quarter with Free Cash Flow Conversion expected to remain above 50%.
The company continued to expand its business relationships, adding five new integrated software partners to reach a total of 291 software relationships. Its AP supplier network grew to over 524,000, an increase of approximately 59% year-over-year.
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