Repay (RPAY) Q4 2024 earnings summary

Executive summary

• Achieved profitable growth in Q4 and FY 2024, with adjusted EBITDA up 9% in Q4 and 11% for the year, and free cash flow conversion rising to 75%.

• Full-year 2024 revenue grew 6% to $313.0M, with gross profit up 6% and stable gross margins.

• Benefited from secular trends toward digital payments, supporting ongoing business momentum.

• Initiated a comprehensive strategic review to evaluate all alternatives for enhancing shareholder value, including M&A, sale, or take-private.

• Net income for Q4 2024 was ($4.0M), a significant improvement from ($77.7M) in Q4 2023, driven by lower non-cash impairment losses.

Financial highlights

• FY 2024 revenue reached $313.0M, up 6% year-over-year; Q4 revenue was $79.1M, up 6% from Q4 2023.

• FY 2024 gross profit was $241.4M, up 6% year-over-year; Q4 gross profit was $61.6M, up 9% from Q4 2023.

• Adjusted EBITDA for FY 2024 was $140.8M, up 11% year-over-year; Q4 adjusted EBITDA was $36.5M, up 9% from Q4 2023.

• FY 2024 free cash flow was $105.2M, with 75% conversion; Q4 free cash flow was $23.5M, up 8% year-over-year.

• Ended 2024 with $189.5M in cash and $440M total liquidity, and net leverage at 2.3x.

Outlook and guidance

• No formal 2025 outlook provided due to ongoing strategic review.

• Management expects normalized growth rates in mid to high single digits, with core AP business projected to grow low to mid-teens.

• ~$20M of favorable working capital timing in FY 2024 expected to reverse in Q1 2025.