Repay (RPAY) Q4 2025 earnings summary

Executive summary

• Achieved strong normalized growth and free cash flow in Q4 2025, with Consumer Payments and Business Payments segments both showing robust performance despite reported revenue being flat due to lapping political media impacts.

• Strengthened operations, go-to-market strategy, and leadership throughout 2025, positioning for continued momentum in 2026.

• Focused on enhancing client digital payment flows, expanding software partnerships and integrations, and growing the AP supplier network by 67% year-over-year to over 602,000.

• Consumer Payments segment showed resilient trends and continued enterprise client wins, while Business Payments saw strong pipeline growth in key verticals.

Financial highlights

• Q4 2025 revenue was $78.6 million (flat year-over-year); normalized revenue grew 10%; gross profit was $58.3 million (up 9% normalized, down 2% reported).

• Q4 2025 Adjusted EBITDA was $32.4 million (41% margin); free cash flow was $13.8 million (43% conversion).

• Q4 2025 net loss was $148.3 million, primarily due to a $138.9 million non-cash goodwill impairment in Consumer Payments.

• Full year 2025 revenue was $309.3 million (down 1%); gross profit was $232.0 million (down 4%); Adjusted EBITDA was $128.6 million; free cash flow was $49.1 million (38% FCF conversion).

• As of December 31, 2025, cash balance was $116 million; pro forma cash after debt repayment is $79 million, with $398 million in pro forma debt.

Outlook and guidance

• 2026 revenue expected between $340 million and $346 million, representing 10%-12% reported growth and 7%-9% normalized growth.

• Adjusted EBITDA guidance is $136.5 million to $141.5 million (approx. 40% margin); free cash flow conversion target above 45%.

• Interest expense for 2026 expected to be about $15 million.

• Q1 2026 growth to be lower due to timing of client implementations, with stronger growth expected in the second half.

• Political media contributions expected to add $8-$10 million to revenue in 2026.