Repay (NASDAQ:RPAY) Issues Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Repay (NASDAQ:RPAY) issued its quarterly earnings results on Monday. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.01), FiscalAI reports. Repay had a positive return on equity of 10.73% and a negative net margin of 49.57%.The firm had revenue of $100.71 million during the quarter, compared to analysts’ expectations of $101.86 million.

Here are the key takeaways from Repay’s conference call:

• KUBRA integration is progressing ahead of schedule, with more than $4.5 million in annualized run-rate synergies realized by the end of Q2 and targets of over $8 million by year-end 2026 and over $20 million by 2028.
• Management reiterated its 2026 outlook for $490 million-$500 million in revenue, 10%-12% organic growth, and $168.5 million-$176 million in adjusted EBITDA, while expecting core consumer growth to accelerate to double digits in the second half.
• Q2 revenue rose 33% year over year to $100.7 million, free cash flow reached $27.4 million with 75% conversion, and business payments posted 19% normalized growth, supported by new clients, TotalPay monetization, and a vendor network that expanded 65% to 731,000 suppliers.
• Gross margin declined to 70% from 76% and adjusted EBITDA margin was approximately 36%, primarily because KUBRA has a lower-margin mix; the company also ended the quarter with approximately 3.7 times pro forma synergized net leverage and intends to reduce it below three times within 18 months.

Repay Stock Up 2.0%

RPAY stock traded up $0.07 during midday trading on Wednesday, reaching $3.77. 26,930 shares of the company were exchanged, compared to its average volume of 1,134,169. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.79 and a current ratio of 1.79. Repay has a 1-year low of $2.30 and a 1-year high of $6.05. The stock’s 50-day simple moving average is $3.78 and its 200 day simple moving average is $3.43. The company has a market cap of $358.47 million, a price-to-earnings ratio of -1.85 and a beta of 1.83.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Quarry LP acquired a new position in Repay during the third quarter worth $26,000. Blair William & Co. IL lifted its holdings in Repay by 18.5% in the fourth quarter. Blair William & Co. IL now owns 41,044 shares of the company’s stock valued at $150,000 after acquiring an additional 6,409 shares during the period. Merit Financial Group LLC boosted its position in shares of Repay by 56.2% during the 3rd quarter. Merit Financial Group LLC now owns 19,551 shares of the company’s stock worth $102,000 after purchasing an additional 7,036 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Repay by 224.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,433 shares of the company’s stock worth $50,000 after purchasing an additional 7,217 shares in the last quarter. Finally, Creative Planning grew its stake in shares of Repay by 13.0% during the 2nd quarter. Creative Planning now owns 64,340 shares of the company’s stock worth $310,000 after purchasing an additional 7,381 shares during the period. Institutional investors and hedge funds own 82.73% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on RPAY shares. Weiss Ratings lowered shares of Repay from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, August 6th. DA Davidson reiterated a “buy” rating and set a $6.00 target price on shares of Repay in a research note on Wednesday, July 15th. UBS Group increased their target price on Repay from $3.75 to $4.25 and gave the company a “neutral” rating in a report on Wednesday, June 3rd. Finally, Stephens cut Repay from an “overweight” rating to an “equal weight” rating and cut their price target for the company from $7.00 to $3.75 in a research note on Tuesday, May 5th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $5.25.

Repay Company Profile

Repay Holdings Corp. (Nasdaq: RPAY) is a specialized financial technology company that delivers integrated payment solutions to businesses operating within key vertical markets. The company’s platform enables merchants and service providers to accept a range of payment types, including credit and debit cards, automated clearing house (ACH) transfers and electronic checks. Repay’s offerings are designed to seamlessly integrate with third-party software applications, such as enterprise resource planning, customer relationship management and point-of-sale systems, empowering industries such as utilities, telecommunications, automotive finance, healthcare, insurance, property management and education.

Tracing its roots to the formation of Pinnacle Payment Systems in 1997, Repay expanded its capabilities through strategic acquisitions, including Southeastern Integrated Solutions and Payliance, before completing a business combination with Thunder Bridge Acquisition II in 2019 to become a publicly traded company on the Nasdaq.