What are the key takeaways from RPAY's latest earnings report?

Repay Holdings Corporation (RPAY) reported its latest earnings results for the fourth quarter and full year 2024, highlighting several key takeaways:

1. **Financial Growth**: REPAY demonstrated resilient growth, with a 6% increase in gross profit for the full year 2024 and a 2% growth in the fourth quarter. This was driven by strong contributions from the Business Payments segment, which saw a 60% year-over-year growth.
2. **Segment Performance**: The Business Payments segment experienced significant growth, primarily due to strong performance in the political media vertical. In contrast, the Consumer Payments segment faced challenges, with a 5% year-over-year decline in gross profit.
3. **Operational Efficiency**: REPAY improved its free cash flow conversion, accelerating from 42% in 2023 to 75% in 2024. This indicates enhanced operational efficiency and capital management.
4. **Strategic Review**: The company announced a comprehensive strategic review process, which may include evaluating M&A opportunities, a sale, or other structural changes aimed at enhancing shareholder value. This strategic move comes amid a period of significant growth within the Business Payments segment and is expected to further strengthen REPAY’s market position.
5. **Market Position and Growth**: REPAY remains dedicated to leveraging its scalable technology platform for organic and inorganic growth opportunities. The company expanded its AP supplier network by 38% and added new integrated software partners, reaching 280 total relationships. Instant funding volumes increased by 34% year-over-year.

Overall, REPAY's latest earnings report reflects a company that continues to show growth in key financial metrics while facing some challenges in its Consumer Payments segment. The strategic review is a positive signal for shareholders, indicating a proactive approach to enhancing value and capitalizing on growth opportunities.