Repay Holdings 2025 Q2 Earnings Deepening Losses Amid Revenue Growth

Repay Holdings (RPAY) reported its fiscal 2025 Q2 earnings on August 11th, 2025, showing a 1.0% year-over-year revenue increase but widening net losses. The company reiterated capital allocation strategies and provided updated guidance for the remainder of the year.

Repay Holdings generated $75.63 million in total revenue in Q2 2025, a modest increase from $74.91 million in Q2 2024. The performance was driven by its Consumer Payments segment, which brought in $70.47 million. The Business Payments segment contributed $10.95 million, while intersegment eliminations reduced total revenue by $5.79 million.

Net losses significantly expanded in Q2 2025, reaching $-108.03 million, or $1.15 per share, a 2,449.7% increase from the $-4.24 million loss of $0.04 per share in the prior-year period. This substantial decline in profitability highlights the financial challenges the company continues to face.

The stock price of Repay Holdings demonstrated resilience in the aftermath of the earnings report, rising 2.68% on the latest trading day, with gains of 8.94% for the week and 8.28% month-to-date.

A post-earnings investment strategy of buying RPAY when revenue beats and holding for 30 days proved highly ineffective. The approach returned -81.42%, underperforming the benchmark by 164.01%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of -0.60, indicating poor absolute and risk-adjusted performance.

CEO John Andrew Morris emphasized Q2's strong sequential growth, fueled by improved go-to-market execution and operational efficiency. He noted that while client losses and political media contributions posed temporary challenges, the company's core growth from existing clients and new wins remained robust. Morris also highlighted continued investments in sales, implementation, and customer support, with adjusted EBITDA margins at 42%.

Repay Holdings updated its 2025 outlook, forecasting sequential quarterly normalized gross profit growth in Q3 and high-single-digit to low-double-digit growth in Q4. Free cash flow conversion is expected to exceed 60% in the fourth quarter. The company reiterated its capital allocation priorities, including managing CapEx as a percentage of revenue and maintaining liquidity, while addressing the 2026 convertible notes maturity. In Q2, $38 million was allocated to share repurchases, amounting to 7.9 million shares under the existing buyback authorization.

[Revenue]
Repay Holdings generated total revenue of $75.63 million in Q2 2025, representing a 1.0% increase compared to $74.91 million in Q2 2024. The Consumer Payments segment remained the largest contributor, accounting for $70.47 million. The Business Payments segment added $10.95 million to the revenue, while intersegment eliminations reduced total revenue by $5.79 million. This breakdown reflects a continued focus on consumer-driven growth within the company's diversified payment solutions.

[Earnings/Net Income]
Net losses for Repay Holdings widened significantly in Q2 2025, reaching $-108.03 million, or $1.15 per share, a 2,449.7% increase from the $-4.24 million loss of $0.04 per share in the prior-year period. This substantial deterioration in profitability indicates ongoing financial challenges, despite revenue growth. The EPS result is clearly bad, highlighting a significant decline in the company's earnings performance.

[Post-Earnings Price Action Review]
The stock price of Repay Holdings exhibited notable momentum in the wake of the Q2 earnings report. It rose 2.68% on the latest trading day, with a stronger performance of 8.94% for the week and 8.28% month-to-date. Despite these gains, a post-earnings investment strategy of buying RPAY when revenue beats and holding for 30 days proved highly ineffective. The strategy returned -81.42%, underperforming the benchmark by 164.01%. This approach had a maximum drawdown of 0.00% and a Sharpe ratio of -0.60, indicating poor absolute and risk-adjusted performance. The results suggest that while the stock demonstrated price resilience, the underlying fundamentals did not support a positive return for short-term investors.

[CEO Commentary]
John Andrew Morris, CEO of Repay Holdings, highlighted the strong sequential growth in Q2 2025, attributing it to improved go-to-market execution, sales pipeline momentum, and operational enhancements. He acknowledged the temporary headwinds from client losses and political media contributions but emphasized that the core recurring growth from existing clients and new wins remains robust. Morris underscored strategic investments in sales, implementation, and customer support, while maintaining 42% adjusted EBITDA margins. He expressed optimism about accelerating growth in H2 2025 and beyond, citing the expansion of partnerships like MeridianLink, the growth in credit union clients to 353, and a 47% YoY increase in the supplier network. He also outlined confidence in capital allocation priorities, including share repurchases and a focus on organic growth, while expressing openness to strategic M&A and a new CFO appointment to strengthen leadership.

[Guidance]
Repay Holdings provided updated guidance for 2025, with sequential quarterly normalized gross profit growth expected in Q3 and high-single-digit to low-double-digit normalized gross profit growth anticipated in Q4. Free cash flow conversion is expected to exceed 60% in the fourth quarter. The company reiterated its capital allocation priorities, including managing CapEx as a percentage of revenue, maintaining liquidity, and using cash to address the 2026 convertible notes maturity. Additionally, the company confirmed the use of $38 million in Q2 for share repurchases, amounting to 7.9 million shares under the existing buyback authorization.

[Additional News]
Three notable non-earnings-related news items emerged within three weeks of Repay Holdings' Q2 earnings report. First, the company's strategic partnership with MeridianLink expanded significantly, with the integration of new credit union clients and supplier network growth. Second, the appointment of a new CFO was announced as part of leadership strengthening, reflecting a broader commitment to strategic and financial governance. Third, the company announced a $38 million share repurchase program in Q2 under its existing buyback authorization, amounting to 7.9 million shares. These developments underscore the company's focus on strategic expansion, leadership, and capital allocation, despite the current financial challenges.