Repay Holdings Corp Q2 2025 Earnings: Revenue Beats Estimates, EPS Misses

Repay Holdings Corp reported Q2 2025 revenue of $75.6 million, beating estimates, but missed EPS estimates with a loss of $1.15. The company's net loss was $108 million, mainly due to a $103.8 million goodwill impairment loss. Repay achieved a Free Cash Flow Conversion of 71% and repurchased 4.8 million shares for $22.6 million. The Consumer Payments segment reported a flat gross profit year-over-year, while the Business Payments segment saw a 1% increase in normalized gross profit growth.

Repay Holdings Corp (RPAY) reported its Q2 2025 earnings, revealing a significant miss on earnings per share (EPS) expectations. The company reported an EPS of -$1.15 compared to the forecast of $0.20. Despite this, the company's revenue slightly surpassed expectations, coming in at $75.62 million against a forecast of $73.57 million. The stock saw a 4.08% increase during the regular session but dropped 1.75% in after-hours trading [1].

The company's net loss was $108 million, primarily due to a $103.8 million goodwill impairment loss. Despite this, the company achieved a Free Cash Flow Conversion of 71% and repurchased 4.8 million shares for $22.6 million. The Consumer Payments segment reported a flat gross profit year-over-year, while the Business Payments segment saw a 1% increase in normalized gross profit growth [1].

Repay Holdings maintains strong liquidity with a current ratio of 3.71, indicating solid short-term financial health. The company's revenue saw a slight increase of 1% year-over-year, while gross profit declined by 2%. The company emphasized its focus on enhancing its product offerings and operational efficiency, which included investments in enterprise sales and customer support teams [1].

The stock's current price is $5.06, compared to its 52-week high of $9.75 and low of $3.59, indicating ongoing volatility. InvestingPro analysis shows the stock has experienced a significant -26.07% decline over the past six months, though analyst consensus remains bullish with a target range of $4.50 to $12.00 [1].

Looking forward, Repay Holdings expects sequential quarterly normalized gross profit growth, with projections of high single-digit to low double-digit growth in Q4. The company remains focused on capital allocation priorities, including organic growth and strategic mergers and acquisitions [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-repay-holdings-misses-q2-2025-eps-forecast-93CH-4183979