Repay Holdings Q2 2025 Earnings Call: Executing Growth Strategy with Enterprise Sales and TotalPay Adoption

Repay Holdings Corporation reported Q2 2025 earnings, with CEO John Andrew Morris highlighting the company's growth momentum and improvements in go-to-market strategies, implementation pipelines, and operational excellence. Repay expects Q4 high-single to low-double digit normalized gross profit growth, with enterprise sales and TotalPay adoption advancing. The company's focus on reaccelerating growth has led to sequential improvements across key areas.

Title: Repay Holdings Corporation Reports Q2 2025 Earnings: Focus on Growth and Operational Excellence

Repay Holdings Corporation (RPAY) reported its Q2 2025 earnings, showcasing a mixed performance with notable improvements in key areas. The company highlighted its focus on reaccelerating growth, operational efficiency, and strategic investments in enterprise sales and customer support teams.

Key Financial Highlights:
- Revenue: $75.62 million, up 1% year-over-year.
- Adjusted EBITDA: $31.8 million, with a 42% margin.
- Adjusted net income: $19.1 million, $0.20 per share.
- Free cash flow: $22.6 million, with a 71% cash flow conversion.
- Cash on balance sheet: $163 million.
- Total liquidity: $413 million.

Earnings vs. Forecast:
Repay Holdings' EPS of -$1.15 was a stark deviation from the forecasted $0.20, representing a negative surprise of 675%. Despite this, revenue slightly exceeded forecasts, with a 2.79% positive surprise.

Market Reaction:
The stock of Repay Holdings closed the regular trading session with a 4.08% increase, reflecting some investor optimism. However, the after-hours session saw a decline of 1.75%, likely due to the EPS miss. 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.

Outlook & Guidance:
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.

CEO Commentary:
CEO John Andrew Morris highlighted the company's core growth strategy, stating, "Repay's core growth strategy and resilient business model is built upon a never-ending commitment to optimizing payment flows to our clients." He also emphasized the momentum from prior enterprise sales initiatives and the growing network effect.

Risks and Challenges:
Significant EPS miss may impact investor confidence. Decline in gross profit suggests margin pressures. Market volatility could affect stock price stability. Dependence on digital payment trends poses a risk if growth slows. Potential challenges in scaling operations and maintaining competitive edge.

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