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- **Revenue Growth**: 5% YoY revenue growth, 12% YoY Business Payments segment expansion, driven by AP platform and ACH adoption.
- **Operational Strength**: 40% EBITDA margin, 67% free cash flow conversion, $38M in share buybacks year-to-date.
- **Strategic Initiatives**: Dynamic Wallet integration, 5 new software partnerships, and 11 new credit union wins.
- **Challenges**: Gross margin compression (3.4% YoY) due to enterprise client mix and ACH/check volume shifts.
- **Debt Management**: Retired $74M of convertible notes, reducing net leverage to 2.5x.

**【CEO Summary Section】**
- **Revenue and Gross Profit Growth**: Q3 revenue grew 5% YoY (normalized, excluding political media), with gross profit up 1% YoY. Business Payments segment saw 12% YoY growth, driven by AP platform expansion and ACH adoption.
- **Strategic Initiatives**: Launched Dynamic Wallet integration with iOS/Android, adding 5 new software partners (total 291). Partnered with Alfa Systems and Fuse to enhance embedded payment solutions.
- **Operational Efficiency**: 40% adjusted EBITDA margin, 67% free cash flow conversion, and $38M in share repurchases year-to-date. Reduced debt by $74M via convertible note retirement.
- **Client Expansion**: Added 11 new credit unions in financial institutions vertical; supplier network grew to 524,000 (60% YoY growth).

**【CFO Financial Commentary】**
- **Financial Results**: Q3 revenue $77.7M, gross profit $57.8M. Gross margins compressed 3.4% YoY due to larger enterprise clients and ACH/check mix shifts.
- **Profitability**: Adjusted EBITDA $31.2M (40% margin), free cash flow $20.8M. Q4 outlook: 6-8% normalized gross profit growth, 50%+ free cash flow conversion.
- **Capital Allocation**: $38M in share buybacks (8% reduction), $96M cash on hand, and $250M undrawn revolver. Focused on debt reduction and M&A opportunities.

**【Q&A Key Highlights】**
- **Free Cash Flow Trends**: Q4 free cash flow conversion expected at 50-60% due to working capital timing. 2026 outlook to be detailed in Q1 2026 call.
- **Political Media Impact**: Q4 2025 will lap $4.6M of 2024 political media gross profit, creating 10% reported growth headwind.
- **Consumer Softness**: Automotive/used car verticals showing softness, consistent with prior quarters.
- **M&A Pipeline**: Active pipeline in both consumer and B2B segments, with focus on accelerating growth through strategic acquisitions.

Repay Holdings Corporation (RPAY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RPAY

RPAY fundamentals

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