Repay (NASDAQ:RPAY) executives highlighted an acceleration in normalized growth and continued profitability as the company closed out 2025, while outlining a 2026 outlook that incorporates both organic initiatives and expected contributions from a midterm election cycle.
Fourth-quarter performance and segment trends
Co-founder and CEO John Morris said the company “returned to solid normalized growth” in the fourth quarter, describing the period as evidence that REPAY’s strategic initiatives and operational improvements are taking hold. Management noted that results are discussed on a normalized basis excluding political media contributions during 2024’s presidential election cycle.
- Revenue of $78.6 million and gross profit of $58.3 million
- Normalized year-over-year revenue growth of 10% and gross profit growth of 9%
- Adjusted EBITDA of $32.4 million, representing a 41% margin
- Free cash flow of $13.8 million, representing 43% conversion of Adjusted EBITDA
CFO Rob Hauser said Q4 gross profit margin was approximately 74.2%, and he expects a similar margin profile in 2026 as what the company experienced in Q3 and Q4 2025. Hauser cited several factors affecting margins over that period, including lapping political media contributions, enterprise volume discounts, and changes in mix as REPAY processes more of clients’ overall volumes.
In the consumer payments segment, management said Q4 revenue increased 8% year-over-year and gross profit rose 6%. Morris attributed growth to steady payment streams from existing clients, increased share of clients’ payment volumes, and the ramp of new clients. The company said it increased consumer software partnerships to 189 and emphasized deeper integrations intended to improve client workflows and the consumer experience. Morris pointed to a newly announced integration with Emotive Software, described as an all-in-one automotive finance and compliance platform, as one example supporting consumer bookings momentum into 2026.
In the business payments segment, REPAY reported outsized normalized growth in Q4, with revenue up 41% and gross profit up 73% year-over-year. Morris said the company’s 2025 focus was on its core accounts payable (AP) platform, with go-to-market efforts aimed at AP opportunities and new client wins in healthcare and hospitality. He also cited monetization initiatives, including float income, expansion of an enhanced ACH offering, and increased adoption of TotalPay among new and existing clients.
REPAY said it grew its supplier network to 602,000 suppliers in Q4, up more than 65% year-over-year, and exited the quarter with 105 software partners and embedded integrations. Morris said the company added more than 240,000 suppliers during 2025 and referenced software relationships such as Aptos. He also highlighted a referral partnership with West Virginia University Gold & Blue Enterprises, where clients can use REPAY’s platform to donate earned rebates to the university’s NIL fund.
Operational changes and product roadmap highlights
Management described 2025 as a year that included challenges but also significant foundational work. Morris said REPAY changed key executives, streamlined processes, and began deploying automation and AI. He added that the company allocated resources toward sales and customer support to pursue enterprise clients.
REPAY said it added 14 software partners and integrations during 2025 and ended the year with more than 294 total partners. The company also discussed product initiatives, including:
- Dynamic Wallet, enabling iOS and Android users to tap-and-pay and access statement activity within a digital wallet experience
- AI efforts intended to reduce integration time for faster AP connectivity with software partners and to support client onboarding via “AI assist” functionality
- AI middleware for client and technology migrations, aimed at faster discovery and risk detection while reducing manual processes over time
- REPAY Voice, which management said is designed to improve the IVR experience for consumer calls and has enterprise client interest for a phased rollout in 2026
Morris also noted recognition from The Strawhecker Group for “Best Gateway Uptime in 2026,” and said REPAY earned first place for the highest authorization rate for a second consecutive year in 2025.
Goodwill impairment and balance sheet update
Hauser said adjusted net income in Q4 was $16.8 million, or $0.19 per share. Reported net income, however, was impacted by a non-cash goodwill impairment charge of $138.9 million related to the consumer payments segment.
On liquidity, REPAY ended 2025 with approximately $116 million in cash. After year-end, the company paid off $147 million of 0% convertible notes at maturity, using about $37 million of cash and drawing $110 million on its revolving credit facility.
On a pro forma basis following the January debt payment, REPAY reported approximately $79 million of cash and $398 million of debt outstanding, consisting of the $110 million revolver draw and $288 million of convertible notes due in 2029 with a 2.875% coupon. Pro forma total liquidity was approximately $219 million, including $140 million of undrawn revolver capacity. Hauser said pro forma net leverage was about 2.5x.
2026 outlook includes election-cycle tailwind, timing headwinds in Q1
For full-year 2026, REPAY guided to revenue of $340 million to $346 million, which management said represents 10% to 12% reported growth and about 7% to 9% normalized growth excluding political media contributions. The company guided to Adjusted EBITDA of $136.5 million to $141.5 million, implying roughly 40% margins, and said it is confident in free cash flow conversion above 45%.
Hauser said the free cash flow outlook incorporates working capital fluctuations and incremental interest associated with the revolver draw. The company expects interest expense of about $15 million in 2026, including interest on both the 2029 convertible notes and the revolver borrowing.
Management flagged that Q1 year-over-year growth is expected to be lower than the full-year trajectory due to some implementations being pushed out and the impact of lapping annualized churn from the back half of 2025. Hauser said the company expects the second half of 2026 to return to strong double-digit normalized growth.
REPAY also expects to benefit from a midterm election cycle, with most political media contributions occurring in Q3 and Q4. The company estimated political media contributions would add $8 million to $10 million of revenue, or about three percentage points of reported growth year-over-year.
Capital allocation priorities and Q&A discussion points
Hauser said REPAY expects to make $15 million in tax receivable agreement (TRA) payments in Q1 and outlined capital allocation priorities for 2026: targeted operating expense investments for organic growth, strategic M&A and partnerships, prudent product and technology capex, and potential use of an existing share repurchase authorization with $23 million remaining. He added that the company has flexibility to balance those uses of capital with potential debt reduction.
In the Q&A, Morris said trends across key end markets such as auto and personal loans, as well as healthcare and mortgage, were “very similar” to what the company had been seeing, and he described auto and affordability constraints as stable. He also said there were no notable upcoming customer renewals outside of what would already be embedded in guidance.
On seasonality, Morris said the company typically sees a Q1 uplift in consumer payment volumes tied to tax refunds and that February showed some volume increase that appeared relatively normal. On business payments, Hauser said float income is generated from customer deposits and contributed to Q4 results, but the company did not quantify the amount. He also cited lapping prior customer losses and monetization efforts including moving volume to TotalPay as drivers of Q4 B2B performance.
Asked about M&A, Morris said the company has maintained a “healthy pipeline” and that opportunities could span both consumer and business payments, including potential moves that broaden or complement its vertical reach. On Visa-related commercial card changes, Morris discussed impacts to the accounts receivable side of the B2B business related to card qualification changes, while noting REPAY has multiple ways to issue virtual cards on the accounts payable side and will seek to optimize monetization across available rails.
Closing the call, Morris said REPAY exited 2025 with “solid momentum” and is focused on executing its plan for double-digit reported growth in 2026.
About Repay (NASDAQ:RPAY)
Repay Holdings Corp. (Nasdaq: RPAY) is a specialized financial technology company that delivers integrated payment solutions to businesses operating within key vertical markets. The company’s platform enables merchants and service providers to accept a range of payment types, including credit and debit cards, automated clearing house (ACH) transfers and electronic checks. Repay’s offerings are designed to seamlessly integrate with third-party software applications, such as enterprise resource planning, customer relationship management and point-of-sale systems, empowering industries such as utilities, telecommunications, automotive finance, healthcare, insurance, property management and education.
Tracing its roots to the formation of Pinnacle Payment Systems in 1997, Repay expanded its capabilities through strategic acquisitions, including Southeastern Integrated Solutions and Payliance, before completing a business combination with Thunder Bridge Acquisition II in 2019 to become a publicly traded company on the Nasdaq.
