Repay (NASDAQ:RPAY) Issues Earnings Results, Misses Estimates By $0.01 EPS

Repay (NASDAQ:RPAY) announced its quarterly earnings results on Monday. The company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.01), FiscalAI reports. The firm had revenue of $100.71 million for the quarter, compared to the consensus estimate of $101.86 million. Repay had a negative net margin of 82.73% and a positive return on equity of 10.45%.

Here are the key takeaways from Repay’s conference call:

• KUBRA integration is progressing ahead of schedule, with more than $4.5 million in annualized run-rate synergies realized by the end of Q2 and targets of over $8 million by year-end 2026 and over $20 million by 2028.
• Management reiterated its 2026 outlook for $490 million-$500 million in revenue, 10%-12% organic growth, and $168.5 million-$176 million in adjusted EBITDA, while expecting core consumer growth to accelerate to double digits in the second half.
• Q2 revenue rose 33% year over year to $100.7 million, free cash flow reached $27.4 million with 75% conversion, and business payments posted 19% normalized growth, supported by new clients, TotalPay monetization, and a vendor network that expanded 65% to 731,000 suppliers.
• Gross margin declined to 70% from 76% and adjusted EBITDA margin was approximately 36%, primarily because KUBRA has a lower-margin mix; the company also ended the quarter with approximately 3.7 times pro forma synergized net leverage and intends to reduce it below three times within 18 months.

Repay Trading Down 3.0%

Shares of NASDAQ:RPAY traded down $0.12 during trading on Monday, hitting $3.83. The company had a trading volume of 453,080 shares, compared to its average volume of 1,144,151. The stock has a market cap of $363.70 million, a price-to-earnings ratio of -1.25 and a beta of 1.83. Repay has a one year low of $2.30 and a one year high of $6.05. The company has a fifty day simple moving average of $3.78 and a two-hundred day simple moving average of $3.43. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.79 and a quick ratio of 1.79.

Hedge Funds Weigh In On Repay

Large investors have recently modified their holdings of the stock. Sunriver Management LLC lifted its position in Repay by 11.0% in the fourth quarter. Sunriver Management LLC now owns 4,361,524 shares of the company’s stock worth $15,920,000 after buying an additional 433,524 shares during the last quarter. Millennium Management LLC increased its position in Repay by 24.6% during the first quarter. Millennium Management LLC now owns 2,166,100 shares of the company’s stock valued at $12,065,000 after acquiring an additional 428,289 shares during the last quarter. Kent Lake PR LLC bought a new position in Repay during the second quarter valued at $7,230,000. AQR Capital Management LLC raised its stake in shares of Repay by 2,421.7% in the second quarter. AQR Capital Management LLC now owns 1,444,545 shares of the company’s stock valued at $6,963,000 after acquiring an additional 1,387,260 shares during the period. Finally, Franklin Resources Inc. raised its stake in shares of Repay by 1.5% in the third quarter. Franklin Resources Inc. now owns 1,371,147 shares of the company’s stock valued at $7,171,000 after acquiring an additional 20,872 shares during the period. Institutional investors own 82.73% of the company’s stock.

Analyst Ratings Changes

A number of research firms have recently commented on RPAY. Stephens downgraded Repay from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $7.00 to $3.75 in a research report on Tuesday, May 5th. UBS Group boosted their price target on shares of Repay from $3.75 to $4.25 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. DA Davidson reaffirmed a “buy” rating and set a $6.00 price target on shares of Repay in a research note on Wednesday, July 15th. Finally, Weiss Ratings lowered shares of Repay from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $5.32.

About Repay

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.