Repay (NASDAQ:RPAY) Issues Earnings Results

Repay (NASDAQ:RPAY) released its earnings results on Monday, August 10th. The company reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.01), FiscalAI reports. Repay had a negative net margin of 49.57% and a positive return on equity of 11.03%. The company had revenue of $100.71 million during the quarter, compared to analysts’ expectations of $101.86 million.

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 Price Performance

Repay stock traded up $0.01 during midday trading on Wednesday, hitting $3.85. 122,195 shares of the company’s stock were exchanged, compared to its average volume of 1,093,514. The company has a market cap of $366.33 million, a P/E ratio of -1.89 and a beta of 1.83. The company has a debt-to-equity ratio of 1.60, a quick ratio of 1.43 and a current ratio of 1.45. The stock has a 50-day moving average price of $3.84 and a two-hundred day moving average price of $3.45. Repay has a 52-week low of $2.30 and a 52-week high of $6.05.

Wall Street Analysts Forecast Growth

RPAY has been the topic of a number of analyst reports. Stephens cut shares of 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 report on Tuesday, May 5th. DA Davidson reiterated a “buy” rating and issued a $6.00 price target on shares of Repay in a research report on Wednesday, July 15th. UBS Group boosted their price objective on Repay from $3.75 to $4.25 and gave the company a “neutral” rating in a research note on Wednesday, June 3rd. Canaccord Genuity Group reissued a “buy” rating and set a $8.00 price objective on shares of Repay in a report on Wednesday, August 19th. Finally, Weiss Ratings upgraded Repay from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, August 20th. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Repay has a consensus rating of “Hold” and a consensus target price of $5.25.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of RPAY. Quarry LP bought a new position in shares of Repay in the 3rd quarter worth $26,000. Jain Global LLC bought a new position in Repay in the fourth quarter valued at $40,000. EverSource Wealth Advisors LLC increased its stake in Repay by 224.4% in the second quarter. EverSource Wealth Advisors LLC now owns 10,433 shares of the company’s stock valued at $50,000 after acquiring an additional 7,217 shares during the last quarter. Captrust Financial Advisors purchased a new stake in Repay during the second quarter valued at about $62,000. Finally, DRW Securities LLC purchased a new stake in Repay during the fourth quarter valued at about $65,000. 82.73% of the stock is currently owned by institutional investors.

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.