Yahoo Finance

• Revenue: $77.3 million, a decrease of 4% year over year.

• Gross Profit: Declined by 5% year over year.

• Consumer Payments Gross Profit: Declined by 5% during Q1.

• Business Payments Gross Profit: Increased by 77% year over year; 12% growth excluding political media contributions.

• Adjusted EBITDA: $33.2 million, with a margin of 43%.

• Adjusted Net Income: $20.3 million or $0.22 per share.

• Free Cash Flow: Reported negative $8 million; impacted by $16 million due to timing and client losses.

• Cash and Liquidity: $165 million in cash, $250 million undrawn revolver, totaling $415 million in liquidity.

• Debt: Total outstanding debt of $507.5 million; leverage approximately 2.5 times.

• Instant Funding Transaction Volume: Increased by approximately 19% year over year.

• Credit Union Clients: Increased to 343 clients.

• Warning! GuruFocus has detected 1 Warning Sign with RPAY.

Release Date: May 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Repay Holdings Corp (NASDAQ:RPAY) maintained strong adjusted EBITDA margins of 43% during Q1 2025.

• The company signed two new software partnerships, increasing its total software partners to 182.

• RPAY's instant funding product saw transaction volumes rise approximately 19% year over year.

• The Business Payments segment reported a gross profit increase of 12% year over year, excluding political media impacts.

• RPAY announced an increased share repurchase program authorization to $75 million, indicating confidence in its valuation.

Negative Points

• Reported revenue for Q1 2025 decreased by 4% year over year.

• Consumer Payments segment gross profit declined by 5% during Q1 2025.

• Reported free cash flow was negative $8 million for Q1 2025, impacted by client losses and networking capital issues.

• The company faced a 600-basis-point drag on Consumer Payments due to client losses.

• Economic unpredictability and macro uncertainties could potentially impact consumer spending and near-term growth.

Q & A Highlights

Q: Can you provide some additional color on what you're seeing in the consumer spending environment, particularly from a credit perspective? A: John Morris, CEO: Year to date, we've seen resiliency in non-discretionary consumer spending. From our perspective, we're not seeing any major impact on overall payment processing related to macroeconomic factors affecting consumers.

Q: Given your increased buyback authorization of $25 million, do you plan to continue leaning into this rather than M&A? A: John Morris, CEO: We will opportunistically repurchase shares when we believe our share price is disconnected from our long-term intrinsic value. Tim Murphy, CFO: Our capital allocation priorities remain focused on organic growth, executing buybacks, and maintaining liquidity for convertible notes due in 2026, with tuck-in M&A as a secondary priority.