Repay (NASDAQ:RPAY) Releases Earnings Results

Repay (NASDAQ:RPAY) released its quarterly earnings data on Monday. The company reported $0.20 earnings per share (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 analyst estimates 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 Stock Down 3.0%

Shares of NASDAQ:RPAY opened at $3.83 on Tuesday. Repay has a 52 week low of $2.30 and a 52 week high of $6.05. The company has a market capitalization of $363.70 million, a PE ratio of -1.25 and a beta of 1.83. The company’s fifty day moving average is $3.78 and its 200-day moving average is $3.43. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.79 and a current ratio of 1.79.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Stephens downgraded shares of Repay from an “overweight” rating to an “equal weight” rating and lowered their target price for the stock from $7.00 to $3.75 in a research report on Tuesday, May 5th. UBS Group raised 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. DA Davidson reiterated a “buy” rating and set a $6.00 price target on shares of Repay in a report on Wednesday, July 15th. Finally, Weiss Ratings downgraded shares of Repay from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Repay has a consensus rating of “Hold” and a consensus target price of $5.32.

Hedge Funds Weigh In On Repay

Several institutional investors have recently bought and sold shares of RPAY. Kent Lake PR LLC acquired a new stake in shares of Repay in the second quarter valued at $7,230,000. AQR Capital Management LLC raised its holdings in Repay by 2,421.7% during the 2nd quarter. AQR Capital Management LLC now owns 1,444,545 shares of the company’s stock worth $6,963,000 after purchasing an additional 1,387,260 shares during the last quarter. Jane Street Group LLC boosted its stake in shares of Repay by 773.6% in the 2nd quarter. Jane Street Group LLC now owns 838,492 shares of the company’s stock valued at $4,042,000 after purchasing an additional 742,513 shares during the last quarter. Bank of America Corp DE grew its position in shares of Repay by 882.1% during the 2nd quarter. Bank of America Corp DE now owns 789,553 shares of the company’s stock worth $3,806,000 after buying an additional 709,159 shares during the period. Finally, Marshall Wace LLP boosted its position in shares of Repay by 108.4% in the 2nd quarter. Marshall Wace LLP now owns 1,096,061 shares of the company’s stock worth $5,283,000 after purchasing an additional 570,089 shares during the last quarter. Institutional investors own 82.73% of the company’s stock.

Repay Company Profile

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.