Repay Holdings (RPAY) Earnings Date & Reports

Key Takeaways

• Revenue reached $153.4 million, up 97% year over year, including a full-quarter contribution from the KUBRA acquisition.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 63% to $50.9 million, with adjusted EPS (earnings per share) of $0.25.
• On a GAAP (Generally Accepted Accounting Principles) basis, the company posted a net loss attributable to common shareholders of $9.3 million, or $0.11 per diluted share.
• Gross margin compressed to roughly 65% from 74% a year ago, reflecting KUBRA's lower-margin print-and-mail mix.
• Management reiterated full-year 2026 revenue guidance of $490 million to $500 million and raised its political media revenue forecast.
• For additional context, explore the company's Major News, Today's Price Move, Price Targets, and Forecast pages.
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Earnings Context and Why It Matters

Repay Holdings' third-quarter 2026 results mark the first full period to include KUBRA, the bill payment and customer communications business it acquired to broaden its presence in bill presentment and digital payments. That deal has reshaped the company's revenue base while also drawing scrutiny from an activist shareholder. The quarter therefore serves as an early test of how quickly KUBRA's scale and cost synergies can offset the lower-margin print-and-mail mix it introduces. For investors, the report offers a read on organic growth momentum, margin durability, and the pace of leverage reduction, all of which matter for a company still reporting GAAP losses.

Reported Results

Repay Holdings reported third-quarter 2026 revenue of $153.4 million, up 97% from $77.72 million a year earlier and modestly ahead of the consensus estimate. Organic revenue growth was 13.6%, including roughly nine points of contribution from political media; excluding that cyclical spending, normalized organic growth was approximately 5%.

Gross profit rose to $99.5 million, though gross margin narrowed to about 65% from 74% in the prior-year period, a shift driven almost entirely by KUBRA's product and payment mix. Adjusted EBITDA climbed 63% year over year to $50.9 million, with an adjusted EBITDA margin of approximately 33%. Adjusted net income was $22.5 million, or $0.25 per share.

On a GAAP basis, results remained in the red. The company recorded operating profit of just $0.1 million and a net loss attributable to common shareholders of $9.3 million, or $0.11 per diluted share. Free cash flow was negative $21.1 million, weighed down by a $14 million investment tied to a bank reseller channel partnership, interest expense, and working capital timing related to elevated political media receivables.

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Market Reaction and Investor Sentiment

Repay Holdings shares entered the report with a year-to-date gain of roughly 20%, outpacing the broader market, as investors looked past GAAP losses and focused on the KUBRA integration and improved leverage trajectory. Sentiment heading into the print was nonetheless cautious: the KUBRA transaction faced public opposition from shareholder Veradace Partners, which called for the deal's termination and additional board representation. Against that backdrop, the quarter's revenue acceleration and raised synergy targets are likely to be weighed against the ongoing gross-margin compression and negative free cash flow, keeping the post-earnings reaction tied closely to management's outlook commentary.

Forward Outlook and Key Factors to Monitor

Repay reiterated its full-year 2026 revenue outlook of $490 million to $500 million and raised its political media revenue forecast to a range of $16 million to $18 million for the year. Management also lifted its targeted KUBRA cost-synergy run rate exiting 2026 to $11 million, up from a prior target of $8 million, while continuing to target more than $20 million in combined operating and capital expenditure synergies exiting 2028.

Investors will want to watch whether Consumer Payments organic growth, which was essentially flat year over year in the third quarter, reaccelerates as expected. Management guided to low single-digit organic growth for Consumer Payments in the fourth quarter and a return to growth in 2027, supported by improved pipeline quality and client expansion. The Business Payments segment remains a bright spot, with strong growth even after excluding political media.

Key factors to monitor include the normalization of political media receivables and its effect on free cash flow, the pace of KUBRA's shift from print toward higher-margin digital presentment, and progress on reducing net leverage. The pending final investment under the bank reseller partnership is also worth tracking, as it may influence near-term free cash flow conversion.

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