Overview
Repay Holdings Q3 revenue slightly beats analyst expectations
Adjusted EBITDA for Q3 misses analyst estimates
Company retired $73.5 mln of convertible notes, repurchased $15.6 mln of shares
Outlook
Company expects 6% - 8% normalized gross profit growth in Q4 2025
Company anticipates Free Cash Flow Conversion above 50% in Q4 2025
Result Drivers
CLIENT LOSSES - Revenue and gross profit declined due to previously announced client losses and reduced political media spending
NORMALIZED GROWTH - Excluding political media spending, normalized revenue and gross profit grew by 5% and 1% respectively
BUSINESS PAYMENTS DECLINE - Business Payments segment gross profit fell 31% due to client losses
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $77.70 mln | $77 mln (7 Analysts) |
Q3 Net Income | -$6.60 mln | ||
Q3 Adjusted EBITDA | Miss | $31.20 mln | $33.10 mln (7 Analysts) |
Q3 Gross Profit | $57.80 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Repay Holdings Corp is $8.00, about 52.5% above its November 7 closing price of $3.80
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago
Press Release: ID:nBw60lslXa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)