Q3 2025 Repay Holdings Corp Earnings Call Transcript
Key Points
- Repay Holdings Corp (RPAY) achieved 5% revenue growth and 1% gross profit growth on a normalized year-over-year basis, excluding political media contributions.
- Adjusted EBITDA margins remained robust at 40%, with strong free cash flow conversion of 67%.
- The company added five new software partners, expanding its partnership network to 291 across consumer and business payment segments.
- Repay Holdings Corp (RPAY) developed a dynamic wallet for seamless loan payment integration into digital wallets, enhancing customer experience.
- The business payments segment saw a 12% year-over-year increase in normalized gross profit, driven by accounts payable platform growth and supplier network expansion.
- Gross profit margins compressed by approximately 3.4% year-over-year due to client losses and a larger mix of clients with volume discounts.
- The consumer payments segment reported only a 1% year-over-year gross profit increase, with softness noted in the automotive sub-vertical.
- The company faced a 4% growth impact from client losses in 2024, affecting current performance.
- Higher overall transaction values led to unexpected assessment fees on capped interchange volume, impacting margins.
- Free cash flow conversion guidance for Q4 was adjusted to above 50%, down from a prior outlook of 60%, due to working capital timing and margin pressures.
Good afternoon. I'd like to welcome everyone to REPAY's third quarter 2025 earnings conference call. This call has been recorded today, November 10th, 2025. I'd like to turn this session over to Stuart Grisanti, Head of Investor Relations at REPAY. Stuart, you may begin.
Thank you. Good afternoon and welcome to REPAY's third quarter 2025 earnings conference call. With us today are John Morris, Co-Founder and Chief Executive Officer, and Robert Hauser, Chief Financial Officer. During this call, we will be making forward-looking statements about our beliefs and estimates regarding future events and results. Those forward-looking statements are subject to risks and uncertainties, including those set forth in the FCC filings related to today's results and our most recent Form 10-K. Actual results may differ materially from any forward-looking statements that we make today. Board-looking statements speak only as of today, and we do not assume any obligation or intent to update them, except as required
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