Repay (NASDAQ:RPAY) Releases Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Repay (NASDAQ:RPAY) issued its quarterly earnings data on Monday. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.02), FiscalAI reports. The business had revenue of $78.59 million for the quarter, compared to analysts’ expectations of $76.79 million. Repay had a negative net margin of 39.08% and a positive return on equity of 9.04%. The business’s revenue for the quarter was up .4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.24 EPS.

Here are the key takeaways from Repay’s conference call:

• Q4 results showed strengthened momentum with normalized revenue up 10% (reported revenue $78.6M), normalized gross profit up 9%, ~41% Adjusted EBITDA margin, and 43% free cash flow conversion while still reinvesting in growth.
• Business payments drove the quarter, with normalized revenue +41% and gross profit +73% YoY, supplier network growing to 602,000 (up ~65% YoY), and monetization initiatives (float income, enhanced ACH, TotalPay) and AP wins in healthcare and hospitality building momentum.
• 2026 guidance targets revenue of $340–$346M (10%–12% reported, ~7%–9% normalized), Adjusted EBITDA $136.5–$141.5M (~40% margin), and >45% free cash flow conversion, with stronger H2 growth expected and ~$8–$10M of political media revenue tailwind.
• Reported Q4 net income was materially impacted by a $138.9M non?cash goodwill impairment tied to the consumer payments segment, reducing reported earnings despite positive adjusted metrics.
• Balance sheet and capital plan: REPAY paid off $147M of 0% convertible notes using $37M cash and a $110M revolver draw (pro forma cash ~$79M, pro forma debt ~$398M, pro forma liquidity ~$219M, net leverage ~2.5x), and plans to allocate capital to organic growth, selective M&A, capex, and up to $23M of share repurchases.

Repay Stock Performance

NASDAQ RPAY traded up $0.27 during trading hours on Tuesday, hitting $3.08. 508,202 shares of the stock were exchanged, compared to its average volume of 1,062,278. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.45. The company has a market cap of $280.90 million, a price-to-earnings ratio of -2.24 and a beta of 1.64. Repay has a 12-month low of $2.70 and a 12-month high of $6.05. The stock has a 50-day moving average of $3.35 and a 200 day moving average of $4.10.

Hedge Funds Weigh In On Repay

A number of large investors have recently modified their holdings of RPAY. Invesco Ltd. lifted its holdings in shares of Repay by 9.9% in the fourth quarter. Invesco Ltd. now owns 216,407 shares of the company’s stock valued at $790,000 after purchasing an additional 19,494 shares in the last quarter. XTX Topco Ltd purchased a new position in shares of Repay during the 4th quarter worth approximately $382,000. nVerses Capital LLC acquired a new position in shares of Repay during the 4th quarter worth approximately $132,000. Odyssean LLC purchased a new stake in Repay in the 4th quarter valued at approximately $232,000. Finally, Inspire Investing LLC lifted its stake in Repay by 48.1% in the 4th quarter. Inspire Investing LLC now owns 129,126 shares of the company’s stock valued at $471,000 after buying an additional 41,931 shares in the last quarter. 82.73% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently commented on RPAY shares. Morgan Stanley set a $3.50 price target on shares of Repay in a research report on Tuesday. Canaccord Genuity Group reiterated a “buy” rating and issued a $12.00 target price on shares of Repay in a report on Tuesday, November 11th. Benchmark reduced their price target on shares of Repay from $8.00 to $6.00 and set a “buy” rating on the stock in a research note on Tuesday. UBS Group reduced their price objective on Repay from $5.75 to $4.00 and set a “neutral” rating on the stock in a research note on Tuesday, November 11th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Repay in a report on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $6.31.

Key Headlines Impacting Repay

Here are the key news stories impacting Repay this week:

• Positive Sentiment: Management raised FY?2026 revenue guidance to $340.0M–$346.0M versus a consensus near $320.7M, signaling better top?line outlook that likely supported investor buying. Business Wire: FY2025 Results
• Neutral Sentiment: Benchmark cut its price target from $8 to $6 but kept a “Buy” rating — a mixed signal (lower target but continued conviction). Benzinga
• Neutral Sentiment: Q4 revenue was essentially flat year?over?year (~$78.6M) and roughly in line with estimates, so top?line trends are stable but unimpressive. (Company press release / conference materials available.) Business Wire: Q4 Release
• Negative Sentiment: Repay missed quarterly EPS expectations: reported $0.19 vs. consensus $0.22, which pressured sentiment. Analysts and news outlets flagged the EPS miss. Zacks: EPS Miss
• Negative Sentiment: Third?party reporting (Quiver) highlights large non?GAAP/exceptional charges in Q4 (noted operating and net losses, big swing in EPS on certain measures), insider selling and significant institution-level portfolio changes — items that can amplify downside risk and volatility. QuiverQuant: Q4 Details & Insider Activity
• Negative Sentiment: Consensus broker view has softened to an average “Hold,” which reduces analyst-driven buy pressure even as some firms maintain buy ratings. American Banking News
• Negative Sentiment: Multiple market commentaries explained the day’s pullback pressure (articles noted the combination of EPS miss, mixed guidance tone, and legacy balance?sheet concerns). AAII: Why RPAY is Down
• Neutral Sentiment: Q4 earnings call transcript is available for detail checks; investors should review management commentary on margins, drivers of non?GAAP adjustments and strategy. Seeking Alpha: Call Transcript

About Repay

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.