Alex Newman

Alex Newman asked about the impact of tax refunds on REPAY's payment volumes and repayment activity, and also sought details on the contribution of float income to B2B growth and margins, including its source.

Answer

CEO John Morris confirmed a seasonal uplift in consumer payment volumes during February due to tax refunds, noting it appeared relatively normal. CFO Rob Houser explained that float income, generated from customer deposits in the B2B business, contributed a good portion to Q4 results and is expected to be stable in 2026. He added that strong Q4 B2B performance also benefited from lapping prior year customer losses and monetization efforts like TotalPay adoption.

Alex Newman asked about the impact of tax refunds on REPAY's payment volumes and repayment activity, and sought details on the contribution of float income to B2B growth, margins, and its generation source.

Answer

Co-founder and CEO John Morris confirmed a normal seasonal uplift in Q1 consumer payment volumes related to tax refunds. CFO Rob Houser explained that B2B float income, derived from customer deposits, was a significant contributor to Q4 results and is expected to be stable in 2026, also highlighting the impact of lapping prior customer losses and TotalPay adoption.

Alex Newman asked which specific product areas were driving the higher net new business in the quarter and requested clarification on the uplift to the Biller segment from the IRS vendor consolidation.

Answer

CEO Thomas Warsop attributed the strong net new business to ACI's flagship issuing and acquiring solutions, combined with the compelling modernization path offered by the new Connetic platform. CFO Scott Behrens confirmed the Biller segment's 11% growth was partly driven by the IRS change and growth from tax partners, but did not quantify the specific impact. He also noted the full-year FX headwind is now expected to be less than previously forecasted.