Executive Summary

Q3 2025 delivered modest top-line stabilization with revenue of $77.7M (-2% y/y, +2.8% q/q) and Adjusted EBITDA of $31.2M, with Free Cash Flow (FCF) of $20.8M and 67% FCF conversion; normalized revenue growth ex-political media was +5% y/y, signaling underlying momentum despite headwinds .
Versus S&P Global consensus, revenue was a slight beat ($77.7M vs $76.9M); adjusted/normalized EPS was essentially in line ($0.21 vs $0.213). EBITDA consensus is not directly comparable to company-reported Adjusted EBITDA; see Estimates Context for caveats (Values retrieved from S&P Global)* .
Business Payments reported a sharp y/y decline from lapping 2024 political media spend and a one-off client loss, but normalized segment gross profit grew ~12% y/y; Consumer Payments gross profit grew 1% y/y on a reported and normalized basis .
Guidance was refined: Q4 normalized gross profit growth to 6–8% (from high-single-digit to low-double-digit) and Q4 FCF conversion to above 50% (from above 60%)—a modest reset that will likely be a key stock reaction catalyst alongside capital allocation moves (retired $73.5M of 2026 converts; repurchased $15.6M of stock) .

What Went Well and What Went Wrong

What Went Well

Normalized growth held up: “REPAY achieved solid normalized growth with strong Adjusted EBITDA margins and robust Free Cash Flow generation,” CEO John Morris noted, highlighting +5% normalized revenue and +1% normalized gross profit growth y/y in Q3 .
Capital allocation and balance sheet: Company retired $73.5M of 2026 convertible notes and repurchased $15.6M of shares in Q3; net leverage stood at ~2.5x LTM Adjusted EBITDA, supporting financial flexibility .
Business Payments trajectory (normalized): ~12% y/y normalized gross profit growth despite lapping political media and a one-off client loss; AP supplier network accelerated to 524K (+~59% y/y), adding distribution and scale .

What Went Wrong

Headline trends still pressured: Reported revenue fell 2% y/y and gross profit declined 6% y/y, driven by previously announced client losses and the roll-off of 2024 election-related media spend; reported Business Payments revenue down 21% y/y, gross profit down 31% y/y .
Margin compression: Company gross profit margin was 74% vs 78% a year ago on mix (volume pricing with larger clients), non-card mix, and higher assessment fees from increased average transaction value .
Guidance reset: Q4 normalized gross profit growth narrowed to 6–8% (from high-single to low-double-digit) and FCF conversion to >50% (from >60%), reflecting more cautious near-term expectations .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	$79.1	$75.6	$77.7
Gross Profit ($M)	$61.6	$57.2	$57.8
Gross Profit Margin (%)	78%	76%	74%
Net Income (Loss) ($M)	$3.2	$(108.0) (impairment)	$(6.6)
EBITDA ($M, GAAP-defined)	$31.6	$(82.0) (pre-adjustments)	$19.4
Adjusted EBITDA ($M)	$35.1	$31.8	$31.2
Free Cash Flow ($M)	$48.8	$22.6	$20.8
Free Cash Flow Conversion (%)	139%	71%	67%
GAAP Diluted EPS	$0.03	$(1.15)	$(0.08)
Adjusted Net Income per Share	$0.23	$0.20	$0.21

Segment breakdown (Q3 2025 vs Q3 2024)

Segment	Revenue Q3’25 ($K)	Revenue Q3’24 ($K)	Gross Profit Q3’25 ($K)	Gross Profit Q3’24 ($K)	GP Margin Q3’25	GP Margin Q3’24
Consumer Payments	71,721	69,189	55,562	54,889	77.5%	79.3%
Business Payments	12,010	15,297	8,234	12,013	68.6%	78.5%
Eliminations	(6,006)	(5,341)	(6,006)	(5,341)	—	—
Total	77,725	79,145	57,790	61,561	74%	78%

Key KPIs and operating items

KPI	Q1 2025	Q2 2025	Q3 2025
Integrated software partners (cumulative)	283	286	291
AP supplier network (cumulative)	390K+	440K+	524K+
Instant funding volume growth (y/y)	~19%	~38%	~36%
Credit unions added (period)	+14	+10	+11
Shares repurchased (QTD)	—	4.8M for $22.6M through 8/11	3.1M for $15.6M
2026 converts retired (Q3)	—	—	$73.5M retired 8/21
Net leverage (as of 9/30/25)	—	—	2.5x LTM Adj. EBITDA

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Normalized Gross Profit Growth (y/y)	Q4 2025	High-single-digit to low-double-digit growth	6% – 8% growth	Lowered
Free Cash Flow Conversion	Q4 2025	Above 60% by Q4	Above 50% in Q4	Lowered

Earnings Call Themes & Trends

Note: A Q3 2025 earnings call was scheduled; transcript not yet available in the document set. We searched for an earnings-call-transcript document and found none as of Nov 20, 2025; we will update Q&A once available .

Topic	Previous Mentions (Q-2: Q2’25)	Previous Mentions (Q-1: Q1’25)	Current Period (Q3’25)	Trend
Normalized growth vs political media	Normalized GP growth: sequential acceleration; Q4 expected HSD–LDD; political media boosted 2024 base	Normalized GP growth guide with Q4 HSD–LDD; political media cited in comps	Normalized revenue +5% y/y; normalized GP +1% y/y; political media a 7 ppt headwind	Improving underlying; headline pressured
Client concentration/losses	Headwind from previously communicated client loss in Business Payments	Client losses impacting Consumer; BP normalized +12%	One-off client loss headwind; Consumer GP +1% y/y	Mixed but stabilizing
Business Payments/AP scale	AP network 440K+; BP normalized GP +1% y/y	AP network 390K+; BP normalized GP +12%	AP network 524K+; BP normalized GP +12%	Positive scale-up
Capital allocation	Repurchased 4.8M shares ($22.6M) through Aug 11	Repurchase authorization to $75M; strategic review concluded	Retired $73.5M converts; bought 3.1M shares ($15.6M)	Shareholder-friendly
Margin dynamics	GP margin 76% (mix, pricing)	GP margin 76%	GP margin 74% on mix, pricing, non-card volumes, higher assessments	Slight compression
Outlook/FCF	Q4 FCF conversion >60%	FCF conversion to accelerate through year	Q4 FCF conversion >50%; growth 6–8%	Moderated near term

Management Commentary

“During the third quarter, REPAY achieved solid normalized growth with strong Adjusted EBITDA margins and robust Free Cash Flow generation… we… retired a significant portion of convertible notes,” said CEO John Morris, reiterating focus on “optimiz[ing] digital payment flows” and “returning to sustainable growth” .
Q3 business highlights emphasized expansion of software integrations (291), AP supplier network (524K+), and instant funding volume growth (~36% y/y), while acknowledging headwinds from client losses and 2024 political media spend rollover .

Q&A Highlights

Transcript not available in the source set as of Nov 20, 2025; we searched for Q3 2025 earnings-call-transcript documents and found none. The call details and replay info were provided; we will update Q&A themes once a transcript is posted .

Estimates Context

S&P Global consensus vs actuals for Q3 2025:
- Revenue: $76.9M est. vs $77.7M actual (beat) (Values retrieved from S&P Global)* .
- Adjusted/Normalized EPS: $0.213 est. vs $0.21 actual (essentially in line) (Values retrieved from S&P Global)* .
- EBITDA consensus from S&P Global (approx. $32.9M) is not directly comparable to company’s Adjusted EBITDA ($31.2M); S&P’s “EBITDA actual” reflects a different basis than company “Adjusted EBITDA” (Values retrieved from S&P Global)* .

Metric	Q3 2025 Consensus	Q3 2025 Actual
Revenue ($M)	76.9 (Values retrieved from S&P Global)*	77.7
Adjusted/Normalized EPS ($)	0.213 (Values retrieved from S&P Global)*	0.21

Key Takeaways for Investors

Underlying momentum is improving: Normalized revenue (+5% y/y) and normalized GP (+1% y/y) show core resilience beneath political media and client-loss headwinds; watch for Q4 follow-through .
Business Payments normalization is constructive despite a difficult reported compare; AP supplier network scale (524K+) and new ISV integrations (291) should support medium-term growth .
Guidance reset (Q4 normalized GP growth 6–8%, FCF conversion >50%) tempers near-term expectations but preserves a path to sustainable growth; execution in Q4 is the next checkpoint .
Capital allocation is supportive: $73.5M of 2026 converts retired and $15.6M of Q3 buybacks, with net leverage ~2.5x—creating optionality for 2026 maturities and shareholder returns .
Margin dynamics warrant monitoring: Mix shifts (larger clients/volume pricing), non-card volumes, and assessment fees pressured GP margin to 74%; stabilization or improvement would be a positive catalyst .
Partnerships (Yooz, Emotive) deepen embedded payments and AP automation reach; these integrations expand TAM within target verticals and can accelerate adoption .
Stock reaction likely hinges on the quality of Q4 print vs the refined guide and any updates on client concentration risks and political media lap—two variables driving headline volatility .

Additional Data and References:

Q3 2025 press release and 8-K (Item 2.02): full financials, segment tables, reconciliations .
Q2 2025 press release: sequential context and prior outlook .
Q1 2025 press release: starting point for 2025 trajectory and strategic review conclusion .
Partnerships during Q3: Yooz (AP automation) and Emotive (auto finance) .

Repay Holdings Corp (RPAY)·Q3 2025 Earnings Summary