RPAY

Investors might want to bet on Repay Holdings (RPAY), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Repay Holdings, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.29 per share for the current quarter, which represents a year-over-year change of +38.1%. Over the last 30 days, one estimate has moved higher for Repay Holdings compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 56.25%. For the full year, the earnings estimate of $1.04 per share represents a change of +26.8% from the year-ago number. There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for Repay Holdings versus no negative revisions. This has pushed the consensus estimate 33.33% higher. Thanks to promising estimate revisions, Repay Holdings currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Repay Holdings because of its solid estimate revisions, as evident from the stock's 5.5% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Repay Holdings Corporation (RPAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5:00 p.m. ET Head of Investor Relations - Stewart Grisante Co-Founder and Chief Executive Officer - John Morris Chief Financial Officer - Robert Houser Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon. I'd like to welcome everyone to Repay Holdings Corporation's Second Quarter 2026 Earnings Call. This call is being recorded. August 10, 2026. I'd like to turn the session over to Stewart Grisante, Head of Investor Relations at REPAY. Stewart, you may begin. Stewart Grisante: Thank you. Good afternoon, and welcome to REPAY's Second Quarter 2026 Earnings Conference Call. With us today are John Morris, Co-Founder and Chief Executive Officer, and Robert Houser, 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 SEC filing related to today's results and in our most recent Form 10-K. Actual results may differ materially from any forward-looking statements that we make today. Forward-looking statements speak only as of today, and we do not assume any obligation or intent to update them, except as required by law. In an effort to provide additional information to investors, today's discussion will also reference certain non-GAAP financial measures. Reconciliations and other explanations of those non-GAAP financial measures can be found in today's press release and in the earnings supplement, each of which are available on the company's IR site. With that, I will now turn the call over to John. John Morris: Thanks, Stewart. Good afternoon, everyone, and thank you for joining us today. It has been an exciting and busy time for REPAY. During the second quarter, we delivered revenue growth of 33% and achieved approximately 6% organic revenue growth while generating $27.4 million of free cash flow, a 75% conversion. During this time, management has been focused on core growth, clients and operational execution across the company. Our most significant corporate development this year was completing the KUBRA acquisition in June. We immediately began executing on the integration, building on the groundwork we had laid in the months leading up to closing. REPAY is now fully positioned to be a leading consumer bill payment and communication services platform in the United States and Canada. On a pro forma basis, REPAY essentially doubled the revenue of the company while also now reaching over $130 billion of annualized payment volume. REPAY is at the center of the client's experience in essential services and high-priority payments. Historically, billers had to assemble the pieces from separate providers. We can now offer a complete end-to-end digital bill pay platform, bill design and presentment, communications, core processing, and a clearing and settlement engine across verticals and clients. In doing so, we believe REPAY is the only company able to offer this full end-to-end platform for our clients. We're already seeing this in practice. In the first month of owning KUBRA, executive management has been on the road, completing multiple client visits with several of our largest enterprise clients. Existing REPAY and KUBRA clients are actively engaged with us in expanding bill presentment, payments and B2B capabilities. REPAY clients are asking about bill design and presentment capabilities, while KUBRA clients are asking about expanding their payment channels and modalities. KUBRA also deepened our distribution. We now reach 352 software partners across our verticals, 54 of which came with KUBRA. Improving existing integrations and expanding partners helps deepen our clients' relationships and drive new client wins into the future. During the quarter, we also welcomed many new employees to REPAY. Matt Morrow, who joined the company in May to lead our consumer payments verticals, has been reinvigorating the consumer payments sales and operations. We also welcomed Rick Watkin to our executive management team to lead KUBRA's verticals. As expected with an acquisition of this size, integration planning has been a top priority for the company, and we have hit the ground running since day 1 of closing KUBRA. Within the first 30 days, the integration team has reviewed, implemented and completed the integration of KUBRA into REPAY's operating structure. As a result, REPAY has already realized over $4.5 million of annualized run rate synergies exiting Q2, well on our path to achieving $8 million by the end of 2026 and $20 million plus by 2028. Platform unification is off to a strong start. Several of our largest clients have volunteered as early adopters of the upgraded KUBRA platform, with several net new clients already live on it. Over the next 18 to 24 months, we will be executing on production readiness and a phased upgrade to optimize KUBRA's clients' experience with REPAY's payment capabilities and back-end RCS engine. It is vital to emphasize that the upgrades will not be allowed to impede core growth. Our sales and client service teams are deliberately insulated from the integration work so that momentum is not lost. In addition, clients have a voice in the pace of platform upgrades, and our planning does not depend on any individual client moving faster than they are ready. Stepping back, our integration plan is well underway, governed tightly, and I am confident in this team's ability to execute, capture the synergies and compound long-term value for our shareholders. Before handing the call over to Rob to go over Q2 performance in more detail, I wanted to quickly touch on the segment highlights that REPAY achieved during Q2. In Consumer Payments, Q2 revenue increased approximately 33% year-over-year with contributions from KUBRA, while organic growth increased approximately 4%. The investments in our sales and client support teams are beginning to show meaningful progress as we continue to work on ways to automate and improve implementation processes. As we exited the quarter, several large enterprise clients in our implementations backlog went live, giving us confidence in Consumer Payments' ability to accelerate organic growth in the second half of the year. In addition, we continue to see enterprise clients adopting more payment channels and modalities with strong interest building in our Dynamic Wallet and REPAY Voice AI. REPAY Voice AI enhances the overall customer experience by creating dynamic conversations for billing inquiries and payments while also reducing the resource demands for our clients. We also completed a proof of concept with stablecoin and successfully processed payments using the Stellar network. REPAY's anywhere, any way, anytime philosophy is built around giving our clients all the capabilities and payment options for customer choice. Our Business Payments segment had a fantastic quarter in Q2, reported revenue growth accelerating to approximately 32% year-over-year. Our AP supplier network now reaches over 731,000 vendors, representing 65% year-over-year growth. Business Payments has 108 software partners driving the strong sales pipeline across key automotive, property management, government and education verticals. This momentum reflects the past couple of years of expanding partnerships and deepening software integrations. In the second quarter, Business Payments also benefited from improving digital monetization of both new and existing volumes on TotalPay and from strong political media contributions ahead of the 2026 midterm elections this fall. So across REPAY, we saw sustained growth, momentum and excitement building with both clients and partners. We are building REPAY for a scaled future and are actively deploying AI tools across every function of the organization. We're using AI-assisted engineering to accelerate platform unification and deepen connectivity with software partners without compromising quality, resulting in our ability to reallocate over 775 development hours per month. As we continue to progress on our strategic initiatives, execute on our integration plans, build client relationships and expand our capabilities and partnerships, I am confident in our ability to drive profitable growth. We look forward to our continued execution during the second half of the year, where we are expecting to accelerate organic growth into double digits. It's an exciting time ahead for REPAY, and as we continue this momentum, we are eager to share more progress at REPAY's first Investor Day, which will take place in New York City on Monday, December 7. And finally, I wanted to welcome Zach Sadek to our Board of Directors as an independent director. Zach is a senior partner at Parthenon Capital Partners, 1 of our largest long-term shareholders, and he brings more than 2 decades of experience investing in and advising companies across the payments and fintech industries. With that, I will now turn the call over to Rob to go over REPAY's Q2 financials. Rob? Robert Houser: Thank you, John, and good afternoon, everyone. In the second quarter, our financial performance across key metrics, including organic REPAY and the contributions from KUBRA, performed in line with our expectations. Revenue was $100.7 million, up 33% year-over-year, including 1 month of KUBRA. Organic revenue growth was 6%, which includes approximately 2 points of contribution from political media. Consumer Payments revenue increased 33% year-over-year, with organic growth of 4% driven by ongoing ramp of enterprise clients across our key auto and personal finance verticals. We've made progress working through implementations during the quarter with one of our larger clients going live in July. The incremental volumes from this and several other clients are beginning to ramp, giving us confidence in achieving the double-digit organic growth in our 2026 outlook. Within the Consumer Payments segment, KUBRA contributed approximately $21 million in revenue during June, representing approximately 5% year-over-year revenue growth within KUBRA's utilities, government and insurance verticals. After owning KUBRA for a few months, our beliefs have been confirmed in KUBRA's product offering, go-to-market and client support teams. We see strong development in their sales pipeline with many opportunities expanding with REPAY's capabilities. During the quarter, KUBRA demonstrated this from a financial perspective, showing consistent revenue growth and adjusted EBITDA margins before factoring in run rate cost savings still in the process of being realized. Business Payments revenue accelerated during the quarter with reported revenue growth of 32% year-over-year and normalized revenue growth of approximately 19%, which excludes the positive political contributions. The strong Business Payments growth was driven by onboarding several new clients as we gain momentum with our embedded software partners. We also benefited from the segment's strategic monetization initiatives of improving digital payment mix with existing clients on our TotalPay platform. In addition, as we started to see during Q1, Business Payments benefited from strong political media contributions during Q2, our political media vertical not only benefiting from higher political spending from primaries in this year's election cycle but also from new political media clients compared to prior cycles. We continue to expect the majority of political media contributions to occur around the elections in Q3 and Q4. Gross profit was $70.6 million, a 70% margin compared with 76% margin a year ago. I want to be direct about the change in margin, as it's likely to be misread. The change is almost entirely a mix effect from KUBRA, whose vertical product and payment mix, including print and mail and professional services, carries a lower gross margin than core REPAY. It is not pricing or competitive dynamics. Core REPAY's gross profit continues to benefit from our distribution partner initiatives and optimizing network routing. Q2 adjusted EBITDA was $36.3 million, representing 14% year-over-year growth, with adjusted EBITDA margins of approximately 36%. The same margin dynamic applies here. Core REPAY continues to grow from new enterprise client ramps, even as we invest in technology, product and go to market. The reported Q2 margin reflects a 1-month impact from KUBRA's natural mix. Adjusted EBITDA dollars will continue to grow this year, and beginning in Q3, our consolidated adjusted EBITDA margins will reflect a full quarter of KUBRA. However, these margins are expected to gradually improve as we move towards fully realizing cost savings and revenue synergies. Exiting Q2, we've already realized run rate cost savings of over $4.5 million. Our integration team is hard at work executing on our plans for over $8 million in run rate cost savings exiting 2026 and over $20 million in operating and CapEx synergies plus revenue opportunities exiting 2028. Second quarter adjusted net income was $17.9 million or $0.20 per share. Free cash flow was $27.4 million, up 21% year-over-year, representing 75% free cash flow conversion. Adjusted free cash flow, which excludes $1.9 million of technology, merger and integration costs, was approximately $29.3 million, and adjusted free cash flow conversion was 81%. This is a metric I'd like to point out as we work through the integration. It isolates underlying cash generation from the onetime cost of capturing synergies. Let me put some numbers around what John described because the integration is ultimately a cash flow story. Our value creation roadmap has 3 components. First, revenue opportunities. We will increase penetration across all verticals with a complete end-to-end digital bill pay platform and extending KUBRA's bill presentment and communication services into REPAY's existing consumer payments client base. Second, expense synergies. We are unifying corporate functions, automating processes during integration, upgrading platforms while reducing maintenance and infrastructure costs, and capturing scale efficiencies in payment processing. And third, CapEx savings. We are consolidating product investment across verticals as we optimize to a single unified platform architecture by 2028. On timing, we expect to realize more than $8 million of run rate synergies exiting 2026. The run rate benefit builds through 2027 and 2028 as platform upgrades complete and legacy environments are retired. These synergy plans are identified, tangible and assigned inside each work stream and are actively tracked against milestones. I would also note that we have deliberately built the plan so that synergy capture is not contingent on any single client platform's upgrade timeline. That decoupling is what gives us confidence in the trajectory even as we give clients latitude on pace. Now moving on to the balance sheet and liquidity. We ended the quarter with $84 million of operating cash on the balance sheet plus an undrawn $100 million revolving credit facility that provides flexibility. Our capital structure now consists of $288 million of 2029 convertible notes with a 2.875% coupon and a $500 million senior secure term loan priced at SOFR plus 5.5%. At the end of Q2, pro forma synergized net leverage was approximately 3.7x. Deleveraging is a clear priority. We are targeting net leverage to be below 3x within 18 months. The path is straightforward, continued free cash flow generation and the adjusted EBITDA contribution from KUBRA and the synergies we just walked through. REPAY has reduced leverage following prior acquisitions, and we intend to do it again. With a strong first half behind us, we are confident in achieving our outlook. We are reiterating our full year 2026 outlook we provided when the KUBRA acquisition closed on June 1, which incorporates 7 months of KUBRA contribution. We continue to expect revenue of $490 million to $500 million, representing approximately 60% reported growth and 10% to 12% organic revenue growth. We expect normalized revenue growth of 7% to 9%, which excludes political media contributions and KUBRA. We continue to expect between $8 million to $10 million in political media revenue during the full year. We expect adjusted EBITDA to be between $168.5 million and $176 million, representing approximately 35% margins. Free cash flow conversion is expected to be 30%. Adjusted free cash flow conversion is expected to be approximately 35%, which excludes the in-year costs associated with realizing synergies. Please keep in mind the net interest expense is included in our free cash flow calculation, which includes the interest payments associated with our convertible notes and new term loan. In our 2026 outlook, KUBRA is expected to contribute between $150 million to $154 million in revenue and approximately $27.5 million to $30 million in adjusted EBITDA. REPAY's strategy remains focused on creating long-term value by executing our integration plan, generating strong cash flow to reduce leverage, and investing in future growth and partnerships. For the remainder of 2026, we will continue to deploy capital towards these priorities while unlocking synergies, streamlining operations and identifying additional combined growth opportunities. Our #1 priority remains operational execution. The integration team is dedicated to incorporating KUBRA into REPAY going forward while vertical leaders continue to focus on core operations without distraction. Over the next 18 months, we are committed to disciplined capital allocation and returning net leverage to below 3x. The combined free cash flow generation and confidence in synergy realization provided management comfort in obtaining our net leverage target. We will execute and delever, and we will continue to prudently invest in organic growth, partnerships, products and platform to deliver the best experience for clients and end customers. So with the groundwork laid out during the first half of the year, progress has started to become evident as we move into the second half of 2026. As we work through implementations and continue our sales momentum, REPAY has the right teams in place for organic growth to accelerate into double digits. We have the integration governance and the platform roadmap for value creation opportunities with KUBRA. With that, I'll turn the call over to the operator to take your questions. Operator? Operator: [Operator Instructions] Our first question is from Joseph Vafi with Canaccord Genuity. Joseph Vafi: Nice results. Maybe congrats on KUBRA and KUBRA showing some nice, looks like, pro forma growth. Could you kind of walk us through the KUBRA pro forma growth in the quarter and then if that is actually incorporated into your organic growth in consumer? And maybe kind of just drill down a little bit more on some of these cross-sell opportunities, which looks like it could be a good driver here in consumer. And then I have a quick follow-up. Robert Houser: Yes, sure. Hey, Joe, it's Rob. Thanks for the question. Yes, so for the quarter, KUBRA grew around 6% within Q2, and on a full year -- full half year pro forma, it's around 5%. And we expect it pro forma to continue to grow in the mid-single digits for the rest of the year as part of our guide. It was -- when we talked about our consumer organic growth, excluding political media, 4%, that's without KUBRA. So that was just our core consumer business. Our organic growth number is obviously just our core consumer business, less 2 points for political media, which got us to the 4% growth. Joseph Vafi: Great. Nice to see that rebound. And then just to drill down on that a little bit, if you could kind of frame the growth, same store sales versus new logos. I know you were talking about some new ramps but where that growth came from, and I guess feels like there should be follow-through on it if those are new volume levels or new customers that are ramping. Robert Houser: Sure, sure. So within Q2, we're starting to see ramp -- new ramp come in, and so that was driving our organic growth of 4% in our consumer business. I'll talk consumer first, and then I can shift over to B2B and then talk KUBRA. And in our outlook for the back half of the year around consumer is we continue to see new clients go live and ramp, and we're going to see that ramp up pretty substantially as we go into Q3 and really exit the year in our consumer -- core consumer business at double-digit growth. And then if you look at our B2B business around -- again, I'm just going to talk organic first, 19% growth in the quarter, excluding our MPI business. We think, as we look through the rest of the year, that's going to grow out at roughly the mid-teens, as we think about the rest of the year. And if you look at our B2B business and what the growth was driven by in quarter, roughly 60% of it, of the growth was around what we've been talking about for the last 2 quarters, converting and monetizing some of that big ACH volume that came into our TotalPay platform. And then the remaining, say, 40% of the growth was around brand-new clients coming onboard, so ramp on new clients. And we continue to see that out through the rest of the year. Our MPI, on a reported basis, we still were guiding the $8 million to $10 million for the year. We had a good first half because of the primaries and so first half of the year, around the $3 million-ish range, and we're still projecting our $8 million to $10 million for the end of the year. So pretty good growth on that side. And then when you look at KUBRA, the nice thing about KUBRA is if we pro forma our total company, 40% of our company now is utility and government business, and that's a nice, steady, consistent, reoccurring, non-discretionary payment mix that doesn't have a ton of seasonality in it. So again, KUBRA is going to grow -- continue to grow at around that mid-single-digit range for the year. So hopefully that frames it out for you a little bit. John Morris: Yes, Joe, this is John. I'll add a couple more things to that, is one is highlight the 731,000, the size of our vendor network on our B2B. As that gets even bigger, our ability to monetize and scale and really see pull-through on a net new client basis is really important there. That can help us drive and you can see that's grown 65% year-over-year. We see the ability to continue to drive growth in that as we look throughout the year as well as a good indicator of some strength ahead of us as well. And I think one of your questions was also some of the revenue opportunities. Although we don't want to get too far ahead of ourselves, but we -- some early indicators are we -- our ability to extend some of the KUBRA bill pay and bill presentment and communication services over to some existing REPAY client base, kind of the iMail services, some of the bill presentment pieces of that. There are some strengths with the KUBRA platform that we know we can offer to our larger consumer payments original REPAY base. So we're excited about that. We hope to be able to talk more about that as we kind of come through our first quarter of full ownership here in the third quarter but some really good signs there. Operator: [Operator Instructions] Our next question is from Peter Heckmann with D.A. Davidson. Peter Heckmann: Sorry for the delay on the buzz in. In terms of KUBRA, 6% growth year-over-year and the impact of margins. I guess I think you previously guided to about mid-single-digit growth in KUBRA, and that's encouraging. But in terms of margins, I guess it's -- you talk about maybe the aspirational goals of where you think you can get KUBRA's margins over the next, let's say 3 to 4 years. Robert Houser: Yes, so thanks, Peter. So out of the gate, we said KUBRA's EBITDA margins, roughly around the 20% range and those synergy targets that we've been talking about and we feel really confident about, we identified the $4.5 million exiting Q2 on an annualized basis, and we're going after the $8 million plus for the year. As we really go out into 2028, we've committed to $20 million plus on margins, and we feel highly confident about that. And so a lot of that focus is going to be around cost realization between some redundancies we find in some areas. As we sunset our -- sunset some of the older technology and bring on our new unified platform, we're going to realize those savings. And part of the things we talked about even on the call is that our confidence level in driving those savings and driving that margin improvement is very high, even as clients -- clients get a choice, and it takes them some time to migrate. Even if there's any kind of a slow in pace, a lot of these costs that we are committing to and that we have our head around are really not tied to waiting for a client to come online. There's just a lot of opportunity for us. So I think that's the way I would model it out. We'll provide, obviously, a lot more detail and future outlook at our Investor Day on December 7. But hopefully that gives you some visibility. John Morris: It's John. I would -- as you see how the blended margins come through for all of Consumer Payments, which includes KUBRA, that blended margin is -- especially as you look through our forecast for the rest of the year, that's kind of where we're thinking it's going to be. And then when you look at the synergies, the synergies, as Rob indicated, will be coming through there. So the margins themselves will be increasing as we pull those synergies through on an actual basis. Peter Heckmann: Great. Good to hear. And then just a little bit of more housekeeping or modeling detail but -- and forgive me if you've already mentioned this. But the amortization of acquisition-related intangibles, would you expect that to be $25 million, $26 million for -- yes, about $25 million, $26 million for the third quarter? Or do you have a full quarter estimate for that amortization yet? Robert Houser: For -- yes, roughly in that range is probably you're thinking about it in the right way. Peter Heckmann: Okay. Okay. Great. And then similarly, just in terms of -- are you expecting any real significant change to stock-based comp for the year? Robert Houser: No. No, we're not. Operator: [Operator Instructions] Our next question is from Joseph Vafi with Canaccord. Joseph Vafi: Guys, just one follow-up. I think, Rob, you mentioned real strong free cash flow conversion. I think it was in the 70s or 80s. I was actually thinking it would be a little lower this quarter given the acquisition of KUBRA and perhaps some costs focused or some expenditures focused on cost synergies there. Just wanted to drill down on the free cash flow conversion in the quarter. Robert Houser: Sure. Joe, coming off of Q1, we were at 16%. So some of it's working capital, just timing of working capital and free cash flow conversion of both combined businesses. We only had 1 month of KUBRA, remember, in the quarter but good, strong cash flow conversion. But it's mostly working capital related in the quarter. I would say if you're thinking about how you're modeling it for the rest of the year because our guide is at 30% full year, only owning KUBRA 1 month in the quarter, as we look at the back half of the year, we're going to pick up that incremental interest expense for the term loan B that we'll have. So you have a full effect of that for 6 months, which will step us down as well as, as we talked about some of those synergy savings, there'll be some costs to achieve on the back half of the year that will ramp us more in line to that full year guide at 30%. But it was really just driven to just timing and working capital. And we came off a lower number on Q1. But again, I can't reiterate it enough, and we've said that since we were looking at KUBRA, that the cash flow conversion and cash generation, it's really a cash story of the combined company, and we're pretty happy with that generation and focusing on paying down our debt with that. Operator: We have now reached the end of the question-and-answer session. I would like to turn the floor back over to John Morris for closing comments. John Morris: Thank you, Operator, and thank you everyone for joining us today. With the acquisition of KUBRA completed and a solid first half to our year so far, we are very excited in position -- where we are positioned for the rest of this year ahead of us. Our focus on the second half is on a disciplined execution of these key areas, accelerating organic growth into double digits, advancing our integration plan and sales pipeline, and enhancing client relationships, delivering on synergy targets and reducing our leverage. We look forward to updating you on our continued progress next quarter. Thanks again for joining us. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Repay, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Repay wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The KUBRA acquisition essentially doubled REPAY's revenue and expanded annualized payment volume to over $130 billion, positioning the firm as a comprehensive end-to-end digital bill pay platform. Management is executing a phased 18-to-24-month platform unification strategy, prioritizing production readiness while deliberately insulating sales teams to prevent integration work from impeding core growth. Consumer Payments growth was driven by the ramp-up of enterprise clients in auto and personal finance, with management noting that several large implementations went live late in Q2. Business Payments performance benefited from a 65% year-over-year expansion of the AP supplier network to 731,000 vendors, enhancing the ability to monetize digital payment mix on the TotalPay platform. The company is utilizing AI-assisted engineering to accelerate platform connectivity and unification, successfully reallocating over 775 development hours per month to higher-value tasks. Management attributes the reported gross margin decline to a mix effect from KUBRA's lower-margin print and professional services, rather than competitive pricing pressures or core business erosion. Management expects organic revenue growth to accelerate into double digits during the second half of 2026 as recent enterprise implementations reach full volume. The synergy roadmap targets over $8 million in run-rate savings exiting 2026, scaling to over $20 million by 2028 through corporate unification and the retirement of legacy infrastructure. Deleveraging is a primary strategic focus, with a target to reduce net leverage from 3.7x to below 3.0x within 18 months using combined free cash flow and synergy capture. Political media revenue is projected to contribute $8 million to $10 million for the full year, with the majority of impact expected in Q3 and Q4 surrounding the midterm elections. The integration plan is designed to be 'decoupled' from individual client migration timelines, ensuring synergy realization is not contingent on the pace of any single customer's platform upgrade. The capital structure was modified to include a $500 million senior secured term loan at SOFR plus 5.5% to fund the KUBRA acquisition, impacting future interest expense. A proof of concept for stablecoin payments using the Stellar network was completed, reflecting a strategic move toward 'anywhere, any way' payment modality flexibility. The appointment of Zach Sadek to the Board of Directors brings specialized fintech investment expertise from Parthenon Capital, one of the company's largest shareholders. Reported margins will reflect a full quarter of KUBRA's lower-margin profile starting in Q3, though management expects gradual improvement as cost savings are realized. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that core consumer organic growth was 4% (excluding KUBRA and political media), while KUBRA itself grew approximately 6% in Q2. Cross-sell interest is high, with existing REPAY clients seeking KUBRA's bill design/presentment and KUBRA clients looking to adopt REPAY's diverse payment modalities. Growth in B2B was driven 60% by converting existing ACH volume to digital monetization and 40% by new client ramps. The vendor network reached 731,000, which management views as a critical scale indicator for future pull-through of net new clients. The high 75% conversion in Q2 was partly due to working capital timing and only one month of KUBRA ownership. Full-year conversion is guided to 30% to account for six months of increased interest expense from the new term loan and one-time integration costs.

Interested in Repay Holdings Corporation? Here are five stocks we like better. Repay’s Q2 revenue rose 33% to $100.7 million, helped by one month of contributions from the KUBRA acquisition, while organic growth was 6%. Adjusted EBITDA increased 14% to $36.3 million and free cash flow rose 21% to $27.4 million. Management reported more than $4.5 million in annualized KUBRA synergies and is targeting over $8 million exiting 2026, with longer-term operating and capital-expenditure synergies exceeding $20 million. Repay aims to reduce pro forma net leverage from approximately 3.7 times to below three times within 18 months. Repay reaffirmed its 2026 outlook, calling for $490 million to $500 million in revenue, adjusted EBITDA of $168.5 million to $176 million and organic revenue growth of 10% to 12%. Political-media revenue is expected to contribute $8 million to $10 million, primarily in the second half of the year. These 3 Fintech Stocks Offer High Risk/Reward Potential Repay (NASDAQ:RPAY) reported second-quarter revenue growth of 33% as the payments company began consolidating results from its June acquisition of KUBRA, while management reiterated its full-year outlook and outlined integration, synergy and deleveraging targets. Revenue totaled $100.7 million in the quarter, up 33% from a year earlier and including one month of KUBRA results. Organic revenue growth was 6%, including roughly two percentage points from political media activity, according to Chief Financial Officer Rob Houser. → MarketBeat Week in Review – 08/03 - 08/07 Adjusted EBITDA was $36.3 million, up 14% year over year, with an adjusted EBITDA margin of about 36%. Adjusted net income was $17.9 million, or $0.20 per share. Free cash flow increased 21% to $27.4 million, representing 75% conversion, while adjusted free cash flow was approximately $29.3 million, or 81% conversion, excluding $1.9 million of technology, merger and integration costs. Chief Executive Officer John Morris said the KUBRA acquisition, completed in June, substantially expanded Repay’s scale and capabilities in consumer bill payment and communication services. On a pro forma basis, he said the combination “essentially doubled” company revenue and brought annualized payment volume above $130 billion. → Quantum Earnings Week: Winners and Losers Are Finally Emerging KUBRA contributed approximately $21 million in June revenue. Houser said KUBRA grew about 6% during the second quarter and about 5% on a pro forma basis for the first half, with management expecting mid-single-digit pro forma growth for the rest of 2026. Management said the combined company can offer clients an end-to-end digital bill-payment platform that includes bill design and presentment, communications, payment processing, clearing and settlement. Morris said existing Repay clients have expressed interest in KUBRA’s bill presentment capabilities, while KUBRA clients are asking about expanded payment channels and modalities. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Repay said it had already realized more than $4.5 million in annualized run-rate synergies exiting the second quarter. The company is targeting more than $8 million in run-rate cost savings exiting 2026 and more than $20 million in operating and capital-expenditure synergies, plus revenue opportunities, exiting 2028. The company plans to unify platforms over the next 18 to 24 months, with several large clients volunteering as early adopters of the upgraded KUBRA platform. Morris said clients will have input on the pace of upgrades and that sales and client-service teams have been insulated from integration work to avoid disrupting core growth. Consumer payments revenue rose approximately 33% year over year, supported by the KUBRA contribution. Organic growth in the segment was 4%, driven by enterprise-client ramps in automotive and personal-finance verticals. Houser said one larger client went live in July, while several other implementations are beginning to ramp, supporting management’s expectation for core consumer payments growth to exit 2026 in the double digits. Business payments revenue increased 32% year over year. Normalized growth, excluding political media contributions, was about 19%. The segment benefited from new client onboarding through embedded software partners and from increased digital-payment monetization among existing TotalPay clients. Houser said roughly 60% of business-payments growth during the quarter came from converting and monetizing ACH volume on the TotalPay platform, while about 40% came from newly onboarded clients. Repay’s accounts-payable supplier network expanded 65% year over year to more than 731,000 vendors. Political media also contributed to business-payments growth, aided by primary-election spending and new political-media clients. Repay expects political-media revenue of $8 million to $10 million for the full year, with the majority of the contribution expected in the third and fourth quarters around the midterm elections. Gross profit was $70.6 million, representing a 70% margin, compared with 76% a year earlier. Houser said the lower margin was “almost entirely a mixed effect from KUBRA,” whose product and payment mix includes print and mail and professional services that carry lower gross margins than Repay’s legacy business. He said the change was not related to pricing or competitive conditions. KUBRA’s margins were approximately 20% at the outset, Houser said in response to an analyst question. Management expects margins to improve as it realizes cost savings, sunsets older technology and moves toward a unified platform architecture. Repay ended the quarter with $84 million in operating cash and an undrawn $100 million revolving credit facility. Its debt structure included $288 million of 2029 convertible notes with a 2.875% coupon and a $500 million senior secured term loan priced at SOFR plus 5.5%. Pro forma synergized net leverage was approximately 3.7 times at quarter-end. Houser said deleveraging is a priority, with the company targeting net leverage below three times within 18 months through free-cash-flow generation, KUBRA’s EBITDA contribution and planned synergies. Repay reiterated its 2026 forecast, which includes seven months of KUBRA contributions. The company expects: Revenue of $490 million to $500 million, representing about 60% reported growth. Organic revenue growth of 10% to 12%. Normalized revenue growth of 7% to 9%, excluding political media contributions and KUBRA. Adjusted EBITDA of $168.5 million to $176 million, with margins of about 35%. Free-cash-flow conversion of 30% and adjusted free-cash-flow conversion of approximately 35%. KUBRA revenue of $150 million to $154 million and adjusted EBITDA of approximately $27.5 million to $30 million. Morris said Repay’s priorities for the second half include accelerating organic growth into double digits, advancing KUBRA integration, delivering on synergy goals and reducing leverage. The company plans to hold its first Investor Day in New York City on Dec. 7. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Repay Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: $100.7 million, up 33% year over year, including one month of KUBRA. Organic Revenue Growth: 6%, including approximately 2 points of contribution from political media. Consumer Payments Revenue: Increased 33% year over year, with organic growth of 4%. KUBRA Revenue Contribution: Approximately $21 million in June, representing approximately 5% year-over-year revenue growth. Business Payments Revenue: Reported growth of 32% year over year; normalized growth of approximately 19%, excluding political contributions. Gross Profit: $70.6 million, a 70% margin compared with 76% margin a year ago. Adjusted EBITDA: $36.3 million, representing 14% year-over-year growth, with adjusted EBITDA margins of approximately 36%. Adjusted Net Income: $17.9 million or $0.20 per share. Free Cash Flow: $27.4 million, up 21% year over year, representing 75% free cash flow conversion. Adjusted Free Cash Flow: Approximately $29.3 million, with adjusted free cash flow conversion of 81%. AP Supplier Network: Reached over 731,000 vendors, representing 65% year-over-year growth. Software Partners: 352 total, with 54 coming from KUBRA. Synergies Realized: Over $4.5 million of annualized run rate synergies exiting Q2. Net Leverage: Proforma synergized net leverage of approximately 3.7 times. Warning! GuruFocus has detected 3 Warning Signs with RPAY. Is RPAY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Repay Holdings Corp (NASDAQ:RPAY) delivered strong Q2 2026 results with 33% reported revenue growth and 6% organic growth, exceeding expectations. The KUBRA acquisition is already showing early success, with $4.5 million in annualized run-rate synergies realized in the first month and a clear path to $8 million by year-end and $20 million-plus by 2028. Business Payments segment saw robust 32% reported revenue growth (19% normalized), driven by a 65% year-over-year expansion in the AP supplier network to 731,000 vendors and strong software partner momentum. The company is leveraging AI tools to enhance operational efficiency, reallocating over 775 development hours per month, which supports faster integration and innovation. Management reiterated full-year 2026 guidance with expected revenue of $490-$500 million and double-digit organic growth in the second half, backed by a strong pipeline and client ramps. Free cash flow generation was solid at $27.4 million (75% conversion), and the company is committed to deleveraging to below 3x net leverage within 18 months. Organic growth in Consumer Payments was only 4% in Q2, below the company's double-digit target, though management expects acceleration in H2. Gross profit margin declined to 70% from 76% year-over-year, primarily due to KUBRA's lower-margin mix, which could pressure profitability in the near term. Adjusted EBITDA margin fell to 36% from higher levels, reflecting KUBRA's integration costs and natural mix, with full-quarter impact expected in Q3. The company faces significant integration risks with KUBRA, including platform upgrades and client migration, which could disrupt operations if not managed carefully. Net leverage increased to 3.7x pro forma, and the company must generate consistent cash flow to meet its deleveraging target, which may limit capital allocation flexibility. Political media revenue, while a tailwind, is cyclical and not a sustainable growth driver, with normalized growth (excluding political) at 7-9% for the full year. Q: Can you walk us through KUBRA's pro forma growth in the quarter and whether it is incorporated into your organic growth in consumer? Also, can you drill down on the cross-sell opportunities? A: (Robert Houser, CFO) KUBRA grew around 6% within Q2 and around 5% on a full half-year pro forma basis, which we expect to continue for the rest of the year. Our consumer organic growth of 4% excludes KUBRA and political media. (John Morris, CEO) We are seeing early indicators of success in extending KUBRA's bill presentment and communication services, like iMail, to our existing Repay client base, and we hope to share more progress in Q3. Q: Can you frame the consumer growth in terms of same-store sales versus new logos, and what is the follow-through on those new ramps? A: (Robert Houser, CFO) In Q2, new client ramps drove the 4% organic growth in our consumer business. We expect this to accelerate substantially in Q3 and exit the year at double-digit growth. For B2B, roughly 60% of the 19% growth came from monetizing existing ACH volume on Total Pay, with the remaining 40% from new clients. We expect B2B to grow in the mid-teens for the rest of the year. Q: Can you discuss KUBRA's margin profile and the aspirational goals for where you can get its margins over the next three to four years? A: (Robert Houser, CFO) KUBRA's EBITDA margins are roughly around the 20% range out of the gate. We have already realized $4.5 million in annualized run-rate synergies exiting Q2 and are on track for $8 million-plus by year-end. By 2028, we have committed to $20 million-plus in synergies, driven by cost realization, sunsetting older technology, and unifying our platform. We are highly confident in these targets as they are not tied to any single client's migration timeline. Q: Can you drill down on the strong free cash flow conversion in the quarter, given the acquisition of KUBRA and expected costs for synergies? A: (Robert Houser, CFO) The strong conversion was mostly due to working capital timing, coming off a lower 16% in Q1. We only had one month of KUBRA in the quarter. For the back half of the year, we will pick up the full incremental interest expense on the term loan and costs to achieve synergies, which will bring us more in line with our full-year guide of 30% free cash flow conversion. Q: What is the expected amortization of acquisition-related intangibles for the third quarter, and are there any significant changes to stock-based compensation for the year? A: (Robert Houser, CFO) For Q3, amortization will be roughly in the $25 million to $26 million range. We are not expecting any significant change to stock-based compensation for the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Repay Holdings (RPAY) came out with quarterly earnings of $0.2 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.22 per share when it actually produced earnings of $0.22, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Repay Holdings, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $100.71 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.4%. This compares to year-ago revenues of $75.63 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Repay Holdings shares have added about 8.2% since the beginning of the year versus the S&P 500's gain of 13.3%. While Repay Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Repay Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $153.71 million in revenues for the coming quarter and $0.87 on $495 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Klarna (KLAR), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 18. This Swedish buy now, pay later company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Klarna's revenues are expected to be $987.94 million, up 20% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Repay Holdings Corporation (RPAY) : Free Stock Analysis Report Klarna Group plc (KLAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sustained Organic Growth and Healthy Free Cash Flow during Q2Reiterates 2026 Outlook that includes KUBRA contributionsStrong Execution towards Run-Rate Synergies ATLANTA, August 10, 2026--(BUSINESS WIRE)--Repay Holdings Corporation (NASDAQ: RPAY) ("REPAY" or the "Company"), a leading provider of bill payment solutions, today reported financial results for its second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights "It has been an exciting time for REPAY during the second quarter," John Morris, Chief Executive Officer of REPAY. "We delivered revenue growth of 33%, achieved approximately 6% organic revenue growth1, while generating $27.4 million of Free Cash Flow. Our most significant corporate development this year was completing the KUBRA acquisition in June and we immediately began executing on the integration. REPAY is now fully positioned to be a leading Consumer Bill Payment and Communication Services platform in the United States and Canada. We look forward to our continued execution during the second half of the year, where we are confident in our ability to accelerate organic growth into double-digits while also creating value from KUBRA contributions and realized synergies." Second Quarter 2026 Business Highlights The Company's achievements in the quarter, including those highlighted below, reinforce management's belief in the ability of the Company to drive durable and long-term growth across REPAY's diversified business model. Reported revenue growth of 33% and organic revenue growth1 of 6% year-over-year Consumer Payments revenue growth and organic revenue growth1 was 33% and 4% year-over-year Business Payments revenue growth and normalized organic revenue growth1 was 32% and 19% year-over-year KUBRA contributed approximately $21 million of revenue during the quarter (for June 2026), representing 5% year-over-year growth compared to June 2025 Now reaches over 352 software partners across our Consumer and Business Payment verticals, which includes 54 partners from the KUBRA acquisition Accelerated AP supplier network to over 731,000, an increase of approximately 66% year-over-year 2026 Outlook "With a solid strong first half behind us, we are confident in achieving the 2026 Outlook," said Robert Houser, Chief Financial Officer of REPAY. "The progress is evident as we move into the second half of 2026. As we work through implementations and continue our sales momentum, REPAY has the teams in place for organic growth to accelerate into double-digits and offers a complete platform for additional value creation opportunities with KUBRA. The combined free cash flow generation and expected synergy realization gives us confidence in obtaining our net leverage target of returning below 3x over the next 18 months." As we previously provided in the press release announcing the closing of the KUBRA acquisition on June 1st, REPAY updated its outlook for full year 2026 to incorporate KUBRA’s expected contributions for the remaining seven months of the year. KUBRA is expected to contribute between $150 million and $154 million in revenue and between $27.5 million and $30 million in Adjusted EBITDA during 2026. On an organic basis, REPAY expects approximately 10% to 12% revenue growth. REPAY is reiterating the 2026 outlook presented at that time and continues to expect the following financial results for full year 2026: REPAY does not provide quantitative reconciliation of forward-looking, non-GAAP financial measures, such as Adjusted EBITDA, Free Cash Flow Conversion and Adjusted Free Cash Flow Conversion, to the most directly comparable GAAP financial measure, because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have a significant impact on such calculations, and providing them may imply a degree of precision that would be confusing or potentially misleading. Segments The Company reports its financial results based on two reportable segments. Consumer Payments – The Consumer Payments segment provides an end-to-end bill payment platform, including bill design & presentment, communication services, and payment processing solutions (including debit and credit card processing, ACH processing and other electronic payment acceptance solutions, as well as our loan disbursement product) that enable the Company’s clients to notify, distribute billing statements, collect payments, and disburse funds to consumers and includes the Company’s clearing and settlement solutions ("RCS") offering. RCS is the Company’s proprietary clearing and settlement platform through which the Company markets customizable payment processing programs to other Independent Sales Organizations ("ISOs") and payment facilitators. In addition, the Company provides professional services to clients for customization and configuration of the product suite offering. The strategic vertical markets served by the Consumer Payments segment primarily include utilities, personal loans, automotive loans, government, receivables management, financial institutions, credit unions, mortgage servicing, consumer healthcare, insurance, and diversified retail. Business Payments – The Business Payments segment provides payment processing solutions (including accounts payable automation, debit and credit card processing, virtual credit card processing, ACH processing and other electronic payment acceptance solutions) that enable REPAY’s clients to collect payments from or send payments to other businesses. The strategic vertical markets served within the Business Payments segment primarily include retail automotive, education, field services, governments and municipalities, healthcare, media, homeowner association management and hospitality. Segment Revenue, Gross Profit, and Gross Profit Margin Conference Call REPAY will host a conference call to discuss second quarter financial results today, August 10, 2026 at 5:00 pm ET. Hosting the call will be John Morris, CEO, and Robert Houser, CFO. The call will be webcast live from REPAY’s investor relations website at https://investors.repay.com/investor-relations. The conference call can also be accessed live over the phone by dialing (877) 407-3982, or for international callers (201) 493-6780. A replay will be available one hour after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 13761472. The replay will be available at https://investors.repay.com/investor-relations. Non-GAAP Financial Measures This report includes certain non-GAAP financial measures that management uses to evaluate the Company’s operating business, measure performance, and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure that represents net income prior to interest expense, tax expense, depreciation and amortization, as adjusted to add back certain charges deemed to not be part of normal operating expenses, non-cash charges and/or non-recurring charges, such as gain on extinguishment of debt, non-cash impairment loss, non-cash change in fair value of assets and liabilities, share-based compensation charges, transaction expenses, restructuring and other strategic initiative costs, loss on business disposition and other non-recurring charges. Adjusted EBITDA margin is a non-GAAP financial measure that represents Adjusted EBITDA divided by GAAP revenue. Adjusted Net Income is a non-GAAP financial measure that represents net income prior to amortization of acquisition-related intangibles, as adjusted to add back certain charges deemed to not be part of normal operating expenses, such as non-cash impairment loss, non-cash change in fair value of assets and liabilities, share-based compensation expense, transaction expenses, restructuring and other strategic initiative costs, other non-recurring charges, non-cash interest expense and net of tax effect associated with these adjustments. Adjusted Net Income is adjusted to exclude amortization of all acquisition-related intangibles as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of acquisition-related intangible amortization supplements GAAP financial measures because it allows for greater comparability of operating performance. Although REPAY excludes amortization from acquisition-related intangibles from its non-GAAP expenses, management believes that it is important for investors to understand that such intangibles were recorded as part of purchase accounting and contribute to revenue generation. Adjusted Net Income per share is a non-GAAP financial measure that represents Adjusted Net Income divided by the weighted average number of shares of Class A common stock outstanding (on an as-converted basis assuming conversion of the outstanding units exchangeable for shares of Class A common stock) for the three and six months ended June 30, 2026 and 2025 (excluding shares subject to forfeiture). Free Cash Flow is a non-GAAP financial measure that represents net cash flow provided by operating activities less total capital expenditures. Free Cash Flow Conversion represents Free Cash Flow divided by Adjusted EBITDA. Adjusted Free Cash Flow represents Free Cash Flow plus technology, merger and integration costs. Adjusted Free Cash Flow Conversion represents Adjusted Free Cash Flow divided by Adjusted EBITDA. Organic revenue growth represents year-over-year revenue growth that excludes incremental revenue attributable to acquisitions and dispositions made in the applicable prior period or any subsequent period. Normalized organic revenue growth represents year-over-year organic revenue growth that excludes incremental gross profit attributable to political media spending associated with the 2026 election cycle in our media payments business. REPAY believes that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per share, Free Cash Flow, Free Cash Flow Conversion, Adjusted Free Cash Flow, Adjusted Free Cash Flow Conversion, organic revenue growth and normalized organic revenue growth provide useful information to investors and others in understanding and evaluating its operating results in the same manner as management. However, these non-GAAP financial measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, operating profit, net cash provided by operating activities, or any other operating performance measure calculated in accordance with GAAP. Using these non-GAAP financial measures to analyze REPAY’s business has material limitations because the calculations are based on the subjective determination of management regarding the nature and classification of events and circumstances that investors may find significant. In addition, although other companies in REPAY’s industry may report measures titled as the same or similar measures, such non-GAAP financial measures may be calculated differently from how REPAY calculates its non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, you should consider REPAY’s non-GAAP financial measures alongside other financial performance measures, including net income, net cash provided by operating activities and REPAY’s other financial results presented in accordance with GAAP. Forward-Looking Statements This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, including 2026 outlook, REPAY’s plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "guidance," "will likely result," "are expected to," "will continue," "should," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. These forward-looking statements include, but are not limited to, REPAY’s market and growth opportunities, REPAY’s business strategy and the plans and objectives of management for future operations and the allocation of capital. Such forward-looking statements are based upon the current beliefs and expectations of REPAY’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond REPAY’s control. In addition to factors disclosed in REPAY’s reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2025 and those identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the inability to integrate and/or realize the benefits of the KUBRA transaction, including expected synergies; ; that the KUBRA acquisition could disrupt the Company’s relationships with customers, employees or other business partners; the impact, cost and effect of actions by activist stockholders; the risk that our stockholder rights plan may delay, discourage or prevent a change of control or acquisition of the Company, even if such action may be considered beneficial by some stockholders; exposure to economic conditions and political risk affecting the consumer loan market, the receivables management industry, the utilities industry and consumer and commercial spending, including bank failures or other adverse events affecting financial institutions, inflationary pressures, evolving U.S. trade policies or general economic slowdown; changes in the payment processing market in which REPAY competes, including with respect to its competitive landscape, technology evolution or regulatory changes; changes in the vertical markets that REPAY targets, including the regulatory environment applicable to REPAY’s clients; the ability to retain, develop and hire key personnel; risks relating to REPAY’s relationships within the payment ecosystem; risk that REPAY may not be able to execute its growth strategies, including identifying and executing acquisitions; risks relating to data security; changes in accounting policies applicable to REPAY and the risk that REPAY may not be able to maintain effective internal controls. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and REPAY disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources it believes to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. About REPAY REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology provides a comprehensive end-to-end platform offering digital payments, bill design & presentment, and communication services for clients, while enhancing the overall experience for consumers and businesses. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810147054/en/ Contacts Investor Relations Contact for REPAY:[email protected] Media Relations Contact for REPAY:Kristen Hoyman(404) [email protected]

Sezzle Inc. (SEZL) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +18.95%. A quarter ago, it was expected that this company would post earnings of $1.24 per share when it actually produced earnings of $1.43, delivering a surprise of +15.32%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Sezzle Inc., which belongs to the Zacks Financial Transaction Services industry, posted revenues of $149.68 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 14.88%. This compares to year-ago revenues of $98.7 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sezzle Inc. shares have added about 174.8% since the beginning of the year versus the S&P 500's gain of 12.8%. While Sezzle Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sezzle Inc. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $153.92 million in revenues for the coming quarter and $5.10 on $592.59 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Repay Holdings (RPAY), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Repay Holdings' revenues are expected to be $102.13 million, up 35% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sezzle Inc. (SEZL) : Free Stock Analysis Report Repay Holdings Corporation (RPAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Q1 results and 2026 outlook: Repay reported Q1 revenue of $80.8 million (+4% YoY) and adjusted EBITDA of $34.4 million (~43% of revenue), and reaffirmed full-year 2026 guidance of $340–$346 million in revenue (10–12% reported growth), $141–$146 million adjusted EBITDA and an ~42% margin with a 45% free-cash-flow conversion target. KUBRA acquisition planned for Q2: Management expects the fully financed deal to close in Q2 and believes the combined company would roughly double revenue, process more than $130 billion annually and reach over 40% of U.S./Canadian households monthly, while targeting a return to below 3x net leverage within ~18 months of closing. Operational momentum and product innovation: Repay is investing in sales/support, software integrations, automation and AI (including a phased rollout of Repay Voice AI and digital wallet features), with Business Payments growing ~18% YoY and the supplier network expanding over 70% to more than 665,000 vendors; Matt Morrow is joining to lead consumer payments. Interested in Repay Holdings Corporation? Here are five stocks we like better. These 3 Fintech Stocks Offer High Risk/Reward Potential Repay (NASDAQ:RPAY) reported first-quarter 2026 results that management said were in line with internal expectations, while reiterating its outlook for double-digit reported revenue growth for the full year and highlighting plans to close its pending KUBRA acquisition in the second quarter. On the call, CEO John Morris described the quarter as “a solid start to the year” after continued momentum exiting 2025, pointing to revenue growth, profitability, and ongoing product and operational initiatives. CFO Robert Houser said the company is confident in achieving its 2026 outlook and noted that the company recently raised its full-year Adjusted EBITDA outlook. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Houser said Repay generated revenue of $80.8 million in the first quarter, representing 4% year-over-year growth. Adjusted EBITDA was $34.4 million, or approximately 43% of revenue. Adjusted net income was $19.4 million, or $0.22 per share. Free cash flow was $5.4 million, which Houser said equated to 16% free cash flow conversion for the quarter. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches By segment, Morris and Houser highlighted divergent growth rates: Consumer Payments: Revenue increased approximately 4% year-over-year. Morris said growth was supported by implementation of new enterprise clients adopting more payment channels and modalities. Business Payments: Revenue increased approximately 18% year-over-year. Houser added that normalized revenue growth was approximately 16% when excluding political media contributions in the quarter. Morris said the company ended the quarter with more than 297 software partners across consumer and business payment verticals. In Business Payments, he said Repay added two new software partners in the quarter and ended Q1 with over 665,000 vendors in its supplier network, up more than 70% year-over-year. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Morris said Repay continued investing in sales and customer support teams and enhancing software integrations to deepen penetration of existing partnerships and improve user experiences. He said teams are working through onboarding, implementation, and client ramping in the pipeline, which management believes can drive accelerating growth as 2026 progresses. He also described efforts to automate workflows and deploy AI capabilities to improve performance and risk monitoring on the company’s gateway, as well as optimization of network routing that has produced “tangible payment efficiencies.” In Consumer Payments, Morris said Repay has seen strong interest in its Digital Wallet capabilities and has begun a phased rollout of “Repay Voice AI” to select enterprise clients. Later in the Q&A, Morris described Digital Wallet functionality as enabling bill presentment within a consumer’s native Apple or Google wallet and said the company is rolling out that solution with clients. He said Repay Voice is an AI-driven interactive solution intended to modernize phone payment experiences, noting it is in early testing and rollout stages. Morris also announced a leadership addition: Matt Morrow is expected to join in the coming weeks as Executive Leader of Consumer Payments. Morris said Morrow brings more than a decade of payments and business services experience and will oversee consumer payments growth, sales, and operational initiatives. Morris spent a significant portion of his prepared remarks discussing Repay’s recently announced acquisition of KUBRA. He said management believes the transaction offers “the most compelling long-term value creation opportunity” compared to other capital allocation alternatives, citing KUBRA’s scale, non-discretionary recurring revenue profile, and synergy potential. Morris said the board continues to support the deal and that financing is fully committed. Repay expects to close the acquisition during Q2 2026, subject to regulatory approvals. Houser added that Repay’s current 2026 outlook does not incorporate any contributions or expenditures related to the acquisition. In discussing integration planning, Morris said teams are actively preparing to “hit the ground running on day one,” including integrating technology, employees, and client relationships, while acknowledging that execution will be critical and that the company is focused on disciplined planning to mitigate operational and client transition risks. Morris outlined the scale metrics management expects based on KUBRA’s 2025 results, saying the combined company would approximately double revenue, interact with over 40% of U.S. and Canadian households monthly, and process more than $130 billion in annual payment volumes across “non-discretionary categories with recurring billing cycles.” He also reiterated a deleveraging objective, stating Repay is targeting a return to below 3 times net leverage within approximately 18 months of closing, supported by combined cash flow generation and synergy realization. In Q&A, Morris said the combination would create a more comprehensive end-to-end digital platform spanning bill presentment, communication services, and payment processing, including Repay’s clearing and settlement engine. Houser emphasized free cash flow generation and said the company has “plans in place” to start executing on synergies immediately after close. Houser detailed several cash flow and balance sheet items during the quarter, including approximately $15 million in Tax Receivable Agreement payments related to the 2024 tax reporting year. Repay also paid approximately $22.5 million for what management described as a strategic distribution partner purchase, which Houser said provided an immediate EBITDA uplift because the volumes were already on Repay’s platform. In a separate refinancing transaction, Houser said Repay used approximately $37 million in cash and drew $110 million on its revolving credit facility to refinance maturing 2026 convertible notes. Total debt at quarter-end included $288 million of convertible notes due 2029 with a 2.875% coupon and the $110 million revolver draw. As of March 31, Houser said Repay had approximately $44 million in cash and net leverage of about 2.7 times. For full-year 2026, Houser reaffirmed expectations for double-digit reported revenue growth and provided guidance ranges: Revenue: $340 million to $346 million (10% to 12% reported growth); excluding political media, approximately 7% to 9% normalized growth Adjusted EBITDA: $141 million to $146 million Adjusted EBITDA margin expectation: approximately 42% for full-year 2026 (following an outlook increase) Free cash flow conversion target: 45% Houser said Repay expects political media to contribute $8 million to $10 million of revenue in 2026, representing about 3 percentage points of reported growth, with the majority of contributions typically occurring in Q3 and Q4 around November elections. When asked about quarterly progression excluding political media, Houser said the company expects growth to ramp in Q2 and “really into Q3,” reflecting implementation timing of new client wins. In a follow-up, he said the company’s confidence in 2026 is tied to bookings already secured, with focus shifting toward 2027 as deployments progress. Morris said Repay continues to see stable consumer trends in its verticals, citing strong February and March performance tied to tax refund season. He also said there were no unusual customer renewals to highlight for core Repay during 2026. At the outset of the call, Head of Investor Relations Stewart Grisante addressed governance-related matters, including a request from Veradace Partners for a waiver of bylaw timing requirements for director nominations. Grisante said the board denied the request and that Repay filed a preliminary proxy statement on May 1. He said Veradace “failed to comply with the requirements set forth in our bylaws and is not entitled to make lawful director nominations at this year’s annual meeting.” Grisante also said the board previously confirmed receipt of an unsolicited, non-binding proposal from Forager Capital to acquire outstanding shares of the company. He said Repay sent a letter to Forager and issued a press release stating the board “has unanimously rejected” the proposal because it “significantly undervalues the company” and is not in shareholders’ best interest. Grisante said the company would not take questions on those matters. In closing remarks, Morris said Repay remains focused on executing against its priorities, including closing the KUBRA transaction, and “accelerating towards double-digit reported growth with strong profitability” under its 2026 outlook. 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. The article "Repay Q1 Earnings Call Highlights" was originally published by MarketBeat.