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Repay Holdings Q3 revenue up 97%, slightly beats estimates

By Reuters News


Overview

  • U.S. bill payment solutions provider's Q3 revenue rose 97% yr/yr, slightly beating analyst expectations

  • Adjusted EBITDA for Q3 beat analyst expectations

  • Company raised expected annualized cost synergy run-rate exiting 2026 to $11 mln


Outlook

  • Company reiterates 2026 revenue guidance of $490 mln-$500 mln and adj EBITDA of $168.5 mln-$176 mln

  • Company lowers 2026 normalized organic revenue growth outlook to 5%-6% from 7%-9% previously

  • Company cuts 2026 free cash flow conversion target to 20%-25% from 30% previously


Result Drivers

  • BUSINESS PAYMENTS GROWTH - Co said Business Payments segment delivered strong results, with 99% revenue growth and 40% normalized organic revenue growth, per CEO John Morris

  • CONSUMER PAYMENTS SLOWDOWN - Co said Consumer Payments organic revenue growth was below expectations

  • POLITICAL MEDIA REVENUE - Co said political media revenue contributed 9 percentage points to organic revenue growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$153.4 mln

$151.97 mln (5 Analysts)

Q3 Net Loss

$10.4 mln

Q3 Adjusted EBITDA

Beat

$50.9 mln

$48.67 mln (5 Analysts)

Q3 Gross Profit

$99.48 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for Repay Holdings Corp is $6.00, about 36.4% above its November 6 closing price of $4.40

  • The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago


Reuters Recommended Reads

  • Nov 9 - Online ticket marketplace Vivid Seats' Q3 revenue beats estimates; to reduce debt

  • Nov 9 - PNC to offer stablecoin payments to clients in Coinbase partnership


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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