Q4 2025 Repay Holdings Corp Earnings Call

March 9, 2026

Good afternoon. I'd like to welcome everyone to Repay's fourth quarter 2025 earnings conference call.

This call is being recorded today. March 9th 2026.

I'd like to turn the session over to Stuart Ganti, head of Investor Relations at REPAY. Stuart, you may begin.

Thank you, good afternoon, and welcome to the Repay fourth quarter 2025 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 filings 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 an earnings supplement, each of which are available on the company’s IR site. With that, I will now turn the call over to Di.

Thanks, Stuart. Good afternoon, everyone, and thank you for joining us today.

Repay delivered on its promise to improve growth as the company exited 2025.

During the fourth quarter, Repay returned to solid normalized growth, while continuing to generate strong profitability and free cash flow.

This performance underscores the progress of Repay—strategic initiatives and operational improvements throughout 2025. Repay underwent the necessary improvements to strengthen our operations, go-to-market, and overall organizational leadership.

As we proceed through 2026, we are well positioned to continue our momentum while supporting and optimizing our clients' digital payment flows.

On today's call, we plan to go over the three main topics first, a review of the fourth quarter.

First, I reviewed the fourth quarter.

Repay closed out the year accelerating our normalized growth in Q4. We achieved 10% revenue growth and 9% gross profit growth on a normalized year-over-year basis, which excludes the political media contributions during 2024.

Adjusted dividend margins were 41%, and free cash flow conversion was 43%, while reinvesting into several organic growth initiatives.

Within the Consumer Payment segment, Q4 revenue increased 8%, and gross profit increased 6% year-over-year. Our growth is built on steady payment streams with existing clients, plus incremental contributions. As we process more with our clients, total payment volumes increase, as does the ramp of new clients across the verticals we serve.

We increased our consumer software partnerships to 189, while also further enhancing many existing integrations, leading to better client and consumer experiences.

Deeper integrations address the pain points across our consumer payments verticals by combining Repay's flexible payment processing capabilities directly within our clients' existing workflows.

Clients, to offer the convenience of modern payment modalities, can seamlessly accept and track payments while enhancing their operational efficiency.

The newly announced integration with a motive software and all-in-one automotive finance and compliance platform is one of the many examples of how Repay is building on our software partnerships to build a healthy core consumer bookings pipeline.

And throughout 2025, our bookings have gained momentum, giving us confidence for the full year 2026.

Additionally.

Our consumer payments teams are focused on client implementations to help reduce good lifetime lines and provide sustainable growth.

As our clients continue to expand with us.

Now, turning to our business team segment in Q4, normalized revenue increased 41%, and gross profit increased 73% year-over-year. Why are we excluding the political media contributions during 2024?

Throughout 2025, our business payment strategic focus was on our core AP platform.

Our go-to-market, in partnership with Prioritize, focused on the vast AP opportunities, leading to many new client wins in the healthcare and hospitality verticals.

We executed on several monetization initiatives, like floating income. Expanded our enhanced AC offering and increased total pay adoption with both new and existing clients.

Thank you. Our supplier network grew to 62,000 suppliers, increasing over 65% year-over-year, and we exited the quarter with 105 software partners and embedded integrations.

This represents adding over 240,000 suppliers during 2025, leading to great momentum in our Hospitality vertical and building on many software relationships, such as USE, which serves a broad spectrum of organizations across multiple industries.

Businesses and organizations across verticals are looking for ways to modernize AP processes and improve payment security.

Repay's advanced AP platform provides these capabilities.

An innovative way that organizations are adopting AP platforms is with our recently announced referral partnership with West Virginia University, Gold and Blue Enterprises.

DPE clients can leverage Repay platforms to donate their earned rebates to the University's NIL fund.

Drapey initiatives to continue building traction during 2026 and beyond.

Now, on to our next topic, a review of the 2025 achievements and progress.

Repay went through challenges during 2025 while also making important changes to reinforce our core foundation for a skilled future.

We changed key executives, streamlined processes, and worked on ways to deploy automation and AI.

During 2025, we allocated resources towards ourselves and customer support teams to pursue enterprise clients across our verticals.

Brief added 14 software partners and integrations during 2025 and exited the year with over 294 total partners.

We began rolling out new product capabilities, like Dynamic Wallet, where iOS and Android users can tap and pay and access statement activity directly within their digital wallet experience.

Ultimately, our continuing investment in product and technology is about providing best-in-class performance and reliability for our existing clients and prospective clients.

We strive to achieve exceptional experiences for our clients and customers.

From this, we are proud to be recognized by the Straw Hacker Group for best gateway uptime in 2026, and briefly earned first place for the highest authorization rate for the second consecutive year in 2025.

In 2025, we also reviewed the Repay platform for the automated and digital future ahead.

I'm excited for the powerful combination of leveraging AI capabilities with Repay's technology to increase productivity across the organization. We are utilizing AI to reduce integration time for faster connectivity with software partners and are rolling out AI assist functionality for clients' onboarding processes.

We are deploying AI, middleware for clients, and tech migrations leading to faster discovery and risk detection.

Reducing manual processes and lowering costs over time.

We also tested new product capabilities, such as Repay Voice. Repay Voice will revolutionize the IVR experience for consumer calls and already has a list of enterprise clients eager for a space roll-out during 2026.

These productivity improvements are scalable, as we look to spur growth further into inorganic opportunities.

We are positioned to digest potential M&A faster, with the foundation we approved upon in June 2025.

I am proud of the progress we made from an operating perspective as we exited the year. Each quarter led to sequential improvements in the right direction, and now we are focused on maintaining the momentum as we execute throughout 2026.

With that, I'll turn the call over to Rob to go over our Q4 financials and discuss our 2026 outlook and capital out cost unit priorities. Rob.

Operator: Good afternoon. I'd like to welcome everyone to Repay's Q4 2025 Earnings Conference Call. This call is being recorded today, 9 March 2026. I'd like to turn the session over to Stuart Grisanti, Head of Investor Relations at Repay. Stuart, you may begin.

Thank you, John, and good afternoon, everyone. In the fourth quarter, Repay delivered solid results across our key metrics. Revenue was $78.6 million, and gross profit was $58.3 million. On a normalized basis, revenue and gross profit growth were 10% and 9%, respectively, which excludes the political media contributions during last year's presidential election cycle.

Stuart Grisanti: Thank you. Good afternoon, and welcome to REPAY's Q4 2025 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 filings 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 intend to update them except as required by law. In an effort to provide additional information to investors, today's discussion will also reckon certain non-GAAP financial measures.

As a company, we are proud of the progress we've made to sequentially improve growth in Q4.

Stuart Grisanti: Those forward-looking statements are subject to risks and uncertainties, including those set forth in the SEC filings 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 intend to update them except as required by law. In an effort to provide additional information to investors, today's discussion will also reckon certain non-GAAP financial measures.

Q4 gross profit margins were approximately 74.2%, representing a similar margin profile that we experienced during Q3 2025 from Laffing, political media contributions, enterprise volume, discounts, and non-card mix. As we process more of our clients’ overall volumes.

Going forward, we expect a similar margin profile that we experienced during Q3 and Q4 2025 to continue during 2026.

Consumer payments, revenue, and gross profit increased 8% and 6% year-over-year, respectively.

Business payments, normalized revenue, and gross profit increased approximately 41% and 73% in Q4 2025.

Stuart Grisanti: Reconciliations and other explanations of those non-GAAP financial measures can be found in today's press release and an earnings supplement, each of which are available on the company's IR site. With that, I will now turn the call over to John.

Q4 adjusted EBITDA was $32.4 million, representing approximately 41% adjusted EBITDA margins.

John Morris: Thanks, Stuart. Good afternoon, everyone, and thank you for joining us today. REPAY delivered on its promise to improve growth as the company exited 2025. During Q4, REPAY returned to solid normalized growth while continuing to generate strong profitability and free cash flow. This performance underscores the progress of REPAY's strategic initiatives and operational improvements. Throughout 2025, REPAY underwent the necessary improvements to strengthen our operations, go-to-market, and overall organizational leadership. As we proceed through 2026, we are well positioned to continue our momentum while supporting and optimizing our clients' digital payment flows. On today's call, we plan to go over the three main topics. First, a review of Q4. Second, a summary of our progress and achievements during 2025. Lastly, our 2026 outlook to drive growth into the future. First, a review of Q4.

Repay has been balancing resource allocation throughout 2025 and making incremental investments towards the sales, implementation, and client service teams to support our future growth initiatives.

Fourth quarter adjusted net income was $16.8 million, or $0.19 per share.

And the fourth quarter reported net income was impacted by a non-cash goodwill impairment charge of $138.9 million related to our Consumer Payments segment.

Free cash flow was $13.8 million during the quarter, resulting in 43% free cash flow conversion.

Free cash flow was slightly below our expectations, due to the quarterly timing of networking capital that is not expected to reverse in Q1.

As of December 31st, we had approximately $116 million of cash on the balance sheet. Since year end, we paid off the $147 million of 0%.

John Morris: REPAY closed out the year accelerating our normalized growth. In Q4, we achieved 10% revenue growth and 9% gross profit growth on a normalized year-over-year basis, which excludes the political media contributions during 2024. Adjusted EBITDA margins were 41% and free cash flow conversion was 43% while reinvesting into several organic growth initiatives. Within the consumer payment segment, Q4 revenue increased 8% and gross profit increased 6% year-over-year. Our growth is built on steady payment streams with existing clients, plus incremental contributions as we process more of our clients' total payment volumes and the ramp of new clients across the verticals we serve. We increased our consumer software partnerships to 189, while also further enhancing many existing integrations, leading to better client and consumer experiences.

Approximately $37 million of cash on our balance sheet, and drawing $110 million on a revolving credit facility.

On a pro forma basis, for the debt payment, in January Repay has approximately $79 million of pro forma cash and $398 million of pro forma debt outstanding.

Preform, total debt outstanding is comprised of a $110 million draw on the revolver facility in January, and $288 million of convertible notes due in 2029 with a 2.875% coupon. Preform, total liquidity is approximately $219 million, which includes $140 million of undrawn revolver capacity.

Pro forma, net leverage is approximately 2.5 times after the 2026 convert maturity.

John Morris: Deeper integrations address the pain points across our consumer payments verticals by combining REPAY's flexible payment processing capabilities directly within our clients' existing workflows. Clients that offer the convenience of modern payment modalities can seamlessly accept and track payments while enhancing their operational efficiency. The newly announced integration with Emotive Software, an all-in-one automotive finance and compliance platform, is one of the many examples of how REPAY is building on our software partnerships to build a healthy core consumer bookings pipeline. Throughout 2025, our bookings have gained momentum, giving us confidence to the full year 2026. Additionally, our consumer payments teams are focused on client implementations to help reduce go-live timelines and provide sustainable growth as our clients continue to expand with us. Now turning to our business payments segment.

Now, moving on to our 2026 outlook and cap allocation priorities for the year ahead.

As John mentioned, Repay made many strategic changes during 2025 and continues the ongoing effort to improve our go-to-market operations and technology for a scaled future.

These operational improvements are incorporated in our 2026 outlook and approach to allocating capital going forward.

Our full year 2026 outlook reflects the growth algorithm that Repay can sustainably achieve as we benefit from the secular digital payments tailwind, growth from existing clients, and the ramp of new clients onto our platform.

John Morris: In Q4, normalized revenue increased 41% and gross profit increased 73% year-over-year, while excluding the political media contributions during 2024. Throughout 2025, our business payments strategic focus was on our core AP platform. Our go-to-market and partnerships prioritized the vast AP opportunities, leading to many new client wins in the healthcare and hospitality verticals. We executed on several monetization initiatives like float income, expanded our enhanced ACH offering, and increased TotalPay adoption with both new and existing clients. In Q4, we increased our supplier network to 602,000 suppliers, increasing over 65% year-over-year, we exited the quarter with 105 software partners and embedded integrations.

In 2026, we expect revenues to be between $340 million and $346 million. This represents 10% to 12% reported revenue growth, and approximately 7% to 9% normalized revenue growth, when excluding the positive contributions of our political media business.

We expect adjusted EBITDA to be between $136.5 million and $141.5 million, representing approximately 40% adjusted EBITDA margins.

We are confident in a free cash flow conversion target of above 45%, which incorporates fluctuations in net working capital and the incremental interest payments associated with the recent $110 million draw on our revolving credit facility.

John Morris: This represents adding over 240,000 suppliers during 2025, leading to great momentum to our hospitality vertical and while building on many software relationships such as Yooz, which serves a broad spectrum of organizations across multiple industries. Businesses and organizations across verticals are looking for ways to modernize AP processes and improve payment security. REPAY's advanced AP platform provides these capabilities. An innovative way that organizations are adopting AP platforms is with our recently announced referral partnership with West Virginia University Gold and Blue Enterprises. GBE clients can leverage REPAY's platform to donate their earned rebates to the university's NIL fund. Overall, we are pleased with the business payments momentum from our partnerships and direct sales teams. We expect our AP initiatives to continue building traction during 2026 and beyond.

Net interest expense is incorporated in our free cash flow. We expect interest expense to be approximately $15 million during 2026, which includes the interest payments associated with our 2029 convertible notes and the $110 million draw on our revolving credit facility.

As a reminder, free cash flow conversion is calculated by dividing free cash flow by adjusted Ava.

During the first quarter, our year-over-year growth is expected to be lower than the full year of 2026 Outlook, as we have some implementations getting pushed out. Several client wins in the back half of 2025 are set to go live later than initially expected and will be lapping against some annualized churn we experienced on the back half of last year.

However, we are confident in the ramp of signed clients and strategic initiatives during the year, with the second half returning to strong double-digit, normalized growth.

John Morris: Now on to our next topic, a review of the 2025 achievements and progress. REPAY went through challenges during 2025, while also making important changes to reinforce our core foundation for a scaled future. We changed key executives, streamlined processes, and worked on ways to deploy automation and AI. During 2025, we allocated resources towards our sales and customer support teams to pursue enterprise clients across our verticals. REPAY added 14 software partners and integrations during 2025 and exited the year with over 294 total partners. We began rolling out new product capabilities like Dynamic Wallet, where iOS and Android users can tap and pay and access statement activity directly within their digital wallet experience. Ultimately, our continued investment in product and technology is about providing best-in-class performance and reliability for our existing clients and prospective clients.

We are also expected to benefit from a strong midterm election cycle, with the majority of political media contributions occurring during Q3 and Q4.

Overall, we expect political media contributions to positively impact revenue by $8 million to $10 million, representing approximately 3 percentage points of recorded growth year-over-year.

And finally, from a capital deployment perspective, in Q1 we will be making $15 million in TR payments.

In 2026, our capital allocation priorities are focused on creating long-term value while maintaining strong cash generation to support liquidity and financial flexibility.

During 2026, we plan to deploy capital towards four key areas.

Our first priority is with organic growth opportunities. We will continue to make targeted Opex investments to strengthen our position and accelerate our growth potential for 2027 and beyond.

John Morris: We strive to achieve exceptional experiences for our clients and customers. From this, we are proud to be recognized by The Strawhecker Group for Best Gateway Uptime in 2026. Repay earned first place for the highest authorization rate for the second consecutive year in 2025. In 2025, we also re-reviewed Repay's platform for the automated and digital future ahead. I'm excited for the powerful combination of leveraging AI capabilities with Repay's technology to increase productivity across the organization. We are utilizing AI to reduce integration time for faster AP connectivity with software partners and are rolling out AI assist functionality for clients' onboarding processes. We are deploying AI middleware for client and tech migrations, leading to faster discovery and risk de-detection, reducing manual processes, and lowering costs over time. We also tested new product capabilities such as Repay Voice.

We expect to allocate capital towards strategic M&A and partnerships to further boost existing and new vertical reach, while increasing the long-term growth and cash flow for the company. We will maintain a prudent level of capex towards product and technology initiatives.

We have $23 million remaining under our existing share repurchase program that we can use during 2026. And lastly, we have the financial flexibility to balance capital deployment towards organic investments, M&A, partnerships, and share buybacks, with the potential to reduce our total debt outstanding.

We are heading into 2026 with exciting progress and momentum.

Revenue growth and strong profitability.

I'll now turn the call over to the operator to take your questions. Operator.

John Morris: Repay Voice will revolutionize the IVR experience for consumer calls and already has a list of enterprise clients eager for a phased rollout during 2026. These productivity improvements are scalable as we look to spur growth further into inorganic opportunities. We are positioned to digest potential M&A faster with the foundation we improved upon during 2025. I am proud of the progress we made from an operating perspective as we exited the year. Each quarter led to sequential improvements in the right direction. Now we are focused on maintaining the momentum as we execute throughout 2026. With that, I'll turn the call over to Rob to go over our Q4 financials and discuss our 2026 outlook and capital allocation priorities. Rob?

Thank you. We will now be conducting a question and answer session. We ask that you please limit yourselves to one question and one follow-up.

If you would like to ask a question, please press star and the number 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and the number 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for questions.

And our first question comes from Mike Grandahl with Northland Securities. You may proceed with your question.

Robert Houser: Thank you, John. Good afternoon, everyone. In Q4, Repay delivered solid results across our key metrics. Revenue was $78.6 million and gross profit was $58.3 million. On a normalized basis, revenue and gross profit growth were 10% and 9% respectively, which excludes the political media contributions during last year's presidential election cycle. As a company, we are proud of the progress we've made to sequentially improve growth in Q4. Q4 growth profit margins were approximately 74.2%, representing a similar margin profile that we experienced during Q3 2025 from lapping political media contributions, enterprise volume discounts, and non-card mix as we process more of our clients' overall volumes. Going forward, we expect a similar margin profile that we experienced during Q3 and Q4 2025 to continue during 2026.

I was wondering if you could just spend a moment on kind of the major end markets—maybe Auto and personal loans, uh, and Healthcare, and Mortgage. If you could, a little bit.

Hi, Mike. Good afternoon. How are you today? Uh, yes, this is John.

So, from that perspective, what we see is consistent—what we've seen in the fourth quarter, what we see throughout last year, we see as consistent. Uh, what

Trends that we saw last year on the auto and affordability constraints.

That's relatively stable for what we have been seeing, so we still see that occurring.

Um, and both auto and personal loans.

Got it. Anything in healthcare or mortgage to call out those markets?

Very similar as well. We're not seeing anything that would be different than what we have been experiencing.

Okay. And and then

Robert Houser: Consumer payments revenue and gross profit increased 8% and 6% year-over-year, respectively. Business payments normalized revenue and gross profit increased approximately 41% and 73% in Q4 2025. Q4 adjusted EBITDA was $32.4 million, representing approximately 41% of adjusted EBITDA margins. Repay has been balancing resource allocation throughout 2025 and making incremental investments towards the sales, implementation, and client service teams to support our future growth initiatives. Q4 adjusted net income was $16.8 million or $0.19 per share. In Q4, reported net income was impacted by a non-cash goodwill impairment charge of $138.9 million related to our consumer payment segment. Free cash flow was $13.8 million during the quarter, resulting in 43% free cash flow conversion.

Customer renewals in 2026—you know, we should be aware of those that are coming up, and if anything sticks out there.

Nothing major that we would not be in inside of our guide. That would not be standard on most of our contracts would be auto renewals in some ways. Um, but nothing we wouldn't have already embedded into our guide.

Okay, great. And congrats on the outlook and some growth, that's great.

All right. Thanks Mike.

Our next question comes from the line of Alex Newman with Stevens. Please proceed.

Hi, thanks for taking my question. Uh, just quickly, anything on tax refunds? I know there's a lot of data out there saying average refunds are higher. Just any impacts those are having on volumes and repayment activity?

Robert Houser: Free cash flow was slightly below our expectations due to the quarterly timing of networking capital that is not expected to reverse in Q1. As of 31 December, we had approximately $116 million of cash on the balance sheet. Since year-end, we paid off the $147 million of 0% convertible notes at maturity, using approximately $37 million of cash on our balance sheet and drawing $110 million on our revolving credit facility. On a pro forma basis for the debt payment in January, Repay has approximately $79 million of pro forma cash and $398 million of pro forma debt outstanding.

Hi, Alex. Uh, yes, this is John. So, we have seen, uh, we have seen a tax refund season. We saw some volume, uh, increase in the month of February. Um, but so far today, we found that to be

At least we see we only see the payment volume, right? So, we don't actually see the gross tax refund, other than we've seen some, some normal. And it says a seasonal, this is on the consumer payment side. We do see seasonal uplift in our first quarter related to tax refunds, um, that appears to be relatively normal again. We don't see the total refund. We just see payments.

Yeah, got it. And then if I could just, quick question on B2B, um, just on the floating come, um,

Robert Houser: Pro forma total debt outstanding is comprised of a $110 million draw on a revolver facility in January and $288 million of convertible notes due in 2029 with a 2.875% coupon. Pro forma total liquidity is approximately $219 million, which includes $140 million of undrawn revolver capacity. REPAY's pro forma net leverage is approximately 2.5x after the 2026 convert maturity. Now moving on to our 2026 outlook and capital allocation priorities for the year ahead. As John mentioned, REPAY made many strategic changes during 2025, an ongoing effort to improve our go-to-market operations and technology for a scaled future. These operational improvements are incorporated in our 2026 outlook and approach to allocating capital going forward.

Could you just dive into how much I contributed to growth, the margins, um, and where that low income is being generated from?

Yeah. Hi, Alex. This is Rob. Um, yeah. So the float is from our, uh, uh, customer deposits and our B2B business. Um, we—we don't typically comment on the exact amount of money, but it's, it's a—it was a good portion. We, uh, in the fourth quarter, um, we well, started collecting that interest on, uh, customer deposits in 2025. So, as we go into our guide into 2026, it's relatively stable. Um, but it—it played, it played a part, uh, of our strong results on the fourth quarter, but we also, uh, for the B2B business, laughed.

Robert Houser: Our full year 2026 outlook reflects the growth algorithm that Repay can sustainably achieve as we benefit from the secular digital payments tailwind, growth from existing clients, and the ramp of new clients onto our platform. In 2026, we expect revenues to be between $340 million and $346 million. This represents 10% to 12% reported revenue growth and approximately 7% to 9% normalized revenue growth when excluding the positive contributions of our political media business. We expect adjusted EBITDA to be between $136.5 million and $141.5 million, representing approximately 40% adjusted EBITDA margins.

Some a large customer losses and the fourth quarter versus prior that also, uh, helped as well as the monitor. Uh, the monetization efforts we've been making on moving volumes to Total pay, uh, and monetizing some of that volume. Um, was a big driver uh, for for for coder and the B2B side.

Great. Thanks for the call, guys.

Yep.

Our next question comes from the line of James Fawcett with Morgan Stanley. You may proceed.

Hi, this is Charlie. Damasc are asking on behalf of James.

So, just on the M&A—you called out that recent improvements have allowed you to better digest potential M&A faster. So, on that, could you provide an update on what the pipeline looks like? You mentioned potentially new verticals, and is it more focused on the consumer versus the Business Payment side?

Robert Houser: We are confident in achieving a free cash flow conversion target of above 45%, which incorporates fluctuations in networking capital and the incremental interest payments associated with the recent $110 million draw on our revolving credit facility. Net interest expense is incorporated in our free cash flow. We expect interest expense to be approximately $15 million during 2026, which includes the interest payments associated with our 2029 convertible notes and a $110 million draw on our revolving credit facility. As a reminder, free cash flow conversion is calculated by dividing free cash flow by adjusted EBITDA.

Robert Houser: During Q1, our year-over-year growth is expected to be lower than the full year of 2026 outlook, as we have some implementations getting pushed out as several client wins in the back half of 2025 are set to go live later than initially expected and will be lapping against some annualized churn we experienced on the back half of last year. However, we are confident in the ramp of signed clients and strategic initiatives during the year, with the second half returning to strong double-digit normalized growth. We are also expected to benefit from a strong midterm election cycle, with the majority of political media contributions occurring during Q3 and Q4. Overall, we expect political media contributions to positively impact revenue by $8 million to $10 million, representing approximately three percentage points of reported growth year-over-year.

Hi, this is John. So, yes. We've always had a healthy pipeline, obviously, we haven't done any deals in the last really 3 years, but uh, the opportunity with Bill in both in consumer and business payments, uh, with the wreck selective, uh, investment opportunities for us. Uh, if we look at Partnerships, if we look at potential areas, that could drive New Vertical reach or additional uh, vertical reach for us, that would be complimentary to our existing 2 business units. Uh, both of those are possibilities. Uh, we're always looking for attractive opportunities for us to help reinvest and drive that would help us with our overall scale, but also help us with our ability to drive more long-term or organic growth as well.

Great, that's helpful. And then you mentioned a focus on organic growth investments as well. Could you speak to what you're most focused on investing in for '26? Whether that be—I know you focused on some sales support AI investments—if you could rank order what you're most focused on,

Robert Houser: Finally, from a capital deployment perspective in Q1, we will be making $15 million in TRA payments. In 2026, our capital allocation priorities are focused on creating long-term value while maintaining strong cash generation to support liquidity and financial flexibility. During 2026, we plan to deploy capital towards four key areas. Our first priority is with organic growth opportunities. We will continue to make targeted OpEx investments to strengthen our position and accelerate our growth potential for 2027 and beyond. We expect to allocate capital towards strategic M&A and partnerships to further boost existing and new vertical reach while increasing the long-term growth and cash flow for the company. We will maintain a prudent level of CapEx towards product and technology initiatives. We have $23 million remaining under our existing share repurchase program that we can use during 2026.

Sure. So from an organic perspective, it's continuously as you are aware our investments. This year will really be our our future growth for 27 and Beyond. So we're continuing to invest like we did last year and Enterprise sales. Uh, some of the go to market initiatives around social support uh some of the things that we want to do with as we use. As as I said earlier, in the call as we use AI to help Drive new product initiatives, like the voice AI the ivr uh voice AI that we're going to be rolling out. Uh some things would uh on on implementations. We want to to obviously continue. We think that there's a great opportunity for us to use AI. Both to help us streamline that simplify things, but also help our clients possibly Implement things as well faster.

Um, that's that's something we'll work on throughout the year and as we try to that'll help us drive even more scale. But some of the things that we're seeing as, as we drive, Automation, and increase some things with that, that's exciting for us. It does, that will help us as we scale, uh, especially if we, we did something around any kind of, uh, implementation on, on an inorganic perspective, that think that, we think that would allow us to to really bring that on board faster.

Great. Thank you.

Before we move on to our next question, as a reminder, if you'd like to ask a question, please press star and the number 1 on your keypad to enter the queue.

Robert Houser: Lastly, we have the financial flexibility to balance capital deployment towards organic investment, M&A, partnerships, and share buybacks with the potential to reduce our total debt outstanding. We are heading into 2026 with exciting progress and momentum. As a company, we are committed to implementing our capital allocation strategy and achieving our 2026 outlook with double-digit reported revenue growth and strong profitability. I'll now turn the call over to the operator to take your questions. Operator?

Our next question comes from Timothy Chiodo with UBS. You may proceed with your question.

Operator: Thank you. We will now be conducting a question-and-answer session. We ask that you please limit yourselves to one question and one follow-up. If you would like to ask a question, please press star and the number one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and the number two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for questions. Our first question comes from Mike Grondahl with Northland Securities. You may proceed with your question.

Great, thanks a lot. I want to follow up on a topic that we touched on in a prior earnings call. We talked a little bit about the CDT from Visa as far as it relates to the business payments portion of Repay's business. Clearly, there are two sides to that, right? There's our side and the AP side. We also saw when Visa reported, they had a nice growth rate for commercial revenue, potentially related to the CDP network fee addition. I was hoping you could talk a little bit about how things have evolved now that we're a little bit deeper into that program, both on the AR side—meaning your ability to meet the requirements to get the lower interchange, and how that's changing—and then on the AP side, how those receiving your card payments are adapting or not. And if you could...

Just talk about a little bit on both of those sides. Thank you, John.

Mike Grondahl: I was wondering if you could just spend a moment on kind of the major end markets, maybe auto and personal loans, and healthcare and mortgage, if you could, a little bit.

John Morris: Hi, Mike. Good afternoon. How are you today? Yes, this is John. From that perspective, what we see is consistent what we've seen in the Q4, what we see throughout last year. We see consistent, what trends that we saw last year on the auto and affordability constraints. That's relatively stable for what we have been seeing, so we still see that occurring in both auto and personal loans.

Hi Tim. Um, yes, great. Great questions. And yes, that's an initiative that as you're aware at least 1 of the card Brands, rolled out in late, January and specifically on the level 2 side, level 2, level 3, uh, getting into some details on how, how cards are qualified Etc, so that predominantly will, uh, affect uh, affects the r side of the world, uh, specifically on the receiving side and how our clients in, or how we can affect pricing around that as you probably are aware. Uh, asking that question, you aware that level 2 effectively is going away to level 3. Uh and and the even the the ability for the client side to gain and capture some of that has become a little bit more complex. Uh,

Mike Grondahl: Got it. Anything in healthcare or mortgage to call out in those markets?

John Morris: Very similar as well. We're not seeing anything that would be different than what we have been experiencing.

Mike Grondahl: Okay. Then any customer renewals in 2026, you know, we should be aware of that are coming up? Anything stick out there?

Uh, we have multiple ways to do virtual cards. Uh, you can have more than one brand that you issue from on that site. Uh, so our, our focus there would be to maximize, uh, our ability to monetize based on, uh, the overall, whichever brand or that we push those rails through or push those transactions through would often be optimized for us.

John Morris: Nothing major that we would not be in, inside of our guide that would not be standard on most of our contracts would be auto renewals in some ways, but nothing we wouldn't have already embedded into our guide.

Thank you, John.

Our next question comes from Pete, HCMan with DA Davidson. You may proceed.

Mike Grondahl: Okay, great. Congrats on the outlook and some growth. That's great.

John Morris: All right. Thanks, Mike.

Operator: Our next question comes from the line of Alex Newman with Stephens. Please proceed.

Alex Newman: Hi. Thanks for taking my question. Just quickly, anything on tax refunds? I know there's a lot of data out there saying average refunds are higher. Just any impacts, those are having on volumes and repayment activity.

John Morris: Hi, Alex. Yes, this is John. We have seen a tax refund season. We saw some volume in increase in the month of February. So far to date, we've found that to be at least we only see the payment volume, right? We don't actually see the gross tax refund other than we've seen some normal and this is a seasonal. This is on the consumer payment side. We do see seasonal uplift in our Q1 related to tax refunds. That appears to be relatively normal. Again, we don't see the total refund. We just see payments.

Thank you, good afternoon. I wanted to follow up on on the Business Payment segment and how you think about that business growing over the next couple of years. Do you, do you feel like that there's a sustainable level of got a high teens uh low 20s type organic growth possible from that business. And if so, like, how do you think about it in terms of signing up, you know, new end, clients new partners, uh, volume, how do you build up to that and then, um, just on the consumer side, uh, are there any of the of your larger initiatives that you had talked about, over the last, let's say, 18 months, some of the big new clients or or or big new initiatives that you'd expect to be outside contributors to uh, the consumer segments in 2026.

Alex Newman: Got it. If I could just quick question on B2B, just on the float income. Could you just dive into how much that contributed to growth, the margins, and where that float income is being generated from?

Robert Houser: Hi, Alex. This is Rob. The float is from our customer deposits in our B2B business. We don't typically comment on the exact amount of money, but it's a good portion. We in Q4 started collecting that interest on customer deposits in 2025. As we go into our guide into 2026, it's relatively stable. But it played a part of our strong results in Q4. We also for the B2B business, lapped some of a large customer losses in Q4 versus prior.

So, uh, hi. Hi Pete. This is Rob Howser. Um, uh, answering your first question around B2B. Um, and our guide, you know, we're, we had a strong fourth quarter. Um, but when you look at our, our business going forward in 2026, probably one way to think about it is somewhere in the high teens. Now, remember, this is a political, uh, political year. So we, as we called out, we, um, have strong—we have, we're expecting a political season, a midterm elections, and the third and fourth quarter is when that typically happens. And as we said on the call, that's around, uh, estimated around $8 to $10 million in revenue. Um, so this is a political year versus prior year, which wasn't, so you do have some of that lumpiness between presidential and midterm elections. But, um, we're, we're, we're, we're expecting, you know, uh,

When you think about this business on a normalized basis, you know, it's probably in the high-teens type of growth business for us.

Okay, and that's helpful. And then uh uh in terms of consumer are are any of those initiatives that we've talked about like the auto OEM the the mortgage uh solution? It, anything like that? They expect to be relative outside contributors to growth.

Robert Houser: That also helped, as well as the monetization efforts we've been making on moving volume to TotalPay, and monetizing some of that volume, was a big driver for Q4 in the B2B side.

Alex Newman: Great. Thanks for the color, guys.

Robert Houser: Yep.

Operator: Our next question comes from the line of James Faucette with Morgan Stanley. You may proceed.

No on, on in 2026 specifically, we have some uh, of those initiatives baked into our, our Outlook, uh, and then specifically on on mortgage. Um, that's a longer term, uh, pull through. That's taken us way longer than we expected as as I mentioned last year. Uh, but effectively both of those, uh, any kind of initiatives associated with both of those are baked into our, our 2026 forecast.

I appreciate it.

Shivani Damaskar: Hi, this is Shivani Damaskar asking on behalf of James. Just on the M&A, you called out that recent improvements have allowed you to better digest potential M&A faster. On that, could you provide an update on what the pipeline looks like? You mentioned potentially new verticals, is it more focused on the consumer versus business payment side?

There are no further questions at this time. This now concludes our question and answer session. I would like to turn the floor back over to John Morris for closing comments.

Thank you, everyone, for joining us today.

John Morris: Hi, Shivani. This is John. Yes, we've always had a healthy pipeline. Obviously, we haven't done any deals in the last really three years. The opportunity would be in both in consumer and business payments, with the right selective investment opportunities for us. If we look at partnerships, if we look at potential areas that could drive new vertical reach or additional vertical reach for us that would be complementary to our existing two business units. Both of those are possibilities. We're always looking for attractive opportunities for us to help reinvest and drive that would help us with our overall scale, but also help us with our ability to drive more long-term organic growth as well.

Repay exited 2025 with solid momentum. We are now looking toward the future by executing on our plan for double-digit reported growth in 2026, with the outlook to drive our long-term value for our clients and our shareholders.

Repay is built to scale and benefit from the opportunities ahead, and I look forward to sharing more on our progress throughout 2026 and beyond.

Thanks again for joining us.

Ladies and gentlemen, thank you for your participation. This concludes today's conference.

Disconnect your lines and have a wonderful day.

Shivani Damaskar: Great. That's helpful. You mentioned the focus on organic growth investments as well. Could you speak to what you're most focused on investing in for 2026? Whether that be, I know you focused on some sales support, AI investments, if you could rank order what you're most focused on.

John Morris: Sure. From an organic perspective, it's continuously, as you are aware, our investments this year will really be our future growth for 2027 and beyond. We're continuing to invest like we did last year in enterprise sales, some of the go-to-market initiatives around self-support, some of the things we wanna do with as we used, as I said earlier in the call, as we use AI to help drive new product initiatives like the voice AI, the IVR, voice AI that we're gonna be rolling out. Some things with, on implementations, we want to obviously continue. We think that there's a great opportunity for us to use AI both to help us streamline that, simplify things, but also help our clients possibly implement things as well faster.

John Morris: That's something we'll work on throughout the year, and that'll help us drive even more scale. Some of the things that we're seeing as we drive automation and increase some things with that's exciting for us. It will help us as we scale, especially if we did something around any kind of implementation on, from an inorganic perspective that we think that would allow us to really bring that on board faster.

Timothy Chiodo: Great. Thank you.

Operator: Before we move on to our next question, as a reminder, if you'd like to ask a question, please press star and the number 1 on your keypad to enter the queue. Our next question comes from Timothy Chiodo with UBS. You may proceed with your question.

Timothy Chiodo: Great. Thanks a lot. I wanna follow up on a topic that we touched on a prior earnings call. We talked a little bit about the CEDP from Visa. As far as it relates to the business payments portion of Repay's business, clearly there's two sides to that, right? There's the AR side and the AP side. We also saw when Visa reported they had a nice growth rate for commercial revenue potentially related to the CEDP network fee addition. I was hoping you could talk a little bit about how things have evolved now that we're a little bit deeper into that program, both on the AR side, meaning your ability to meet the requirements to get the lower interchange and how that's changing. Then on the AP side, how those receiving your card payments are adapting or not.

Timothy Chiodo: If you could, I guess, just talk about a little bit on both of those sides. Thanks, John.

John Morris: Hi, Tim. Yes, great questions. Yes, that's an initiative that, as you're aware, at least one of the card brands rolled out in late January, and specifically on the Level 2 side. Level 2, Level 3, getting into some details on how cards are qualified, et cetera. That predominantly will affect the AR side of the world, specifically on the receiving side and how our clients and/or how we can affect pricing around that. As you probably are aware, asking that question, you're aware that Level 2 effectively is going away to Level 3, and the even the ability for the client side to gain and capture some of that has become a little bit more complex. On that side of it, we should have...

John Morris: We would have some impact on our AR side of our B2B business related to that. On the AP side, we have multiple ways to do virtual cards. You can have more than one brand that you issue from on that side. Our focus there would be to maximize our ability to monetize based on the overall whichever brand or that we push those rails through or push those transactions through would be optimized for us.

Timothy Chiodo: Thank you, John.

Operator: Our next question comes from Pete Heckmann with D.A. Davidson. You may proceed.

Timothy Chiodo: Thank you. Good afternoon. I wanted to follow up on the business payment segment and how you think about that business growing over the next couple of years. Do you feel like that there's a sustainable level of kinda high teens, low 20s type organic growth possible from that business? If so, like, how do you think about it in terms of signing up, you know, new end clients, new partners, volume? How do you build up to that? Just on the consumer side, are there any of your larger initiatives that you had talked about over the last, let's say, 18 months, some of the big new clients or big new initiatives that you expect to be outsized contributors to the consumer segment in 2026?

John Morris: Hi, Pete. This is Rob Hauser. Answering your first question around B2B, in our guide, you know, we had a strong Q4, but when you look at our business going forward in 2026, probably one way to think about it is somewhere in the high teens. Now remember, this is a political year, so as we called out, we're expecting a political season and midterm elections in Q3 and Q4 when that typically happens. As we said on the call, that's estimated around $8 to 10 million in revenue. This is a political year versus prior year, which wasn't. You do have some of that lumpiness between presidential and midterm elections.

John Morris: We're expecting, you know, when you think about this business on a normalized basis, you know, it's probably in the high teens type of a growth business for us.

Timothy Chiodo: Okay. Then, that's helpful. Then, in terms of consumer, are any of those initiatives that we've talked about, like the auto OEM, the mortgage solution, anything like that you expect to be relative outsized contributors to growth?

John Morris: No. In 2026 specifically, we have some of those initiatives baked into our outlook. Specifically on mortgage, that's a longer term pull through that's taken us way longer than we expected, as I mentioned last year. Effectively both of those, any kind of initiatives associated with both of those are baked into our 2026 forecast.

Timothy Chiodo: Okay. I appreciate it.

Operator: There are no further questions at this time, and this now concludes our question-and-answer session. I would like to turn the floor back over to John Morris for closing comments.

John Morris: Thank you everyone for joining us today. Repay exited 2025 with solid momentum. We are now looking towards the future by executing on our plan for double-digit reported growth in 2026 to drive our long-term value for our clients and our shareholders. The Repay of tomorrow is built to scale and benefit from the opportunities ahead. I look forward to sharing more on our progress throughout 2026 and beyond. Thanks again for joining us.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today's conference. Please disconnect your lines and have a wonderful day.

Q4 2025 Repay Holdings Corp Earnings Call

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