Q2 2026 Repay Holdings Corp Earnings Call

August 10, 2026

Speaker #1: Good afternoon. I'd like to welcome everyone to Repay Holdings Corporation's second quarter 2026 earnings call. This call is being recorded. Today is August 10, 2026. I'd like to turn the session over to Stewart Grisante, Head of Investor Relations at Repay.

Operator: Good afternoon. I'd like to welcome everyone to Repay Holdings Corporation's Q2 2026 earnings call. This call is being recorded 10 August 2026. I'd like to turn the session over to Stewart Grisante, Head of Investor Relations at Repay. Stewart, you may begin.

Operator: Good afternoon. I'd like to welcome everyone to REPAY Holdings Corporation's Q2 2026 Earnings Call. This call is being recorded 10 August 2026. I'd like to turn the session over to Stewart Grisante, Head of Investor Relations at REPAY. Stewart, you may begin.

Speaker #1: Stewart, you may begin.

Speaker #2: 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.

Stewart Grisante: Thank you. Good afternoon, and welcome to Repay's Q2 2026 earnings conference call. With us today are John Morris, Co-founder and Chief Executive Officer, and Rob 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.

Stewart Grisante: Thank you. Good afternoon, and welcome to REPAY's Q2 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 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.

Speaker #2: 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 risk and uncertainties, including those that forth in the SEC filings related to today's results, and in our most recent Form 10-K.

Speaker #2: 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.

Stewart Grisante: 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.

Speaker #2: 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.

Stewart Grisante: 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 Stuart.

Speaker #2: Each of which are available on the company's IR site. With that, I will now turn the call over to John.

Speaker #3: 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.

John Morris: Thanks, Stuart. Good afternoon, everyone, and thank you for joining us today. It has been an exciting and busy time for Repay. During Q2, 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.

Speaker #3: 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 Cooper acquisition in June.

Speaker #3: 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.

John Morris: 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 the center of the client's experience in essential services and high-priority payments. Historically, billers had to assemble the pieces from separate providers.

Speaker #3: 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 has been at the center of the client experience in essential services and high-priority payments.

John Morris: Repay is 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 are 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.

Speaker #3: Historically, billers had to assemble the pieces from separate providers, which 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.

John Morris: 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 are 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.

Speaker #3: In doing so, we believe Repay is the only company able to offer this full end-to-end platform for our clients. We are already seeing this in practice.

Speaker #3: In the first month of owning Cooper, executive management has been on the road completing multiple client visits with several of our largest enterprise clients.

Speaker #3: Existing Repay and Cooper 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 Cooper clients are asking about expanding their payment channels and modalities.

John Morris: 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.

Speaker #3: Cooper also deepened our distribution. We now reach 352 software partners across our verticals, 54 of which came with Cooper. Improving existing integrations and expanding partners helps deepen our clients' relationships and drive new client wins into the future.

John Morris: 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 payment 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 one 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.

Speaker #3: 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.

John Morris: 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 payment 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 one of closing KUBRA.

Speaker #3: We also welcomed Rick Watkins to our executive management team to lead Cooper's verticals. As expected with an acquisition of this size, integration planning has been a top priority for the company.

Speaker #3: And we have hit the ground running since day one of closing Cooper. Within the first 30 days, the integration team has reviewed, implemented, and completed the integration of Cooper into Repay's operating structure.

John Morris: 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.

Speaker #3: 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.

John Morris: 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.

Speaker #3: Platform unification is off to a strong start. Several of our largest clients have volunteered as early adopters of the upgraded Cooper platform, with several net new clients already live on it.

Speaker #3: Over the next 18 to 24 months, we will be executing on production readiness and a phased upgrade to optimize Cooper's clients' experience with Repay's payment capabilities and backend RCS engine.

John Morris: 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.

Speaker #3: 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.

John Morris: 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.

Speaker #3: 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.

John Morris: 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%.

Speaker #3: 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.

Speaker #3: In consumer payments, Q2 revenue increased approximately 33% year over year, with contributions from Cooper, 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.

John Morris: 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.

Speaker #3: 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.

John Morris: 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.

Speaker #3: 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.

Speaker #3: 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.

John Morris: 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.

Speaker #3: We also completed a proof of concept with stablecoin and successfully processed payments using the Stellar network. Repay is anywhere, anyway, anytime philosophy is built around giving our clients all the capabilities and payment options for customer choice.

Speaker #3: Our Business Payment segment had a fantastic quarter in Q2, with 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.

John Morris: 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. 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 are 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.

Speaker #3: Business Payments has 108 software partners, driving a 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.

Speaker #3: 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.

Speaker #3: So across Repay, we saw sustained growth momentum and the 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, where 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.

John Morris: 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 are 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.

Speaker #3: 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.

John Morris: 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 H2 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, 7 December. 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, one of our largest long-term shareholders, and he brings more than two decades of experience investing in and advising companies across the payments and fintech industries.

Speaker #3: 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.

Speaker #3: 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 7th.

Speaker #3: And finally, I wanted to welcome Zach Sitak to our board of directors as an independent director. Zach is a senior partner at Parthenon Capital Partners, one of our largest long-term shareholders, and he brings more than two decades of experience investing in and advising companies across the payments and fintech industries.

John Morris: 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, one of our largest long-term shareholders, and he brings more than two 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?

Speaker #3: With that, I will now turn the call over to Rob to go over Repay's Q2 financials. Rob?

John Morris: With that, I will now turn the call over to Rob to go over Repay's Q2 financials. Rob?

Speaker #2: Thank you, John, and good afternoon, everyone. In the second quarter, our financial performance across key metrics including organic Repay and the contributions from Cooper performed in line with our expectations.

Operator 2: Thank you, John, and good afternoon, everyone. In the Q2, 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 one month of KUBRA. Organic revenue growth was 6%, which includes approximately two 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.

Robert Houser: Thank you, John, and good afternoon, everyone. In the Q2, 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 one month of KUBRA. Organic revenue growth was 6%, which includes approximately two 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.

Speaker #2: Revenue was 100.7 million dollars, up 33% year over year, including one month of Cooper. Organic revenue. Growth was 6%, which includes approximately 2 points of contribution from political media.

Speaker #2: Consumer payments revenue increased 33% year over year, with organic growth of 4%, driven by the ongoing ramp of enterprise clients across our key auto and personal finance verticals.

Speaker #2: 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.

Robert Houser: 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 Payment 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.

Speaker #2: Within the consumer payments segment, Cooper contributed approximately 21 million dollars in revenue during June, representing approximately 5% year over year revenue growth within Cooper's utilities, government, and insurance verticals.

Operator 2: Within the Consumer Payment 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.

Speaker #2: After owning Cooper for a few months, our beliefs have been confirmed in Cooper'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.

Robert Houser: 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.

Speaker #2: During the quarter, Cooper 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.

Speaker #2: 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.

Robert Houser: 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.

Speaker #2: The strong business payments growth was driven by onboarding several new clients as we gained 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.

Operator 2: 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 mixed effect from KUBRA, whose vertical product and payment mix, including print and mail and professional services, carries a lower gross margin than core Repay.

Speaker #2: 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 benefited from higher political spending from primaries in this year's election cycle, but also from new political media clients compared to prior cycles.

Robert Houser: 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.

Speaker #2: 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 a 76% margin a year ago.

Speaker #2: I want to be direct about the change in margin as it's likely to be misread. The change is almost entirely a mixed effect from Cooper, whose vertical product and payment mix including print and mail and professional services carries a lower gross margin than core Repay.

Robert Houser: The change is almost entirely a mixed 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.

Speaker #2: 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 dollars, representing 14% year over year growth.

Operator 2: 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.

Speaker #2: 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.

Robert Houser: 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.

Speaker #2: The reported Q2 margin reflects a one-month impact from Cooper'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 Cooper.

Speaker #2: 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 dollars.

Speaker #2: Our integration team is hard at work executing on our plans for over 8 million dollars in run-rate cost savings exiting 2026, and over 20 million dollars in operating and capex synergies plus revenue opportunities exiting 2028.

Operator 2: 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 one-time 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 three components. First, revenue opportunities.

Robert Houser: 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%.

Speaker #2: Second quarter adjusted net income was 17.9 million dollars, or 20 cents per share. Free cash flow was 27.4 million dollars, up 21% year over year, representing 75% free cash flow conversion.

Speaker #2: Adjusted free cash flow, which excludes 1.9 million dollars of technology, merger, and integration costs, was approximately 29.3 million dollars, and adjusted free cash flow conversion was 81%.

Speaker #2: This is a metric I'd like to point out as we work through the integration. It isolates underlying cash generation from the one-time cost of capturing synergies.

Robert Houser: This is a metric I'd like to point out as we work through the integration. It isolates underlying cash generation from the one-time 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 three 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.

Speaker #2: Let me put some numbers around what John described, because the integration is ultimately a cash flow story. Our value creation roadmap has three components.

Speaker #2: First, revenue opportunities. We will increase penetration across all verticals with a complete end-to-end digital bill pay platform and extend Cooper's bill presentment and communication services into Repay's existing consumer payments client base.

Operator 2: 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. 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.

Speaker #2: 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.

Robert Houser: 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. 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.

Speaker #2: 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.

Speaker #2: The run-rate benefit builds through 2027 and 2028 as platform upgrades are completed and legacy environments are retired. These synergy plans are identified, tangible, and assigned within each workstream, and are actively tracked against milestones.

Robert Houser: 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.

Speaker #2: 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.

Operator 2: 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 secured term loan priced at SOFR plus 5.5%. At the end of Q2, pro forma synergized net leverage was approximately 3.7 times. Deleveraging is a clear priority. We are targeting net leverage to be below 3 times within 18 months. The path is straightforward.

Speaker #2: 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.

Speaker #2: We ended the quarter with 84 million dollars of operating cash on the balance sheet. Plus an undrawn 100 million dollar revolving credit facility that provides flexibility.

Speaker #2: Our capital structure now consists of $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%.

Robert Houser: Our capital structure now consists of $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%. At the end of Q2, pro forma synergized net leverage was approximately 3.7 times. Deleveraging is a clear priority. We are targeting net leverage to be below 3 times 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.

Speaker #2: At the end of Q2, pro forma synergized net leverage was approximately 3.7 times. Deleveraging is a clear priority, we are targeting net leverage to be below three times within 18 months.

Speaker #2: The path is straightforward. Continued free cash flow generation, and the adjusted EBITDA contribution from Cooper, and the synergies we just walked through. Repay has reduced leverage following prior acquisitions, and we intend to do it again.

Operator 2: 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 H1 behind us, we are confident in achieving our outlook. We are reiterating our full year 2026 outlook we provided when KUBRA acquisition closed on 1 June, 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.

Robert Houser: Repay has reduced leverage following prior acquisitions, and we intend to do it again. With a strong H1 behind us, we are confident in achieving our outlook. We are reiterating our full year 2026 outlook we provided when KUBRA acquisition closed on 1 June, 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.

Speaker #2: With a strong first half behind us, we are confident in achieving our outlook. We are reiterating our full year 2026 outlook that we provided when the Cooper acquisition closed on June 1st, which incorporates seven months of Cooper contribution.

Speaker #2: We continue to expect revenue of 490 million dollars to 500 million dollars, representing approximately 60% reported growth, and 10 to 12% organic revenue growth.

Speaker #2: We expect normalized revenue growth of 7% to 9%, which excludes political media contributions and Cooper. We continue to expect between $8 million and $10 million in political media revenue during the full year.

Robert Houser: 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 that 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.

Speaker #2: We expect adjusted EBITDA to be between 168.5 million dollars and 176 million dollars, representing approximately 35% margins. Free cash flow conversion is expected to be 30%.

Operator 2: 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 that 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 number one priority remains operational execution.

Speaker #2: 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.

Speaker #2: Which includes the interest payments associated with our convertible notes and new term loan. In our 2026 outlook, Cooper is expected to contribute between $150 million and $154 million in revenue and approximately $27.5 million to $30 million in adjusted EBITDA.

Robert Houser: 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.

Speaker #2: 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.

Speaker #2: For the remainder of 2026, we will continue to deploy capital toward these priorities while unlocking synergies, streamlining operations, and identifying additional combined growth opportunities.

Speaker #2: Our number one priority remains operational execution. The integration team is dedicated to incorporating Cooper into Repay, going forward, while vertical leaders continue to focus on core operations without distraction.

Robert Houser: Our number one 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 3 times. The combined free cash flow generation and confidence in synergy realization provided management comfort in obtaining our net leverage target.

Operator 2: 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 3 times. 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. With the groundwork laid out during the H1 of the year, progress has started to become evident as we move into the H2 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.

Speaker #2: Over the next 18 months, we are committed to a disciplined capital allocation and returning net leverage to below three times. The combined free cash flow generation and confidence in synergy realization provided management comfort in obtaining our net leverage target.

Speaker #2: 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.

Robert Houser: 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. With the groundwork laid out during the H1 of the year, progress has started to become evident as we move into the H2 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: We have the integration governance and the platform roadmap for value creation opportunities with Cooper. With that, I'll turn the call over to the operator to take your questions.

Operator 2: We have the integration governance and the platform roadmap for value creation opportunities with KUBRA. With that, I will turn the call over to the operator to take your questions. Operator?

Robert Houser: With that, I will turn the call over to the operator to take your questions. Operator?

Speaker #2: Operator?

Speaker #1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press *1 on your telephone keypad.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 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, please, while we poll for questions. Our first question is from Joseph Vafi with Canaccord. Please proceed with your question.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start keys. One moment, please, while we poll for questions.

Speaker #1: Our first question is from Joseph Vaffy. With Canaccord. Please proceed with your question.

Speaker #3: Everyone, good evening. Thanks for taking my questions. Nice results, and maybe congrats on Cooper—Cooper is showing some nice looks, like pro forma growth. Could you walk us through the Cooper pro forma growth in the quarter, and whether that is actually incorporated into your organic growth in consumer? Maybe you could just drill down a little bit more on some of these cross-sell opportunities, which look like they could be a good driver here in consumer. And then I have a quick follow-up.

Joseph Vafi: Hey, everyone. Good evening. Thanks for taking my questions. Nice results. Congrats on KUBRA and KUBRA showing some nice, looks like, pro forma growth. Could you walk us through the KUBRA pro forma growth in the quarter, and if that is actually incorporated into your organic growth in consumer, and maybe 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. A quick follow-up.

Speaker #2: Yes, sure. Hey Joe, it's Rob. Thanks for the question. Yeah, so for the quarter, Cooper grew around 6% within Q2, and on a full half-year pro forma, it's around 5%.

Rob Houser: Yeah, sure. Hey, Joe. It is Rob. Thanks for the question. Yeah. So for the quarter, KUBRA grew around 6% within Q2, and on a full H1 pro forma, it is around 5%. 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. When we talk about our consumer organic growth, excluding political media, 4%, that is 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.

Robert Houser: Yeah, sure. Hey, Joe. It is Rob. Thanks for the question. Yeah. So for the quarter, KUBRA grew around 6% within Q2, and on a full H1 pro forma, it is around 5%. 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. When we talk about our consumer organic growth, excluding political media, 4%, that is 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.

Speaker #2: And we expect it pro forma to continue to grow in the mid single digits for the rest of the year. It's part of our guide.

Speaker #2: When we talk about our consumer organic growth—excluding political media—at 4%, that's without Cooper. 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.

Speaker #3: Great. Nice to see that rebound. And then just to drill down on that a little bit, if you could kind of kind of frame the growth, same store sales versus new logos.

Joseph Vafi: Great. Nice to see that rebound. Just to drill down on that a little bit, if you could frame the growth, same-store sales versus new logos. I know you were talking about some new ramps, but where that growth came from. I guess, it feels like there should be follow-through on it if those are new volume levels or new customers that are ramping. Thanks.

Speaker #3: I know you were talking about some new ramps, but where did that growth come from? And I guess it feels like there should be follow-through on it if those are new volume levels or new customers that are ramping up.

Speaker #3: Thanks.

Speaker #2: Sure. So within Q2, we're starting to see new ramp come in, and that was driving our organic growth of 4% on our consumer business.

Rob Houser: Sure. Within Q2, we are starting to see new ramp come in. That was driving our organic growth of 4% in our consumer business. I will talk consumer first, then I can shift over to B2B, then talk KUBRA. Our outlook for the back half of the year around consumer is we continue to see new clients go live and ramp. We are going to see that ramp up pretty substantially as we go into Q3 and really exit the year in our core consumer business at double-digit growth. If you look at our B2B business around, again, I am just going to talk organic first, 19% growth in the quarter excluding our NPI business. We think, as we look through the rest of the year, that is going to grow out at roughly the mid-teens, as we think about the rest of the year.

Robert Houser: Sure. Within Q2, we are starting to see new ramp come in. That was driving our organic growth of 4% in our consumer business. I will talk consumer first, then I can shift over to B2B, then talk KUBRA. Our outlook for the back half of the year around consumer is we continue to see new clients go live and ramp. We are going to see that ramp up pretty substantially as we go into Q3 and really exit the year in our core consumer business at double-digit growth. If you look at our B2B business around, again, I am just going to talk organic first, 19% growth in the quarter excluding our NPI business.

Speaker #2: I'll talk consumer first and then I can shift over to B2B and then talk Cooper. 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 and our consumer core consumer business at double digit growth.

Speaker #2: And then if you look at our B2B business, again I'm going to talk organic first—19% growth in the quarter, excluding our MPI business.

Speaker #2: 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.

Robert Houser: We think, as we look through the rest of the year, that is going to grow out at roughly the mid-teens, as we think about the rest of the year. If you look at our B2B business and what the growth was driven by in quarter, roughly 60% of the growth was around what we have been talking about for the last two quarters, converting and monetizing some of that big ACH volume that came into our TotalPay platform. The remaining, say 40% of the growth, was around brand new clients coming on board. So ramp on new clients. We continue to see that out through the rest of the year.

Speaker #2: And if you look at our B2B business and what the growth was driven by in the quarter, roughly 60% of the growth was around what we've been talking about for the last two quarters—converting and monetizing some of that big ACH volume that came into our TotalPay platform.

Rob Houser: If you look at our B2B business and what the growth was driven by in quarter, roughly 60% of the growth was around what we have been talking about for the last two quarters, converting and monetizing some of that big ACH volume that came into our TotalPay platform. The remaining, say 40% of the growth, was around brand new clients coming on board. So ramp on new clients. We continue to see that out through the rest of the year. Our NPI, on a reported basis, we still were guiding the 8 million to 10 million for the year. We had a good H1 because of the primaries. So H1 of the year, we are around the 3 million-ish range. We are still projecting our 8 million to 10 million for the end of the year. So, pretty good growth on that side.

Speaker #2: And then the remaining, say, 40% of the growth was around brand-new clients coming on board—so ramp on new clients—and we continue to see that out through the rest of the year.

Speaker #2: Our MPI, on a reported basis, we still were guiding to $8 to $10 million for the year. We had a good first half because of the primaries.

Robert Houser: Our NPI, on a reported basis, we still were guiding the 8 million to 10 million for the year. We had a good H1 because of the primaries. So H1 of the year, we are around the 3 million-ish range. We are still projecting our 8 million to 10 million for the end of the year. So, pretty good growth on that side. 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. That is a nice, steady, consistent, reoccurring, non-discretionary payment mix that does not have a ton of seasonality in it.

Speaker #2: And so first half of the year, we're around the 3 millionish range. And we're still projecting our 8 to 10 million for the end of the year.

Speaker #2: So pretty good growth on that side. And then when you look at Cooper, the nice thing about Cooper is if we pro forma our total company, 40% of our company now is utility and government business.

Rob Houser: 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. That is a nice, steady, consistent, reoccurring, non-discretionary payment mix that does not have a ton of seasonality in it. So again, the KUBRA is going to continue to grow at around that mid-single digit range for the year. Hopefully that frames it out for you a little bit.

Speaker #2: And that's a nice, steady, consistent, recurring, non-discretionary payment mix that doesn't have a ton of seasonality in it. So again, Cooper is going to continue to grow at around that mid-single digit range for the year.

Robert Houser: So again, the KUBRA is going to continue to grow at around that mid-single digit range for the year. Hopefully that frames it out for you a little bit.

Speaker #2: So hopefully that frames it out for you a little bit.

Speaker #4: Yeah, Joe, this is John. Good evening. I'll add a couple more things to that. One is, highlight the 731,000—the size of our vendor network on our B2B.

John Morris: Yeah, Joe, this is John. Good evening. I will add a couple more things to that. 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 has 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. I think one of your questions was also some of the revenue opportunities.

Speaker #4: 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.

Speaker #4: 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.

Speaker #4: That's a good indicator of some strength ahead of us as well. And I think one of your questions was also about some of the revenue opportunities.

Speaker #4: Although we don't want to get too far ahead of ourselves, we have some early indicators of our ability to extend some of the Cooper bill pay and bill presentment and communication services over to some of the existing Repay client base.

John Morris: Although we do not want to get too far ahead of ourselves, some early indicators are our ability to extend some of the KUBRA 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 are very excited about that. We hope to be able to talk more about that as we come through our first quarter of full ownership here in Q3. Some early good signs there.

Speaker #4: Kind of the email services, some of the bill presentment pieces of that. There's some strengths with the Cooper platform that we know we can offer to a larger consumer payments original repay base.

Speaker #4: 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.

Speaker #4: But there are some early good signs there.

Speaker #3: Great. Thanks very much, guys.

Joseph Vafi: Great. Thanks very much, guys.

Speaker #2: Thank you.

Rob Houser: Thank you.

Robert Houser: Thank you.

Speaker #1: Once again, if you would like to ask a question, please first press one on your telephone keypad. Our next question is from Peter Heckman.

Operator: Once again, if you would like to ask a question, please press star one on your telephone keypad. Our next question is from Peter Heckmann with D.A. Davidson. Please proceed with your question.

Speaker #1: With D.A. Davidson. Please proceed with your question.

Speaker #5: Hey, good afternoon, gentlemen. Sorry for the delay on the buzz in. In terms of that Cooper 6% growth year over year and the impact on margin, I guess you've previously guided to about mid-single-digit growth in Cooper.

Peter Heckmann: Hey. Good afternoon, gentlemen. Sorry for the delay on the buzz in. In terms of the KUBRA 6% growth year over year and the impact to margins, I think you've previously guided to about mid-single-digit growth in KUBRA, and that's encouraging. But in terms of margins, can 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?

Speaker #5: And that's encouraging. But in terms of margins, I guess you talk about maybe the aspirational goals of where you think you can get Cooper's margins over the next, let's say, three to four years?

Speaker #2: Yeah, so thanks, Peter. So, out of the gate, we said Cooper is EBITDA margins roughly around the 20% range. And those synergy targets that we've been talking about, we feel really confident about. We identified the $4.5 million exiting Q2 on an annualized basis.

Rob Houser: Yeah. Thanks, Peter. Out of the gate, we said KUBRA is even on margins roughly around the 20% range. And those synergy targets that we've been talking about, and we feel really confident about it, 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. A lot of that focus is going to be around cost realization between some redundancies we find in some areas as we sunset some of the older technology and bring on our new unified platform. We're going to realize those savings.

Robert Houser: Yeah. Thanks, Peter. Out of the gate, we said KUBRA is even on margins roughly around the 20% range. And those synergy targets that we've been talking about, and we feel really confident about it, 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.

Speaker #2: And we're going after the $8 million plus for the year. As we really go out to 2028, we've committed to $20 million plus on margins.

Speaker #2: 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 some of the older technology and bring on our new unified platform.

Robert Houser: A lot of that focus is going to be around cost realization between some redundancies we find in some areas as we sunset some of the older technology and bring on our new unified platform. We're going to realize those savings. 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 get a choice. It takes them some time to migrate.

Speaker #2: We're going to realize those savings. And part of what we've talked about, even on the call, is that our confidence level in driving those savings and driving that margin improvement is very high.

Rob Houser: 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 get a choice. 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. I think that's the way I would model it out. We'll provide, obviously, a lot more detail at our future outlook at our Investor Day on 7 December. But hopefully, that gives you some visibility.

Speaker #2: Even as clients get a choice, and it takes them some time to migrate—even if there's any kind of a slow and paced process—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.

Robert Houser: 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. I think that's the way I would model it out. We'll provide, obviously, a lot more detail at our future outlook at our Investor Day on 7 December. But hopefully, that gives you some visibility.

Speaker #2: 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 7th.

Speaker #2: But hopefully that gives you some visibility.

Speaker #6: Yeah, Peter, good evening, John. I would, as you see how the blended margins come through for all of consumer payments, which includes the Cooper, 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.

John Morris: Yeah. Peter, good evening. It's John. As you see how the blended margins come through for all of consumer payments, which includes KUBRA, that blended margin, especially as you look through our forecast for the rest of the year, that's where we're thinking it's going to be. 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.

Speaker #6: And then on a when you look at the synergies of synergies as Rob indicated, we'll be coming through there. So the margins themselves will be increasing as we pull those synergies through on an actual basis.

Speaker #5: 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 active related intangibles, would you expect that to be 25, 26 for yeah, about 25, 26 for the third quarter or?

Peter Heckmann: Great. Good to hear. Then just a little bit of more housekeeping or modeling detail, and forgive me if you've already mentioned this, but the amortization of acquisition-related intangibles, would you expect that to be about 25, 26 for Q3, or do you have a full quarter estimate for that amortization yet?

Speaker #5: Do you have a full quarter estimate for that amortization yet?

Speaker #2: Yeah, for sure. Roughly in that range is probably—you’re thinking about it in the right way.

Rob Houser: Yeah, roughly in that range is probably you're thinking about it in the right way.

Robert Houser: Yeah, roughly in that range is probably you're thinking about it in the right way.

Speaker #5: Okay. Okay, great. And then similarly, just in terms of are you expecting any real significant change to stock-based comp for the year?

Peter Heckmann: Okay, great. Then similarly, just in terms of, are you expecting any real significant change to stock-based comp for the year?

Speaker #2: No. No, we're not.

Rob Houser: No. No, we're not.

Robert Houser: No. No, we're not.

Speaker #5: Okay, okay. Got it. All right, I'll get back to the queue. I appreciate it.

Peter Heckmann: Okay. Got it. All right, I'll get back in the queue. I appreciate it.

Speaker #2: Yeah, no problem.

Rob Houser: Yeah, no problem.

Robert Houser: Yeah, no problem.

Speaker #1: Once again, if you would like to ask a question, please first start one on your telephone keypad. Our next question is from Joseph Baffy with Canaccord.

Operator: Once again, if you would like to ask a question, please press star one on your telephone keypad. Our next question is from Joseph Vafi with Canaccord. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Hey 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.

Joseph Vafi: Hey, 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 wondering if you could drill down on the free cash flow conversion in the quarter. Thanks.

Speaker #3: I was actually thinking it would be a little lower this quarter, given the acquisition of Cooper and perhaps some expenditures focused on cost synergies there.

Speaker #3: So we could drill down on the free cash flow conversion in the core. Thanks.

Speaker #2: Sure. Joe, coming off Q1, we were at 16%. So, some of it's working capital—just timing of working capital—and free cash flow conversion of both the combined businesses.

Rob Houser: Sure. Joe, coming off of Q1, we were at 16%. Some of it's working capital, just timing of working capital and free cash flow conversion of both the combined businesses. We only had one month of KUBRA, remember, in the quarter, but good, strong cash flow conversion. 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 one 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'll have a full effect of that for six months, which will step us down as well as we talked about some of those synergy savings.

Robert Houser: Sure. Joe, coming off of Q1, we were at 16%. Some of it's working capital, just timing of working capital and free cash flow conversion of both the combined businesses. We only had one month of KUBRA, remember, in the quarter, but good, strong cash flow conversion. 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 one 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.

Speaker #2: We only had one month of Cooper, remember, in the quarter, but good strong cash flow conversion. But it's mostly working capital related. And 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 Cooper one 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 be that we that we'll have.

Speaker #2: So you have a full effect of that for six months, which will step us down, as well as, as we talked about, some of those synergy savings. There will 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%.

Robert Houser: So you'll have a full effect of that for six months, which will step us down as well 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%. It was really just driven through just timing of working capital, and we came off a lower number on Q1.

Rob Houser: 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%. It was really just driven through just timing of 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.

Speaker #2: But it was really just driven by timing or working capital. And we came off a lower number in Q1. But again, I can't reiterate it enough.

Robert Houser: 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.

Speaker #2: And we've said that, since we were looking at Cooper, that the cash flow conversion and cash generation—it's really a cash story of the combined company.

Speaker #2: And we're pretty happy with that generation. And focusing on paying down our debt with that.

Speaker #3: Great. Thanks, Rob.

Joseph Vafi: Great. Thanks, Rob.

Speaker #2: Yep.

Rob Houser: Yep.

Robert Houser: Yep.

Speaker #6: All right.

John Morris: Right.

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.

Speaker #1: 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.

Speaker #6: Thank you, operator. And thank you, everyone, for joining us today. With the acquisition of Cooper completed and a solid first half to our year so far, we are very excited and positioned where we are for the rest of this year ahead of us.

John Morris: Thank you, operator, and thank you, everyone, for joining us today. With the acquisition of KUBRA completed and a solid H1 to our year so far, we are very excited where we are positioned for the rest of this year ahead of us. Our focus on the H2 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 a continued progress next quarter. Thanks again for joining us.

Speaker #6: Our focus on the second half is on a discipline 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.

Speaker #6: We look forward to updating you on 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.

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