Repay Holdings Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported GAAP revenue for Q3 2026 was $153.4 million, a 97% year-over-year increase from $77.7 million in Q3 2025.
• Organic revenue growth was 14% year-over-year, with a 9-point contribution from political media revenue.
• Adjusted EBITDA for Q3 2026 was $50.9 million, compared to $31.2 million in Q3 2025.
• Net loss for Q3 2026 was $10.4 million, compared to a net loss of $6.6 million in Q3 2025.
• Net cash provided by operating activities for Q3 2026 was $9.9 million, down from $32.2 million in Q3 2025.
• Free cash flow for Q3 2026 was $(21.1) million, compared to $20.8 million in Q3 2025.
• Free cash flow conversion for Q3 2026 was (41)%, compared to 67% in Q3 2025.
• Net leverage was 3.8x at quarter-end.
• Liquidity was approximately $164 million, consisting of $64 million in operating cash and an undrawn $100 million revolving credit facility.
• Total gross profit for Q3 2026 was $99.5 million with a gross profit margin of 65%, compared to $57.8 million and 74% in Q3 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue outlook remains $490 million to $500 million.
• Full-year 2026 organic revenue growth outlook remains 10% to 12%.
• Full-year 2026 normalized organic revenue growth outlook is updated to 5% to 6%, down from the prior 7% to 9%.
• Full-year 2026 Adjusted EBITDA outlook remains $168.5 million to $176 million.
• Free cash flow conversion target for 2026 is updated to 20% to 25%, down from 30%.
• Adjusted free cash flow conversion target for 2026 is updated to 25% to 30%, down from 35%.
• The company expects to reduce net leverage below 3.0x by year-end 2027.
• Expected annualized cost synergy run-rate exiting 2026 is raised to $11 million, up from the prior guidance of $8 million.

Business Segments and Product Lines:

• Consumer Payments revenue grew 91% year-over-year to $137.0 million; organic revenue growth was 0.3%.
• Business Payments revenue grew 99% year-over-year to $23.9 million; normalized organic revenue growth was 40%.
• Business Payments results included a $3 million contribution from an investment in a bank reseller channel partnership.
• KUBRA contributed approximately $65 million in revenue, representing 8% year-over-year growth.
• The company now has over 350 software partners across Consumer and Business Payments verticals, including over 50 partners from the KUBRA acquisition.
• The AP supplier network accelerated to over 878,000, an increase of approximately 68% year-over-year.

Market and Competitive Landscape:

• Political media revenue contributed 9 points to total organic revenue growth in Q3 2026 due to the 2026 election cycle.
• The bank reseller channel partnership investment is expected to be a meaningful contributor going forward.

Risks and Challenges:

• Consumer Payments reported organic revenue growth that did not meet expectations, prompting deliberate initiatives to improve competitive positioning.
• Cash flow generation was adversely impacted by the timing of net working capital related to political media, the bank channel partnership, and KUBRA professional services receivables, expected to reverse by year-end.
• Free cash flow was negatively impacted by a $14 million investment in the bank reseller channel partnership.
• Forward-looking statements note risks including the inability to integrate KUBRA, disruption of customer relationships, activist stockholder actions, and economic conditions affecting consumer and commercial spending.

Management Commentary and Tone:

• John Morris, CEO, stated that Business Payments delivered exceptional results, KUBRA grew ahead of expectations, and cost synergies are being realized ahead of schedule.
• Robert Houser, CFO, reiterated the full-year revenue and Adjusted EBITDA outlook while updating organic growth and free cash flow conversion targets to reflect the bank channel partnership investment.
• Management expressed confidence in the ability to drive durable and long-term growth across the diversified business model.

Other Key Points:

• The company acquired KUBRA, which contributed $65 million in Q3 2026 revenue and is a primary driver of the 97% total revenue growth.
• A $19 million bank channel partnership investment is planned for the second half of the year, impacting free cash flow targets.
• The company reported a $138.9 million goodwill impairment loss in Q4 2025 related to the Consumer Payments segment.
• The company has a Tax Receivable Agreement liability with a fair value change of $1.995 million in Q3 2026.
• Capital expenditures for the nine months ended September 30, 2026, totaled $55.3 million, including $52.3 million in capitalized software development costs and $348.2 million for the acquisition of KUBRA.
• Long-term debt issuance of $610 million occurred in the nine months ended September 30, 2026.