Repay Holdings Corporation Q4 FY2025 earnings call

• Fourth quarter review: Repay closed the year with 10% revenue growth and 9% gross profit growth on a normalized basis, adjusted evidence margins at 41%, pre-tax flow conversion at 43%. The consumer payment segment had 8% revenue growth and 6% gross profit growth, with 189 consumer software partnerships and new integrations. The business payment segment had 41% normalized revenue growth and 73% gross profit growth, with the supplier network expanded to 602,000 suppliers. - 2025 achievements: Repay made changes like changing key executives, streamlining processes, deploying automation and AI, added 14 software partners and integrations, rolled out new product capabilities such as Dynamic Wallet, was recognized for Best Gateway Uptime and highest authorization rate, utilized AI for processes like reducing integration time and onboarding, and tested RepayVoice. - 2026 outlook: Well-positioned to continue momentum and support and optimize clients' digital payment flows.

In the fourth quarter, Repay achieved 10% revenue growth and 9% gross profit growth on a normalized year-over-year basis, with adjusted evidence margins of 41% and pre-tax flow conversion of 43%. The consumer payment segment saw 8% revenue growth and 6% gross profit growth year over year, having 189 consumer software partnerships and new integrations. The business payment segment had 41% normalized revenue growth and 73% gross profit growth in Q4 2025, with the supplier network increased to 602,000 suppliers and 105 software partners and embedded integrations. Specific revenue contributions of each segment relative to the total Q4 revenue of $78.6 million would be calculated as (consumer revenue / 78.6)*100 and (business payment revenue / 78.6)*100, but exact segment revenues are derived from the growth percentages mentioned.

• 2026 revenue is expected to be between $340 million and $346 million, with 10% to 12% reported revenue growth and 7% to 9% normalized revenue growth excluding political media business. - Adjusted EBITDA is expected to be between $136.5 million and $141.5 million, with approximately 40% adjusted EBITDA margins. - Free cash flow conversion target is above 45%, incorporating net working capital fluctuations and interest payments. - First quarter year-over-year growth is expected to be lower due to implementations being pushed out and lapping annualized churn, but the second half is expected to return to strong double-digit normalized growth. - Political media contributions are expected to positively impact revenue by $8 million to $10 million, representing approximately three percentage points of reported growth year over year. - Capital allocation priorities in 2026 include organic growth opportunities, strategic M&A and partnerships, prudent CapEx towards product and technology, and a share repurchase program with $23 million remaining.

Q: Wondering if you could spend a moment on major end markets, maybe auto and personal loans and health care and mortgage.

A: Consistent trends were seen, with auto and personal loans having affordability constraints, and health care and mortgage similar to past experience. There were no major customer renewals outside of what was already embedded in the guide.

Q: Anything on tax refunds, impact on volumes and repayment activity.

A: Saw a tax refund season with volume increase in February, and there was a seasonal uplift in the first quarter related to tax refunds on the consumer payment side, but only saw payment volume and it was relatively normal.

Q: On B2B, float income contribution to growth, margins, and where generated.

A: The flow was from customer deposits and the B2B business, it was a good portion in the fourth quarter and relatively stable in 2026, with lapped large customer losses and monetization efforts on moving volume to total pay being drivers.

Q: On M&A, update on pipeline, focus on consumer vs business payment side.

A: There was always a healthy pipeline, with opportunities in both consumer and business payments with selective investment opportunities, looking for attractive opportunities to drive growth.

Q: On organic growth investments in 2026, rank order.

A: Continuing to invest in enterprise sales, go-to-market initiatives, AI for new product initiatives like voice AI, and implementations to drive scale.

Q: Follow up on CEDP from Visa related to business payments, AR and AP sides.

A: The AR side was affected by level two to level three changes, and on the AP side there were multiple ways to do virtual cards, with focus on maximizing monetization.

Q: On business payment segment growth over next couple of years and consumer segment large initiatives.

A: The business payment segment was expected to have high teens growth, some consumer initiatives were baked into the 2026 forecast, and the mortgage solution was a longer-term pull-through baked into the forecast.