Fintech firm Repay beats Q2 revenue estimates

Overview

• Repay Q2 revenue rises to $75.6 mln, beating analyst expectations, per LSEG data

• Co reports $108 mln net loss due to $103.8 mln goodwill impairment

• Adjusted EBITDA of $31.8 mln misses analyst estimates

• Repurchased 4.8 mln shares for $22.6 mln during Q2

Outlook

• Repay reiterates 2025 outlook for Q4

• Company expects Free Cash Flow Conversion above 60% by Q4 2025

• Repay anticipates high-single to low double-digit gross profit growth in Q4

Result Drivers

• GOODWILL IMPAIRMENT - $103.8 mln impairment in Consumer Payments segment due to client losses and market changes

• STRATEGIC INVESTMENTS - Co deployed strategic investments to accelerate growth, per CEO John Morris

• SUPPLIER NETWORK EXPANSION - AP supplier network increased by 47% year-over-year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Repay Holdings Corp is $7.00, about 26.4% above its August 8 closing price of $5.15

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nBw1wXzNra