Repay Q1 revenue rises, adjusted EBITDA beats on new clients & payment channels growth

Overview

• U.S. payment solutions provider's Q1 revenue grew 4% yr/yr, slightly missing analyst expectations

• Adjusted EBITDA for Q1 beat analyst expectations

• Company attributes growth to new enterprise clients and digital wallet adoption

Outlook

• Repay expects 2026 revenue between $340 mln and $346 mln

• Company raises 2026 Adjusted EBITDA outlook to $141 mln-$146 mln

• Repay expects 2026 free cash flow conversion of 45%

Result Drivers

• NEW CLIENTS & PAYMENT CHANNELS - Co said growth was driven by implementing new enterprise clients adopting more payment channels and modalities

• DIGITAL WALLET ADOPTION - Co reported strong interest in its Digital Wallet capabilities as a growth driver

• BUSINESS PAYMENTS SEGMENT - Business Payments revenue grew 18% yr/yr, outpacing Consumer Payments, per segment results

Company press release: ID:nBw7pZ7cVa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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 81.3% above its May 1 closing price of $3.86

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

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