Repay Cuts Full-Year Normalized Organic Growth Outlook

The Tip Desk · November 9, 2026 · 3 min read

Third-quarter revenue reached $153.4 million as Consumer Payments organic growth stalled and the company lowered normalized organic growth to 5%-6%.

Repay Holdings Corporation (RPAY), a provider of bill payment solutions, reported third-quarter revenue of $153.4 million, up 97% from a year earlier, after $100.7 million in the second quarter.

Organic revenue growth was 14% year-over-year, including a 9-point contribution from political media revenue, versus 6% organic growth in the second quarter. Chief Executive Officer John Morris said Business Payments delivered exceptional results, KUBRA grew ahead of expectations, and the company is capturing cost synergies ahead of schedule.

Consumer Payments, the larger of the two reportable segments, generated $137.0 million of revenue, up 91% from $71.7 million a year earlier. Organic revenue growth in that segment was 0.3%, or 0% in the company’s organic-growth reconciliation, after 33% reported and 4% organic growth in the second quarter. Morris said Consumer Payments organic revenue growth did not meet expectations and that the company is implementing deliberate initiatives to improve competitive positioning.

Business Payments revenue was $23.9 million, up 99% from $12.0 million a year earlier. Normalized organic revenue growth in the segment was 40%, or 5% in the organic-growth reconciliation, after 32% reported and 19% normalized organic growth in the second quarter. Results included a $3 million contribution from an investment in a bank reseller channel partnership, which the company said it expects to be a meaningful contributor going forward.

KUBRA, acquired in June, contributed approximately $65 million of revenue in the third quarter, representing 8% year-over-year growth, versus approximately $21 million for June 2026 in the second-quarter report. The company said it is realizing KUBRA cost synergies ahead of plan and now expects to exit 2026 at an annualized cost synergy run-rate of $11 million, compared with prior guidance of $8 million.

Adjusted EBITDA was $50.9 million, versus $36.3 million in the second quarter. Total gross profit margin was 65%, versus 74% in the year-ago quarter. Net loss was $10.4 million, or $0.11 a share attributable to the company, versus a $6.6 million loss, or $0.08 a share, a year earlier.

Free cash flow was ($21.1) million, reflecting a $14 million investment in the bank reseller channel partnership, versus $27.4 million in the second quarter. Free cash flow conversion was (41)%. Net cash provided by operating activities was $9.9 million. Cash flow generation of $9.6 million was adversely impacted by the timing of net working capital related to political media, the bank channel partnership and KUBRA professional services receivables, which the company said it expects to reverse by year-end.

Net leverage was 3.8x at quarter-end. Liquidity was approximately $164 million, including $64 million in operating cash plus an undrawn $100 million revolving credit facility. The company said it remains on track to reduce net leverage below 3.0x by year-end 2027.

The company reiterated full-year 2026 revenue of $490 million to $500 million, organic revenue growth of 10% to 12%, and adjusted EBITDA of $168.5 million to $176 million. Chief Financial Officer Robert Houser said that given results within core Consumer Payments, which were offset by strong political media spend revenue within Business Payments, the company now expects normalized organic revenue growth in the 5% to 6% range, versus 7% to 9% prior. Free cash flow conversion targets were updated from 30% to a range of 20% to 25%, and adjusted free cash flow conversion from 35% to 25% to 30%, reflecting a $19 million bank channel partnership investment in the second half of the year.

The company now reaches over 350 software partners across Consumer and Business Payments verticals, including more than 50 partners from the KUBRA acquisition. The accelerated AP supplier network was over 878,000, an increase of approximately 68% year-over-year.