Repay Q1 2025 Earnings Report
Key Takeaways
REPAY reported a decrease in revenue and net loss for the first quarter of 2025 compared to the previous year. Gross profit also declined. Adjusted EBITDA and Free Cash Flow also decreased year-over-year. The company announced the conclusion of its strategic review process and an increase in its share repurchase program authorization.
Revenue for Q1 2025 was $77.3 million, a 4% decrease year-over-year.
Net loss for Q1 2025 was $8.2 million, compared to a net loss of $5.4 million in Q1 2024.
Adjusted EBITDA was $33.2 million in Q1 2025, down from $35.5 million in Q1 2024.
Free Cash Flow was -$8.0 million in Q1 2025, a significant decrease from $13.7 million in Q1 2024.
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Forward Guidance
For fiscal year 2025, the Company expects sequential quarterly acceleration of normalized gross profit growth, including a fourth quarter year-over-year growth rate of high-single digits to low double-digits. Free cash flow conversion is expected to exceed 50% in the second quarter, accelerating above 60% by the fourth quarter of 2025.
Positive Outlook
- Sequential quarterly acceleration of normalized gross profit growth.
- Fourth quarter year-over-year normalized gross profit growth rate of high-single digits to low double-digits.
- Free cash flow conversion expected to exceed 50% in the second quarter.
- Free cash flow conversion accelerating above 60% by the fourth quarter of 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income