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Jun 30
Repay Q2 2025 Earnings Report
Repay reported its second quarter 2025 financial results, showing sequential improvement in growth and strong free cash flow conversion.
Key Takeaways
REPAY delivered a mixed second quarter in 2025, with revenue slightly up year-over-year but a significant net loss primarily due to a goodwill impairment. Despite the loss, the company demonstrated strong free cash flow conversion and made strategic investments, including share repurchases, while reiterating its full-year outlook for accelerating growth.
Revenue for Q2 2025 was $75.6 million, a 1% increase year-over-year.
The company reported a net loss of $108.0 million, primarily driven by a $103.8 million non-cash goodwill impairment loss related to the Consumer Payments segment.
Adjusted EBITDA for the quarter was $31.8 million, and Free Cash Flow Conversion improved sequentially to 71%.
REPAY repurchased 4.8 million shares for $22.6 million during Q2, and a total of $38 million in 2025 through August 11th.
Repay
Repay
Repay Revenue by Segment
Revenue by Segment
Consumer Payments Revenue
CapyFin.comBusiness Payments Revenue
CapyFin.com Forward Guidance
REPAY reiterates its previously provided outlook for fiscal year 2025, expecting sequential quarterly acceleration of normalized gross profit growth and Free Cash Flow Conversion to accelerate above 60% by the fourth quarter of 2025.
Positive Outlook
- Sequential quarterly acceleration of normalized gross profit growth expected.
- Fourth quarter year-over-year normalized gross profit growth rate expected to be high-single digits to low double-digits.
- Free Cash Flow Conversion expected to accelerate above 60% by the fourth quarter of 2025.
- Building momentum from strategic initiatives to accelerate growth exiting the year.
- Continued focus on improving go-to-market, implementation pipelines, and operational excellence.
Challenges Ahead
- Does not provide quantitative reconciliation of forward-looking non-GAAP financial measures to GAAP.
- Future uncertainties may significantly impact calculations of forward-looking measures.
- Providing precise forward-looking measures may be confusing or misleading.
- Risks related to economic conditions and political risk affecting consumer loan market and spending.
- Changes in the payment processing market, including competitive landscape, technology evolution, or regulatory changes, could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income