REPAY HOLDINGS CORP (NASDAQ:RPAY) Reports Mixed Q3 2025 Results, Misses Revenue and EPS Estimates

Repay Holdings Corp (NASDAQ:RPAY) reported its financial results for the third quarter of 2025, delivering a mixed performance against analyst expectations. The company, a provider of vertically-integrated payment solutions, saw its shares decline in after-market trading following the announcement, indicating a tempered investor response to the quarterly figures and forward-looking guidance.

Earnings and Revenue Versus Estimates

The company's top and bottom-line results presented a nuanced picture when measured against Wall Street's forecasts. REPAY reported revenue of $77.7 million for the quarter, which fell short of the analyst consensus estimate of $78.6 million. This represents a slight revenue miss of approximately 1.1%.

On the profitability front, the company reported a non-GAAP earnings per share (EPS) of $0.21. This figure came in just below the analyst estimate of $0.22 per share. The simultaneous miss on both key financial metrics appears to be a primary driver behind the negative initial market reaction.

Key financial comparisons for Q3 2025:

• Reported Revenue: $77.7 million
• Estimated Revenue: $78.6 million
• Reported Non-GAAP EPS: $0.21
• Estimated Non-GAAP EPS: $0.22

Market Reaction and Price Action

The market's immediate response to the earnings release was negative. In after-hours trading, the stock experienced a decline of approximately 2.4%. This price action suggests that investors were disappointed by the company's failure to meet quarterly expectations. The negative sentiment extends the stock's recent weak performance, which has seen declines over the past two weeks and month.

Press Release Highlights and Business Performance

Beyond the headline earnings and revenue figures, REPAY's earnings report highlighted several operational and strategic developments. Management emphasized "solid normalized growth" and "robust Free Cash Flow generation" during the quarter.

Key business highlights from the press release include:

• Normalized Growth: The company highlighted that when adjusting for the impact of cyclical political media spending and previously announced client losses, normalized revenue and gross profit grew by 5% and 1% year-over-year, respectively.
• Segment Performance: The Consumer Payments segment showed resilience with gross profit growth of 1%, while the Business Payments segment, excluding a specific client loss, demonstrated approximately 12% normalized gross profit growth.
• Strategic Initiatives: REPAY added five new integrated software partners, expanded its AP supplier network by 59% year-over-year to over 524,000, and saw instant funding volumes increase by 36%.
• Capital Management: The company noted it had deployed capital towards organic growth, repurchased shares, and retired a significant portion of convertible notes.

Forward Outlook and Analyst Comparisons

Looking ahead, REPAY provided refined guidance for the fourth quarter of 2025. The company expects normalized gross profit growth between 6% and 8% and anticipates Free Cash Flow Conversion to be above 50%. This outlook can be contrasted with the broader analyst expectations for the upcoming period.

Analyst estimates for Q4 2025 project revenue of $78.6 million and an EPS of $0.23. The company's gross profit growth guidance does not directly translate to a revenue forecast, making a precise comparison difficult. However, the market will be watching closely to see if the company's operational improvements can translate into top and bottom-line results that meet or exceed these estimates in the next quarter.

For a detailed breakdown of future earnings estimates and historical performance data for REPAY HOLDINGS CORP, you can review the available information here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for making an investment decision.