Repay (RPAY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 33% year-over-year to $100.7 million, with 6% organic growth and significant contributions from the KUBRA acquisition and political media spending.

• Adjusted EBITDA increased 14% year-over-year to $36.3 million, with a 36% margin; free cash flow rose 21% to $27.4 million, with a 75% conversion rate.

• Net loss improved to $11.0 million from a prior-year loss of $102.3 million, reflecting the absence of goodwill impairment and ongoing cost savings.

• Completed the KUBRA acquisition in June, contributing $20.8–$21 million in revenue for the month and expanding the partner network.

• Integration of KUBRA is progressing rapidly, with $4.5 million in annualized run rate synergies realized and a target of $8 million by end of 2026 and $20+ million by 2028.

Financial highlights

• Q2 2026 revenue: $100.7 million (up 33% year-over-year); organic revenue growth was 6%.

• Consumer Payments revenue: $93.7 million (up 33% year-over-year, 4% organic), with KUBRA contributing $20.8–$21 million.

• Business Payments revenue: $14.5 million (up 32% year-over-year, 19% normalized growth excluding political media).

• Gross profit: $70.6 million (70% margin), down from 76% a year ago due to KUBRA's lower-margin mix.

• Adjusted net income: $17.9 million ($0.20 per share); free cash flow: $27.4 million, up 21% year-over-year.

Outlook and guidance

• Full-year 2026 outlook: revenue of $490–$500 million (approx. 60% reported growth, 10–12% organic), normalized revenue growth of 7–9% (excluding political media in KUBRA).

• Adjusted EBITDA expected between $168.5–$176 million (approx. 35% margin); free cash flow conversion expected at 30%, adjusted free cash flow conversion at 35%.

• KUBRA expected to contribute $150–$154 million in revenue and $27.5–$30 million in Adjusted EBITDA for 2026.

• Net leverage targeted below 3x within 18 months, down from 3.7x at Q2 end.

• Management expects continued growth from new and existing clients and further integration of KUBRA.