Repay (RPAY) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue ranged from $75.6M to $77.7M, with sequential improvement in digital payment optimization and the addition of five new software partners, bringing the total to 291.

• Net loss for Q3 2025 was between $6.4M and $6.6M, compared to net income of $3.2M in Q3 2024, with a $103.8M goodwill impairment driving a nine-month net loss of up to $122.8M.

• Adjusted EBITDA for Q3 2025 was $31.2M (40% margin), down 11% year-over-year; adjusted net income was $18.2M ($0.21 per share), down 14%.

• Launched Dynamic Wallet for loan payments, expanded AI-driven automation, and continued investments in enterprise sales and customer support.

• Retired $73.5M of convertible notes and repurchased $15.6M in shares in Q3 2025, with $23M remaining under the repurchase program.

Financial highlights

• Q3 2025 revenue was $77.7M, gross profit was $57.8M, and gross profit margin was 74%, down from 78% in Q3 2024.

• Free cash flow was $20.8M, with a 67% conversion rate, down from 139% in Q3 2024.

• Net leverage was 2.5x as of September 30, 2025, with $95.7M–$96M cash and $434M total debt.

• Outstanding debt included $279.5M in convertible notes and $250M undrawn on the revolver.

• Adjusted EBITDA margin was 40%–40.2% for Q3 2025.

Outlook and guidance

• Q4 2025 normalized gross profit growth expected at 6–8%, with free cash flow conversion above 50%.

• Growth outlook is at the low end of the range due to margin pressures and lapping of one-off client losses.

• Management expects sufficient liquidity for operations and capital expenditures for at least the next year.

• 2026 guidance and capital allocation strategy to be provided in the next earnings call.