One-glance verdict
Undervalued
$9.47 our estimate vs market $4.03
Wall Street consensus: $6.85 (-27.7% lower than our fair-value estimate)
57% below our estimate, below the bear case
Fundamentals snapshot
Repay Holdings Corporation
RPAY · NCM · Technology · Software - Infrastructure
Current price
$4.03
52-week range
$2.30 - $5.25
Market cap
$355.38M
Balance sheet
Distressed
-0.86x Concerning
Net debt $689.18M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 9.2% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Return on equity was -31.8% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 12.2% (peer median: 16.4%).
What this company does
Repay Holdings Corporation
Repay Holdings creates the software that allows businesses to accept electronic payments, like when you pay a car loan or a medical bill online. It primarily serves industries that handle loans and debt collection, earning a small fee from every single transaction it processes for them. This focus on essential and often repeating bills can create a predictable stream of income for the company.
How the company got here
Repay was founded in 2006 by its current CEO, John Morris, and Shaler Alias to provide payment processing technology. The company initially focused on specific industries with unique payment needs. A major turning point came in 2019 when it merged with a special purpose acquisition company (a company created to raise money and buy another business) and became publicly traded on the Nasdaq stock exchange. Since then, Repay has grown by acquiring other companies, such as Kontrol Payables and KUBRA, to expand the types of business and consumer payments it can handle.
What it actually does
Repay provides the technology that allows businesses to accept electronic payments from their customers in many different ways. Think of it as the digital plumbing that connects a business's software to a customer's bank account or credit card. This includes processing debit and credit cards, as well as direct bank transfers, also known as ACH (Automated Clearing House) payments. Customers can pay through various channels like a website, a mobile app, by text message, or even over the phone through an automated system. Repay makes this process smoother for both the business and the person paying.
Consumer Payments
This is the company's largest business segment, making up the majority of its revenue (the total money it brings in from sales). It focuses on helping businesses that lend money to people, like personal and auto loan companies, collect their payments electronically. For example, when someone makes a car payment online, Repay's technology is often working behind the scenes to move the money. This segment also serves industries like credit unions, mortgage servicers, and healthcare providers.
Business Payments
This part of the company helps businesses pay each other. It provides services like automating accounts payable (the money a company owes to its suppliers) and processing payments between companies. For instance, a construction company might use Repay's software to pay its various suppliers for materials automatically. This segment serves a wide range of industries including automotive, education, healthcare, and hospitality.
What management is betting on now
Repay is focused on growing by expanding its services for business-to-business payments and by making strategic acquisitions. The company recently acquired KUBRA, a company that helps utilities and government agencies send bills and receive payments, which significantly expands its reach into new markets. Management is also investing in technology like artificial intelligence (AI) to improve its services, such as a new system that allows customers to make payments over the phone by having a natural conversation with a virtual agent. The company is also conducting a strategic review to find the best ways to grow and increase value for its shareholders (the people who own the company's stock).
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$59.85M
FY2024 Q4
$34.05M
FY2025 Q1
$2.36M
FY2025 Q2
$33.00M
FY2025 Q3
$32.10M
FY2025 Q4
$23.23M
FY2026 Q1
$16.70M
FY2026 Q2
$38.06M
Revenue
$100.70M
Net income
$-10.99M
Diluted EPS
-0.13
Operating cash flow
$40.24M
Free cash flow
$38.06M
Fetching…
Sources
Revenue
$80.79M
Net income
$-9.94M
Diluted EPS
-0.12
Operating cash flow
$16.82M
Free cash flow
$16.70M
Fetching…
Sources
Revenue
$78.58M
Net income
$-140.11M
Diluted EPS
-1.68
Operating cash flow
$23.32M
Free cash flow
$23.23M
Fetching…
Sources
Revenue
$77.72M
Net income
$-6.41M
Diluted EPS
-0.08
Operating cash flow
$32.23M
Free cash flow
$32.10M
Fetching…
Sources
Revenue
$75.63M
Net income
$-102.25M
Diluted EPS
-1.15
Operating cash flow
$33.06M
Free cash flow
$33.00M
Fetching…
Sources
Revenue
$77.33M
Net income
$-7.95M
Diluted EPS
-0.09
Operating cash flow
$2.50M
Free cash flow
$2.36M
Fetching…
Sources
Revenue
$78.27M
Net income
$-4.12M
Diluted EPS
-0.04
Operating cash flow
$34.25M
Free cash flow
$34.05M
Fetching…
Sources
Revenue
$79.14M
Net income
$3.24M
Diluted EPS
0.03
Operating cash flow
$60.06M
Free cash flow
$59.85M
Fetching…
Sources
Is it cheap or expensive?
Fair value $9.47 vs current price $4.03
Wall Street consensus is the average analyst price target: $6.85 (-27.7% lower than our fair-value estimate).
Our most-likely fair value is $9.47 a share — about 135.1% above today's price of $4.03, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $689.2M. Interest coverage -0.9x.
Net debt
$689.18M
Interest coverage
-0.86x
Repay Holdings Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
RPAY
BASELINE
Repay Holdings Corporation
Total debt $772.84M Interest coverage -0.86x This is the baseline the peer rows are being compared against.
Total debt $1.05B Interest coverage 1.56x This peer still has a real interest-payment cushion, while RPAY does not.
Total debt $1.47M Interest coverage 5.67x This peer still has a real interest-payment cushion, while RPAY does not.
Total debt $5.71M Interest coverage 2.76x This peer still has a real interest-payment cushion, while RPAY does not.
What you should know
The case for and against RPAY
2 Rewards
2 Risks
Rewards
-
Revenue grew 9.2% last year.
-
Free cash flow was positive in 9/10 years.
Risks
-
Return on equity was -31.8% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 12.2% (peer median: 16.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
3.79x
P/B
0.71x
P/S
1.05x
EV/EBITDA
13.93x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
73.5%
Operating margin
-3.2%
Net margin
-49.6%
ROE
-31.8%
ROA
-0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.65x
Current ratio
1.45x
Quick ratio
1.03x
Total debt
$772.84M
Total cash
$83.66M
Growth
How the business has been compounding
Revenue TTM
$337.81M
Revenue 5Y CAGR
9.0%
EPS TTM
-1.99
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$112.61M
Free CF TTM
$90.83M
FCF margin
26.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
—