One-glance verdict
Within fair range
$6.97 our estimate vs market $3.83
Wall Street consensus: $6.85 (-1.7% lower than our fair-value estimate)
45% below our estimate
Fundamentals snapshot
Repay Holdings Corporation
RPAY · NCM · Technology · Software - Infrastructure
Current price
$3.83
52-week range
$2.30 - $6.00
Market cap
$337.75M
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: 16.2%).
What this company does
Repay Holdings Corporation
Repay Holdings builds the technology that allows businesses, especially lenders for things like car or personal loans, to accept digital payments from their customers. The company makes money by taking a small fee every time someone makes a payment, which can create predictable revenue (the total money a company brings in from sales) because people consistently have to pay their bills. By specializing in these industries, Repay's payment systems become a deeply integrated and essential tool for its clients.
How the company got here
Repay Holdings Corporation was founded in 2006 as a payment processing company. A key turning point was in 2019 when it merged with a special purpose acquisition company (a company created specifically to buy another company) called Thunder Bridge Acquisition, Ltd., which allowed Repay to become a publicly traded company on the stock market. Since then, it has grown by acquiring other companies in the payments industry to expand its services and reach more customers. This strategy has helped it become a significant player in providing technology that helps businesses and consumers make and receive electronic payments.
What it actually does
Repay provides the technology that allows businesses to accept electronic payments from their customers. Think of it as the digital plumbing that connects a business's software to the financial system so that payments can be made with a credit card, debit card, or directly from a bank account (a process called ACH). They offer various ways for customers to pay, such as through a website, a mobile app, by text message, or even over the phone using automated voice systems. Repay specializes in industries where these payment systems need to be integrated directly into the software the business already uses, making the payment process smoother for everyone.
Consumer Payments
This is the largest part of Repay's business, making up the majority of its revenue (the total money it brings in). This segment focuses on helping businesses that collect regular payments from people, like personal loan companies, auto lenders, and mortgage servicers. When a person makes a car payment online or pays a medical bill through a patient portal, it's often Repay's technology working in the background to process that transaction. The businesses in these industries pay Repay fees based on the number and size of the payments they process.
Business Payments
This is a smaller but growing part of the company that helps businesses pay each other. Instead of a company writing and mailing thousands of paper checks to its suppliers, Repay offers a way to automate these payments electronically. This can include using virtual credit cards (a one-time use card number for security) or sending money directly between bank accounts. Businesses in areas like hospitality, media, and healthcare pay Repay to use this service because it saves them time and makes their payment processes more efficient.
What management is betting on now
The company's leadership is focused on continuing to grow by integrating their payment technology directly into the software that other businesses use, which makes their service very sticky and hard to replace. They are also putting a lot of effort into expanding their Business Payments segment, seeing it as a major area for future growth. Additionally, Repay is investing in new technologies, like artificial intelligence for phone payments, to make the payment experience even easier and more conversational for customers. Management has also indicated they are open to strategic opportunities, which could include buying other companies or other actions to increase the value for their shareholders (the people who own the company's stock).
Price history
How the share price has moved
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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 $6.97 vs current price $3.83
Wall Street consensus is the average analyst price target: $6.85 (-1.7% lower than our fair-value estimate).
Our most-likely fair value is $6.97 a share — about 82.0% away from today's price of $3.83, so the stock currently looks fairly priced.
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: 16.2%).
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)
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Forward P/E
3.29x
P/B
0.67x
P/S
1.00x
EV/EBITDA
13.70x
PEG ratio
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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
-2.19
EPS 5Y CAGR
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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
—
Payout ratio
0.0%
Last ex-div date
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