Repay Reports $153.4 Million in Revenue and Cuts 2026 Organic Growth Forecast
Key Facts
Repay reported results on November 9 for the quarter ended September 30, 2026, posting revenue of $153.4 million, up 97% year over year, and basic and diluted losses of $0.11 per share. Net loss was $10.403 million, compared with $6.617 million in the year-ago quarter, when loss per share was $0.08. The results combine strong growth in reported revenue with continuing losses, alongside a clear divergence between commercial and consumer payments performance. The company also cut its full-year adjusted organic revenue growth forecast and lowered its estimate for free cash flow conversion. It left its full-year revenue and adjusted EBITDA forecast ranges unchanged.
Organic revenue growth was 14% year over year, including a 9-percentage-point contribution from political media revenue. In commercial payments, revenue rose 99% year over year, while adjusted organic revenue growth was 40%, including a $3 million contribution from a bank reseller channel partnership. The company said commercial payments performance was exceptional and KUBRA grew above expectations. The figures show the impact of contributions from commercial activity and political media on overall growth, alongside adjusted organic growth in the commercial segment. Repay raised its estimate for annualized cost savings at the end of 2026 to $11 million, from $8 million previously, and said it was realizing the savings ahead of schedule.
By contrast, consumer payments revenue increased 91% year over year, but organic growth was only 0.3%. KUBRA contributed about $65 million in revenue during the quarter, highlighting the scale of its contribution to reported results. The CEO said KUBRA’s growth exceeded the company’s expectations, while organic growth in consumer payments fell short. In its disclosure, the company linked the cut to its annual growth forecast to results in its core consumer business, offset by strong political media spending within commercial payments. Overall revenue growth therefore diverged from the pace of organic growth in consumer payments, a gap reflected in the revised forecast.
Adjusted EBITDA was $50.9 million, compared with $36.3 million in the second quarter of 2026 and $31.2 million in the third quarter of 2025. But free cash flow was negative $21.1 million, which the company said reflected a $14 million investment in a bank reseller channel partnership. Net cash provided by operating activities fell to $9.9 million, from $40.2 million in the prior quarter and $32.2 million in the year-ago period. At quarter-end, net leverage was 3.8 times, while liquidity stood at about $164 million. Liquidity included $64 million in operating cash and an undrawn $100 million revolving credit facility.
The company cut its adjusted organic revenue growth forecast for fiscal 2026 to 5%-6%, from its previous range of 7%-9%. It also lowered its free cash flow conversion forecast to 20%-25%, from a previous estimate of 30%. By contrast, it kept its annual revenue range at $490-$500 million and its adjusted EBITDA forecast at $168.5-$176 million. The revision reflects a divergence between the path of total revenue and the adjusted organic growth outlook, alongside a lower cash conversion estimate. The CFO said weakness in core consumer payments results was offset by strong political media spending in commercial payments.
Repay said it remains on track to reduce net leverage to less than 3 times by the end of 2027. The company is scheduled to hold its Investor Day in New York on December 7, 2026, with presentations beginning at 10:00 a.m. Eastern Time. It said senior management will present its financial and strategic outlook and the company’s shared future with KUBRA. The presentations will be followed by a live question-and-answer discussion. RPAY shares had closed at $4.40 on November 6, before the results announcement.