Repay Holdings Corporation Class A Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- REPAY Holdings Corporation reported second quarter 2026 revenue of $100.7 million, a 33% year-over-year increase including one month of Cooper acquisition contribution.
- Organic revenue growth was 6%, including approximately two points from political media, with consumer payments revenue up 33% year over year and 4% organic growth.
- Business payments revenue grew 32% year over year with normalized growth of approximately 19%, driven by onboarding new clients and monetizing ACH volume.
- Gross profit was $70.6 million with a 70% margin, down from 76% a year ago due to Cooper's lower margin mix, not pricing or competition.
- Adjusted EBITDA was $36.3 million, up 14% year over year, with margins at approximately 36%, reflecting one month of Cooper's margin impact.
- Adjusted net income was $17.9 million or $0.20 per share, and free cash flow was $27.4 million, up 21% year over year, with 75% free cash flow conversion.
- Cooper contributed approximately $21 million in revenue in June, growing around 6% in Q2 and expected to grow mid-single digits for the year.
- The company realized over $4.5 million of annualized run rate synergies exiting Q2, on track to achieve $8 million by end of 2026 and $20 million plus by 2028.
- REPAY's AP supplier network grew 65% year over year to over 731,000 vendors, supporting business payments growth.
- The company is deploying AI tools across functions to accelerate platform unification and improve software partner connectivity.
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Transcript
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Good afternoon. I'd like to welcome everyone to Repay Holdings Corporation's second quarter 2026 earnings call. This call is being recorded. August 10, 2026. I'd like to turn the session over to Stewart Grisante, Head of Investor Relations at Repay. Stuart, you may begin. Thank you.
Good afternoon, and welcome to Repay's second quarter 2026 earnings conference call. With us today are John Morris, Co-founder and Chief Executive Officer, and Rob Houser, Chief Financial Officer. During this call, we will be making forward-looking statements about our beliefs and estimates regarding future events and results. Those forward-looking statements are subject to risks and uncertainties, including those set forth in the SEC filings related to today's results and in our most recent Form 10-K. Actual results may differ materially from any forward-looking statements that we make today. Forward-looking statements speak only as of today, and we do not assume any obligation or intend to update them except as required by law. In an effort to provide additional information to investors, today's discussion will also reference certain non-GAAP financial measures.
Reconciliations and other explanations of those non-GAAP financial measures can be found in today's press release and in the earnings supplement, each of which are available on the company's IR site. With that, I will now turn the call over to John.
Thanks, Stuart. Good afternoon, everyone, and thank you for joining us today. It has been an exciting and busy time for Repay. During the second quarter, we delivered revenue growth of 33% and achieved approximately 6% organic revenue growth while generating $27.4 million of free cash flow, a 75% conversion. During this time, management has been focused on core growth, clients, and operational execution across the company. Our most significant corporate development this year was completing the KUBRA acquisition in June. We immediately began executing on the integration, building on the groundwork we had laid in the months leading up to closing. Repay is now fully positioned to be a leading consumer bill payment and communication services platform in the U.S. and Canada. On a pro forma basis, Repay essentially doubled the revenue of the company, while also now reaching over $130 billion of annualized payment volume.
Repay is at the center of the client's experience in essential services and high-priority payments. Historically, billers had to assemble the pieces from separate providers. We can now offer a complete end-to-end digital bill pay platform, bill design and presentment, communications, core processing, and a clearing and settlement engine across verticals and clients. In doing so, we believe Repay is the only company able to offer this full end-to-end platform for our clients. We are already seeing this in practice. In the first month of owning KUBRA, executive management has been on the road completing multiple client visits with several of our largest enterprise clients. Existing Repay and KUBRA clients are actively engaged with us in expanding bill presentment, payments, and B2B capabilities. Repay clients are asking about bill design and presentment capabilities, while KUBRA clients are asking about expanding their payment channels and modalities. KUBRA also deepened our distribution.
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