Overview

* Repay Q2 revenue rises to $75.6 mln, beating analyst expectations, per LSEG data

* Co reports $108 mln net loss due to $103.8 mln goodwill impairment

* Adjusted EBITDA of $31.8 mln misses analyst estimates

* Repurchased 4.8 mln shares for $22.6 mln during Q2

Outlook

* Repay reiterates 2025 outlook for Q4

* Company expects Free Cash Flow Conversion above 60% by Q4 2025

* Repay anticipates high-single to low double-digit gross profit growth in Q4

Result Drivers

* GOODWILL IMPAIRMENT - $103.8 mln impairment in Consumer Payments segment due to client losses and market changes

* STRATEGIC INVESTMENTS - Co deployed strategic investments to accelerate growth, per CEO John Morris

* SUPPLIER NETWORK EXPANSION - AP supplier network increased by 47% year-over-year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $75.60 $73.60

Revenue mln mln (6

Analysts

)

Q2 Net -$108

Income mln

Q2 Miss $31.80 $32 mln

Adjusted mln (6

EBITDA Analysts

)

Q2 Gross $57.20

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for Repay Holdings Corp ( RPAY ) is $7.00, about 26.4% above its August 8 closing price of $5.15

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)