8-K: Repay Holdings Reports Preliminary Q1 2026 Results, Raises FY2026 Outlook

Repay Holdings Corporation announced preliminary Q1 2026 financial results, showing revenue growth and a raised full-year Adjusted EBITDA outlook, driven by strong performance in its Business Payments segment and a strategic partner buyout.

Summary

• Repay Holdings Corporation (RPAY) released preliminary unaudited financial results for the first quarter ended March 31, 2026.
• Revenue is projected to be between $80.5 million and $81.0 million, a 4% increase year-over-year.
• Consumer Payments revenue grew approximately 4% year-over-year, while Business Payments revenue saw a significant increase of approximately 18% year-over-year.
• Adjusted EBITDA is expected to range from $33.8 million to $34.3 million, with Adjusted EBITDA margins around 42%.
• Free Cash Flow is anticipated to be between $5.0 million and $5.5 million, representing approximately 15% Free Cash Flow Conversion.
• The company completed a buyout of a strategic distribution partner during the quarter, which included a one-time cash payment and a positive impact on Adjusted EBITDA.
• Repay Holdings is raising its full-year 2026 Adjusted EBITDA outlook to $141 million - $146 million, while reiterating its revenue and Free Cash Flow Conversion outlooks.
• The updated full-year 2026 outlook does not include any contributions from the pending KUBRA acquisition.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive filing due to the raised full-year EBITDA outlook and strong performance in the Business Payments segment, despite preliminary and unaudited results.

Positives

• Strong year-over-year revenue growth, particularly in the Business Payments segment (18%).
• Raised full-year 2026 Adjusted EBITDA outlook, indicating improved profitability expectations.
• Achieved high Adjusted EBITDA margins of approximately 42% in Q1 2026.
• Positive impact on Adjusted EBITDA from the buyout of a strategic distribution partner.
• Maintained Free Cash Flow Conversion outlook for the full year.
• Preliminary Q1 revenue growth of 4% year-over-year.

Negatives

• Free Cash Flow Conversion for Q1 2026 is at approximately 15%, which is lower than the full-year target of 45%, attributed to seasonality and working capital timing.
• The preliminary results are unaudited and subject to completion of customary financial closing procedures, meaning final results could differ.

Risks

• Exposure to economic conditions and political risk affecting the consumer loan market, receivables management industry, and consumer/commercial spending.
• Potential impact of bank failures or adverse events affecting financial institutions.
• Inflationary pressures and general economic slowdown or recession.
• Changes in the payment processing market, including competitive landscape, technology evolution, or regulatory changes.
• Changes in the vertical markets targeted by REPAY, including the regulatory environment for clients.
• Risks related to data security.
• The ability to retain, develop, and hire key personnel.
• Risks related to REPAY's relationships within the payment ecosystem.

Future Outlook

Repay Holdings is raising its full-year 2026 Adjusted EBITDA outlook to $141 million - $146 million, implying an improvement to approximately 42% Adjusted EBITDA margins. The company is reiterating its outlook for Revenue ($340 - $346 million) and Free Cash Flow Conversion (45%). The 2026 outlook does not include any contributions from the pending KUBRA acquisition.

Management Comments

• The company is raising its full year 2026 Adjusted EBITDA outlook.
• REPAY is now expecting the following financial results for full year 2026: Revenue $340 - $346 million, Adjusted EBITDA $141 - $146 million, Free Cash Flow Conversion 45%.

Industry Context

StockSavvy.ai notes that Repay Holdings' preliminary Q1 2026 results and raised full-year outlook, particularly the strong growth in Business Payments, align with broader trends of increasing digital payment adoption across various industries. The company's focus on vertically-integrated solutions positions it to capitalize on specific market needs.

Stakeholder Impact

• Shareholders: Potential positive impact due to raised full-year Adjusted EBITDA outlook and strong preliminary Q1 performance, suggesting improved profitability and value.
• Employees: May benefit from company growth and potential positive impact on incentive compensation tied to financial performance.
• Customers: Continued provision of integrated payment solutions, with growth in Business Payments indicating successful service delivery.
• Suppliers/Creditors: Company's improved financial outlook may enhance its ability to meet obligations.

Next Steps

• Release full financial results for the first quarter of 2026 after market close on Monday, May 4, 2026.
• Host a conference call on May 4, 2026, at 5:00 pm ET to discuss Q1 results.

Key Dates

Recommendation

The preliminary results are positive with a raised EBITDA outlook and strong business payments growth. However, the results are unaudited, and the full financial details are yet to be released. The company also faces significant forward-looking risks. Therefore, a 'hold' recommendation is prudent pending the full financial report and further analysis of the KUBRA acquisition.

Keywords

Repay Holdings, RPAY, 8-K, Preliminary Results, Adjusted EBITDA, Revenue Growth, Payment Solutions, Financial Outlook