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

Repay Holdings Corporation announced its first quarter 2026 financial results, reporting revenue growth and reiterating its updated 2026 Adjusted EBITDA outlook.

Summary

• Repay Holdings Corporation reported financial results for the first quarter ended March 31, 2026.
• Revenue for Q1 2026 was $80.8 million, a 4% increase year-over-year.
• Net loss for the quarter was $10.0 million, compared to a net loss of $8.2 million in Q1 2025.
• Adjusted EBITDA was $34.4 million, an increase from $33.2 million in Q1 2025.
• Net cash provided by operating activities was $16.8 million, up from $2.5 million in the prior year.
• Free Cash Flow was $5.4 million, an improvement from a negative $8.0 million in Q1 2025.
• The company reiterated its full-year 2026 outlook for revenue between $340-$346 million and Adjusted EBITDA between $141-$146 million.
• The company is working towards closing the KUBRA acquisition in the second quarter.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a cautiously optimistic report, with solid operational execution and a reiterated positive outlook, tempered by a net loss and a decrease in Free Cash Flow Conversion.

Positives

• Revenue increased by 4% year-over-year to $80.8 million.
• Adjusted EBITDA grew to $34.4 million, up from $33.2 million in the prior year.
• Net cash provided by operating activities significantly increased to $16.8 million from $2.5 million.
• Free Cash Flow turned positive at $5.4 million, a substantial improvement from -$8.0 million in Q1 2025.
• Business Payments revenue grew by 18% year-over-year.
• The AP supplier network accelerated to over 665,000, a 70% increase year-over-year.
• The company reiterated its full-year 2026 Adjusted EBITDA outlook, now targeting approximately 42% margins.
• The company expects to close the KUBRA acquisition in the second quarter.

Negatives

• The company reported a net loss of $10.0 million for the quarter, an increase from a net loss of $8.2 million in the prior year.
• Free Cash Flow Conversion decreased to 16% from 71% in the prior year, despite turning positive.
• The company's cash and cash equivalents decreased significantly from $115.7 million at the end of 2025 to $43.8 million at the end of Q1 2026.

Risks

• The risk that the proposed KUBRA transaction may not be completed in a timely manner or at all.
• The inability to integrate and/or realize the benefits of the KUBRA transaction, including expected synergies.
• The occurrence of any fact, event, change, development or circumstance that could give rise to the termination of the KUBRA acquisition agreement.
• The failure to satisfy any of the conditions to the consummation of the KUBRA acquisition, including the receipt of certain governmental or regulatory approvals.
• The risk that the financing necessary to consummate the KUBRA acquisition may not be obtained, may be delayed, or may be available only on less favorable terms than anticipated.
• The announcement of the KUBRA acquisition could disrupt the Company's or KUBRA's relationships with customers, employees or other business partners.
• Exposure to economic conditions and political risk affecting the consumer loan market, the receivables management industry and consumer and commercial spending.
• Changes in the payment processing market, including competitive landscape, technology evolution, or regulatory changes.

Future Outlook

The company reiterates its full-year 2026 outlook, expecting revenue between $340-$346 million and Adjusted EBITDA between $141-$146 million, with an Adjusted EBITDA margin of approximately 42% and Free Cash Flow Conversion of 45%. The outlook does not include contributions or expenditures related to the pending KUBRA acquisition.

Management Comments

• "REPAY exited 2025 with solid momentum and had a great start to the year. Our growth is driven by implementing new enterprise clients who are adopting more payment channels and modalities. We have seen strong interest in our Digital Wallet capabilities. We remain focused on accelerating towards double-digit growth with strong profitability. The REPAY of tomorrow is built to scale. We are working towards closing the KUBRA acquisition during the second quarter and remain confident about the strength of our post-acquisition market position and what that means for creating long-term value."
• "After a strong start to the year and execution on our strategic initiatives, we are raising our 2026 Adjusted EBITDA outlook to reflect approximately 42% Adjusted EBITDA margins. We have strong confidence in achieving double-digit Revenue growth with Free Cash Conversion of 45%. We look forward to closing the KUBRA acquisition in the coming weeks."

Industry Context

StockSavvy.ai notes that Repay Holdings' Q1 2026 results reflect continued growth in the payment solutions sector, particularly in business payments. The company's focus on digital payment adoption and strategic acquisitions like KUBRA align with broader industry trends towards consolidation and enhanced service offerings in the fintech space.

Comparison to Industry Standards

• The reported 4% year-over-year revenue growth for Q1 2026 is moderate compared to some high-growth fintech companies, but aligns with expectations for a more mature payment processor.
• The Adjusted EBITDA margin of approximately 42% is a strong indicator of operational efficiency within the payment processing industry, where margins can vary significantly based on business model and scale.
• The company's stated goal of double-digit revenue growth and strong profitability is a common objective for companies in the payments sector aiming for sustainable expansion.
• The KUBRA acquisition, if completed, would position Repay Holdings to compete more directly with larger, diversified payment and communication platforms.

Stakeholder Impact

• Shareholders: The reiterated positive outlook and progress towards the KUBRA acquisition are likely to be viewed positively, though the net loss and reduced FCF conversion may cause some concern.
• Employees: Continued focus on growth and potential integration of KUBRA may lead to opportunities or restructuring.
• Customers: The company's focus on adopting more payment channels and modalities, along with the KUBRA acquisition, could lead to enhanced services and integrated solutions.
• Suppliers: No specific impact mentioned.

Next Steps

• Close the KUBRA acquisition during the second quarter.
• Continue to focus on accelerating towards double-digit revenue growth with strong profitability.
• Implement new enterprise clients and expand adoption of payment channels and modalities.
• Continue to develop and promote Digital Wallet capabilities.

Key Dates

Recommendation

The company demonstrated expected results for the quarter with revenue growth and a positive outlook, but the continued net loss and reduced free cash flow conversion warrant a hold rating. The successful integration of the KUBRA acquisition will be a key factor for future upside.

Keywords

Repay Holdings, RPAY, Payment Solutions, Q1 2026 Earnings, Adjusted EBITDA, Free Cash Flow, KUBRA Acquisition, Financial Results