Despite 97% revenue growth, Repay Holdings lowered its normalized organic revenue growth and free cash flow conversion targets for 2026 due to weakness in its core Consumer Payments segment.
Q3 2026 revenue of $153.4 million grew 97% and adjusted EBITDA rose to $50.9 million, but management cut normalized organic revenue growth guidance to 5%-6% from 7%-9% and lowered free cash flow conversion targets to 20%-25% from 30%, citing weak core Consumer Payments. Even with headline growth partly from political media spend, the guidance reductions are a hard negative likely to weigh on the shares.
Repay Holdings reported Q3 2026 revenue of $153.4 million, a 97% increase, but lowered its normalized organic revenue growth guidance to 5%-6% from 7%-9%. The company also reduced its free cash flow conversion target to 20%-25% from 30%, citing a $19 million investment in a bank channel partnership.
Despite 97% revenue growth to $153.4 million, the company lowered its normalized organic growth outlook to 5%-6% from 7%-9% and cut its free cash flow conversion target to 20%-25% from 30%, signaling weaker core results than originally planned.
Yes: adjusted EBITDA reached $50.9 million, cost synergies were raised to $11 million from $8 million exiting 2026, and the full-year revenue and adjusted EBITDA ranges were reiterated, with net leverage still expected below 3.0x by year-end 2027.