Repay Holdings Corp (RPAY): Results of Operations and Financial Condition
Repay Holdings Corp (RPAY) filed an SEC Form 8-K — Results of Operations and Financial Condition. REPAY Reports Second Quarter 2026 Financial Results Sustained Organic Growth and Healthy Free Cash Flow during Q2 Reiterates 2026 Outlook that includes KUBRA contributions Strong Execution towards Run-Rate Synergies ATLANTA, August 10, 2026 -- Repay Holdings Corporation (NASDAQ:
How this was made
The 30-second read
Why it matters
Q2 results show strong top-line growth (33% YoY) and positive free cash flow, while management reiterates full-year 2026 guidance that explicitly incorporates KUBRA contributions and targets net leverage below 3x within 18 months.
Market read
Traders can update models for RPAY using the quantified Q2 print and the explicit 2026 revenue, Adjusted EBITDA, and cash-flow conversion ranges that include KUBRA.
What to watch
The filing highlights goodwill impairments in 2025; traders may focus on whether any further impairment risk or integration costs could pressure future earnings quality despite revenue growth.
REPAY Reports Second Quarter 2026 Financial Results Sustained Organic Growth and Healthy Free Cash Flow during Q2 Reiterates 2026 Outlook that includes KUBRA contributions Strong Execution towards Run-Rate Synergies
Revenue grew 33% year-over-year, including approximately 6% organic revenue growth, while Adjusted EBITDA reached $36.3 million and Free Cash Flow reached $27.4 million. The outlook was reiterated, though the Company reported a net loss and total gross profit margin declined to 70% from 76%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended June 30, 2026GAAP | $100.7 million | – | 33% |
| Net (loss) income, three months ended June 30, 2026GAAP | $ (11.5) million | – | – |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $36.3 million | – | – |
| Net cash provided by operating activities, three months ended June 30, 2026GAAP | $40.2 million | – | – |
| Free Cash Flow, three months ended June 30, 2026non-GAAP | $27.4 million | – | – |
| Free Cash Flow Conversion, three months ended June 30, 2026non-GAAP | 75% | – | – |
| Total gross profit, three months ended June 30, 2026GAAP | $ 70,626 (in thousands) | – | 23% |
| Total gross profit margin, three months ended June 30, 2026GAAP | 70% | – | – |
| Consumer Payments gross profit, three months ended June 30, 2026GAAP | $ 68,015 (in thousands) | – | 23% |
| Business Payments gross profit, three months ended June 30, 2026GAAP | $ 10,114 (in thousands) | – | 33% |
| Elimination of intersegment revenues, three months ended June 30, 2026GAAP | $ (7,503) (in thousands) | – | – |
| Total revenue, six months ended June 30, 2026GAAP | $ 181,499 (in thousands) | – | 19% |
| Total gross profit, six months ended June 30, 2026GAAP | $ 132,113 (in thousands) | – | 14% |
| Total gross profit margin, six months ended June 30, 2026GAAP | 73% | – | – |
| Consumer Payments gross profit, six months ended June 30, 2026GAAP | $ 128,297 (in thousands) | – | 14% |
| Business Payments gross profit, six months ended June 30, 2026GAAP | $ 18,584 (in thousands) | – | 23% |
| Elimination of intersegment revenues, six months ended June 30, 2026GAAP | $ (14,768) (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Consumer PaymentsConsumer Payments revenue growth and organic revenue growth was 33% and 4% year-over-year. KUBRA contributed approximately $21 million of revenue during the quarter (for June 2026). | $ 93,730 (in thousands) | – | 33% |
| Business PaymentsBusiness Payments revenue growth and normalized organic revenue growth was 32% and 19% year-over-year. | $ 14,478 (in thousands) | – | 32% |
| Consumer Payments, six months ended June 30, 2026The filing reported segment revenue for the six months ended June 30, 2026. | $ 168,798 (in thousands) | – | 19% |
| Business Payments, six months ended June 30, 2026The filing reported segment revenue for the six months ended June 30, 2026. | $ 27,469 (in thousands) | – | 25% |
Full Year 2026 outlook
- Revenue$490 - 500 million
- NoteAdjusted EBITDA $168.5 - 176 million
- NoteFree Cash Flow Conversion 30%
- NoteAdjusted Free Cash Flow Conversion 35%
- NoteKUBRA is expected to contribute between $150 million and $154 million in revenue during 2026.
- NoteKUBRA is expected to contribute between $27.5 million and $30 million in Adjusted EBITDA during 2026.
- NoteOn an organic basis, REPAY expects approximately 10% to 12% revenue growth.
What drove it
- Reported revenue growth was 33% and organic revenue growth was 6% year-over-year.
- KUBRA contributed approximately $21 million of revenue during the quarter, for June 2026.
- KUBRA revenue contribution represented 5% year-over-year growth compared to June 2025.
- The Company now reaches over 352 software partners across its Consumer and Business Payment verticals, including 54 partners from the KUBRA acquisition.
- The AP supplier network exceeded 731,000, an increase of approximately 66% year-over-year.
- The Company completed the KUBRA acquisition in June and began executing on the integration.
Concerns
- Net (loss) income was $ (11.5) million in Q2 2026.
- Total gross profit margin was 70% in Q2 2026, compared with 76% in Q2 2025.
- The Company stated that it expects organic growth to accelerate into double-digits during the second half of the year, making implementation progress and sales momentum important execution factors.
- The filing notes that KUBRA contributions and expected synergy realization are components of the Company’s net leverage objective.
What to watch
- Organic revenue growth progression toward the approximately 10% to 12% full-year expectation.
- KUBRA’s expected remaining 2026 contribution of between $150 million and $154 million in revenue and between $27.5 million and $30 million in Adjusted EBITDA.
- Execution on KUBRA integration and run-rate synergies.
- Free Cash Flow Conversion relative to the 30% full-year outlook and Adjusted Free Cash Flow Conversion relative to the 35% outlook.
- Progress toward the stated net leverage target of returning below 3x over the next 18 months.
Balance sheet and cash flow
- Net cash provided by operating activities was $40.2 million during Q2 2026.
- Free Cash Flow was $27.4 million during Q2 2026.
- The Company expects to obtain its net leverage target of returning below 3x over the next 18 months.
Analysis
REPAY reported Q2 2026 revenue of $100.7 million, up 33% year-over-year, with approximately 6% organic revenue growth. Consumer Payments revenue was $ 93,730 (in thousands), up 33%, and Business Payments revenue was $ 14,478 (in thousands), up 32%. The Company attributed part of the reported expansion to KUBRA, which contributed approximately $21 million of revenue during June 2026.
Business Payments had the higher stated underlying growth rate, with normalized organic revenue growth of 19% year-over-year, compared with Consumer Payments organic revenue growth of 4%. The Company also reported more than 352 software partners, including 54 from KUBRA, and an AP supplier network of over 731,000. These operating indicators accompany the Company’s emphasis on implementations, sales momentum, and integration execution in the second half.
Profitability and cash generation were mixed across the disclosed measures. Adjusted EBITDA was $36.3 million, compared with $31.8 million in Q2 2025 and $34.4 million in Q1 2026. Net cash provided by operating activities was $40.2 million and Free Cash Flow was $27.4 million, producing 75% Free Cash Flow Conversion. However, the Company recorded net (loss) income of $ (11.5) million, and total gross profit margin was 70%, compared with 76% in the prior-year quarter.
REPAY reiterated its full-year 2026 outlook of $490 - 500 million of revenue and $168.5 - 176 million of Adjusted EBITDA. The outlook includes expected KUBRA contributions for the remaining seven months of 2026, while management expects approximately 10% to 12% organic revenue growth for the year. The key reported execution priorities are accelerating organic growth into double-digits, realizing KUBRA synergies, sustaining free cash flow generation, and progressing toward net leverage below 3x over the next 18 months.
Management, verbatim
We delivered revenue growth of 33%, achieved approximately 6% organic revenue growth 1 , while generating $27.4 million of Free Cash Flow. Our most significant corporate development this year was completing the KUBRA acquisition in June and we immediately began executing on the integration.
John Morris, Chief Executive Officer of REPAY
The combined free cash flow generation and expected synergy realization gives us confidence in obtaining our net leverage target of returning below 3x over the next 18 months.
Robert Houser, Chief Financial Officer of REPAY
Not in the filing
stated, not guessed- GAAP operating income or loss was not provided in the supplied filing text.
- GAAP diluted earnings or loss per share was not provided in the supplied filing text.
- Adjusted Net Income and Adjusted Net Income per share figures were not provided in the supplied filing text.
- Cash balance was not provided in the supplied filing text.
- Debt balance was not provided in the supplied filing text.
- Capital expenditures were not provided in the supplied filing text.
- Share repurchases and dividends were not provided in the supplied filing text.
- Prior guidance was not provided; therefore, no actual-versus-prior-guidance comparison is available.
- Forward gross margin, operating expenses, and tax-rate guidance were not provided.
- Q2 2026 gross profit margins by reportable segment were not provided.
- Quarter-over-quarter percentage changes were not provided for the reported metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Repay is a bill payment solutions provider and recently completed the KUBRA acquisition in June 2026, which is now contributing revenue and EBITDA.
Ticker impact
Repay reported Q2 2026 revenue of $100.7M, $27.4M free cash flow, and reiterated 2026 outlook including KUBRA contributions.
Near-term bias likely positive if investors view the KUBRA integration and cash generation as on-track versus expectations.
This is a primary SEC 8-K with quantified results and explicit 2026 guidance ranges, but the excerpt does not include consensus comparisons or prior guidance changes beyond reiteration.
Market effects
Bill payment and payments infrastructure peers may see read-through on consumer and business payments demand and integration execution post-acquisition.
Limited to North America operations (US and Canada) per company description, with potential sentiment spillover to regional fintech/payment names.
Low global relevance; primarily a US/Canada payments platform story.
Counterpoint
Free cash flow conversion fell sharply in Q2 (to 75% from 16% in Q1, but still volatile), so investors may discount the quality of cash generation until conversion stabilizes.
Key entities
- companyRepay Holdings Corporation
NASDAQ-listed bill payment solutions provider reporting Q2 2026 results and reiterating 2026 outlook tied to KUBRA integration.
- acquired businessKUBRA
Acquisition completed June 1, 2026, contributing about $21M revenue in Q2 and expected $150M to $154M revenue for full-year 2026.
