Q3 FY2026
Filed Nov 9, 2026Q3 2026 GAAP revenue up 97% to $153,398 thousand, organic growth 14% including a 9-point political media contribution; normalized organic growth guide cut to 5%-6% from 7%-9%
Reported revenue, Adjusted EBITDA and Business Payments results were strong, and the cost synergy target was raised. Consumer Payments organic growth was 0.3% (0% in the reconciliation table), free cash flow was negative at $(21,095) thousand, and the normalized organic growth and free cash flow conversion outlook were lowered.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $153.4M | – | 97% |
| Total revenue, nine months 2026GAAP | $334.9M | – | 45% |
| Consumer Payments revenue, Q3 2026GAAP | $137.0M | – | 91% |
| Consumer Payments revenue, nine months 2026GAAP | $305.8M | – | 43% |
| Business Payments revenue, Q3 2026GAAP | $23.95M | – | 99% |
| Business Payments revenue, nine months 2026GAAP | $51.41M | – | 51% |
| Costs of services, Q3 2026GAAP | $53.91M | – | – |
| Costs of services, nine months 2026GAAP | $103.3M | – | – |
| Gross profit (company-defined: revenue less costs of services), Q3 2026other | $99.48M | – | 72% |
| Gross profit (company-defined), nine months 2026other | $231.6M | – | 33% |
| Total gross profit margin, Q3 2026other | 65% | – | – |
| Total gross profit margin, nine months 2026other | 69% | – | – |
| Consumer Payments gross profit, Q3 2026other | $90.51M | – | 63% |
| Business Payments gross profit, Q3 2026other | $16.57M | – | 101% |
| Consumer Payments gross profit, nine months 2026other | $218.8M | – | 30% |
| Business Payments gross profit, nine months 2026other | $35.16M | – | 50% |
| Selling, general and administrative, Q3 2026GAAP | $62.7M | – | – |
| Selling, general and administrative, nine months 2026GAAP | $144.9M | – | – |
| Depreciation and amortization, Q3 2026GAAP | $36.68M | – | – |
| Depreciation and amortization, nine months 2026GAAP | $89.86M | – | – |
| Total operating expenses, Q3 2026GAAP | $153.3M | – | – |
| Total operating expenses, nine months 2026GAAP | $338.1M | – | – |
| Income (loss) from operations, Q3 2026GAAP | $103K | – | – |
| Income (loss) from operations, nine months 2026GAAP | −$3.16M | – | – |
| Interest expense, Q3 2026GAAP | −$15.55M | – | – |
| Interest income, Q3 2026GAAP | $264K | – | – |
| Income tax benefit, Q3 2026GAAP | $2.82M | – | – |
| Net loss, Q3 2026GAAP | −$10.40M | – | – |
| Net loss, nine months 2026GAAP | −$31.97M | – | – |
| Net loss attributable to the Company, Q3 2026GAAP | −$9.34M | – | – |
| Net loss attributable to the Company, nine months 2026GAAP | −$30.26M | – | – |
| Loss per Class A share, basic and diluted, Q3 2026GAAP | $(0.11) | – | – |
| Loss per Class A share, basic and diluted, nine months 2026GAAP | $(0.36) | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $50.88M | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $121.5M | – | – |
| Adjusted Net Income, Q3 2026non-GAAP | $22.43M | – | – |
| Adjusted Net Income, nine months 2026non-GAAP | $60.13M | – | – |
| Adjusted Net Income per share, Q3 2026non-GAAP | $0.25 | – | – |
| Adjusted Net Income per share, nine months 2026non-GAAP | $0.68 | – | – |
| Net cash provided by operating activities, Q3 2026GAAP | $9.88M | – | – |
| Net cash provided by operating activities, nine months 2026GAAP | $66.94M | – | – |
| Total capital expenditures, Q3 2026GAAP | −$30.97M | – | – |
| Total capital expenditures, nine months 2026GAAP | −$55.28M | – | – |
| Free cash flow, Q3 2026non-GAAP | −$21.09M | – | – |
| Free cash flow, nine months 2026non-GAAP | $11.66M | – | – |
| Free cash flow conversion, Q3 2026non-GAAP | (41%) | – | – |
| Free cash flow conversion, nine months 2026non-GAAP | 10% | – | – |
| Adjusted free cash flow, Q3 2026non-GAAP | −$19.11M | – | – |
| Adjusted free cash flow, nine months 2026non-GAAP | $15.98M | – | – |
| Adjusted free cash flow conversion, Q3 2026non-GAAP | (38%) | – | – |
| Adjusted free cash flow conversion, nine months 2026non-GAAP | 13% | – | – |
| Organic revenue growth, Q3 2026 total companynon-GAAP | 14% | – | – |
| Normalized organic revenue growth, Q3 2026 total companynon-GAAP | 5% | – | – |
| Political media contribution to revenue growth, Q3 2026other | 9% | – | – |
| Net leverage at quarter-endnon-GAAP | 3.8x | – | – |
| Total assets at September 30, 2026GAAP | $1.60B | – | – |
| Total equity at September 30, 2026GAAP | $464.5M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Consumer PaymentsThe filing reports Consumer Payments organic revenue growth of 0.3% in the highlights and 0% in the reconciliation table. KUBRA contributed approximately $65 million of revenue, representing 8% year-over-year growth. The CEO said Consumer Payments organic growth did not meet management's expectations. Gross profit was $90,506 thousand, up 63%. | $137.0M | – | 91% |
| Business PaymentsNormalized organic revenue growth was 40% and organic growth was 99%. Political media contributed 59% growth in this segment. Results included a $3 million contribution from an investment in a bank reseller channel partnership, which the company expects to be a meaningful contributor going forward. Gross profit was $16,571 thousand, up 101%. | $23.95M | – | 99% |
FY2026 outlook
- Revenue$490 - 500 million
- NoteOrganic revenue growth: 10%-12% (unchanged)
- NoteNormalized organic revenue growth: 5%-6% (prior 7%-9%)
- NoteAdjusted EBITDA: $168.5 - 176 million (unchanged)
- NoteFree cash flow conversion: 20%-25% (prior 30%)
- NoteAdjusted free cash flow conversion: 25%-30% (prior 35%)
- NoteAnnualized KUBRA cost synergy run-rate exiting 2026: $11 million (prior guidance $8 million)
Capital returns
- Treasury shares repurchased: nil in the nine months ended September 30, 2026, versus $(38,405) thousand in the nine months ended September 30, 2025.
- Payment of Tax Receivable Agreement: $(13,702) thousand in the nine months ended September 30, 2026, versus $(16,337) thousand in the nine months ended September 30, 2025.
- No dividend payments are printed in the filing.
What drove it
- Revenue growth of 97% in Q3 2026 is set beside organic revenue growth of 14%, which includes a 9-point political media contribution. The filing presents the KUBRA acquisition as the only transaction excluded from organic growth.
- The company states that Business Payments delivered exceptional results and that KUBRA grew ahead of expectations.
- The company states that cost synergies are being captured ahead of schedule and raised the exit 2026 annualized run-rate to $11 million from $8 million.
- The company attributes the reduction in normalized organic revenue growth guidance to results within core Consumer Payments, offset by strong political media spend revenue within Business Payments.
- Free cash flow was $(21,095) thousand, which the company states reflects a $14 million investment in a bank reseller channel partnership. The company also states that net working capital timing related to political media, the bank channel partnership and KUBRA professional services receivables adversely affected cash flow and that it expects these to reverse by year-end.
- The company reports 350 software partners, including more than 50 from KUBRA, and an AP supplier network of over 878,000, up approximately 68% year-over-year.
Concerns
- Consumer Payments organic growth was 0.3% in the highlights and 0% in the reconciliation table. The CEO said it did not meet expectations.
- Normalized organic revenue growth guidance was lowered to 5%-6% from 7%-9%, and free cash flow conversion guidance was lowered to 20%-25% from 30%.
- Adjusted free cash flow conversion guidance was lowered to 25%-30% from 35%. The company links the change to a $19 million bank channel partnership investment in the second half of the year.
- Net loss was $(10,403) thousand in Q3 2026 against $(6,617) thousand a year earlier. Interest expense was $(15,548) thousand against $(3,085) thousand.
- Free cash flow was $(21,095) thousand in Q3 2026 against $20,784 thousand a year earlier, and net cash from operations fell to $9,879 thousand from $32,227 thousand.
- Net leverage of 3.8x is above the company's target of below 3.0x by year-end 2027.
- Gross profit margin was 65% against 74% a year earlier. Costs of services rose to $53,914 thousand from $19,935 thousand.
What to watch
- Whether the working capital items tied to political media, the bank channel partnership and KUBRA professional services receivables reverse by year-end, as the company expects.
- Consumer Payments organic growth trajectory and the initiatives the company describes to improve competitive positioning.
- Realization of the $11 million annualized KUBRA cost synergy run-rate at exit 2026.
- Net leverage progress toward below 3.0x by year-end 2027.
- Revenue contribution from the bank reseller channel partnership, which the company expects to be meaningful going forward.
- Full-year delivery against the reiterated revenue range of $490 - 500 million and adjusted EBITDA range of $168.5 - 176 million.
Balance sheet and cash flow
- Liquidity was approximately $164 million, including $64 million in operating cash, plus an undrawn $100 million revolving credit facility.
- Net leverage was 3.8x at quarter-end. The company states it remains on track to reduce net leverage below 3.0x by year-end 2027.
- Cash and cash equivalents were $63,826 thousand at September 30, 2026, against $115,692 thousand at December 31, 2025.
- Long-term debt, net was $748,310 thousand and current maturities of long-term debt, net were $5,000 thousand at September 30, 2026.
- Total assets were $1,602,228 thousand at September 30, 2026, against $1,199,749 thousand at December 31, 2025. Goodwill was $651,539 thousand and intangible assets, net were $560,472 thousand.
- Total equity was $464,486 thousand at September 30, 2026, against $481,782 thousand at December 31, 2025.
- Nine-month cash flow included issuance of long-term debt of $610,000 thousand, payments on long-term debt of $(257,758) thousand, debt issuance costs of $(29,821) thousand, and acquisition of KUBRA, net of cash and restricted cash acquired, of $(348,150) thousand.
- Net cash provided by financing activities was $307,948 thousand for the nine months ended September 30, 2026.
Analysis
Repay reported third quarter 2026 GAAP revenue of $153,398 thousand, up 97% from $77,725 thousand, and nine-month revenue of $334,897 thousand, up 45%. The company attributes 14% organic growth in the quarter to the combination of Consumer Payments and Business Payments, and states that political media contributed 9 points. On a normalized basis, which excludes political media, the company reports 5% organic growth for the total company. Business Payments revenue was $23,945 thousand, up 99%, with normalized organic growth of 40%. Consumer Payments revenue was $137,046 thousand, up 91%, with the company reporting organic growth of 0.3% in its highlights and 0% in its reconciliation table. KUBRA contributed approximately $65 million of revenue, which the company describes as 8% year-over-year growth.
Profitability moved in two directions. Adjusted EBITDA was $50,881 thousand against $31,202 thousand a year earlier and $36,301 thousand in Q2 2026. GAAP results remained loss-making: net loss was $(10,403) thousand against $(6,617) thousand, and interest expense rose to $(15,548) thousand from $(3,085) thousand. Costs of services increased to $53,914 thousand from $19,935 thousand, and the total gross profit margin was 65% against 74%. Operating income was $103 thousand against a loss of $(3,009) thousand. SG&A was $62,700 thousand against $35,159 thousand. The company's explanation for part of the margin change is the KUBRA acquisition, which is referenced in the filing but not quantified as a margin driver.
Cash generation weakened in the quarter. Net cash from operations was $9,879 thousand against $32,227 thousand, and free cash flow was $(21,095) thousand against $20,784 thousand. Capital expenditures were $(30,974) thousand, including $(30,282) thousand of capitalized software development costs. The company attributes the negative free cash flow to a $14 million bank reseller channel partnership investment and to net working capital timing, which it expects to reverse by year-end. Nine-month free cash flow was $11,659 thousand against $35,350 thousand. Net leverage was 3.8x, liquidity was approximately $164 million, and long-term debt, net was $748,310 thousand at quarter-end. Total assets rose to $1,602,228 thousand from $1,199,749 thousand at December 31, 2025, reflecting the KUBRA transaction and related debt issuance.
Guidance was mixed. Revenue of $490 - 500 million, organic growth of 10%-12%, and adjusted EBITDA of $168.5 - 176 million were reiterated. Normalized organic growth was lowered to 5%-6% from 7%-9%, free cash flow conversion to 20%-25% from 30%, and adjusted free cash flow conversion to 25%-30% from 35%. The company links the free cash flow changes to a $19 million bank channel partnership investment in the second half. The cost synergy run-rate exiting 2026 was raised to $11 million from $8 million. Figures that deserve attention are the 0.3% or 0% Consumer Payments organic growth, the gap between reported Q3 revenue growth and normalized organic growth, the negative free cash flow, and the 3.8x net leverage against the stated goal of below 3.0x by year-end 2027.
Management, verbatim
Business Payments delivered exceptional results, KUBRA grew ahead of our expectations, and we are capturing cost synergies ahead of schedule
John Morris, Chief Executive Officer
Consumer Payments reported organic revenue growth that did not meet our expectations but we are implementing deliberate initiatives to improve competitive positioning.
John Morris, Chief Executive Officer
Given results within core Consumer Payments, which were offset by strong political media spend revenue within Business Payments, we now expect normalized organic revenue growth in the 5%-6% range, vs. 7%-9% prior.
Robert Houser, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-year guidance comparison was not provided separately; the prior outlook figures printed in the release were not treated as a verdict table.
- Consensus estimates and analyst expectations are not included in the filing.
- Share price reaction is not included in the filing.
- Prior-quarter total revenue appears only in the $ millions highlights table ($100.7 million), so no thousands-level figure is printed for Q2 2026 revenue.
- Consumer Payments organic revenue growth is printed as 0.3% in the business highlights and 0% in the reconciliation table; the filing does not reconcile the two.
- Quarter-over-quarter percentage changes for revenue, gross profit and Adjusted EBITDA are not printed.
- Year-over-year percentage change for Adjusted EBITDA, net loss, and free cash flow is not printed.
- Year-over-year percentage change for total gross profit margin is not printed; the filing gives only the 65% and 74% levels.
- Prior-year figures for normalized organic revenue growth at the segment level are not printed for Consumer Payments.
- Total debt as a single figure is not printed; the filing gives the Sep 30 2026 long-term debt and current maturities as separate lines.
- Dividend payments are not reported in the filing.
- Net leverage for the prior period is not printed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.