Repay Holdings posts Q3 revenue surge, cuts FY organic growth outlook
Repay Holdings reported Q3 2026 revenue of $153.4 million, up 97% year‑over‑year, driven largely by the KUBRA acquisition. Gross margin fell to 65% and free cash flow turned negative at -$21.1 million. Management lowered its normalized organic growth guidance for FY 2026 to 5%‑6% and reduced free‑cash‑flow conversion targets. The company expects the KUBRA deal to become free‑cash‑flow accretive by 2028.
Why it matters
The reduced organic growth outlook signals slower top‑line expansion than previously expected, which may temper investor expectations for FY 2026 earnings (the company said the guidance reflects the new outlook). Margin compression and negative free cash flow also highlight near‑term profitability pressure.
Key facts
- 1Q3 2026 revenue was $153.4 million, up 97% YoY. investing.com
- 2Gross margin contracted to 65% from 74% in the prior year. investing.com
- 3Free cash flow was -$21.1 million for the quarter. investing.com
- 4KUBRA contributed $65 million of revenue, up 8% YoY. finance.yahoo.com
- 5Management cut normalized organic growth guidance for FY 2026 to 5%‑6% (from 7%‑9%). tradingview.com
- 6The company targets $25 million+ annual run‑rate savings from KUBRA synergies by 2028. investing.com
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.