Repay Holdings Corporation

Q2 revenue was $100.7 million, up 33% year over year, including one month of KUBRA. Organic revenue growth was 6%, including about 2 points from political media; consumer payments organic growth was 4%, and business payments normalized revenue growth was about 19% excluding political media. Gross profit was $70.6 million, a 70% margin versus 76% a year ago, and management said the margin decline was almost entirely due to KUBRA mix, not pricing or competition. Adjusted EBITDA was $36.3 million, up 14% year over year, with an approximately 36% margin. Adjusted net income was $17.9 million, or $0.20 per share. Free cash flow was $27.4 million, up 21% year over year, and adjusted free cash flow was $29.3 million. For full-year 2026, the company reiterated revenue of $490 million to $500 million, adjusted EBITDA of $168.5 million to $176 million, political media revenue of $8 million to $10 million, free cash flow conversion of 30%, and adjusted free cash flow conversion of about 35%. KUBRA is expected to contribute $150 million to $154 million of revenue and $27.5 million to $30 million of adjusted EBITDA in 2026.

John Morris emphasized that the quarter reflected both core execution and the start of KUBRA integration, saying REPAY is now positioned as an end-to-end consumer bill payment and communications platform in the U.S. and Canada. He framed the deal as expanding distribution, broadening product capabilities, and creating cross-sell opportunities across consumer and business payments. His tone was confident and upbeat, with repeated emphasis on strong momentum, disciplined integration, and an expectation that organic growth will accelerate into double digits in the second half.

Robert Houser focused on the mechanics of the combined company’s financial profile and said Q2 performance was in line with expectations. He explained that the lower gross margin was mainly a mix effect from KUBRA’s lower-margin product and service mix, while adjusted EBITDA margins should improve as cost savings and synergies come through; the company already had over $4.5 million of annualized run-rate synergies exiting Q2 and expects more than $8 million exiting 2026 and over $20 million by 2028. He also highlighted strong liquidity with $84 million of operating cash and an undrawn $100 million revolver, noted pro forma synergized net leverage of about 3.7x, and said the goal is to get below 3x within 18 months through free cash flow and EBITDA growth.

Analysts pressed on KUBRA’s pro forma growth and margin trajectory, and management said KUBRA grew around 6% in Q2 and should continue growing in the mid-single-digit range this year. On cross-sell, management pointed to early signs of REPAY clients asking for KUBRA’s bill presentment and communications tools, while KUBRA clients are asking for more payment channels and modalities. Questions also covered free cash flow conversion, which was unusually strong at 75% in Q2; management said the result was mainly timing and working capital, but acknowledged the back half will see more interest expense and cost-to-achieve spending, bringing conversion closer to the full-year guide. They also addressed modeled intangibles amortization, saying about $25 million to $26 million for Q3 is the right range, and said stock-based compensation should not change materially.