REPAY Q1 2025: Resilient Core, Strategic Growth, New CFO

REPAYs Q1 2025 earnings showed resilience despite client losses, with revenue at $77.3M, down 4% YoY. Gross profit dipped 5%, but adjusted EBITDA held at $33.2M with 43% margins. Free cash flow went negative $8M due to working capital timing. Excluding one-offs, gross profit growth was low single digits, with consumer payments down 5% and business payments up 7% (12% without political media boosts). REPAY saw pipeline strength from new software partnerships and won fourteen new credit unions. The board opted for organic growth over alternatives, prioritizing direct sales, non-card payments, and partnerships. REPAY forecasts sequential normalized gross profit growth, hitting high single to low double digits by Q4, with free cash flow conversion over 50% in Q2 and above 60% year-end. They increased share repurchases to $75M, backed by $415M in liquidity. Longtime CFO Tim Murphy is retiring, with interim chief Thomas Sullivan taking over. The team aims for second-half acceleration from sales ramps and implementations, riding digital payment trends. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/c9f41039a6379e83