📊 RPAY Key Takeaways
Is Repay Holdings Corp (RPAY) a Good Investment?
Repay Holdings exhibits a concerning fundamental deterioration despite strong gross margins of 76.1%, with net income collapsing 2427.8% YoY and revenue declining 1.2%. While positive free cash flow of $16.7M provides near-term runway, the company cannot cover interest expenses from operations and is destroying shareholder value with negative ROE and ROA, indicating operational inefficiencies or market headwinds that must be resolved.
Repay shows an attractive gross margin profile and strong free cash flow generation despite minimal capex, but GAAP profitability is severely negative with large operating losses and negative interest coverage. Revenue is slightly contracting and liquidity is weak (sub‑1 current ratio), constraining flexibility. Until operating margins and coverage improve alongside stabilizing growth, risk outweighs the positives.
Why Buy Repay Holdings Corp Stock? RPAY Key Strengths
- Strong gross margin of 76.1% demonstrates viable core business economics
- Positive operating cash flow of $16.8M and robust free cash flow margin of 20.7%
- Solid balance sheet with moderate leverage (0.82x debt/equity) and strong liquidity (1.79x current ratio)
- Asset base of $1.1B provides financial cushion
- High gross margin profile (~75%)
- Strong operating and free cash flow with low capital intensity
- Moderate leverage with positive equity base
RPAY Stock Risks: Repay Holdings Corp Investment Risks
- Catastrophic profitability deterioration: net income down 2427.8% YoY with -12.3% net margin
- Revenue declining 1.2% YoY indicates loss of market position; operating income cannot cover baseline expenses
- Interest coverage at -0.0x reveals inability to service $390.6M debt from operations, creating refinancing risk
- Negative ROE (-2.1%) and ROA (-0.9%) signal value destruction despite positive nominal cash flow
- Sustained operating losses and negative interest coverage
- Sub‑1.0 current and quick ratios indicating liquidity pressure
- Flat-to-declining revenue suggesting competitive or end-market headwinds
Key Metrics to Watch
- Revenue trend reversal and organic growth trajectory
- Operating margin expansion and path to positive EBIT to cover interest expense
- Operating cash flow sustainability as losses persist
- Debt reduction or refinancing success given deteriorating coverage ratios
- Operating margin (GAAP)
- Free cash flow margin
Repay Holdings Corp (RPAY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
RPAY Profit Margin, ROE & Profitability Analysis
RPAY vs Services Sector: How Repay Holdings Corp Compares
How Repay Holdings Corp compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Repay Holdings Corp Stock Overvalued? RPAY Valuation Analysis 2026
Based on fundamental analysis, Repay Holdings Corp shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Repay Holdings Corp Balance Sheet: RPAY Debt, Cash & Liquidity
RPAY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Repay Holdings Corp's revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.23 indicates the company is currently unprofitable.
RPAY Revenue Growth, EPS Growth & YoY Performance
RPAY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $77.3M | -$7.9M | $-0.09 |
| Q3 2025 | $77.7M | $3.2M | $0.03 |
| Q2 2025 | $74.9M | -$4.1M | $-0.04 |
| Q1 2025 | $77.3M | -$5.2M | $-0.06 |
| Q3 2024 | $74.3M | $3.2M | $0.03 |
| Q2 2024 | $71.8M | -$4.1M | $-0.04 |
| Q1 2024 | $74.5M | -$5.2M | $-0.06 |
| Q3 2023 | $71.6M | $5.8M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Repay Holdings Corp Dividends, Buybacks & Capital Allocation
RPAY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Repay Holdings Corp (CIK: 0001720592)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RPAY
What is the AI rating for RPAY?
Repay Holdings Corp (RPAY) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RPAY's key strengths?
Claude: Strong gross margin of 76.1% demonstrates viable core business economics. Positive operating cash flow of $16.8M and robust free cash flow margin of 20.7%. ChatGPT: High gross margin profile (~75%). Strong operating and free cash flow with low capital intensity.
What are the risks of investing in RPAY?
Claude: Catastrophic profitability deterioration: net income down 2427.8% YoY with -12.3% net margin. Revenue declining 1.2% YoY indicates loss of market position; operating income cannot cover baseline expenses. ChatGPT: Sustained operating losses and negative interest coverage. Sub‑1.0 current and quick ratios indicating liquidity pressure.
What is RPAY's revenue and growth?
Repay Holdings Corp reported revenue of $80.8M.
Does RPAY pay dividends?
Repay Holdings Corp does not currently pay dividends.
Where can I find RPAY SEC filings?
Official SEC filings for Repay Holdings Corp (CIK: 0001720592) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RPAY's EPS?
Repay Holdings Corp has a diluted EPS of $-0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RPAY a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Repay Holdings Corp has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RPAY stock overvalued or undervalued?
Valuation metrics for RPAY: ROE of -2.1% (sector avg: 16%), net margin of -12.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy RPAY stock in 2026?
Our dual AI analysis gives Repay Holdings Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RPAY's free cash flow?
Repay Holdings Corp's operating cash flow is $16.8M, with capital expenditures of $122.0K. FCF margin is 20.7%.
How does RPAY compare to other Services stocks?
Vs Services sector averages: Net margin -12.3% (avg: 10%), ROE -2.1% (avg: 16%), current ratio 1.79 (avg: 1.5).