The Q2 report shows strong top-line growth from KUBRA but organic growth remains modest at ~6%, and margins are under pressure from the acquisition mix. The reiterated guidance implies H2 acceleration to ~10-12% organic growth — watch for execution on KUBRA integration and synergy realization ($4.5M run-rate realized in Q2). The net leverage target of below 3x within 18 months is key for credit profile; monitor debt paydown progress in coming quarters.
Price Chart
Executive Summary
Repay Holdings reported Q2 2026 revenue of $100.7M (+33% YoY, driven by the KUBRA acquisition), but GAAP net loss widened to -$11.5M from -$108.0M (which included a $103.8M impairment in Q2 2025). Adjusted EPS of $0.20 missed consensus of $0.21 by -4.6%. The company reiterated its full-year 2026 outlook of $490-$500M revenue and $168.5-$176M Adjusted EBITDA, including KUBRA contributions. The KUBRA acquisition closed in June and contributed ~$21M in revenue for the month, but organic growth was only ~6%, and gross margins compressed from 76% to 70% due to KUBRA's mix. The combination of a modest EPS miss, margin compression, and heavy reliance on M&A for growth tempers the headline revenue beat.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $100.7M, +33% YoY (vs $75.6M in Q2 2025)
- GAAP net loss -$11.5M vs -$108.0M in Q2 2025 (which included $103.8M impairment)
- Adjusted EPS $0.20 vs consensus $0.21 (-4.6% miss)
- Organic revenue growth ~6% YoY; KUBRA contributed ~$21M in June
- Gross profit margin compressed to 70% from 76% YoY due to KUBRA mix
- Full-year 2026 outlook reiterated: revenue $490-$500M, Adjusted EBITDA $168.5-$176M
- Free Cash Flow $27.4M, FCF conversion 75% vs 71% in Q2 2025
- Net leverage target: below 3.0x within 18 months of KUBRA closing
Financial Impact
Revenue beat by ~$1.2M vs $101.9M consensus; EPS miss by $0.01 vs $0.21 consensus; GAAP net loss improved by $96.5M YoY due to absence of impairment
Risk Factors
- KUBRA integration risk — margins compressed from 76% to 70% and may not recover as guided
- Organic growth of ~6% is well below the 10-12% full-year target, requiring significant H2 acceleration
- Net leverage elevated post-KUBRA; failure to deleverage below 3x could pressure equity
- Political media revenue in Business Payments is lumpy and may not recur post-election cycle
- GAAP net loss persists despite Adjusted EBITDA growth; $611M accumulated deficit
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-342425 |
| Document: 0001193125-26-342425-index.html | 0001193125-26-342425 |
| Document: 0001193125-26-342425.txt | 0001193125-26-342425 |
| 8-K Data (Synthetic) | 0001193125-26-342425 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 14d ago | 144 | $4.00 | awaiting T+60 | — | $4.29 (+7.25%) |
Aug 10, 2026 11w ago | 8-K | $3.70 | awaiting T+60 | — | $4.29 (+15.95%) |
Jul 20, 2026 14w ago | 3 | $3.74 $3.95 | ▲ +5.62% | ▲ +1.64% | $4.29 (+14.71%) |
Jun 15, 2026 19w ago | 8-K | $3.28 $3.56 | ▲ +8.54% | ▲ +7.54% | $4.29 (+30.79%) |
May 4, 2026 25w ago | 8-K | $3.57 $3.96 | ▲ +10.92% | ▲ +8.18% | $4.29 (+20.17%) |
Apr 27, 2026 26w ago | 8-K | $4.04 $3.66 | ▼ −9.41% | ▼ −14.18% | $4.29 (+6.19%) |
Apr 14, 2026 28w ago | 8-K | $3.07 $4.06 | ▲ +32.25% | ▲ +23.72% | $4.29 (+39.74%) |
Mar 10, 2026 33w ago | EFFECT | $3.04 $3.65 | ▲ +20.07% | ▲ +8.38% | $4.29 (+41.12%) |
Feb 25, 2026 34w ago | 8-K | $2.95 $3.35 | ▲ +13.56% | ▲ +5.81% | $4.29 (+45.42%) |
US Market Status
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