RPAY Stock Forecast & Price Target

Repay Holdings Corp has demonstrated growth in its supplier network, expanding to over 360,000 from 333,000 in the previous quarter, alongside a year-over-year revenue increase of 3% and a 2% rise in gross profit for Q4. The company is experiencing positive momentum in cross-selling its Accounts Payable (AP) and Accounts Receivable (AR) automation, which is expected to contribute to improving organic gross profit growth in the coming years, with projections of reaching the mid-single-digit percentage range by 2025. Furthermore, the anticipated reduction in capital expenditures as a percentage of revenue is expected to enhance free cash flow (FCF) conversion, indicative of Repay's improved financial health and operational efficiency moving forward.

Repay Holdings Corp reported a gross profit of $59.7 million, falling 8% short of consensus estimates, primarily due to a decline in the Consumer Payments segment driven by customer attrition and macroeconomic challenges. Additionally, the company's top-line growth has faced significant pressures, with a notable decline in year-over-year revenues, particularly in the Business Payments segment, which decreased by 22%. This broader deceleration, along with client losses compounding the overall weak performance across both segments, suggests a challenging outlook for future growth.