RPAY Stock Forecast & Price Target

Repay Holdings Corp reported F4Q25 sales of approximately $155.1 million, surpassing estimates of $138.1 million, marking a sequential growth of 17.1% from $132.5 million, driven by increased demand in various markets. Notably, acquisitions such as EMI and Canada’s Best Holdings significantly contributed to this quarter's top-line performance, with $22.8 million and $7.2 million, respectively. Additionally, total orders saw an 11% year-over-year increase, with a notable 23% rise in sales within the refueling/c-store vertical, indicating strong momentum expected to carry into fiscal 2026.

Repay Holdings Corp's fundamentals raise concerns regarding its financial outlook, despite achieving adjusted gross margins of approximately 26.1% and an adjusted EBITDA margin of about 9.6% in F4Q25, which are higher than previous estimates. The company's free cash flow of approximately $34.7 million and a modest decrease in its net leverage ratio to 0.8x suggest some improvement in liquidity; however, the overall performance reflects a lack of strong growth indicators. Additionally, while total outstanding debt reduced to about $45.1 million, the implications of the company's debt level and margins suggest challenges ahead, potentially affecting its competitive positioning in the payment processing sector.