RPAY Stock Forecast & Price Target

Repay Holdings Corp has experienced positive growth in its supplier network, increasing to over 360,000 from 333,000 in the previous quarter, which reflects its expanding market footprint. The company's revenue and gross profit have shown a year-over-year growth of 3% and 2%, respectively, while the positive momentum in cross-selling its Accounts Payable and Accounts Receivable automation services highlights potential for revenue enhancement. Additionally, a projected recovery in organic gross profit growth and improvements in free cash flow conversion signify a favorable outlook for the company's financial performance moving forward.

Repay Holdings Corp reported a gross profit of $59.7 million in its latest financials, falling 8% short of the consensus estimate due to significant customer attrition and challenging macroeconomic conditions, particularly within its Consumer Payments segment. The company's top-line growth is currently hindered by reductions in political media ad spending and ongoing losses of clients linked to mergers and acquisitions, leading to a deceleration in overall growth rates, which sharply declined to -9% year-over-year. Additionally, both Consumer Payments and Business Payments segments experienced pronounced declines in gross profit, with respective decreases of 5% and 22% year-over-year, indicating significant headwinds that may impede future performance.