REPAY reported a sharp increase in third-quarter revenue, reflecting the addition of KUBRA and stronger business payments activity. Organic revenue growth was 14%, including a nine-percentage-point contribution from political media revenue. Management kept its full-year revenue and adjusted EBITDA outlook unchanged, but lowered its expectations for normalized organic growth and cash-flow conversion.
The quarter also brought an increase in expected cost savings from KUBRA and a sizable investment in a bank reseller partnership. Consumer Payments growth was modest on an organic basis, which management said fell short of expectations.
Key details
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Revenue rose to $153.4 million, up 97% from $77.7 million a year earlier. Net loss was $10.4 million, compared with a $6.6 million loss in the third quarter of 2025. Adjusted EBITDA increased to $50.9 million from $31.2 million.
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Organic growth was uneven across the business:
- Consumer Payments revenue increased 91%, but organic revenue growth was just 0.3%. KUBRA contributed approximately $65 million of revenue and recorded 8% year-over-year growth.
- Business Payments revenue increased 99%, with normalized organic growth of 40%. Results included $3 million from an investment in a bank reseller partnership, which REPAY expects to become a meaningful contributor.
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Political media revenue contributed nine percentage points to the company’s overall organic revenue growth.
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REPAY raised its expected KUBRA cost savings. It now expects to exit 2026 with an annualized cost-synergy run rate of $11 million, up from its prior estimate of $8 million. Management said the savings are being realized ahead of plan.
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Free cash flow was negative $21.1 million, versus positive $20.8 million a year earlier. REPAY cited a $14 million investment in the bank reseller partnership and working-capital timing tied to political media, the partnership and KUBRA professional-services receivables. The company expects the working-capital effects to reverse by year-end.
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Liquidity totaled about $164 million at quarter-end: $64 million in operating cash and an undrawn $100 million revolving credit facility. Net leverage was 3.8 times. REPAY said it remains on track to reduce net leverage below 3.0 times by the end of 2027.
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The partner network expanded. REPAY now works with more than 350 software partners across Consumer and Business Payments, including more than 50 added through KUBRA. Its accounts-payable supplier network reached more than 878,000, up about 68% year over year.
Updated 2026 outlook
- REPAY reaffirmed revenue guidance of $490 million to $500 million, organic revenue growth of 10% to 12%, and adjusted EBITDA of $168.5 million to $176 million.
- It lowered expected normalized organic revenue growth to 5%–6%, from 7%–9% previously. Management cited results in core Consumer Payments, partly offset by strong political media revenue in Business Payments.
- It reduced its free-cash-flow-conversion target to 20%–25% from 30%, and its adjusted free-cash-flow-conversion outlook to 25%–30% from 35%. The updated targets reflect a $19 million investment in the bank channel partnership during the second half of the year.
The guidance changes leave REPAY’s headline revenue and adjusted EBITDA ranges intact, while lowering expectations for underlying growth excluding certain effects and for cash conversion. The company is also committing capital to expand its bank reseller channel while targeting further debt reduction.