Repay reports Q2 2026 revenue up 33% to $100.7M, completes KUBRA acquisition in June

The company disclosed its second quarter 2026 operating results through a press release. The 8-K body does not contain specific financial metrics; those would be in the attached Exhibit 99.1 press release, which was not provided in the input text.

REPAY reiterated its full-year 2026 outlook, expecting revenue of $490-500 million and Adjusted EBITDA of $168.5-176 million. KUBRA is expected to contribute $150-154 million in revenue and $27.5-30 million in Adjusted EBITDA for the remaining seven months of 2026. On an organic basis, REPAY expects approximately 10-12% revenue growth. Note: these figures were previously disclosed in the company's Jun 1, 2026 8-K.

REPAY refinanced its debt during the first half of 2026, issuing $610 million in new long-term debt and repaying $256.5 million of existing debt. The company incurred $29.4 million in debt issuance costs and recorded a $974 thousand loss on extinguishment of debt related to the revolving credit facility.

Management expressed confidence in achieving a net leverage target below 3x over the next 18 months, driven by free cash flow generation and expected synergies from the KUBRA acquisition.

Repay reported Q2 2026 revenue of $80.8 million, up 33% year-over-year. Organic growth was 6%, with the remainder driven by the KUBRA acquisition (closed June 2026) contributing approximately $21 million. The company highlighted continued ramp-up of new enterprise clients and early political media spending ahead of the 2026 mid-term election cycle.

Adjusted EBITDA for Q2 2026 was reported with a 36% margin and 14% year-over-year growth. The filing notes that KUBRA's vertical, product, and payment mix naturally impacts margins compared to core REPAY, while the company continues strategic investments in technology, product, and go-to-market teams.

The KUBRA acquisition closed in June 2026 and contributed approximately $21 million in revenue during Q2. The company outlined a phased 18-24 month integration plan to unify platforms, with expected run-rate synergies of $5+ million in 2026 and $15+ million by 2028. The acquisition is expected to be Free Cash Flow accretive by 25% in 2028.

Repay reported strong Q2 cash generation with 75% Free Cash Flow conversion. The company disclosed total outstanding debt of $788 million ($288 million in 2029 Convertible Notes at 2.875% and $500 million in 2033 Senior Secured Term Loan at SOFR plus 5.5%), plus a $100 million undrawn revolver. Management committed to deleveraging below 3.0x net leverage within 18 months of the KUBRA acquisition close.

REPAY reported a net loss of $271.1 million for the year ended December 31, 2025, a significant deterioration from a $10.3 million loss in 2024. The presentation attributes this primarily to a $242.7 million non-cash impairment loss in 2025, compared to zero impairment in 2024. Adjusted EBITDA for 2025 was $128.6 million, down from $140.8 million in 2024.

Total company revenue declined 1% in 2025, driven by a 9% decline in Business Payments (which faced a 31% headwind from political media). Excluding political media, Business Payments grew 22% and total company revenue grew 3%. Consumer Payments grew 2%. Gross profit followed a similar pattern, declining 4% overall but growing 1% excluding political media impacts.

Free cash flow for 2025 was $49.1 million, down from $105.2 million in 2024, representing a 38% conversion rate of Adjusted EBITDA compared to 75% in the prior year. The decline reflects lower operating cash flow ($91.1 million in 2025 vs. $150.1 million in 2024) partially offset by lower capital expenditures ($42.0 million vs. $44.9 million).

The presentation highlights the KUBRA acquisition as expanding REPAY's platform capabilities into bill design and presentment, communication services, and utility mapping and data analytics. KUBRA added approximately 54 ISV integrations to REPAY's platform. The forward-looking statements section notes risks related to the inability to integrate and realize expected synergies from the KUBRA transaction.

REPAY grew its software integration partnerships from 53 at the time of its July 2019 business combination to 352 as of June 30, 2026, representing a 32% compound annual growth rate. These integrations are a key distribution channel, enabling REPAY to embed payment capabilities directly into clients' core systems across 18+ verticals.