Repay (RPAY) Q4 2025: Business Payments Revenue Jumps 41%, Anchoring 2026 Growth Outlook

March 9, 2026 | By EarningsIQ Research

Repay’s business payments segment delivered a 41% normalized revenue surge in Q4, outpacing the consumer side and reflecting successful AP platform execution and supplier network expansion. The company’s capital allocation signals a pivot toward scalable organic and inorganic growth, with automation, AI, and new product rollouts set to drive efficiency and client wins. Management’s 2026 guidance leans on embedded political media tailwinds and a ramp in recently signed clients, but margin stability and debt management remain critical watchpoints as Repay enters a new investment phase.

Summary

• Business Payments Growth Outpaces Consumer: B2B segment momentum and supplier network scale anchor the 2026 outlook.
• AI and Automation Drive Operational Leverage: Technology investments target faster onboarding and margin resilience.
• Capital Flexibility Set for Deployment: Repay balances organic growth, M&A, and share repurchases amid rising interest expense.

Performance Analysis

Repay exited 2025 with a clear inflection in its business payments segment, which posted a 41% normalized revenue increase and 73% gross profit growth in Q4—far outpacing the 8% revenue growth in consumer payments. This B2B outperformance was underpinned by a 65% year-over-year expansion in the supplier network, now at 602,000, and 105 embedded software partnerships, reflecting both scale and deepening vertical integration.

The consumer payments business showed steady, if slower, expansion, with 8% revenue and 6% gross profit growth, driven by incremental volume ramp from existing and new clients, as well as 189 software partnerships. Gross profit margin held steady at 74.2%, with management signaling similar levels for 2026 as the business absorbs a mix shift toward non-card and enterprise volume discounts. Adjusted EBITDA margin remained robust at 41%, but free cash flow conversion slipped slightly to 43% due to working capital timing, though management expects this to normalize.

• B2B Segment Momentum: Supplier network growth and AP platform adoption are driving outsize B2B contribution to overall performance.
• Consumer Payments Stable: Growth is anchored by software partnerships and steady payment flow expansion, but lacks breakout catalysts.
• Margin Stability Under Scrutiny: Mix shifts and interest expense from recent debt drawdown are key variables for 2026 cash flow.

Repay’s Q4 results reflect a business model increasingly weighted toward B2B AP modernization, with political media seasonality and cost discipline buffering headline results. The capital structure was adjusted post-quarter with $147 million in convertible notes retired and a $110 million revolver draw, leaving $79 million in pro forma cash and $398 million in debt, setting the stage for more active capital deployment.

Executive Commentary

Strategic Positioning

1. B2B AP Platform Scaling

Repay’s business payments strategy has pivoted to core AP (Accounts Payable) platform expansion, reflected in supplier network growth and deepened software integrations. The addition of 240,000 suppliers in 2025 underscores traction in hospitality and healthcare verticals, while ongoing modernization initiatives, such as enhanced ACH (Automated Clearing House) and float income, are broadening monetization levers.

2. Technology and AI-Driven Efficiency

Automation and AI are central to Repay’s operational roadmap, with real-world deployments aimed at reducing integration timelines, onboarding friction, and manual processes. AI middleware is being rolled out for client migrations and risk detection, while RepayVoice, an AI-powered IVR (Interactive Voice Response), is set for enterprise launch in 2026, promising to differentiate client experience and scalability.

3. Balanced Capital Allocation and M&A Readiness

Repay’s capital strategy for 2026 prioritizes organic growth, targeted M&A, and share repurchases, supported by $219 million in pro forma liquidity. The company is positioned to digest acquisitions more efficiently post-2025 operational restructuring, with a clear focus on expanding vertical reach and accelerating product innovation.

4. Political Media Seasonality as a Growth Lever

The 2026 midterm election cycle is expected to add $8 million to $10 million in revenue, representing a meaningful three-point boost to reported growth. This cyclical tailwind is embedded in guidance and highlights the lumpy nature of political media contributions within the business payments segment.

5. Margin and Debt Management Discipline

Margin preservation is a critical strategic focus, as mix shifts to enterprise and non-card volumes create headwinds. The recent debt refinancing increases interest expense to $15 million annually, making cash flow conversion and prudent capital deployment key for maintaining financial flexibility.

Key Considerations

Repay’s 2025 exit velocity and 2026 guidance are shaped by a combination of B2B segment momentum, technology investments, and disciplined capital allocation. The following considerations frame the company’s risk-reward profile as it enters a new phase of growth:

Key Considerations:

• Supplier Network Expansion: Sustained supplier and partner growth is essential for maintaining B2B revenue trajectory and competitive differentiation.
• AI and Automation Payoff: Realizing cost savings and faster client onboarding from AI initiatives is crucial for margin resilience.
• Political Media Volatility: Election-driven revenue surges are non-recurring, requiring management to deliver normalized growth from core operations.
• Debt and Interest Expense Management: Higher interest burden from recent refinancing places added scrutiny on cash flow conversion and capital allocation.
• Organic vs. Inorganic Growth Balance: Success in integrating acquisitions and scaling new product offerings will determine multi-year growth sustainability.

Risks

Repay faces key risks from macroeconomic headwinds in consumer lending and auto markets, as well as competitive pressure in both B2B and consumer payments. Political media revenue is inherently volatile and non-recurring, while higher debt levels and rising interest expense could constrain financial flexibility. Execution risk around AI-driven initiatives and integration of future M&A may impact both margins and client satisfaction if not managed tightly.

Forward Outlook

For Q1 2026, Repay expects:

• Lower year-over-year growth relative to the full-year outlook, due to implementation delays and annualized churn from late 2025.
• Ramp in signed clients and political media contributions to drive acceleration in the second half.

For full-year 2026, management guided to:

• Revenue of $340 million to $346 million (10% to 12% reported growth; 7% to 9% normalized growth).
• Adjusted EBITDA of $136.5 million to $141.5 million (about 40% margin).
• Free cash flow conversion above 45%, incorporating $15 million in annual interest expense.

Management highlighted that political media will contribute $8 million to $10 million in revenue, with second-half growth reaccelerating as new clients go live and AP initiatives scale. CapEx and share repurchase remain balanced with M&A and debt reduction as capital priorities.

Takeaways

Repay’s strategic execution in B2B payments and supplier network expansion positions the company for normalized double-digit growth in 2026, but margin management and successful technology deployment will be critical for sustaining profitability and cash flow.

• B2B Platform as Growth Engine: Supplier and software partner expansion are outpacing consumer, anchoring future revenue streams.
• AI and Automation as Differentiators: Execution on technology investments is central to margin defense and client satisfaction.
• Capital Deployment Optionality: Flexibility to pursue M&A, buybacks, and organic investment will shape Repay’s multi-year trajectory.

Conclusion

Repay exits 2025 with clear B2B momentum and a more resilient operating foundation. As the company leans into technology-driven efficiency and capital flexibility, investors should watch for execution on AI initiatives, integration of future acquisitions, and the sustainability of margin and cash flow in a more competitive, interest-sensitive environment.

Industry Read-Through

Repay’s B2B AP platform scale and supplier network expansion signal ongoing digitization tailwinds in business payments, reflecting broader demand for workflow automation and embedded payment solutions across verticals. The company’s emphasis on AI and automation mirrors a payments industry shift toward operational leverage and client onboarding speed. Political media revenue volatility highlights the need for payments providers to diversify beyond cyclical verticals, while the focus on capital flexibility and disciplined margin management is increasingly relevant as fintechs navigate higher funding costs and rising client expectations for integration speed and reliability.

RPAY Technology Payments B2B Automation AI Accounts Payable Supplier Network