REPAY Holdings Corporation reported its first quarter 2025 financial results, with revenue decreasing 4.2% year-over-year to $77.3 million. Gross profit also declined by 5% year-over-year to $58.7 million. The company posted a net loss of $8.2 million, compared to a net loss of $5.4 million in Q1 2024.
Adjusted EBITDA for the quarter was $33.2 million, a 6.6% decrease year-over-year. Free Cash Flow was negative $8.0 million, a significant drop from $13.7 million in Q1 2024, resulting in a negative 24% Free Cash Flow Conversion. The Business Payments segment, however, showed a normalized gross profit growth of 12% year-over-year.
The Board of Directors concluded its strategic review, deciding to intensify organic growth investments in core and adjacent verticals. Concurrently, the Board approved an increase in the share repurchase authorization by $25 million, bringing the total program to $75 million, with approximately $61.2 million remaining.
REPAY provided a 2025 outlook, anticipating sequential quarterly normalized gross profit growth throughout the year, targeting a high single-digit to low double-digit exit rate in Q4 2025. Free cash flow conversion is expected to accelerate, exceeding 50% in Q2 and above 60% by year-end 2025, excluding one-time working capital impacts.
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