Repay (RPAY) Financials

Repay Holdings Corp (NASDAQ: RPAY) has shown mixed financial performance from Q3 2022 through Q4 2024 based on the available quarterly income statements, cash flow statements, and balance sheets.

Positive highlights over the last several quarters include:

• Despite fluctuations, Repay generated strong total non-interest income consistently, exceeding $70 million quarterly in many periods, which supports revenue stability from non-core operations.
• Net cash from continuing operating activities remains robust, with positive cash flows of $34 million in Q4 2024 and $60 million in Q3 2024, indicating solid operational cash generation despite some net losses.
• The company's total equity including noncontrolling interests showed an overall healthy level of approximately $750 million to $830 million in recent quarters, indicating a sound equity base.
• Repay has maintained tangible assets such as goodwill and intangible assets around $1.1+ billion, providing asset-backed support to its operations.
• The weighted average diluted shares outstanding have remained relatively stable, indicating minimal dilution concerns for investors.

Neutral observations include:

• Repay has recurring high depreciation and amortization expenses around $24–27 million per quarter, which is a non-cash charge but reduces reported earnings.
• Issuance and repayment of debt have largely offset each other, indicating ongoing capital structure adjustments but no clear trend of deleveraging or increased leverage.
• Capital expenditures for property and equipment have been stable in the $10–13 million range quarterly, indicating steady investment but no aggressive expansion or contraction.
• Some fluctuations in accrued interest payable and short-term debt levels appear tied to normal business operating cycles.
• Non-operating income / expense exhibits volatility quarter-over-quarter, impacting pretax income variably but without a clear directional trend.

Negative trends and risks to consider:

• Repay has reported net losses in recent quarters, including a loss of approximately $4 million in Q4 2024, reversing positive net income from earlier quarters such as Q3 2024. This indicates recent profitability pressure.
• Total interest expense has increased, notably surpassing total interest income, resulting in negative net interest income or expense for multiple quarters, which negatively impacts net profitability.
• Large unrealized capital losses on investments, such as the negative $13 million in Q4 2024, weigh on total non-interest income and overall net income.
• Total non-interest expenses have been very high, exceeding $150 million in Q4 2024 and showing elevated levels in previous quarters, squeezing margins.
• Despite strong operating cash flows, negative net income and recurring losses reduce retained earnings, which was negative around $330 million recently.
• Repurchase of common equity and dividend payments continue, which could strain liquidity amid net losses if not adequately supported by cash flow.
• The company experienced a significant net loss in Q4 2023 of over $77 million, highlighting periods of severe financial strain.

Summary: Repay Holdings Corp has maintained strong operating cash flow and a solid asset base, supported by steady non-interest income. However, the company faces challenges with profitability, notably recent net losses, increased interest expenses, and large non-interest expenses. The sizeable unrealized investment losses also pressure financial results. Investors should weigh the company's operational cash strength against continued profit volatility and elevated expenses as they consider Repay's stock prospects.