Repay Holdings Corporation

I'd like to welcome everyone to REPAY's third quarter 2025 earnings conference call. This call has been recorded today, November 10th, 2025. I'd like to turn this session over to Stuart Grisanti, Head of Investor Relations at REPAY. Stuart, you may begin.

Thank you. Good afternoon and welcome to REPAY's third quarter 2025 earnings conference call. With us today are John Morris, Co-Founder and Chief Executive Officer. and Robert Hauser, Chief Financial Officer. During this call, we will be making forward-looking statements about our beliefs and estimates regarding future events and results. Those forward-looking statements are subject to risks and uncertainties, including those set forth in the FCC filings related to today's results and in our most recent Form 10-K. Actual results may differ materially from any forward-looking statements that we make today. Board-looking statements speak only as of today, and we do not assume any obligation or intent to update them, except as recorded by law. In an effort to provide additional information to investors, today's discussion will also reference certain non-GAAP financial measures. Reconciliations and other explanations of those non-GAAP financial measures can be found in today's press release and in the earnings supplement, each of which are available on the company's IR site. With that, I will now turn the call over to John.

Thanks, Stuart. Good afternoon and thank you for joining us today. During the third quarter, REPAY executed on our promise to sequentially improve growth in the second half of the year. Our core growth strategy is built on our drive to optimize digital payment flows across our consumer and business payment verticals. We embed our payment technology into software platforms for a seamless experience. And during the second half of 2025, we remain focused on the path of returning to sustainable growth as we exit the year. In Q3, we achieved 5% revenue growth and 1% gross profit growth on a normalized year-over-year basis, which excludes the political media contributions during 2024. Our adjusted EBITDA margins remain robust at 40%, and we continue to generate strong free cash flow conversion of 67% while reinvesting into organic growth initiatives. These financial results demonstrate the strategic improvements that are underway across repay, We have been enhancing our go-to-market implementation pipelines and operations. We're automating processes, strengthening partnerships, and enriching our capabilities and fine-tuning our clients' experience. We are testing and deploying AI tools across the company to build Repay for a scalable future. Repay is using real-time API observability for our gateway monitoring, which is leading to some of the highest authorization and uptime across the industry. We have been utilizing assisted AI functionality during the client onboarding process for faster API connectivity with software partners, reducing manual documentation and improving implementations. During the quarter, we developed Repay's dynamic wallet, allowing loan payments to be seamlessly integrated into iOS and Android's digital wallet. Dynamic wallet provides instant access to loan details, reminders to make payments on time, and tap and pay directly within the consumer's digital wallet. Easier access leads to better customer experience for our clients and increased digital payments for faster and secure transactions. Also, we have been adding new software partners during the quarter. We added five new software partners, bringing our partnership network to 291 across our consumer payments and business payments segments. Our investments in enterprise sales and customer support teams have built a healthy sales pipeline across the verticals we serve. This is reflected in sustained year-to-date bookings growth. Additionally, operational initiatives are leading to improved productivity, increased automation, and quicker implementation workflows. As these positive trends continue, our normalized growth is expected to sequentially improve further in the fourth quarter. Now moving on to our Q3 segment highlights. Within consumer payment segment, reported gross profit increased 1% year over year. Our core growth algorithm is built on both the recurring and incremental contributions from existing clients, and the ramp of recent client wins. As a reminder, Q3 gross profit growth was partially impacted by approximately 3% from the previously mentioned clients rolling off our platform. Without these impacts, gross profit increased single digits year over year. In Q3, we increased our consumer software partnerships to 188, while also enhancing many existing integrations to further improve client and customer experience. During September, we announced a partnership with Alpha Systems, a leading provider of SaaS software within the auto and equipment financing industry. The partnership combines Alpha Systems software with a complete solution of payment acceptance across modalities and channels. Financial institutions and lenders that use Alpha's loan management platform can utilize REPAY's out-of-the-box, seamless payment experience while also streamlining their internal accounting and reconciliation processes. This partnership is a great example that embodies Repay's overarching embedded payment strategy while also presenting additional subvertical growth opportunities. We also announced a new integration with FUSE, an AI-powered LOS platform that serves banks, credit unions, and financing institutions. FUSE's software embraces automation capabilities while also now embedding Repay's secure payment processing technology directly into workflows to enhance financial institutions' operations. By combining our extensive software partners that span across our consumer verticals with our direct go-to-market approach, our sales teams are building on strong sales and booking pipelines while adding many new clients, including 11 new credit unions and our financial institutions vertical. Year-to-date, core consumer bookings have continued to increase from this go-to-market strategy. Our teams are continuing to focus on client implementations and ramp processes. The minimum we see in software partners, sales bookings, and improving implementation workflows instills our confidence and our sustainable growth profile as we exit the year. Now turning to business payment segment. In Q3, normalized gross profit increased 12% year over year, which excludes the political media contributions during 2024. Please keep in mind that we also lapped approximately 10% impact from last year's client loss. Without these impacts, our gross profit growth was over 20% year-over-year. Business payments growth was driven by our accounts payable platform and payment monetization in issues of float income and expanding our enhanced ACH offering. We continue to win and implement new clients in our healthcare and hospitality verticals, leading to double-digit growth in our core AP platform. Our strategic focus is on increasing total pay adoption as we continue to prioritize our go-to-market and partnership resources towards AP opportunities. Our supplier network increased to over 540,000 suppliers, growing approximately 60% year-over-year, as we see great traction in our hospitality vertical, and we are building on existing software relationships such as Blackbaud in our education and nonprofit protocols. We also recently announced a new integration with Youze, a leading provider of AP automation software across multiple industries. Repay's directly embedded technology ensures timely vendor payments while improving productivity by reducing the need for manual processes for organizations. We are pleased with the business payments momentum for our sales teams and expect to see sustained AP traction from our 103 strategic partnerships and embedded integrations. In Q3, Repay took positive steps in the right direction through execution. We returned to profitable, normalized growth while generating significant free cash flow and maintaining a strong balance sheet for financial flexibility. We opportunistically deployed capital towards our organic growth initiatives. We purchased approximately 3% of our outstanding shares in August, bringing our total share repurchases to $38 million year to date and reduced our debt outstanding by retiring $73.5 million of our 2026 convertible notes at a discount. Looking forward, We expect the momentum to continue, giving us confidence across both consumer payments and business payments in the Q4 2025. And lastly, I would like to welcome Rob Hauser, Repay's Chief Financial Officer, who joined the company in September. Rob has already hit the ground running, bringing over a decade of payment experience and a proven operational track record. I look forward to working with Rob to build on Repay's success. With that, I will turn it over to Rob to review our Q3 financials. Rob?