Exploring Repay Holdings Corporation (RPAY) Investor Profile: Who’s Buying and Why?

You're looking at Repay Holdings Corporation (RPAY) and seeing a mixed signal: a recent Q3 2025 revenue of $77.7 million missed analyst estimates, but institutional money is defintely still parked here. How do you reconcile that kind of performance-where the company's non-GAAP earnings per share (EPS) of $0.21 also came in just shy-with the fact that institutional investors own a massive 82.73% of the stock? It's a classic Wall Street puzzle. Firms like Blackrock, Inc., which held over 6.6 million shares, and Vanguard Group Inc. are major holders, but we also saw an insider, EVP Jacob Hamilton Moore, sell 26,385 shares back in September 2025. Is the smart money betting on the projected Q4 Free Cash Flow (FCF) conversion accelerating above 60%, or are they quietly rotating out near the average analyst price target of $7.22? We break down the 2025 13F filings and the core thesis to show you who is buying, who is selling, and why this payment processor is still a conviction play for some, despite the recent volatility.

Who Invests in Repay Holdings Corporation (RPAY) and Why?

If you're looking at Repay Holdings Corporation (RPAY), you're looking at a company where the investment narrative is defintely driven by professional money. The short answer is that institutional investors-the big players-own the vast majority of the stock, and their motivation is a classic mix of growth potential in specialized payments and a deep-value play on a turnaround story.

As of late 2025, the market for RPAY is dominated by institutional capital. Hedge funds, mutual funds, and other large financial institutions hold a commanding stake, ranging from 82.73% to over 93.43% of the outstanding shares. This is a high concentration, which means the stock's price movements are heavily influenced by the decisions of a few dozen major firms, not the sentiment of individual retail traders.

Here's the quick breakdown of who holds the shares:

• Institutions: 82.8% of the total shares. This group includes giants like BlackRock, Inc., The Vanguard Group, Inc., and American Century Companies Inc..
• Individual Insiders: Own about 7.72%. This is a healthy amount, but recent insider selling, like a director's sale of 4,500 shares in November 2025, suggests caution at current price levels.
• Private Companies: Hold around 9.51%, often representing early investors or strategic partners.

Investment Motivations: Growth, Value, and Cash Flow

The core attraction for these seasoned investors isn't a high-flying growth story right now, but a value opportunity in a payments technology company that is generating significant cash flow despite a negative net margin of 39.08%. They see the underlying strength in the business-to-business (B2B) and consumer payments verticals, which is a massive market. The company's focus is on integrated payment processing solutions (embedding payments directly into a client's software), which is a sticky, high-retention business model.

The financials from the third quarter of 2025 tell the story clearly. The company reported Adjusted EBITDA of $31.2 million on revenue of $77.7 million, translating to a strong Adjusted EBITDA margin of 40%. That kind of margin is what keeps institutional money interested, even when the company posts a net loss. Plus, they generated a strong free cash flow conversion of 67%.

What attracts the big funds:

• High Margins: 40% Adjusted EBITDA margin is excellent for a payments processor.
• Growth in B2B: Normalized gross profit in Business Payments grew approximately 12% in Q3 2025, showing momentum.
• Capital Management: The company is actively managing its balance sheet, retiring $73.5 million of convertible notes and repurchasing $15.6 million of shares in Q3 2025. They are prioritizing debt reduction, which is a huge green flag for value investors.

If you want a deeper dive on the health of the balance sheet, you should read Breaking Down Repay Holdings Corporation (RPAY) Financial Health: Key Insights for Investors.

Typical Investment Strategies: The Long-Term Value Play

Given the high institutional ownership and the company's current valuation-trading at a negative price-to-earnings (P/E) ratio but with a strong cash flow profile-the dominant strategy is a long-term holding with a value-oriented (or deep-value) perspective. They are betting on a successful turnaround and a return to sustainable growth, which management is guiding for as they exit 2025.

Here's the quick math: analysts have a consensus 'Hold' rating but an average price target of $6.92. With the stock trading much lower in November 2025, the institutional money sees a significant gap between the current price and the perceived intrinsic value, especially if the company can execute on its strategic growth plans in the B2B segment. This is a classic value investment thesis: buy a fundamentally sound business with temporary headwinds at a discount.

The investment strategies break down like this:

The high beta of 1.60 also tells you this stock is more volatile than the overall market. This volatility attracts short-term traders, but the sheer volume of institutional money suggests the long-term holders are the ones controlling the direction. They are buying into the company's stated goal of returning to sustainable growth and maintaining that impressive 40% Adjusted EBITDA margin.

Institutional Ownership and Major Shareholders of Repay Holdings Corporation (RPAY)

If you're looking at Repay Holdings Corporation (RPAY), the first thing to understand is that it's an institutionally-dominated stock. This isn't a retail investor's playground; it's a battleground for big money. As of the latest filings, institutional investors collectively own a staggering 82.8% of the company's shares outstanding. That kind of concentration means their decisions, whether to buy or sell, have an outsized impact on the stock price and the company's strategic direction.

Here's the quick math: with institutional ownership so high, you're investing alongside the world's largest asset managers. That's defintely a double-edged sword: they provide stability, but a mass exodus could crush the share price.

Top Institutional Investors and Their Stakes

The list of major shareholders in Repay Holdings Corporation reads like a who's who of global finance. These are the passive index funds and active managers who have decided RPAY belongs in their portfolios. The top institutional holders, based on the most recent 13F filings for the 2025 fiscal year, show a clear concentration of capital.

The largest single shareholder is Beckham Parent, L.P., a private entity, but among the major public institutional players, you see the usual suspects. Their combined power dictates the trading volume and liquidity of the stock. For example, as of September 30, 2025, the top three institutional holders alone accounted for a significant portion of the free float.

Here is a snapshot of the largest institutional stakes, primarily based on June 30 and September 30, 2025, data:

Recent Shifts in Institutional Ownership

Looking at the changes in ownership tells you more than the static list of holders. It reveals conviction, or lack thereof. Repay Holdings Corporation has seen a mixed bag of activity recently, which is typical for a mid-cap company navigating a challenging economic environment and a Q3 2025 earnings miss.

Some major players have been trimming their positions. BlackRock, Inc., for instance, decreased its holding by over 1.3 million shares as of June 30, 2025. This move suggests either portfolio rebalancing or a slight loss of conviction in the near-term outlook. Still, other firms saw an opportunity to buy the dip or increase their exposure to the payments space.

• American Century Companies Inc. significantly increased its stake by over 2.0 million shares in the June 30, 2025, filing.
• Private Management Group Inc. also showed strong buying conviction, adding over 1.5 million shares.
• Overall, institutional investors reported a total of 13,557,810 shares in increased positions versus 16,962,997 shares in decreased positions, indicating a net slight reduction in overall accumulation sentiment during that period.

Impact on Stock Price and Corporate Strategy

The actions of these large investors are not just a footnote; they are a primary driver of Repay Holdings Corporation's stock performance and strategic decisions. When Q3 2025 results were announced, the market reacted sharply-the stock price fell because the reported EPS of -$0.08 was significantly below the forecasted $0.21, despite revenue of $79.1 million surpassing expectations.

This negative reaction is the institutional investor's voice: they are demanding a clearer path to profitability and a better return on capital. The company's response is directly aimed at appeasing this powerful shareholder base. You can see this in their capital allocation strategy:

• Capital Returns: Repay Holdings Corporation authorized a share repurchase program, buying back approximately 7.9 million shares year-to-date for a total of $38 million as of September 30, 2025. This action directly supports the stock price and increases earnings per share for the remaining institutional holders.
• Operational Focus: Management is focused on key metrics that institutions care about, like maintaining a robust Adjusted EBITDA margin of 40% in Q3 2025 and a strong Free Cash Flow conversion rate of 67%.
• Governance: With such high ownership, these large firms have the capacity to influence board decisions, especially around mergers, acquisitions, and executive compensation. They are the ultimate check on management's execution of the company's Mission Statement, Vision, & Core Values of Repay Holdings Corporation (RPAY).

Your takeaway should be this: watch the institutional buying and selling trends closely. They are the smart money, and their collective movement is a leading indicator for RPAY's stock. If the Q4 2025 guidance of 6% to 8% normalized gross profit growth and Free Cash Flow conversion above 50% is met, you'll likely see the buyers return.

Key Investors and Their Impact on Repay Holdings Corporation (RPAY)

You need to know who is holding the reins at Repay Holdings Corporation (RPAY) because a high concentration of institutional ownership means their moves can swing the stock. The direct takeaway is that a massive 82.73% of RPAY stock is held by institutional investors and hedge funds, meaning the company's strategy is defintely beholden to the priorities of these large players. This is a very high percentage, and it signals that the stock is primarily a professional money game, not a retail favorite.

The investor profile is dominated by major asset managers and specialized funds. Their presence provides stability, but also demands clear, disciplined capital allocation from management. Here's the quick math: when over four-fifths of the company is owned by institutions, their collective voice on issues like share buybacks or strategic direction is nearly impossible to ignore.

The top institutional holders as of mid-2025, based on the latest filings, paint a clear picture of who is buying into the Repay Holdings Corporation story:

• Beckham Parent, L.P.: The largest shareholder, holding 8,907,540 shares as of April 2025.
• BlackRock, Inc.: A major passive and active investor, holding 6,693,911 shares valued at approximately $29,052,000 as of June 29, 2025.
• American Century Investment Management Inc.: A significant active player, owning 6,440,443 shares valued at $31,043,000 as of the second quarter of 2025.
• The Vanguard Group, Inc.: Another index fund giant, with 4,617,976 shares as of June 2025.

Recent Moves and Investor Influence

The recent activity from these major investors tells you exactly what they think of the company's near-term value. We've seen significant buying, which is a vote of confidence in the management's strategy, particularly in the Business Payments segment which is showing strong growth. For instance, American Century Companies Inc. boosted its stake by a substantial 45.5% in the second quarter of 2025, adding over 2 million shares. Also, Private Management Group Inc. increased its position by 57.3% in Q2, bringing their total to 4,175,111 shares valued at $20,124,000. These are not small, passive moves; they are high-conviction buys.

On the other hand, the high institutional ownership exerts direct pressure on corporate decisions. The company's announcement of a comprehensive strategic review in March 2025, aimed at enhancing shareholder value, is a classic response to a demanding investor base. This review could include M&A or a private take-over, which are decisions that directly impact your investment thesis.

The most concrete evidence of investor influence is in capital management. In Q3 2025, Repay Holdings Corporation retired $73.5 million of convertible notes and repurchased $15.6 million of outstanding shares. Year-to-date in 2025, the company has repurchased $38 million worth of shares under its $75 million buyback program. That's a clear signal that the board is prioritizing shareholder returns and capital efficiency, a move often pushed by major institutional investors.

Here is a snapshot of the notable Q2 and Q3 2025 institutional activity:

The recent insider selling by Director Richard Thornburgh, who sold 4,500 shares on November 17, 2025, for a total of $15,750.00, is a minor data point but one to watch. Insider sales, even small ones, can sometimes temper investor enthusiasm, but the overwhelming institutional buying power and corporate actions are the bigger drivers right now. To fully grasp the strategic direction these investors are influencing, you should review the Mission Statement, Vision, & Core Values of Repay Holdings Corporation (RPAY).

Your action here is to monitor the share repurchase program and the outcome of the strategic review. These are the direct results of a highly institutionalized shareholder base demanding value.

Market Impact and Investor Sentiment

You're looking at Repay Holdings Corporation (RPAY) right now and seeing a mixed picture: management is touting 'normalized growth,' but the stock price is telling a different story. The current investor sentiment is best described as tempered-not outright negative, but definitely cautious.

The market has responded poorly to recent news, driving the stock down. In the 30 days leading up to mid-November 2025, the share price dove a staggering 26%, prolonged a painful year for shareholders. This drop reflects a concession from investors that future revenue might not deliver any pleasant surprises, especially when the stock is trading near its 52-week low of $3.06.

This kind of volatility forces us to look past the headlines and into the institutional ownership. The major players-firms like BlackRock, Inc., The Vanguard Group, Inc., and State Street Global Advisors, Inc.-are the ones who truly set the long-term tone, and their activity will be the bellwether for a sustained recovery. You can dig deeper into the corporate structure and strategy here: Repay Holdings Corporation (RPAY): History, Ownership, Mission, How It Works & Makes Money.

Recent Market Reactions and Insider Moves

The most immediate and clear market reaction came after the Q3 2025 earnings call on November 10, 2025. The company reported revenue of $77.7 million, which was a slight miss against the analyst consensus estimate of $78.6 million. More critically, the non-GAAP earnings per share (EPS) of $0.21 came in just below the $0.22 estimate. That simultaneous miss on both key metrics led to the stock falling 1.58% in the immediate aftermath, reflecting investor concern over profitability.

Insider selling has also contributed to the negative near-term sentiment. A Director, Richard Thornburgh, sold 4,500 shares of company stock on November 17, 2025, at an average price of $3.50 per share, totaling $15,750.00. Honestly, when a director reduces their stake by 3.31%, it doesn't exactly instill confidence in the near-term outlook for a stock already under pressure. Insider activity is a defintely a clean one-liner to watch.

Here's the quick math on the Q3 2025 performance versus expectations:

Analyst Perspectives: The Mixed Signal

The institutional analyst community has a split decision on Repay Holdings Corporation, which is why the consensus rating is a cautious 'Hold.' Out of the ten ratings firms covering the stock as of early November 2025, you see a clear division: one sell rating, five hold ratings, and four buy ratings. The average twelve-month price objective among these brokerages is approximately $6.92. What this estimate hides is the wide range, with targets going from a low of $4.00 to a high of $12.00, showing a real lack of conviction on the company's trajectory.

The bulls point to the company's operational strengths and cash flow generation, while the bears focus on margin compression and growth headwinds. The positive view is grounded in the Q3 2025 metrics: a strong 40% adjusted EBITDA margin and a robust 67% free cash flow conversion. The company is also guiding for Q4 2025 Free Cash Flow Conversion to be greater than 50%, which is a solid operational target.

But, you need to be realistic about the risks. The primary concern is margin compression (the gross profit margin dropped about 3.4% year-over-year in Q3 2025) due to a shift toward larger enterprise clients who demand volume discounts and an increased mix of lower-margin ACH (Automated Clearing House) and check volumes. This pressure on gross profit is a fundamental challenge to the long-term profitability model. For the full fiscal year 2025, analysts project an EPS of only $0.72 on revenue of $313.18 million.

• Bulls cite $31.2 million Q3 Adjusted EBITDA.
• Bears worry about 3.4% margin compression.
• The consensus price target is $6.92.

The action you should take now is to monitor the Q4 2025 guidance for normalized gross profit growth, which management expects to be between 6% and 8%. If they hit the high end of that range, it could stabilize the stock and shift the analyst consensus from 'Hold' back toward 'Buy.'