Repay Holdings Corporation (RPAY): ANSOFF MATRIX [Dec-2025 Updated]

You're trying to cut through the noise and find the defintely actionable growth levers for Repay Holdings Corporation, and after twenty years analyzing these plays, the Ansoff Matrix gives us the clearest map. Honestly, with Q3 2025 revenue at $77.7 million and a robust 40% Adjusted EBITDA margin-even with that recent goodwill impairment-the company has the financial stability to execute on serious expansion. We've broken down the next steps into four clear quadrants: aggressively penetrating existing markets, developing new geographic or vertical opportunities, building out new product capabilities like instant funding, and exploring strategic diversification moves like acquiring a PropTech firm. Keep reading below to see the precise actions we recommend for each path.

Repay Holdings Corporation (RPAY) - Ansoff Matrix: Market Penetration

Aggressively target large enterprise clients within existing verticals.

Repay Holdings Corporation saw onboarding of new enterprise customers contributing to Business Payments segment normalized gross profit growth of approximately 12% year-over-year in Q1 2025. The company also noted enterprise sales wins as a compounding growth factor.

Increase B2B Accounts Payable (AP) supplier network enrollment beyond the 40% year-over-year growth.

The AP supplier network expanded to over 440,000+ as of Q2 2025, representing an increase of approximately 47% year-over-year. This growth rate exceeded the 40% year-over-year benchmark mentioned.

Drive cross-selling of existing payment methods to the 10 new credit union clients onboarded in Q2 2025.

Repay Holdings Corporation added 10 new credit unions in Q2 2025, bringing the total credit union clients to 353. In Q1 2025, 14 new credit unions were added.

Offer promotional pricing to increase card payment volume, which is a key revenue metric.

Instant funding volumes increased by approximately 38% year-over-year in Q2 2025.

Focus sales efforts on the Consumer Payments segment to reverse the Q1 2025 gross profit decline of approximately 5%.

Consumer Payments gross profit declined approximately 5% year-over-year in Q1 2025. For Q2 2025, Consumer Payments gross profit was approximately flat year-over-year.

Key Financial and Operational Metrics for Market Penetration Focus Areas:

Sales and Client Onboarding Snapshot:

• Enterprise customers onboarded: Mentioned as a driver in Q1 2025.
• Software integrations reached: 283 at Q1 2025 end.
• Software integrations reached: 286 at Q2 2025 end.

Selected Quarterly Financials:

• Q2 2025 Revenue: $75.6M.
• Q2 2025 Gross Profit: $57.2M.

Repay Holdings Corporation (RPAY) - Ansoff Matrix: Market Development

You're looking at how Repay Holdings Corporation can grow by taking its existing payment solutions into new markets or customer segments. This is Market Development, and the numbers from 2025 show where the current engine is running, which informs where the next push should be.

The Business Payments segment shows momentum, with its normalized gross profit increasing by approximately 12% year-over-year in both the first quarter and the third quarter of 2025. This segment already serves several verticals, which provides a base for expansion into adjacent ones like logistics or manufacturing.

Consider the scale of the existing Business Payments success. In the first quarter of 2025, the supplier network expanded approximately 40% year-over-year to reach about 390,000 suppliers, growing further to 524,000 by the third quarter of 2025. This network growth is a key metric for scaling accounts payable solutions.

Here's a look at the recent financial performance, which sets the stage for any new market investment:

The plan to take the successful Consumer Payments platform into the Canadian market needs context. Repay Holdings Corporation already expanded its integrated payment processing services into Canada back in April 2019, focusing on the personal loans and automotive loans markets. The current development focus here would be specifically on expanding the Consumer Payments platform suite within that existing Canadian footprint, rather than establishing a presence from scratch.

Leveraging the integrated payment technology to target smaller, underserved US municipalities and government entities is a natural extension. Governments and municipalities are already listed as strategic vertical markets served within the Business Payments segment. The challenge is shifting focus to smaller entities within that existing vertical. The Business Payments segment contributed to a normalized gross profit growth of approximately 12% year-over-year in Q3 2025, showing the core strength this expansion would rely upon.

Introducing the core accounts payable solution to the higher education sector beyond current education clients is about deepening penetration in an established vertical. The education sector is already a named strategic vertical market for the Business Payments segment. This strategy focuses on capturing more of the total addressable market within that sector.

Partnering with a major US core banking system to access a new pool of financial institution clients relates to scaling the indirect relationships channel. The indirect relationships segment generated $2.90 million in revenue in the first quarter of 2025. A major partnership could significantly impact this figure, which is small compared to the direct relationships segment revenue of $74.43 million in the same period.

The overall financial health supports strategic moves, provided they are profitable. The company expects free cash flow conversion to accelerate above 60% by the fourth quarter of 2025. Also, the Board increased the share repurchase program authorization to $75 million, with approximately $61.2 million remaining capacity as of May 2025, signaling conviction in future cash generation.

Key operational metrics supporting expansion include:

• Business Payments normalized gross profit growth: 12% year-over-year (Q3 2025).
• Consumer Payments gross profit change: Increased 1% year-over-year (Q3 2025).
• Q3 2025 Adjusted EBITDA margin: Approximately 40%.
• Q3 2025 Free Cash Flow Conversion: 67%.

Finance: draft the projected incremental operating expense for Q4 2025 based on a 4.9% anticipated full-year revenue climb by Friday.

Repay Holdings Corporation (RPAY) - Ansoff Matrix: Product Development

You're looking at how Repay Holdings Corporation is pushing new services into its existing markets, which is the Product Development quadrant of the Ansoff Matrix. This is about enhancing what you offer your current client base, like mortgage servicers and business clients.

For the mortgage servicing clients, the Service Transfer Exchange (STX) product, which automates payment routing during servicing transfers, is an ongoing effort. While STX was announced in 2020, the current financial focus in 2025 shows capital deployment towards growth initiatives. Repay Holdings Corporation retired $73.5 million of convertible notes and repurchased $15.6 million of outstanding shares during the third quarter of 2025 alone, signaling capital allocation alongside product refinement.

In the Business Payments segment, the focus is on speed and automation. While specific metrics for an instant funding/disbursement product mirroring the Consumer product aren't public, the segment itself showed traction. Business Payments normalized gross profit increased approximately 12% year-over-year in the third quarter of 2025. This growth occurred despite an approximate 10% headwind from a client loss communicated in 2024.

Integrating AI-driven fraud detection tools is a clear strategic move. Repay Holdings Corporation announced an integration with Fuse, an AI-powered LOS platform, embedding secure payment processing technology directly into workflows to enhance financial institutions' operations. The company's overall financial health in Q3 2025 supports continued investment; Adjusted EBITDA was $31.2 million, representing approximately 40% adjusted EBITDA margins. The company stated it is making incremental investment towards sales, implementation, and client service teams to support future growth.

The company's strategic focus remains on optimizing digital payment flows across both verticals. The overall financial performance in Q3 2025 saw reported revenue of $77.7 million and gross profit of $57.8 million. The Free Cash Flow Conversion for Q3 2025 was 67%.

Here's a look at the capital deployment and segment performance context from the third quarter of 2025:

For the personal and auto loan verticals, which would be the target for a proprietary mobile wallet solution, the company noted that Consumer Payments gross profit growth was 1% year-over-year in Q3 2025, impacted by client roll-offs. The company is building momentum from strategic initiatives to accelerate growth exiting the year.

The focus on new product development and enhancement is reflected in the company's overall financial management and outlook:

• Consumer Payments gross profit increased 1% year-over-year in Q3 2025.
• The company repurchased 7.9 million shares year-to-date, reducing fully diluted shares by 8%.
• The Q4 2025 normalized gross profit growth expectation is 6% - 8%.
• The year-end 2025 Free Cash Flow Conversion target is above 60%.
• Total liquidity as of September 30, 2025, was $346 million.

The development of a subscription-based data analytics dashboard is part of the broader strategy to enhance client value, which aligns with the stated goal of optimizing digital payment flows. The company's total outstanding debt as of September 30, 2025, was $434 million.

Repay Holdings Corporation (RPAY) - Ansoff Matrix: Diversification

You're looking at how Repay Holdings Corporation can push growth beyond its current markets, which is the essence of diversification in the Ansoff Matrix. The company has been actively managing its capital structure, which gives you a starting point for assessing the financial bandwidth for these moves. For instance, in the third quarter of 2025, Repay Holdings Corporation generated $20.8M in Free Cash Flow (FCF) with a strong 67% FCF conversion rate. This robust cash generation supports the capital needs for new ventures. Also, management retired $73.5M of 2026 convertible notes and repurchased $15.6M of stock in that same quarter, showing a commitment to disciplined capital deployment while maintaining a net leverage of ~2.5x LTM Adjusted EBITDA.

The existing Business Payments segment is showing real traction, with normalized gross profit growing approximately 12% year-over-year in Q3 2025, which suggests that new, related product categories could find fertile ground. The company ended Q3 2025 with 291 software relationships, indicating an established channel for product expansion.

Here are the specific diversification avenues Repay Holdings Corporation could pursue, grounded in the latest figures:

• Acquire a specialized software company in a new vertical, like property technology (PropTech), for a new revenue stream.
• Develop an embedded lending product, moving beyond payments into a new financial service offering.
• Enter the European payments market via a strategic merger or acquisition (M&A) to gain immediate scale.
• Invest in a blockchain-based cross-border payment solution for high-volume, low-margin international transfers.
• Launch a treasury management service suite for mid-market B2B clients, a new product category.

Launching a treasury management service suite for mid-market B2B clients represents a direct product development move within the existing Business Payments market space, which is a lower-risk diversification play. This new product category would aim to capture more wallet share from the existing client base, which saw its AP supplier network grow to over 524,000 in Q3 2025, a 59% year-over-year increase. The Q3 2025 revenue was $77.7M, and the consensus estimate for the full fiscal year 2025 revenue is $307M.

Moving into embedded lending or PropTech acquisition requires capital deployment, but the balance sheet flexibility is there. The Board increased the share repurchase authorization up to $75M in May 2025, signaling confidence in their financial position to support growth initiatives. The ability to generate $20.8M in FCF in a single quarter is key for funding smaller, strategic acquisitions or internal development efforts like a new lending product.

Consider the financial snapshot that informs the capacity for these large, market-changing diversification efforts:

Entering the European payments market via M&A is a classic market development/diversification play that requires immediate scale, which an acquisition provides. The investment in a blockchain-based cross-border solution targets high-volume, low-margin transfers, a different business model than the current core, but one that could be funded by sustained FCF generation. The normalized revenue growth, excluding political media, was +5% year-over-year in Q3 2025, showing the underlying business is still expanding organically.

The potential for product development, such as an embedded lending product, ties directly into the Consumer Payments segment, which serves verticals like personal loans and auto loans. The company's ability to generate $31.2M in Adjusted EBITDA in Q3 2025 provides the necessary operational strength to fund the R&D for such a complex financial service offering. You should watch for management commentary on how they plan to allocate the next tranche of FCF, especially given the recent $38M spent on share repurchases through August 11th, 2025.