Repay Holdings Corporation (RPAY): BCG Matrix [Dec-2025 Updated]

You're looking at Repay Holdings Corporation's portfolio right now, and it's a textbook case of a payments company balancing its books: the massive Consumer Payments engine, which still drives about 87% of total revenue, is the reliable Cash Cow, boasting a 71% Free Cash Flow Conversion rate. But the real action is in the Stars, like the Business Payments segment growing normalized gross profit by 12% and rapidly adding suppliers, while you have to watch the Dogs-underperforming legacy areas that took a non-cash $103.8 million goodwill impairment-and the looming Question Mark of that $220 million convertible note due early next year. Let's break down exactly where you should be focusing your attention below.

Background of Repay Holdings Corporation (RPAY)

You're looking at Repay Holdings Corporation (RPAY), which, at its core, is a leading provider of vertically-integrated payment solutions. Think of them as the tech layer that simplifies electronic payments for businesses operating in specific niches, which they call 'verticals.' Their proprietary technology platform is designed to cut through the complexity of payment acceptance for their clients, making the experience smoother for the end consumer or business paying the bill. This focus on integration is key to their model.

Repay Holdings Corporation reports its financial results across two main segments: Consumer Payments and Business Payments. The Consumer Payments side handles things like debit/credit card processing, ACH processing, and they also offer their own clearing and settlement platform, which they call RCS. The Business Payments segment, on the other hand, focuses on areas like accounts payable automation and building out enterprise customer relationships. As of early 2025, the company was leaning on over 283-plus software partnerships to drive growth.

Looking at the early 2025 performance, you see a mixed picture, which is common when a company is navigating client losses and strategic shifts. For the first quarter of fiscal year 2025, Repay Holdings Corporation (RPAY) posted revenue of $77.3 million, which was actually a 4% drop year-over-year. That revenue decline was driven by the Consumer Payments segment, which saw revenue fall by 6%, even as the Business Payments segment managed a 14% increase in revenue.

Things shifted slightly by the second quarter of 2025; revenue came in at US$75.6m, showing a slight 1.0% increase compared to the second quarter of 2024. However, that quarter was marked by a significant non-cash goodwill impairment loss of $103.8 million, primarily hitting the Consumer Payments segment, leading to a widened net loss of US$102.3m. Honestly, these large, one-time charges can obscure the underlying operational trends you're trying to track.

By the third quarter of 2025, with results due in November, the trailing twelve-month revenue stood at $308.95M, representing a small year-over-year decrease of 0.58%. To show confidence in their valuation amidst these pressures, Repay Holdings Corporation used a portion of Q2 2025 to buy back approximately 5% of its outstanding shares. As of Q1 2025, their net leverage stood at approximately 2.5 times total outstanding debt.

Repay Holdings Corporation (RPAY) - BCG Matrix: Stars

You're looking at the segment of Repay Holdings Corporation (RPAY) that's showing the most muscle in a growing market, which is exactly where the Boston Consulting Group Matrix places its Stars. For Repay Holdings Corporation (RPAY), the Business Payments (BP) segment is clearly positioned here, showing a normalized gross profit growth of approximately 12% year-over-year in Q1 2025. That kind of growth rate in a core area signals market leadership, even if it demands significant investment to maintain that pace.

The Accounts Payable (AP) automation services are the engine here, capitalizing on the high-growth B2B digital payments market. This is evident in the rapid expansion of the AP supplier network, which grew over 40% year-over-year in Q1 2025 to reach over 390,000 suppliers. Honestly, that network expansion is a massive competitive moat being built right now. If Repay Holdings Corporation (RPAY) can keep this momentum, this segment is definitely on the path to becoming a Cash Cow when the market growth inevitably cools down.

Here's a quick look at some of the key Q1 2025 operational metrics supporting this Star positioning:

The strength in this segment is being driven by several factors that you need to watch:

• - Strength of the core accounts payable business.
• - Successful onboarding of new enterprise customers.
• - Success of recent monetization efforts.
• - Expansion of software partnerships to 283 relationships.

The core focus for Repay Holdings Corporation (RPAY) remains on new enterprise client acquisitions within existing high-growth verticals like healthcare and retail automotive. You'll see them pushing hard to deepen these relationships, as that integrated model fosters the long-term client retention they believe is above industry averages. Finance: draft 13-week cash view by Friday.

Repay Holdings Corporation (RPAY) - BCG Matrix: Cash Cows

You're analyzing the core engine of Repay Holdings Corporation, the segment that reliably funds the rest of the portfolio. For Repay Holdings Corporation, the Consumer Payments segment is the classic Cash Cow, holding a commanding position in a mature space. Historically, this segment represented approximately 87% of total revenue, establishing its dominance in the company's structure. It's a market leader that generates more cash than it consumes, which is exactly what you want from this quadrant.

The financial performance in mid-2025 confirms this steady, high-output profile. For the second quarter ended June 30, 2025, the core processing platform demonstrated its efficiency with a Free Cash Flow Conversion rate at 71%. This means for every dollar of Adjusted EBITDA generated, 71 cents converted directly into cash flow you can deploy elsewhere. Furthermore, the stable, high-margin business model maintained an Adjusted EBITDA margin of 42% in Q2 2025, calculated from an Adjusted EBITDA of $$31.8$ million on $$75.6$ million in revenue for that quarter.

This segment's stability comes from its deep penetration in specific verticals. These are the areas where Repay Holdings Corporation has achieved a competitive advantage and where transaction volume is consistent. You see this in verticals like credit unions and automotive lending, which provide that necessary, high-volume transaction revenue stream, helping to offset the headwinds seen elsewhere in the business.

Here's a quick look at the key Q2 2025 metrics that define this Cash Cow status:

Because the market growth is low, the need for heavy promotional spending is minimal, letting Repay Holdings Corporation focus investments on infrastructure that boosts efficiency, which directly flows to the bottom line. The strength of this unit is evident when you look at the balance sheet, too. As of September 30, 2025, Repay Holdings Corporation held $$96$ million in cash, a direct result of these reliable cash flows.

The operational reality of milking this cow involves a few key characteristics:

• - Consumer Payments segment historically represented approximately 87% of total revenue.
• - Core processing platform generating strong cash flow, with Free Cash Flow Conversion at 71% in Q2 2025.
• - Stable, high-margin business model maintaining an Adjusted EBITDA margin of 42% in Q2 2025.
• - Verticals like credit unions and automotive lending, providing consistent, high-volume transaction revenue.
• - Consumer Payments gross profit was approximately flat year-over-year in Q2 2025 at $$55.4$ million.

The goal here is simple: maintain the current level of productivity and harvest the gains passively, using that cash to fund the Question Marks or pay down debt. Finance: draft the Q4 2025 cash flow projection based on a sustained 65% FCF conversion rate by Friday.

Repay Holdings Corporation (RPAY) - BCG Matrix: Dogs

You're looking at the parts of Repay Holdings Corporation that are demanding attention because they aren't generating the growth or market share you'd want to see. These Dogs, as the BCG Matrix calls them, are in low-growth areas and require careful management to avoid becoming cash traps.

The primary areas fitting this description involve underperforming Consumer Payments sub-segments, which have been visibly impacted by client losses and the broader industry consolidation you're seeing across fintech. Honestly, this pressure is what leads to tough decisions, like the major write-down we saw mid-year.

Specifically, you need to note the segment responsible for the non-cash $103.8 million goodwill impairment loss recorded in Q2 2025. That impairment was tied directly to the Consumer Payments division, signaling a significant reassessment of that unit's carrying value.

We see this weakness reflected in the legacy or less-integrated client bases, where reported gross profit has seen declines. For instance, the overall reported gross profit saw a 5% drop in Q1 2025, which management attributed to client losses. The Consumer Payments gross profit specifically fell approximately 5% year-over-year in that same quarter.

Also, keep an eye on the Accounts Receivable (AR) client base within Business Payments, which showed softness, requiring resource reallocation. While Business Payments has strong growth in its core AP side, this AR softness is a drain, evidenced by the reported gross profit in that segment declining 5% year-over-year in Q2 2025.

Here's a quick look at how the key financial metrics for these struggling areas trended across the first half of 2025:

The strategy here is clear: Dogs should be avoided and minimized. Expensive turn-around plans usually don't help much when the market itself isn't growing for that specific product line. You're looking at units that frequently break even, neither earning nor consuming much cash, but they tie up capital that could go to Stars or Cash Cows.

The key indicators pointing to the Dog status for these units include:

• Consumer Payments gross profit decline of approximately 5% year-over-year in Q1 2025.
• The $103.8 million goodwill impairment charge in Q2 2025, signaling a loss of perceived value.
• Reported gross profit decline of 5% in Q1 2025 due to client attrition.
• Softness in the Accounts Receivable client base within Business Payments during Q2 2025.

These business units are prime candidates for divestiture, or at least a severe reduction in resource allocation, to free up capital. Finance: draft the resource reallocation plan for the AR segment by next Tuesday.

Repay Holdings Corporation (RPAY) - BCG Matrix: Question Marks

These business units are characterized by operating in high-growth markets but currently holding a low market share for Repay Holdings Corporation. They consume significant cash resources while generating limited immediate returns, a classic profile for a Question Mark.

The Mortgage payments vertical fits this description, noted as having a healthy pipeline but not contributing a significant portion of the 2025 revenue. This area is likely situated within the Consumer Payments segment, which saw a substantial $103.8 million goodwill impairment in the second quarter of 2025. To be fair, the overall Consumer Payments division declined 2% year-over-year in Q2 2025 due to client attrition.

Repay Holdings Corporation is actively pursuing new monetization efforts and strategic investments in go-to-market strategies aimed at reaccelerating growth. This is evident in the Business Payments segment, which saw its normalized gross profit growth accelerate to 12% year-over-year in Q1 2025, driven by the success of these monetization efforts. The company is also expanding into niche markets like political media spending and Meridian Link partnerships as part of its strategic shifts.

The overall strategic review process, which could lead to a major pivot or acquisition, is defintely an unknown. This uncertainty is compounded by the capital structure. You need to address the $220 million of convertible notes due in February 2026, which creates a near-term capital uncertainty. However, Repay Holdings Corporation has been actively managing this debt, having Retired $73.5 million of convertible notes during the third quarter of 2025. The original offering was $440.0 million in aggregate principal amount of 0.00% Convertible Senior Notes due 2026.

Here's a snapshot of the financial context surrounding these strategic areas as of late 2025:

The need to quickly gain market share in these high-growth areas is paramount, as failure to do so risks these units becoming Dogs. The company is deploying capital, evidenced by the $15.6 million in share repurchases during Q3 2025, while maintaining a liquidity position around $413 million as of mid-August 2025.

The investment decision hinges on the potential for these Question Marks to become Stars. The outlook suggests sequential quarterly acceleration of normalized gross profit growth, with a Q4 2025 year-over-year growth rate projected in the high-single digits to low double-digits.

• - Q2 2025 Revenue: $75.6 million
• - Q3 2025 Adjusted EBITDA: $31.2 million
• - Stock Price (as of 06-Nov-2025): $3.88
• - Market Cap (as of 06-Nov-2025): $334M