Repay Holdings Corporation (RPAY): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the engine room of Repay Holdings Corporation, and after two decades in this game, I can tell you it's all about deeply embedding payments where the work already happens. Forget chasing every merchant; their model hinges on integrating with software partners-they had over 188 consumer partners by Q3 2025-to capture transaction volume across auto finance and business services. This strategy is clearly translating to the bottom line, evidenced by their $31.2 million in Adjusted EBITDA that same quarter, built on revenue streams like the $77.7 million in Consumer Payments they posted in Q3 2025. If you want the precise breakdown of how they manage their $507.5 million debt while growing that supplier network past 440,000, check out the full Business Model Canvas we've laid out below.

Repay Holdings Corporation (RPAY) - Canvas Business Model: Key Partnerships

Repay Holdings Corporation's embedded payments strategy relies heavily on a diversified network of partners to distribute its technology across vertical markets.

The growth in the Software Integration Partner (ISV) channel is a key metric for Repay Holdings Corporation. As of the third quarter of 2025, the company reported having over 188 consumer software partners. This growth contributed to the overall partnership network reaching 291 across both the Consumer Payments and Business Payments segments by the end of Q3 2025.

The scale of these integrations supports the overall financial performance, with Repay Holdings Corporation reporting Q3 2025 revenue of $77.7M and Adjusted EBITDA of $31.2 million.

The Key Partnerships are detailed below:

The relationships with financial institutions are structured around payment network compliance. Repay Holdings Corporation relies on bank partners to sponsor its adherence to the rules and standards of card networks like Visa and ICA for MasterCard, enabling transaction routing under the sponsor banks' identification numbers.

In the Business Payments segment, Repay Holdings Corporation is deepening its reach into financial institutions. The integration with Fuse, an AI-powered LOS platform, embeds Repay Holdings Corporation's technology directly into workflows for banks and credit unions.

The partnership with Yooz, the AP automation provider, specifically targets the transition away from paper checks to digital payments like virtual cards and ACH transfers for accounts payable. This collaboration extends Repay Holdings Corporation's vendor payment automation capabilities to organizations across automotive, heavy trucking, construction, and manufacturing verticals.

The collaboration with Alfa Systems, a SaaS provider for the global automotive and equipment finance industry, is designed to deliver omni-channel payment acceptance across card payments, ACH, and digital wallets to Alfa's users in the United States and Canada.

Repay Holdings Corporation's clearing and settlement solutions (RCS) are marketed as customizable payment processing programs to other Independent Sales Organizations (ISOs) and payment facilitators.

You should track the growth of the total software integrations, as the company had approximately 262 integrations as of December 31, 2023. Finance: draft Q4 2025 partnership growth projections by next Tuesday.

Repay Holdings Corporation (RPAY) - Canvas Business Model: Key Activities

You're looking at the core engine of Repay Holdings Corporation's value creation, focusing on what they actually do day-to-day to generate revenue and grow. For a payments company, this means relentless tech upkeep, high-volume transaction handling, and aggressive network expansion.

Maintaining and enhancing the proprietary payment technology platform

Repay Holdings Corporation's key activity centers on keeping its integrated payment technology platform robust and current. This isn't just about uptime; it's about feature deployment to reduce payment complexity for clients. For instance, in the third quarter of 2025, management highlighted the introduction of REPAY's Dynamic Wallet, which integrates loan payments directly into iOS and Android wallets. Furthermore, the company is actively testing and deploying AI tools across the business to build a more scalable future. This continuous investment in the platform underpins the value proposition across both the Business Payments and Consumer Payments segments.

Digital payment processing and transaction management

The sheer volume of transactions managed is a critical activity, directly tying to revenue generation. While the most recent revenue figure for Q3 2025 was $77.7 million, the underlying processing activity shows the scale. In the second quarter of 2025, instant funding volume, a key metric for digital processing, showed significant growth at +~38% year-over-year. Managing these flows efficiently is crucial, as evidenced by the Q3 2025 Adjusted EBITDA margin of approximately 40%, though this was tempered by margin compression from client volume discounts and increased ACH/check volumes.

Expanding the Business Payments supplier network

A major focus for Repay Holdings Corporation is scaling the Business Payments supplier network, which directly fuels the accounts payable automation business. While the prompt mentioned over 440,000 in Q2 2025, the network continued to grow. As of September 30, 2025 (Q3 2025), the supplier network numbered 524,000. This represented a normalized gross profit increase of 12% year-over-year for the Business Payments segment in Q3 2025, showing the direct correlation between network expansion and segment performance.

Integrating new software partners and enterprise clients

Onboarding new partners and enterprise clients is essential for distribution and scale. In Q3 2025, Repay Holdings Corporation added five new software partners, bringing the total number of software integrations to 291. This activity supports growth in both segments, with the Business Payments segment seeing traction from the onboarding of new enterprise customers. The company also announced a partnership with Alfa Systems and a new integration with Fuse during that quarter, expanding reach in auto, equipment financing, and banking sectors.

Investing in organic growth and operational efficiency

Repay Holdings Corporation is actively managing capital to support organic growth and demonstrate operational discipline. This is visible in their cash flow management and capital allocation decisions. Free Cash Flow generation was strong in Q3 2025 at $20.8 million, achieving a 67% conversion rate. Operationally, the company retired $73.5 million of its 2026 convertible notes opportunistically during Q3 2025. They also continued their share repurchase strategy, buying back 3.1 million shares for $15.6 million in August 2025, contributing to a total of 7.9 million shares repurchased year-to-date, reducing fully diluted shares by 8%.

Here's a quick look at the key financial results underpinning these activities for the third quarter of 2025:

The focus on operational efficiency is also seen in the Consumer Payments segment, where gross profit was approximately flat year-over-year, benefiting from processing cost optimization.

Repay Holdings Corporation (RPAY) - Canvas Business Model: Key Resources

You're looking at the core assets Repay Holdings Corporation relies on to drive its business, the things that make their value proposition possible. Honestly, for a fintech player, these resources are all about the tech stack and the relationships built around it.

The proprietary, integrated payment technology platform is central. This platform is designed to take the complexity out of electronic payments for their clients, which is key in the verticals they serve. It's the engine that processes the volume; for instance, in 2023, they processed approximately $25.7 billion of total card payment volume. A strong indicator of platform adoption is the Accounts Payable (AP) supplier network, which hit over 524,000 suppliers as of the third quarter of 2025, marking an increase of approximately 59% year-over-year.

Next up is the extensive network of software and enterprise partnerships. This is how Repay Holdings Corporation gets embedded directly into client workflows. While the prompt mentions over 283 total, the latest reported number of integrated software partners reached 291 as of the third quarter of 2025. This network effect is what scales their reach without needing a massive direct sales force for every single end-user.

The financial engine supporting these resources is evident in their cash generation capabilities. Here's the quick math on their recent profitability:

The company also holds critical intellectual property and compliance infrastructure. This isn't just about patents; it's about the established processes to navigate the complex regulatory landscape of payment processing. Recurring non-compliance could lead to fines or suspension from payment networks, so this infrastructure is non-negotiable for maintaining scale. What this estimate hides, though, is the specific value assigned to their IP portfolio on the balance sheet, though Total Assets stood at approximately $1,333,489 thousand as of the trailing twelve months ending November 6, 2025.

Finally, the human capital in the form of dedicated sales and implementation teams is a key resource for driving adoption and ensuring clients successfully integrate the platform. Repay Holdings Corporation has been making incremental investments in these teams throughout 2025 to support future growth. These teams are crucial for converting those 291 software integrations into high-volume processing relationships.

• Total employees as of September 30, 2025: 465.
• Total outstanding debt as of the trailing twelve months ending November 6, 2025: $436,560 thousand.
• Shares repurchased in Q3 2025: $15.6 million worth of stock.
• Total liquidity as of September 30, 2025: Approximately $346 million (including $96 million cash on hand and $250 million undrawn revolver capacity).

Finance: draft 13-week cash view by Friday.

Repay Holdings Corporation (RPAY) - Canvas Business Model: Value Propositions

You're looking at the core benefits Repay Holdings Corporation offers its customers, grounded in the latest operational scale as of late 2025.

Seamless, embedded payment acceptance for clients is a key driver, supported by a strategy that integrates directly into partner software. This approach is designed to reduce friction where transactions originate. The company reports maintaining approximately 262 integrations with various software providers as of December 31, 2023, positioning them to benefit from client growth.

The value proposition of reduced complexity of electronic payments for businesses is backed by proprietary technology. For instance, the company's proprietary Gateway Technology delivered the highest authorization rates and the fewest outages in a competitive analysis mid-2025.

For Accounts Payable (AP) automation via TotalPay, the scale of the network demonstrates adoption. The AP supplier network accelerated to 524K in Q3 2025, representing approximately 59% year-over-year growth for that metric in the third quarter.

The platform supports omni-channel payment options, enabling clients to collect or send payments using various electronic methods. These methods include debit and credit cards, Automated Clearing House (ACH) processing, and virtual credit card processing.

The offering for accelerated funds disbursement for consumers (loan disbursement product) shows traction in the financial solutions vertical. Repay Holdings onboarded new clients in this area, increasing the total number of credit union clients to 353 as of Q2 2025.

Here are some key financial and operational metrics that reflect the scale supporting these value propositions as of the third quarter of 2025:

The company's capital allocation actions also signal conviction in its underlying business strength. Through August 11, 2025, Repay Holdings repurchased approximately 5% of its outstanding shares, using a total of $38 million in 2025 for buybacks.

You can see the mix of payment processing capabilities that underpin the omni-channel value:

• Debit and credit card processing
• Automated Clearing House (ACH) processing
• Virtual credit card processing
• Other electronic payment acceptance solutions

Repay Holdings Corporation (RPAY) - Canvas Business Model: Customer Relationships

You're looking at how Repay Holdings Corporation (RPAY) keeps its clients locked in and growing their spend on the platform. It's a mix of tech automation and dedicated human support, which is key when you process payments for specialized verticals.

Automated, high-touch service via embedded software is the core engine here. The platform is designed to reduce complexity for clients, meaning the day-to-day payment processing runs smoothly in the background. This integration is what drives the recurring nature of the revenue stream, which is critical for valuation.

The service structure relies on specialized teams to handle the initial setup and ongoing support. You see this investment in the operational focus, as management noted they were balancing resource allocation to make incremental investment towards the sales, implementation and client service teams throughout 2025. This investment supports the goal of returning to sustainable growth.

The focus is heavily on expanding volume from the existing base, which is the definition of recurring revenue success in this model. While the company faced headwinds, the Business Payments segment showed resilience with a normalized gross profit growth of approximately 12% in Q3 2025. Furthermore, the company is targeting Free Cash Flow Conversion to be greater than 50% in Q4 2025, showing a focus on monetizing that existing volume efficiently.

For larger opportunities, the direct sales model targets enterprise-level wins. This is evident in the growth metrics, where the Business Payments segment's normalized gross profit growth in Q1 2025 was driven by the core accounts payable business and new enterprise customers. This segment is clearly a focus area for direct acquisition efforts.

Strategic account management for key software partners is how Repay Holdings scales its reach without needing an army of direct salespeople for every niche. The platform's integrated nature depends on these relationships. As of the end of the third quarter of 2025, Repay Holdings added 5 new integrated software partners, bringing the total to 291 software relationships.

Here's a quick look at the scale of the client and partner ecosystem as of late 2025 reporting periods:

The growth in the supplier network, a direct measure of the embedded ecosystem's reach, is significant:

• The Accounts Payable supplier network accelerated by approximately 59% year-over-year as of Q3 2025.
• The overall Supplier Network grew 47% year-over-year to over 440,000 suppliers as of Q2 2025.
• Consumer Payments gross profit growth was reported at 1% in Q3 2025, showing continued, albeit slower, volume retention.

The company's focus on shareholder return through balance sheet management also signals confidence in the underlying client relationships. Repay Holdings repurchased approximately 7.9 million shares year-to-date (as of Q3 2025) for a total of $38 million, which reduces the share count and supports per-share metrics.

Finance: draft the Q4 2025 cash flow conversion forecast impact analysis by Monday.

Repay Holdings Corporation (RPAY) - Canvas Business Model: Channels

You're looking at how Repay Holdings Corporation moves its integrated payment solutions to the market as of late 2025. The channel strategy is clearly multi-pronged, balancing direct enterprise sales with heavy reliance on embedded finance through technology partners.

The overall scale of the business, which these channels feed, saw reported revenue of $\$77.73\text{M}$ for the quarter ending September 30, 2025, and revenue of $\$77.3\text{M}$ for the first quarter of 2025. The gross profit margin for Q1 2025 was $\text{76\%}$, showing the efficiency of the underlying processing model regardless of the initial sales path.

Direct sales force targeting enterprise clients

The direct sales effort focuses on landing larger, enterprise-level clients, particularly within the Business Payments segment. While specific revenue attribution to the direct sales team isn't broken out, the focus on enterprise ramps is noted as a driver for growth. For instance, in Q1 2025, Business Payments normalized gross profit growth was approximately $\text{12\%}$ year-over-year, driven in part by the onboarding of new enterprise customers.

Software Integration Partners (ISVs) embedding the solution

This is a critical growth engine, especially for the Business Payments vertical. Repay Holdings Corporation is executing integration refreshes to deepen penetration with these partners. The success of this channel is reflected in the growth of the Accounts Payable (AP) ecosystem. The AP supplier network accelerated to over $\text{390,000}$ connections by Q1 2025, representing an increase of approximately $\text{40\%}$ year-over-year.

Indirect relationships via ISOs and payment facilitators (RCS platform)

The indirect channel, involving Independent Sales Organizations (ISOs) and payment facilitators, is a traditional route for scaling payment volume. The company's RCS platform supports these relationships. Although specific metrics tied directly to ISO volume are not detailed in the latest reports, the overall Business Payments strength is a result of these combined efforts feeding the platform.

Online client portals and mobile payment applications

Client-facing digital tools are essential for customer experience and retention, supporting both direct and indirect sales channels. These portals and apps facilitate the electronic payment options that the company is focused on implementing further. The company's focus on enhancing the overall experience for consumers and businesses speaks directly to the quality and accessibility of these digital touchpoints.

Technology migration to TotalPay for AP automation

The evolution of the AP automation solution, which is founded on the cPayPlus acquisition from 2021, is central to the channel strategy for business clients. The migration toward the TotalPay technology is intended to further embed payment capabilities directly into client workflows. The strong normalized gross profit growth in Business Payments, mentioned earlier, is directly linked to the success of these AP strength initiatives and monetization efforts like enhanced ACH and float income.

Here's a quick look at the key financial results that reflect the output from these channels in the first half of 2025:

The company also executed capital allocation actions that signal confidence in the cash generation from these channels. During Q3 2025, Repay Holdings Corporation repurchased $\$15.6\text{M}$ of outstanding shares. Also, through August 11, 2025, the company had used a total of $\$38\text{M}$ in 2025 to repurchase shares.

You should watch the Q4 2025 guidance, as management expects normalized gross profit growth to accelerate to a high-single digit to low double-digit rate, which will be the clearest indicator of channel effectiveness heading into 2026.

Repay Holdings Corporation (RPAY) - Canvas Business Model: Customer Segments

Repay Holdings Corporation serves two primary, reportable segments: Consumer Payments and Business Payments. As of the third quarter of fiscal year 2025, the company reported total revenue of $79.1 million for the quarter.

The Consumer Payments segment, which historically accounted for approximately 85% of total revenue as of early 2025, focuses on financial services verticals. In the third quarter of 2025, this segment achieved a gross profit growth of 1% year-over-year. This segment's strategic vertical markets include:

• Personal loans
• Automotive loans
• Receivables management
• Credit unions
• Mortgage servicing
• Consumer healthcare
• Diversified retail

The Business Payments segment accounted for the remaining portion of revenue, approximately 15% as of early 2025. This segment showed stronger growth in Q3 2025, with normalized gross profit growth of approximately 12% year-over-year. The Business Payments segment serves strategic vertical markets such as:

The strategic vertical markets served within the Business Payments segment primarily include retail automotive, education, field services, governments and municipalities, healthcare, media, homeowner association management and hospitality.

The company's focus on enterprise clients and software vendors is evident in its partnership growth. Repay Holdings added 5 new software partners in the third quarter of 2025, bringing the total partnership network to 291 across both segments. Furthermore, the Accounts Payable (AP) supplier network grew to over 524,000, representing an increase of approximately 59% year-over-year as of Q3 2025.

You can see a snapshot of the segment revenue contribution and performance below, using the most recent figures available:

The company explicitly targets growth through software vendors seeking to monetize payments within their platforms, evidenced by the addition of new integrated software partners. Growth in the Business Payments segment in Q1 2025 was specifically driven by the onboarding of new enterprise customers.

The company's focus on expanding its AP business is quantifiable by the supplier network expansion. The AP supplier network reached over 524,000, a 59% year-over-year increase in Q3 2025. The company is also focused on instant funding volumes, which increased by 36%.

Repay Holdings Corporation (RPAY) - Canvas Business Model: Cost Structure

You're looking at the cost side of Repay Holdings Corporation's operations as of late 2025, which is heavily influenced by transaction volumes and strategic technology spending. Honestly, managing these costs is key to turning around the reported net loss figures we saw earlier in the year.

Costs of services (interchange and processing fees)

Costs of services (CoS) are directly tied to the volume of payments processed. For the third quarter of 2025, Repay Holdings reported revenue of $77.7 million and a Gross Profit of $57.8 million. This means the total CoS, which includes interchange and processing fees, was approximately $19.9 million ($77.7M - $57.8M). The gross profit margin for Q3 2025 settled at about 74%, down from 78% in Q3 2024.

This margin compression is partly due to cost dynamics within the payment flow. Specifically, management noted that higher overall transaction values led to higher-than-expected assessment fees on capped interchange volume.

Here's a quick look at the gross profit trend:

Technology and product development investments

Repay Holdings views its proprietary, integrated payment technology platform as a key differentiator. Investment in this area is ongoing, even amidst cost scrutiny. For instance, in the first quarter of 2025, the company reported capitalized software development costs of $11,207 thousand (or $11.2 million). The capital allocation priorities stated in Q1 2025 included maintaining prudent investments towards technology and products.

Sales, implementation, and client service team expenses

The cost structure includes necessary spending to fuel future growth, particularly in the Business Payments segment, which saw normalized gross profit growth of approximately 12% year-over-year in Q3 2025. To support this, the company has been making incremental investments towards the sales, implementation, and client service teams. They are encouraged by the healthy sales pipeline with enterprise clients.

• Expanding AP supplier network to over 524,000.
• Adding five new integrated software partners in Q3 2025, reaching 291 total relationships.
• Investments are expected to drive late-2025 acceleration.

General and administrative (G&A) and disciplined OpEx management

Management has been focused on disciplined OpEx management to maintain profitability metrics despite top-line pressures. The third quarter of 2025 saw an Adjusted EBITDA of $31.2 million on revenue of $77.7 million, resulting in an Adjusted EBITDA margin of approximately 40%. This reflects efforts to manage operating expenses while balancing resource allocation.

The company retired $73.5 million of 2026 convertible notes and repurchased $15.6 million of outstanding shares during Q3 2025.

Interest expense on total outstanding debt of $507.5 million

While Repay Holdings reduced its debt outstanding to $434 million by Q3 2025, the structure from Q1 2025, which included total outstanding debt of $507.5 million, consisted of:

• A $220 million convertible note due in February 2026 with a 0% coupon.
• A $287.5 million convertible note due in 2029 with a 2.875% coupon.

Based on the structure you specified of $507.5 million, the annual interest expense would be calculated as approximately $8.27 million, or roughly $2.07 million per quarter, assuming these coupon rates applied to the full amount for the entire period. Net leverage stood at approximately 2.5 times LTM Adjusted EBITDA as of Q3 2025.

Repay Holdings Corporation (RPAY) - Canvas Business Model: Revenue Streams

You're looking at how Repay Holdings Corporation actually brings in the money, which is key to understanding its valuation. The revenue streams are fundamentally built on transaction volume across its two main segments.

Transaction processing fees from Consumer Payments saw its gross profit increase by 1% year-over-year in the third quarter of 2025, on both a reported and normalized basis. The total company revenue for that same period, Q3 2025, was $77.7 million.

For the Business Payments segment, the story is about growth in gross profit, not just raw revenue. Normalized gross profit growth hit 12% year-over-year for Q3 2025. This growth is supported by expanding distribution; the AP supplier network grew to over 524,000, which is an increase of approximately 59% year-over-year. Also, the company reached 291 total software relationships as of that quarter.

Here's a quick look at how the segments stacked up in Q3 2025:

Interchange and assessment fees on capped interchange volume are a direct result of processing card transactions. Honestly, this stream faced some pressure; management noted that higher overall transaction values, driven by moving upmarket to larger enterprise clients, caused higher-than-expected assessment fees on this capped volume during the quarter.

Monetization efforts like enhanced ACH and float income are also part of the mix, though they can compress margins. The increase in client adoption of more modalities, including higher volumes of ACH and check transactions, contributed to margin compression in Q3 2025. Float income is a smaller, but present, component of overall financial management.

Fees from clearing and settlement solutions, specifically through Repay's proprietary RCS platform, represent revenue from marketing customizable payment processing programs to other ISOs (Independent Sales Organizations) and payment facilitators. While the platform is a key differentiator, specific revenue figures for RCS fees weren't broken out in the latest disclosures.

You should watch the mix shift here, as that's where the immediate pressure point is:

• Gross profit margin compression was noted year-over-year.
• Drivers included client volume discounts.
• Increased mix from ACH and check volumes.
• Higher average transaction value impacting assessment fees.

Finance: draft 13-week cash view by Friday.