Repay's KUBRA Closing: The Integration Machine Whirs to Life

With the transformative acquisition closed, REPAY is raking in synergies, accelerating organic growth, and eyeing a deleveraging path.

RPAY · Earnings Call · 2026-08-10

The Quarter That Changed REPAY's Trajectory

Repay Holdings (RPAY) reported its first full quarter with KUBRA under its belt, and the numbers tell a story of a company in the middle of a well-executed transformation. Revenue surged 33% to $100.7 million, with the KUBRA acquisition contributing roughly $21 million in its first month. Organic growth, excluding political media, came in at 6% — a step up from the low-single-digit pace of recent quarters, and management is guiding to double-digit organic growth in the back half of the year. "We immediately began executing on the integration, building on the groundwork we had laid in the months leading up to closing. REPAY is now fully positioned to be a leading consumer bill payment and communication services platform in the United States and Canada." “REPAY is now fully positioned to be a leading consumer bill payment and communication services platform in the United States and Canada.” — John Morris, Co-Founder and Chief Executive Officer · 2026-08-10 The integration is moving faster than many might have expected. John Morris noted that within the first 30 days of closing, "“REPAY has already realized over $4.5 million of annualized run rate synergies exiting Q2” — John Morris, Co-Founder and Chief Executive Officer · 2026-08-10", well on track toward the $8 million target for year-end and $20 million+ by 2028. Platform unification is also picking up steam: several large clients are already live on the upgraded KUBRA platform, and cross-sell opportunities are emerging as existing REPAY clients adopt bill presentment and communication services.

Cash Flow: The Real Engine of the Story

Rob Houser was emphatic that this is ultimately a cash-flow story. Free cash flow conversion hit 75% in Q2 (81% adjusted for integration costs), and management projects 30% conversion for the full year, with the step-down driven by incremental interest expense and onetime integration costs. The company is using that cash to delever — with pro forma net leverage at 3.7x, they aim to get below 3x within 18 months.

Let me put some numbers around what John described because the integration is ultimately a cash flow story.
Robert Houser, Chief Financial Officer · 2026-08-10

The cash flow conversion is a key theme that has been consistent across quarters, but the scale has changed dramatically. In the prior call (Q1 2026), management noted "“the free cash flow generation of the combined company is what really excites us as well—pretty decent free cash flow conversion as we go into the out years.” — Robert Hauser, Chief Financial Officer · 2026-05-04" Now we're seeing the first concrete proof of that thesis.

Segment Momentum and the Political Media Tailwind

Business Payments posted a standout quarter: reported growth of 32%, or 19% normalized (excluding strong political media contributions). The AP supplier network reached 731,000 vendors, up 65% year-over-year, and the momentum from TotalPay monetization and new client ramps is expected to continue. Consumer Payments grew 33% reported (4% organic ex-political), with KUBRA bringing a steady, non-discretionary mix of utilities and government revenue. The political media vertical is a meaningful contributor in this midterm year. Management reiterated the $8–10 million full-year estimate, with the bulk coming in Q3 and Q4. "“We continue to expect the majority of political media contributions to occur around the elections in Q3 and Q4.” — Robert Houser, Chief Financial Officer · 2026-08-10" That is a distinct tailwind that wasn't present in 2025.

Valuation and the Tape

The stock has been on a rollercoaster — down over 85% from its 2020 peak — but the recent tape is turning. Over the past 90 trading days, RPAY is up 33%, and the 17-week uptrend is intact, with the stock within 6% of its recent high. The market is clearly giving credit to the deal rationale and the execution so far. With the company guiding to double-digit organic growth and a clear deleveraging plan, the setup looks more constructive than it has in years. Fundamentally, the Q1 2026 revenue was $81 million, and with KUBRA adding roughly $21 million in June alone, the trajectory is obvious. Revenue has been steadily climbing from $61 million in Q1 2025 to $81 million in Q1 2026, and the addition of KUBRA marks a step-change in scale. The operating income line is still negative, but that's largely a function of amortization and integration costs; the adjusted EBITDA story is much healthier.

Conclusion

Repay's second quarter was a clear inflection point. The KUBRA deal is executed, synergies are being pulled forward, organic growth is accelerating, and the balance sheet is being actively delevered. The challenge ahead is whether they can sustain this momentum into 2027 and beyond, but today's report gives investors ample reason to believe the integration plan is on track. With an Investor Day in December, the company will have a chance to lay out the multi-year vision in detail.