Repay Raises Revenue Outlook 60% After Kubra Deal Closes
Repay Holdings lifted its full-year revenue outlook to $490-500 million from $340-346 million after closing its $372 million acquisition of Kubra, even as free cash flow conversion guidance was cut to roughly 30% from 45%.
Repay Holdings (RPAY) raised its full-year 2026 revenue guidance to $490-500 million from $340-346 million, a roughly 60% increase driven by the June 1 closing of its $372 million cash acquisition of Kubra, a bill-payment and customer-communications processor. The company had reiterated the prior $340-346 million range as recently as its May 4 Q1 release before the deal closed.
The raised outlook marks a shift in trajectory for a company whose organic quarterly revenue had plateaued. First-quarter revenue grew 4% year over year to $80.8 million from $77.3 million in Q1 2025, essentially flat against Q4 2025's $78.6 million and continuing a multi-quarter pattern that included Q3 2025's $77.7 million. Kubra is expected to contribute $150-154 million in revenue and $27.5-30 million of Adjusted EBITDA over the remaining seven months of 2026, a contribution not reflected in any prior quarter's outlook.
The acquisition changed the shape of Repay's guidance as well as its size. Full-year Adjusted EBITDA guidance rose to $168.5-176 million, but the implied margin fell to roughly 35% from about 42% previously, as Kubra's lower-margin business dilutes the consolidated profile. Free cash flow conversion guidance was cut to approximately 30% (Adjusted FCF Conversion approximately 35%) from 45%, which the company tied to integration and synergy costs associated with the deal. That guidance cut echoes a sharper move already visible in the first quarter, when free cash flow conversion fell to 16% from 43% in the fourth quarter of 2025 and from 67% and 71% in the third and second quarters of 2025, reflecting debt maturity payments, tax receivable agreement payments and a strategic distribution-partner buyout.
At the segment level, Business Payments continued to outrun Consumer Payments, growing revenue 18% year over year in the first quarter against 4% growth in Consumer Payments, a pattern consistent with Repay's preliminary release. That growth came with a margin tradeoff: Business Payments gross margin declined to 65% in the first quarter from 69% a year earlier, while Consumer Payments gross margin improved to 80% from 79%. Repay also highlighted scale in its accounts-payable network, which grew about 70% year over year to more than 665,000 suppliers as of the first quarter.
The Kubra deal pushed combined net leverage to approximately 4.0x at closing from 2.7x reported as of March 31, 2026, prompting Repay to set a new deleveraging target of below 3.0x within 18 months. Adjusted EBITDA guidance had already been raised twice before the Kubra transaction, first in an April 27 preliminary release to $141-146 million (about 42% margins) from an initial $136.5-141.5 million, and reiterated in the May 4 Q1 release, before the June 1 acquisition superseded both figures.
Repay's board also underwent changes tied to shareholder activity in the quarter. The company adopted a limited-duration stockholder rights plan on April 14, 2026 in response to rapid stock accumulation; by July 14, that standoff had resolved into a cooperation agreement with Parthenon Capital and the addition of Zach Sadek to the board, expanding it to seven directors.