Repay Holdings Corp (RPAY) 2025 Q3 法說會逐字稿

Good afternoon. I'd like to welcome everyone to Repay's third-quarter 2025 earnings conference call.

午安.歡迎各位參加 Repay 2025 年第三季財報電話會議。

This call is being recorded today, November 10, 2025.

本次通話於2025年11月10日進行錄音。

I'd like to turn this session over to Stewart Grisante, Head of Investor Relations at Repay. Stuart, you may begin.

接下來，我將把發言權交給 Repay 的投資者關係主管 Stewart Grisante。斯圖爾特，你可以開始了。

Thank you. Good afternoon and welcome to Repay's third-quarter 2025 earnings conference call.

謝謝。下午好，歡迎參加Repay 2025年第三季財報電話會議。

With us today are John Morris, Co-Founder and Chief Executive Officer; and Robert Houser, Chief Financial Officer.

今天與我們在一起的是聯合創始人兼首席執行官約翰·莫里斯，以及首席財務官羅伯特·豪瑟。

During this call, we will be making forward-looking statements about our beliefs and estimates regarding future events and results. Those forward-looking statements are subject to risks and uncertainties, including those set forth in the SEC filings related to today's results in our most recent Form 10-K. Actual results may differ materially from any forward-looking statements that we make today.

在本次電話會議中，我們將就我們對未來事件和結果的看法和估計發表前瞻性聲明。這些前瞻性聲明存在風險和不確定性，包括我們在最新的 10-K 表格中向美國證券交易委員會提交的與今天業績相關的文件中列出的風險和不確定性。實際結果可能與我們今天所做的任何前瞻性聲明有重大差異。

Forward-looking statements speak only as of today. We do not assume any obligation or intent to update them, except as required by law.

前瞻性陳述僅代表截至今日的觀點。除法律另有規定外，我們不承擔更新這些資訊的義務或意圖。

In an effort to provide additional information to investors, today's discussion will also reference certain non-GAAP financial measures. Reconciliations and other explanations of those non-GAAP financial measures can be found in today's press release and in the earnings supplement, each of which are available on the company's IR site.

為了向投資者提供更多信息，今天的討論還將提及一些非GAAP財務指標。有關這些非GAAP財務指標的調節和其他解釋，請參閱今天的新聞稿和盈利補充資料，這兩份文件均可在公司的投資者關係網站上找到。

With that, I will now turn the call over to John.

接下來，我會把電話交給約翰。

Thanks, Stewart. Good afternoon and thank you for joining us today.

謝謝你，斯圖爾特。下午好，感謝各位今天蒞臨。

During the third quarter, Repay executed on our promise to sequentially improve growth in the second half of the year. Our core growth strategy is built on our drive to optimize digital payment flows across our Consumer and Business Payment verticals.

第三季度，Repay 兌現了我們下半年逐步提高成長的承諾。我們的核心成長策略建立在我們致力於優化消費者和企業支付領域的數位支付流程之上。

We embed our payment technology into software platforms for a seamless experience. During the second half of 2025, we remain focused on the path of returning to sustainable growth, as we exit the year.

我們將支付技術嵌入到軟體平台中，以實現無縫體驗。2025年下半年，我們將繼續專注於走上永續成長的道路，為這一年畫下句點。

In Q3, we achieved 5% revenue growth and 1% gross profit growth on a normalized year-over-year basis, which excludes the political media contributions during 2024. Our adjusted EBITDA margins remain robust at 40%. We continue to generate strong free cash flow conversion of 67%, while reinvesting into organic growth initiatives. These financial results demonstrate the strategic improvements that are underway.

第三季度，我們以正常年比計算實現了 5% 的收入成長和 1% 的毛利成長，但不包括 2024 年的政治媒體捐款。我們調整後的 EBITDA 利潤率依然維持在 40% 的穩健水準。我們持續維持強勁的自由現金流轉換率（67%），同時將資金再投資於內生成長計畫。這些財務業績顯示我們正在進行策略改進。

Across Repay, we have been enhancing our go-to-market implementation pipelines and operations. We're automating processes, strengthening partnerships, enriching our capabilities, and fine-tuning our clients' experience.

在 Repay 的各個方面，我們一直在改善我們的市場推廣實施流程和營運。我們正在實現流程自動化、加強合作夥伴關係、增強自身能力並優化客戶體驗。

We are testing and deploying AI tools across the company to build Repay for a scalable future. Repay is using real-time API observability for our gateway monitoring, which is leading to some of the highest authorization and uptime across the industry. We have been utilizing assisted AI functionality during the client onboarding process for faster API connectivity with software partners, reducing manual documentation, and improving implementations.

我們正在全公司範圍內測試和部署人工智慧工具，以建立可擴展的 Repay 系統，面向未來。Repay 使用即時 API 可觀測性進行網關監控，從而實現了業界最高的授權率和正常運行時間。我們在客戶入職過程中利用了人工智慧輔助功能，以加快與軟體合作夥伴的 API 連接，減少人工文件編寫，並改善實作。

During the quarter, we developed Repay's Dynamic Wallet, allowing loan payments to be seamlessly integrated into iOS and Android's digital wallet. Dynamic Wallet provides instant access to loan details, reminders to make payments on time, and tap and pay directly within the consumer's digital wallet. Easier access leads to better customer experience for our clients and increased digital payments for faster and secure transactions.

本季度，我們開發了 Repay 的動態錢包，使貸款支付能夠無縫整合到 iOS 和 Android 的數位錢包中。動態錢包可即時存取貸款詳情、提醒用戶按時付款，並支援用戶直接在數位錢包內進行輕觸支付。更方便的存取方式能夠為我們的客戶帶來更好的客戶體驗，並促進數位支付，從而實現更快、更安全的交易。

Also, we have been adding new software partners during the quarter. We added five new software partners, bringing our partnership network to 291 across our Consumer Payments and Business Payments segments.

此外，本季我們也新增了一些軟體合作夥伴。我們新增了五家軟體合作夥伴，使我們在消費者支付和企業支付領域的合作夥伴網路達到 291 家。

Our investments in enterprise sales and customer support teams have built a healthy sales pipeline across the verticals we serve. This is reflected in sustained year-to-date bookings growth. Additionally, operational initiatives are leading to improved productivity, increased automation, and quicker implementation workflows.

我們對企業銷售和客戶支援團隊的投入，在我們所服務的各個垂直領域建立了健康的銷售管道。這體現在今年迄今的預訂量持續成長。此外，營運措施正在提高生產力、增強自動化程度並加快實施工作流程。

As these positive trends continue, our normalized growth is expected to sequentially improve further in the fourth quarter.

隨著這些積極趨勢的持續，預計第四季度我們的正常化成長將環比進一步改善。

Now, moving on to our Q3 segment highlights, within Consumer Payments segment, reported gross profit increased 1% year over year. Our core growth algorithm is built on both the recurring and incremental contributions from existing clients and the ramp of recent client wins.

接下來，我們來看看第三季各業務板塊的亮點。在消費者支付板塊，報告顯示毛利年增 1%。我們的核心成長演算法建立在現有客戶的持續貢獻和增量貢獻以及近期新客戶的成長之上。

As a reminder: Q3 gross profit growth was partially impacted by approximately 3% from the previously mentioned clients rolling off our platform. Without these impacts, gross profit increased single digits year over year.

再次提醒：第三季毛利成長受到先前提到的客戶流失的影響，約下降了 3%。排除這些影響因素，毛利年增僅個位數。

In Q3, we increased our consumer software partnerships to 188, while also enhancing many existing integrations to further improve client and customer experience.

第三季度，我們將消費者軟體合作夥伴增加到 188 個，同時也增強了許多現有的集成，以進一步改善客戶體驗。

During September, we announced a partnership with Alfa Systems, a leading provider of SaaS software within the auto and equipment financing industry. The partnership combines Alfa Systems's software with a complete solution of payment acceptance across modalities and channels. Financial institutions and lenders that use Alfa's loan management platform can utilize Repay's out-of-the-box, seamless payment experience, while also streamlining their internal accounting and reconciliation processes. This partnership is a great example that embodies Repay's overarching embedded payment strategy, while also presenting additional subvertical growth opportunities.

9 月份，我們宣布與 Alfa Systems 建立合作夥伴關係，Alfa Systems 是汽車和設備融資行業領先的 SaaS 軟體供應商。此次合作將 Alfa Systems 的軟體與跨模式和通路的完整支付解決方案結合。使用 Alfa 貸款管理平台的金融機構和貸款機構可以利用 Repay 開箱即用的無縫支付體驗，同時簡化其內部會計和對帳流程。此次合作充分體現了 Repay 的整體嵌入式支付策略，同時也展現了其在細分領域的成長機會。

We also announced a new integration with Fuse, an AI-powered LOS platform that serves banks, credit unions, and financing institutions. Fuse's software embraces automation capabilities, while also now embedding Repay's secure payment processing technology directly into workflows to enhance financial institutions' operations.

我們也宣布與 Fuse 進行新的集成，Fuse 是一個由人工智慧驅動的貸款發起系統 (LOS) 平台，服務於銀行、信用社和金融機構。Fuse 的軟體具備自動化功能，同時也將 Repay 的安全支付處理技術直接嵌入到工作流程中，以增強金融機構的運作。

By combining our extensive software partners that span across our consumer verticals with our direct go-to-market approach, our sales teams are building on strong sales and booking pipelines, while adding many new clients, including 11 new credit unions in our financial institutions vertical.

透過將我們覆蓋消費者垂直領域的廣泛軟體合作夥伴與我們直接的市場推廣方式相結合，我們的銷售團隊正在建立強大的銷售和預訂管道，同時新增了許多客戶，包括金融機構垂直領域的 11 家新的信用合作社。

Year to date, core consumer bookings have continued to increase from this go-to-market strategy. Our teams are continuing to focus on client implementations and ramp processes.

今年迄今為止，核心消費者預訂量透過這項市場推廣策略持續成長。我們的團隊將繼續專注於客戶實施和啟動流程。

The minimum we see in software partners, sales bookings, and improving implementation workflows instills our confidence in our sustainable growth profile, as we exit the year.

我們看到軟體合作夥伴、銷售訂單和改善實施工作流程的最低限度成長，這增強了我們對今年永續成長前景的信心。

Now, turning to the Business Payments segment, in Q3, normalized gross profit increased 12% year over year, which excludes the political media contributions during 2024.

現在來看商業支付業務板塊，第三季經調整後的毛利年增 12%，這不包括 2024 年的政治媒體捐款。

Please keep in mind that we also lapped approximately 10% impact from last year's client loss. Without these impacts, our gross profit growth was over 20% year over year.

請注意，我們也已抵銷了去年客戶流失造成的約 10% 的影響。如果不考慮這些影響，我們的毛利年增超過 20%。

Business Payments's growth was driven by our accounts payable platform and payment monetization issues of float income in expanding our enhanced ACH offering.

商業支付業務的成長得益於我們的應付帳款平台以及在擴展增強型 ACH 產品過程中，浮動收入的支付貨幣化問題。

We continue to win and implement new clients in our healthcare and hospitality verticals, leading to double-digit growth in our core AP platform. Our strategic focus is on increasing total pay adoption, as we continue to prioritize our go-to-market and partnership resources towards AP opportunities.

我們在醫療保健和酒店業不斷贏得並引入新客戶，從而帶動了核心 AP 平台的兩位數成長。我們的策略重點是提高整體支付普及率，我們將繼續優先考慮市場推廣和合作夥伴資源，以掌握 AP 機會。

Our supplier network increased to over 540,000 suppliers, growing approximately 60% year over year, as we see great traction in our hospitality vertical.

我們的供應商網路已增至超過 54 萬家供應商，年增約 60%，這得益於我們在飯店餐飲垂直領域的強勁發展勢頭。

We are building on existing software relationships, such as Blackbaud, in our education and non-profit verticals.

我們正在教育和非營利垂直領域，鞏固與 Blackbaud 等現有軟體公司的合作關係。

We also recently announced a new integration with Yooz, a leading provider of AP automation software across multiple industries. Repay's directly embedded technology ensures timely vendor payments, while improving productivity by reducing the need for manual processes for organizations.

我們最近也宣布與 Yooz 達成新的合作，Yooz 是多家業界領先的 AP 自動化軟體供應商。Repay 的直接嵌入式技術可確保及時向供應商付款，同時透過減少組織對人工流程的需求來提高生產力。

We are pleased with the Business Payments's momentum for our sales teams and expect to see sustained AP traction from our 103 strategic partnerships and embedded integrations.

我們對業務支付業務在銷售團隊中的發展勢頭感到滿意，並期待透過我們的 103 個策略合作夥伴關係和嵌入式集成，實現應付帳款業務的持續成長。

In Q3, Repay took positive steps in the right direction through execution. We returned to profitable, normalized growth, while generating significant free cash flow and maintaining a strong balance sheet for financial flexibility.

第三季度，Repay 透過執行採取了積極的措施，朝著正確的方向邁出了步伐。我們恢復了獲利、正常的成長，同時產生了可觀的自由現金流，並維持了強勁的資產負債表，從而實現了財務靈活性。

We opportunistically deployed capital towards our organic growth initiatives; repurchased approximately 3% of our outstanding shares in August, bringing our total share repurchases to 38 million year to date; and reduced our debt outstanding by retiring 73.5 million of our 2026 convertible notes at a discount.

我們抓住機遇，將資金投入到我們的有機成長計畫中；8 月回購了約 3% 的流通股，使我們今年迄今的股票回購總額達到 3,800 萬股；並透過折價贖回 7,350 萬份 2026 年到期的可轉換債券，減少了我們的未償債務。

Looking forward, we expect the momentum to continue, giving us confidence across both Consumer Payments and Business Payments in the Q4 2025.

展望未來，我們預計這一勢頭將持續下去，這讓我們對 2025 年第四季的消費者支付和企業支付都充滿信心。

Lastly, I would like to welcome Rob Houser, Repay's Chief Financial Officer, who joined the company in September. Rob has already hit the ground running, bringing over a decade of payment experience and a proven operational track record. I look forward to working with Rob to build on Repay's success.

最後，我謹代表 Repay 公司歡迎財務長 Rob Houser，他於 9 月加入公司。Rob已經迅速進入工作狀態，他擁有十多年的支付經驗和良好的營運業績記錄。我期待與羅布合作，在Repay的成功基礎上再創佳績。

With that, I'll turn the call over to Rob to review our Q3 financials. Rob?

接下來，我會把電話交給羅布，讓他來回顧我們第三季的財務狀況。搶？

Thank you, John. Good afternoon, everyone.

謝謝你，約翰。大家下午好。

First, I'm very excited to join Repay. My first couple of months have been incredible and busy. I've been learning about the company, culture, and technology, all of which have confirmed my belief in the opportunities ahead.

首先，我非常高興能加入Repay。我頭幾個月過得既精彩又忙碌。我一直在了解公司、文化和技術，所有這些都更加堅定了我對未來機會的信念。

Repay has a tremendous payment platform across our consumer and B2B verticals that is positioned to benefit from the secular digital payment trends. I look forward to digging deeper and getting to work in helping drive the company forward.

Repay 在消費者和 B2B 垂直領域擁有強大的支付平台，能夠從數位支付的長期趨勢中受益。我期待深入了解情況，並投入工作，幫助推動公司向前發展。

Now, let's go over our financial results for Q3 2025.

現在，讓我們來看看2025年第三季的財務表現。

Revenue was $77.7 million and gross profit was $57.8 million. Normalized revenue growth and gross profit growth increased 5% and 1%, respectively, which excludes the political media contributions during last year's presidential election cycle.

營收為7,770萬美元，毛利為5,780萬美元。經調整後的收入成長和毛利成長分別成長了 5% 和 1%，這不包括去年總統選舉週期中的政治媒體捐款。

Our Q3 growth was impacted by approximately 4%, as we continue to lap the previously discussed client losses from 2024. When excluding these impacts, Q3 gross profit increased mid-single digit year over year.

由於我們繼續應對先前討論過的從 2024 年開始的客戶流失問題，我們第三季的成長受到了約 4% 的影響。剔除這些影響後，第三季毛利年增了中等個位數。

During Q3, our gross profit margins compressed approximately 3.4% year over year. Our gross profit margins were impacted from lapping one-off client losses and contributions from political media; a larger mix of clients with volume discounts, as our client-based volumes continue to grow significantly and we continue to ramp enterprise clients with volume pricing; an increased mix of revenue from ACH and check volumes. As our clients adopt more of our modalities and undergo provider consolidation, we are processing more of our clients' overall volumes.

第三季度，我們的毛利率年減了約 3.4%。我們的毛利率受到以下因素的影響：一次性客戶流失和政治媒體的捐款；享受批量折扣的客戶比例增加，因為我們的客戶數量持續大幅增長，並且我們繼續為企業客戶提供批量定價；ACH 和支票交易的收入比例增加。隨著我們的客戶越來越多地採用我們的服務模式並進行供應商整合，我們正在處理客戶越來越多的整體業務量。

In addition, we have experienced an increase in average transaction value, as we continue to move upmarket towards larger enterprise clients. Higher overall transaction values caused higher-than-expected assessment fees on capped interchange volume. Going forward, we expect these impacts to continue.

此外，隨著我們不斷向高端市場拓展，爭取更大的企業客戶，我們的平均交易金額也有所成長。整體交易額的增加導致對交易量上限的評估費用高於預期。展望未來，我們預期這些影響將會持續。

Consumer Payments's growth profit increased 1% year over year. Our Consumer Payments's segment is starting to show sequential improvement towards the fundamental growth of this segment. When excluding the approximate 3% impact from one-off client losses, gross profit increased single digits during the quarter.

消費者支付業務的成長利潤較去年同期成長 1%。我們的消費者支付業務部門開始呈現環比改善的態勢，朝著該板塊的基本成長邁進。在剔除一次性客戶流失造成的約 3% 的影響後，本季毛利實現了個位數成長。

Business Payments's normalized growth profit increased approximately 12% in Q3 2025. In addition, Business Payments's growth was impacted by approximate 10% headwind related to the previously communicated client loss during 2024.

2025 年第三季度，商業支付業務的正常成長利潤成長了約 12%。此外，由於先前宣布的 2024 年客戶流失，Business Payments 的成長受到了約 10% 的不利影響。

Q3 adjusted EBITDA was $31.2 million, representing approximately 40% adjusted EBITDA margins. Throughout 2025, Repay has been able to manage OpEx, while balancing resource allocation and making incremental investment towards the sales, implementation, and client service teams to support future growth.

第三季調整後 EBITDA 為 3,120 萬美元，調整後 EBITDA 利潤率約 40%。2025 年全年，Repay 都能夠有效管理營運支出，同時平衡資源分配，並逐步增加對銷售、實施和客戶服務團隊的投資，以支持未來的成長。

Third-quarter adjusted net income was $18.2 million or $0.021 cents per share.

第三季調整後淨利為 1,820 萬美元，即每股 0.021 美元。

Free cash flow was $20.8 million during the quarter, resulting in 67% free cash flow conversion and demonstrating our solid cash generation, as we execute towards sustainable profitable growth. As of September 30, we had approximately $96 million of cash on the balance sheet, with access to $250 million of undrawn revolver capacity for a total liquidity amount of $346 million.

本季自由現金流為 2,080 萬美元，自由現金流轉換率為 67%，顯示我們現金流產生能力強勁，我們正在努力實現可持續的獲利成長。截至 9 月 30 日，我們的資產負債表上約有 9,600 萬美元現金，並可使用 2.5 億美元的未提取循環信貸額度，總流動資金為 3.46 億美元。

Repay's net leverage was approximately 2.5 times.

Repay 的淨槓桿比率約為 2.5 倍。

During the third quarter, we opportunistically reduced debt outstanding by retiring $74 million of our 2026 convertible notes at a discount principal value. Total outstanding debt of $434 million is comprised of $147 million convertible note due in February 2026, with a 0% coupon; and a $288 million convertible note due in 2029 with a 2.875% coupon.

第三季度，我們抓住機會，以折扣價償還了 7,400 萬美元的 2026 年可轉換債券，從而減少了未償債務。未償債務總額為 4.34 億美元，其中包括 2026 年 2 月到期的 1.47 億美元可轉換票據（票面利率為 0%）和 2029 年到期的 2.88 億美元可轉換票據（票面利率為 2.875%）。

In addition, as the company previously announced, Repay reduced outstanding shares by repurchasing approximately 3.1 million shares for $15.6 million in August. We repurchased a total of $38 million and 7.9 million shares year to date. reducing fully diluted shares outstanding by approximately 8%. As of September 30, we had approximately 92 million shares outstanding, with $23 million remaining under our existing share repurchase program.

此外，正如該公司先前宣布的那樣，Repay 在 8 月以 1,560 萬美元的價格回購了約 310 萬股股票，從而減少了流通股數量。今年迄今為止，我們共回購了3800萬美元和790萬股股票，使完全稀釋後的流通股數量減少了約8%。截至 9 月 30 日，我們約有 9,200 萬股流通股，根據我們現有的股票回購計劃，還有 2,300 萬美元剩餘。

As we move into the fourth quarter, we're refining our financial outlook. In Q4, we now expect 6% to 8% normalized gross profit growth and free cash flow conversion to be greater than 50%. Our updated outlook reflects the normalized growth that Repay can sustainably achieve, as we benefit from secular digital payment tailwinds, growth from existing clients, and the ramp of new clients onto our platform.

進入第四季度，我們將完善財務展望。我們現在預期第四季正常化毛利成長6%至8%，自由現金流轉換率將超過50%。我們更新後的展望反映了 Repay 能夠可持續實現的正常成長，因為我們受益於數位支付的長期利好因素、現有客戶的成長以及新客戶加入我們平台的步伐。

Our go-to-market and sales pipeline remains robust, which will continue to lead to solid volume and revenue growth opportunities. However, normalized growth profit growth is expected to be towards high-single digits, which is at the low end of the previously issued growth outlook due to ongoing margin pressures we saw during Q3. Going forward, we expect gross profit growth to be impacted from an increasing mix of larger clients with volume discounts and pricing, an increased mix of ACH and check volumes, and higher overall transaction values.

我們的市場推廣和銷售管道依然強勁，這將繼續帶來穩健的銷售和收入成長機會。然而，由於我們在第三季度看到的持續利潤率壓力，預計正常成長利潤率將達到接近個位數，這處於先前發布的成長預期的下限。展望未來，我們預期毛利成長將受到以下因素的影響：大客戶群規模擴大，享有批量折扣和優惠價格；ACH 和支票交易量佔比增加；以及整體交易額提高。

Additionally, the Q4 growth outlook naturally benefits from fully lapping the one-off client losses from 2024. The Q4 normalized growth would be closer to the lower end of the updated range, if we didn't experience this benefit during Q4.

此外，由於 2024 年一次性客戶損失完全被抵消，第四季度的成長前景自然會受益。如果我們在第四季度沒有獲得這項收益，那麼第四季度的標準化成長率將更接近更新後的範圍的下限。

As a reminder: Our reported financials will be lapping strong political media contributions, causing an approximate 10% impact to Repay Q4 reported growth.

提醒：我們公佈的財務數據將受到政治媒體的大力支持，這將對 Repay 第四季報告的成長造成約 10% 的影響。

The updated Q4 free cash flow conversion outlook is expected to be above 50% compared to prior outlook of 60% due to the timing of net working capital.

由於淨營運資本到位時間的緣故，更新後的第四季自由現金流轉換率預期將高於 50%，而先前的預期為 60%。

For the remainder of 2025, our capital allocation priorities remain focused on: organic growth investments, managing CapEx as a percentage of revenue, maintaining a strong balance sheet with liquidity and incremental cash generation to address the remaining February 2026 convertible notes at maturity.

2025 年剩餘時間裡，我們的資本配置重點仍然是：有機成長投資、將資本支出控制在收入的一定比例內、維持強勁的資產負債表和流動性，以及增加現金流以償還 2026 年 2 月到期的剩餘可轉換票據。

We plan to use cash on hand to further reduce a portion of our outstanding debt, while also using our revolving credit facility for the remaining balance at maturity.

我們計劃利用手頭現金進一步減少部分未償債務，同時利用循環信貸額度在到期時償還剩餘餘額。

Under our current share buyback authorization, we are able to opportunistically repurchase shares.

根據我們目前的股票回購授權，我們可以擇機回購股票。

In addition, we continue to be open to M&A to further accelerate Repay's position and growth potential.

此外，我們將繼續對併購持開放態度，以進一步提升Repay的地位和成長潛力。

Over the next few months, I look forward to building my first 100 days, as we begin the budget process for next year. We plan to provide details related to our 2026 outlook and capital allocation strategy on our next earnings call in early 2026.

接下來的幾個月，我期待完成我的第一個百日計劃，因為我們將開始製定明年的預算。我們計劃在 2026 年初的下一次財報電話會議上提供有關 2026 年展望和資本配置策略的詳細資訊。

Until then, I'm eager to meet with all of our shareholders and analysts, while I continue to execute towards our updated Q4 outlook.

在此之前，我期待與所有股東和分析師會面，同時繼續推進我們更新後的第四季業績展望。

Thank you. I'll now turn the call over to the operator to take your questions. Operator?

謝謝。現在我將把電話轉交給接線員，由她來回答您的問題。操作員？

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session.

謝謝。女士們、先生們，現在開始問答環節。

(Operator Instructions)

（操作說明）

Peter Heckman, D.A. Davidson.

彼得‧赫克曼，D.A.戴維森。

Hey. Good afternoon. Thanks for taking the question.

嘿。午安.感謝您回答這個問題。

In terms of the free cash flow outlook, how do you see that trending into 2026? We've seen fairly strong or fairly high free cash flow conversion in some years and off in some years. But I think your updated guidance is now greater than 50% for 2025. Best guesses for 2026, how are you positioning that?

就自由現金流前景而言，您認為到 2026 年其趨勢如何？有些年份我們看到自由現金流轉換率相當強勁或較高，有些年份則不然。但我認為你們更新後的2025年預期目標已經超過50%。您對2026年的最佳預測是什麼？您如何看待這一年？

Hi, Pete. It's Rob. Thanks for the question.

嗨，皮特。是羅布。謝謝你的提問。

Yeah. I can lay out how we're thinking about it for Q4. We're going to give 2026 guidance in the next earnings call.

是的。我可以詳細說明我們對第四季的設想。我們將在下次財報電話會議上給予2026年的業績指引。

But we're rolling. We'd expect to be in the upper 50%s in Q4. It's really due to, just, working capital timing. We had a 67% free cash flow conversion in Q3, which was pretty strong. But as we talk about working capital and some of the margin compression that we laid out on this call, we're holding around the upper 50%. I would model it that as our exit rate going into '26.

但我們正在穩步前進。我們預計第四季將達到50%以上。這其實只是營運資金到位時間的問題。第三季我們的自由現金流轉換率達到了 67%，表現相當強勁。但正如我們在本次電話會議中所提到的，關於營運資本和利潤率壓縮的問題，我們目前仍維持在 50% 左右。我會將其作為我們進入 2026 年時的退出率模型。

Okay. That's helpful. And then, just, can you remind us, it may be in the appendix of the slide deck but just the specific political media spend headwind from the fourth quarter of last year?

好的。那很有幫助。還有，您能否提醒我們一下，雖然它可能在投影片的附錄中，但具體來說，就是去年第四季政治媒體支出面臨的不利因素？

Yeah. The headwind we had in fourth quarter last year was $4.6 million of gross profit for fourth quarter of last year. On an annual basis, the political media was around $11.75 million for fall '24.

是的。去年第四季我們面臨的不利因素是毛利減少了 460 萬美元。2024 年秋季，政治媒體的年度收入約為 1,175 萬美元。

Okay. On a gross profit basis. Got it. All right. I'll get back in the queue. Appreciate it.

好的。以毛利為基礎。知道了。好的。我重新排隊。謝謝。

Yeah. No problem.

是的。沒問題。

(Operator Instructions)

（操作說明）

Tim Chiodo, UBS.

提姆‧奇奧多，瑞銀集團。

Great. Thank you for taking the question.

偉大的。感謝您回答這個問題。

I was hoping you could expand a little bit upon -- within the B2B business, the Visa Commercial Enhanced Data Program, the CEVT, that's been rolling out this year. Talk a little bit about the various data requirements; maybe how they differ from the prior Level 2, Level 3 requirements; what you think this might mean for overall B2B interchange for some of the puts-and-takes there; and, of course, there's a slightly higher network fee associated with it, as well.

我希望您能詳細介紹一下——在 B2B 業務領域，Visa 商業增強數據計劃 (CEVT) 是今年推出的。請談談各種數據要求；也許它們與先前的二級、三級要求有何不同；您認為這對於某些 B2B 交易的整體交換意味著什麼；當然，還有與之相關的略高的網路費用。

We would appreciate any of the context on your business; and for the industry, overall.

我們非常希望了解貴公司及整個產業的相關情況。

Hi, Tim. Good evening. How are you? This is John.

嗨，提姆。晚安.你好嗎？這是約翰。

Specifically, was your question on the B2B side? Was it associated with the AP side or the AR side? You may have not been specific. I'll talk a little bit about that. It's a very detailed question, as well, so I would not go so deep.

具體來說，您的問題是關於B2B方面的嗎？它與AP側還是AR側有關？你可能沒有說清楚。我來簡單談談這方面。這是一個非常具體的問題，所以我不會深入探討。

On the AR side, it might be slightly lower interchange. On the AP side, might be slightly lower, as well.

在AR方面，互換率可能會略低一些。AP方面，可能也會略低一些。

So I was just wondering -- both is the short answer. But, really, I was hoping you could talk about what the requirement changes are; if there's anything you need to do differently on the AR side; and then, what it might mean, in terms of the interchange rates that you might earn on the AP side; and then, also, there's that little extra network fee, I believe, as well.

所以我只是想知道——簡而言之，兩者都是。但實際上，我希望你能談談要求有哪些變化；在 AR 方面是否需要做任何不同的操作；以及這些變化對你在 AP 方面可能獲得的交換費率意味著什麼；此外，我相信還有一點額外的網絡費用。

Yeah. I'll start on the – ultimately, it's Level 2, 3. Level 2, itself, is going to be going away. That's really talking about the enriched data coming out of the invoices; coming, really, from the – mostly from the accounting ERP systems.

是的。我將從 âbit 開始，最後是 2 級、3 級。二級警戒本身也將不復存在。這實際上指的是從發票中提取的豐富數據；實際上，這些數據主要來自會計 ERP 系統。

There's several different requirements there to go through that. Those have to be passed through with the transaction to qualify for the Level 3 rates.

要通過那一步，需要滿足幾個不同的要求。這些款項必須隨交易一起支付，才能享有 3 級利率。

The Level 3 rates, themselves, are a little bit better. But with the Level 2 rates, you have to now add some additional incremental pieces of data to that to qualify for the Level 3 rates.

3級利率本身稍微好一點。但是，要達到 2 級費率，您現在必須在此基礎上添加一些額外的增量資料才能符合 3 級費率的條件。

We obviously are very aware of that. This is really associated with Visa. Those requirements -- or, actually, Visa is fine-tuning some of those things uniquely. This will come out, ultimately, in the next spring. But they're doing testing with many of those things today.

我們當然非常清楚這一點。這其實與Visa有關。這些要求——或者更確切地說，Visa 正在對其中一些要求進行獨特的微調。最終，這件事將在明年春天公佈。但他們今天正在對其中很多東西進行測試。

And so we're working through that. Our ability to pull data, our embedded solutions, is a positive thing for us; meaning, like, we have the ability to be able to go and work with our ERP systems to achieve that.

所以我們正在努力解決這個問題。我們提取資料的能力，以及我們的嵌入式解決方案，對我們來說是一件好事；也就是說，我們有能力利用我們的 ERP 系統來實現這一目標。

But it's a working process for most, everybody, in the industry, as those are a few changes that have come about.

但對業內大多數人來說，這是一個正在經歷的過程，因為這些是已經發生的一些變化。

On the AP side, obviously, we have virtual cards that can be Visa or MasterCard. We would look to optimize what's best in our favor on the AP side for it. In that case, we're receiving interchange on the AP side. So we would optimize what's the best rate for us there.

在應付帳款方面，顯然我們有Visa或MasterCard虛擬卡。我們會盡力優化AP方面對我們最有利的方面。在這種情況下，我們在 AP 端接收到了交換資料。所以我們會優化那裡的最佳利率。

Understood. All right. Thank you so much.

明白了。好的。太感謝了。

(Operator Instructions)

（操作說明）

James Fawcett, Morgan Stanley.

詹姆斯‧福西特，摩根士丹利。

Hi. This is Shefali Tamaskar, on for James. Thanks for taking my question.

你好。這裡是謝法莉·塔馬斯卡，她將代替詹姆斯發言。謝謝您回答我的問題。

Just on Consumer Payments, in the presentation, you called out some pockets of consumer softness. Could you speak to what subverticals you're seeing this in most; and what trends have looked like through early November, if possible?

就消費者支付而言，您在演講中指出了消費者支付方面的一些疲軟之處。您能否具體談談您在哪些細分領域最常看到這種情況；以及截至 11 月初的趨勢如何？

Sure. Good evening, Shefali.

當然。晚上好，謝法莉。

From an overall perspective, on the Consumer side, we would consider a stable consumer on the marketplace. Obviously, we're not the actual -- those are not actually our end customers. Our customers are businesses. But we consider a stable consumer.

從整體來看，在消費者方面，我們認為消費者在市場上是穩定的。顯然，我們並不是真正的最終客戶——那些實際上並不是我們的最終客戶。我們的客戶是企業。但我們考慮的是一個穩定的消費者。

And then, softness-wise, we've talked about previously that we saw some softness in the automotive, the used car piece of that. We think that's still relatively in the same position there. That would be consistent with what we've seen previously. We see that consistently the same now.

然後，就柔軟度而言，我們之前討論過，我們在汽車行業，特別是二手車市場，看到了一些柔軟度。我們認為那裡的情況仍然基本上沒有改變。這與我們之前看到的情況一致。現在我們看到的情況始終如此。

Great. That's helpful. And then, you mentioned, also, being open to M&A as you look ahead to 2026. So I just wanted to hear about what potential targets look most interesting to you, in terms of where you're seeing most subvertical momentum across Business Payments and Consumer Payments.

偉大的。那很有幫助。然後，您也提到，展望 2026 年，您對併購持開放態度。所以我想聽聽您認為在企業支付和消費者支付領域，哪些潛在目標最吸引您，以及您認為哪些細分領域發展勢頭最強勁。

I know you've previously called out B2B being the more focused point for M&A. But curious how the pipeline looks today.

我知道你之前曾指出，B2B 是併購的更重點領域。但很好奇這條管道現在的情況如何。

Sure. A couple of things. As we mentioned earlier on the call, we actually bought back up to 8% of the stock in the July-August timeframes. And then, we actually, as you heard as well, retired $73.5 million of our February convertible debt. That's still a priority for us, from a capital allocation perspective, addressing our February maturity, which we expect to do.

當然。有幾件事。正如我們之前在電話會議中提到的，我們在 7 月至 8 月期間實際上回購了高達 8% 的股票。然後，正如你們所聽到的，我們實際上償還了 2 月發行的 7,350 萬美元可轉換債券。從資本配置的角度來看，解決我們二月到期的債務仍然是我們的首要任務，我們預計能夠做到這一點。

But, from an M&A pipeline perspective, we do see a healthy pipeline of some activity in the marketplace. We are going to obviously always pay attention to opportunistically where that is.

但從併購交易管道的角度來看，我們確實看到市場上存在一些健康的交易活動。我們顯然會時時刻刻注意並伺機而動。

We see that both in consumer and B2B.

我們在消費者和 B2B 領域都看到了這種情況。

Just for clarification: We bought 3% in August; 8% year to date. Just wanted to give that clarification when we bought back stock.

澄清一下：我們8月買了3%；今年迄今買進了8%。只是想就我們回購股票的情況做個說明。

Got it. Thank you.

知道了。謝謝。

Alex Neumann, Stehens Inc..

Alex Neumann，Stehens 公司。

Hi. Thanks for taking the question.

你好。感謝您回答這個問題。

I just wanted to double click on the nature of the network and capital. It's leading to the lower of the free cash flow conversion. Thank you.

我只是想深入探討網路和資本的本質。這導致自由現金流轉換率下降。謝謝。

Yeah. Hi. How you doing, Alex? This is Rob.

是的。你好。亞歷克斯，你好嗎？這是羅布。

It's really just when we snap the line on working capital. Like I said, we've been generating pretty good free cash flow conversion at 67% in the quarter. The guide, slightly down from what we had in Q4 previously at 60% to above 50%, is literally just timing of when we snapped the chalk line on working capital for the year, as well as the compression that we talked about for going upmarket.

實際上，問題就出在營運資金方面。正如我所說，本季我們的自由現金流轉換率達到了 67%，相當不錯。該指導值略低於我們先前在第四季度給出的 60% 至 50% 以上，這實際上只是我們何時劃定了年度營運資本的界限，以及我們之前談到的進軍高端市場所需的資金壓縮。

Some of the pay modality mix that we saw that fell through on the [GP] is probably the biggest driver to where the guide now is, above 50%.

我們看到一些支付方式組合在 [GP] 上未能實現，這可能是導致指導價目前超過 50% 的最大驅動因素。

But we continue to (multiple speakers).

但我們繼續（多位發言者）

No. Go ahead. Go ahead.

不。前進。前進。

No. Sorry.

不。對不起。

No. I was just going to finish that. We continue to generate free cash flow, really good free cash flow conversion.

不。我正準備把那件事做完。我們持續產生自由現金流，自由現金流轉換率非常高。

Again, it was just really snapping the chalk line on when the working capital falls through.

再一次，當營運資金出現問題時，就像是劃定了一條清晰的界線。

Got it. And then, I know a couple quarters ago, you announced a partnership, the gateway in Canada. I was just wondering if you could update us on that partnership and how that's ramping?

知道了。然後，我知道幾個季度前，你們宣布了一項合作關係，即在加拿大建立門戶網站。我只是想問一下，您能否向我們介紹一下這項合作的最新進展以及進展？

We're still working through our implementation integrations there. So no major real update associated with that, currently.

我們仍在進行那邊的實施整合工作。所以目前這方面還沒有重大進展。

Got it. Thank you.

知道了。謝謝。

(Operator Instructions)

（操作說明）

As there are no further questions, I will now hand the conference over to the Co-Founder and Chief Executive Officer, John Morris, for his closing comments.

由於沒有其他問題，我現在將會議交給聯合創始人兼執行長約翰莫里斯，請他作總結發言。

Thank you, everyone.

謝謝大家。

I do have a slight correction on our supplier count that we mentioned earlier on the call. We're exiting Q3 with 524,000 suppliers, a very good number for us. We're excited about our growth rate there.

關於我們之前在電話會議中提到的供應商數量，我需要稍作更正。第三季末，我們擁有 524,000 家供應商，這對我們來說是一個非常好的數字。我們對該地區的成長速度感到興奮。

But as I close this out, thank you for your time today. We continue to make great progress in our strategic initiatives, remaining focused on our returning to profitable, normalized growth; generating strong free cash flow; and maintaining a strong balance sheet for financial flexibility.

最後，感謝您今天抽出時間。我們在策略性舉措方面持續取得巨大進展，將持續專注於恢復獲利、正常成長；產生強勁的自由現金流；並維持強勁的資產負債表以實現財務靈活性。

Thanks, again, for joining us.

再次感謝您的參與。

Thank you. Ladies and gentlemen, the conference of Repay Holdings Corporation has now concluded. Thank you for your participation. You may now disconnect your lines

謝謝。女士們、先生們，Repay Holdings Corporation 的會議到此結束。感謝您的參與。現在您可以斷開線路了。