Repay Holdings Q3 2026: KUBRA Doubles Revenue, But Core Growth Stumbles
As seen on the 24/7 Wall St. homepage on November 9, 2026.
KUBRA is now carrying this company: the acquisition added roughly $65 million in its first full quarter, nearly doubling revenue year over year and powering the double beat. Consumer Payments organic growth was just 0.3%, and management cut normalized organic growth guidance to 5% to 6% from 7% to 9%.
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Repay Holdings reported Q3 2026 adjusted EPS of $0.25, beating expectations, with revenue also coming in ahead of estimates. Nearly all of the year-over-year revenue gain traces back to a single acquisition rather than the company's existing business.
KUBRA, the utility and government billing platform Repay acquired, contributed roughly $65 million in its first full quarter as part of the company. That alone nearly doubled total revenue compared to Q3 2024's $79.1 million. KUBRA also grew about 8% on its own year-over-year and came in ahead of management's internal expectations, with CEO John Morris noting that cost synergies are being captured ahead of schedule.
The weak spot was Consumer Payments, where organic revenue grew just 0.3%. Morris acknowledged directly that the segment fell short of expectations, citing softer pull-through from new and prior-year sales. Management is guiding for only low-single-digit organic growth in Consumer Payments in Q4, with a re-acceleration not expected until 2027.
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The guidance picture is mixed. Full-year 2026 revenue guidance of $490 million to $500 million was left unchanged, but normalized organic growth guidance was cut to 5% to 6% from a prior range of 7% to 9%. Free cash flow conversion targets were also reduced, partly reflecting a bank channel partnership investment in the second half of the year. Net leverage stood at 3.8x, and management is targeting net leverage below 3.0x by the end of 2027.
On the GAAP side, the picture is notably different from the adjusted figures. The company posted a net loss of roughly $9.3 million in the quarter, with acquisition-related intangible amortization and interest expense tied to KUBRA's financing weighing on results. Free cash flow was negative for the quarter, though management expects working capital timing items to reverse by year-end. The integration roadmap targets a single unified platform architecture by 2028, with KUBRA projected to be free cash flow accretive in that same year.
Mentioned: RPAY