REPAY Bought a Business 83% Its Own Size for $354 Million

Repay Holdings paid $354.1 million for KUBRA, a bill payment and customer communications business roughly 83% its own size by revenue, and funded it with cash on hand plus a $500 million term loan facility. The deal closed on 1 June.

Nine days ago the company reported second-quarter revenue of $100.7 million, up 33% year over year. Both numbers were filed with the SEC on the same day, 10 August — the price in the quarterly report, the growth rate in the earnings release. Read together they describe something the growth rate alone does not.

KUBRA contributed approximately $21 million of revenue during the quarter, for June alone. Total revenue rose $25.1 million year over year. One month of the acquisition therefore accounts for roughly 84% of the increase.

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The Company's Own Organic Figure Says the Same Thing

Repay does not hide this. Its release reports organic revenue growth of approximately 6% year over year alongside the 33% headline, and breaks it down by segment: Consumer Payments grew 33% reported but 4% organic; Business Payments grew 32% reported and 19% on a normalised organic basis.

Chief executive John Morris framed the quarter around the deal, saying the company's "most significant corporate development this year was completing the KUBRA acquisition in June" and that Repay is "now fully positioned to be a leading Consumer Bill Payment and Communication Services platform in the United States and Canada."

That sentence is a description of what the company now is, not only of what it bought. The reported growth rate and the organic growth rate are measuring two different businesses.

The Margin Tells You What Was Bought

Total gross profit margin fell to 70% in the quarter from 76% a year earlier.

The compression is not spread evenly. Working from the segment figures in the release, Consumer Payments gross margin fell from about 78.7% to about 72.6%, a drop of roughly six percentage points. Business Payments went the other way, from about 69.3% to about 69.9%.

In other words, the entire margin decline sits in the segment that absorbed the acquisition. Bill payment and communications volume is a different economic profile from card-based consumer payment processing, and the blended margin now reflects that.

This is the trade a lot of payment companies are making at the moment: buy adjacency to add scale, accept a lower blended take rate, and argue that the wider platform is worth more than the margin given up. Whether that holds is a question about renewal rates and cross-sell, neither of which appears in a quarterly release.

What $354.1 Million Bought

The purchase price appears in the quarterly report rather than the earnings release. Note 5 records an aggregate cash consideration of approximately $354.1 million at closing, subject to customary post-closing adjustments, financed with cash on hand and borrowings under a $500 million term loan facility.

Sizing what was bought requires an approximation, because only one month of KUBRA revenue has been consolidated. Annualising that month gives roughly $252 million — against REPAY’s own pre-deal run rate of about $303 million, based on the year-earlier quarter. On that rough basis KUBRA is a business about 83% the size of the company that bought it, acquired for around 1.4 times annualised revenue.

Those ratios should be read as orders of magnitude. Annualising a single month assumes no seasonality, and the $21 million figure is the company’s own approximation. But the conclusion survives the imprecision: this was not a bolt-on. REPAY acquired something close to its own scale and took on debt to do it.

The Write-Downs Behind the Rebuild

The release also contains a footnote worth reading twice.

Net loss in the second and fourth quarters of 2025 was affected by goodwill impairment losses of $103.8 million and $138.9 million respectively, described as "primarily related to the Consumer Payments segment."

That is $242.7 million of goodwill written off inside twelve months, against a business currently reporting about $100.7 million of quarterly revenue. The impairments are non-cash and already disclosed in the 2025 annual report; they are not new information. But they set the context for what the company did next.

Repay wrote down the carrying value of consumer payments, then bought a bill payments platform and repositioned around it. Read together rather than separately, those two facts describe a strategy, not a coincidence.

What the Quarter Does Not Settle

Repay reported a net loss of $11.5 million for the quarter, adjusted EBITDA of $36.3 million, and free cash flow of $27.4 million at 75% conversion — up sharply from 16% conversion in the first quarter.

The release does not break out KUBRA's margin separately, disclose its renewal or retention rates, or quantify the synergies it refers to as being executed towards. It reiterates full-year guidance that includes KUBRA contributions without isolating them.

The genuinely informative number will arrive in the third quarter, when KUBRA is consolidated for all three months rather than one. At that point reported and organic growth can be compared against a full-quarter base, and the blended margin will show where it settles rather than where it landed mid-transition.

Until then, the accurate description of the quarter is not that Repay grew 33%. It is that Repay bought a business in June, consolidated one month of it, and is now a differently shaped company than the one that reported a year ago.