Good afternoon, I'd like to welcome everyone to Repay's Fourth Quarter 2025 Earnings Conference Call. This call is being recorded today, March 9, 2026. I'd like to turn the session over to Stewart Grisante, Head of Investor Relations at Repay. Stewart, you may begin.

Thank you. Good afternoon, and welcome to Repay's Fourth Quarter 2025 Earnings Conference Call. With us today are John Morris, Co-Founder and Chief Executive Officer; and Robert Houser, Chief Financial Officer. 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 and in our most recent Form 10-K. Actual results may differ materially from any forward-looking statements that we make today. Forward-looking statements speak only as of today, and we do not assume any obligation or intend to update them except as required by law. 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. With that, I will now turn the call over to John.

Thanks, Stewart. Good afternoon, everyone, and thank you for joining us today. Repay delivered on its promise to improve growth as the company exited 2025. During the fourth quarter, Repay returned to solid normalized growth while continuing to generate strong profitability and free cash flow. This performance underscores the progress of Repay strategic initiatives and operational improvements. Throughout 2025, Repay underwent the necessary improvements to strengthen our operations, go-to-market and overall organizational leadership. As we proceed through 2026, we are well positioned to continue our momentum while supporting and optimizing our client's digital payment flows. On today's call, we plan to go over the 3 main topics: first, a review of the fourth quarter; second, a summary of our progress and achievements during 2025; and lastly, our 2026 outlook to drive growth into the future. First, a review of the fourth quarter. Repay closed out the year accelerating our normalized growth. In Q4, we achieved 10% revenue growth and 9% gross profit growth on a normalized year-over-year basis, which excludes the political media contributions during 2024. Adjusted EBITDA margins were 41%, and free cash flow conversion was 43%, while reinvesting into several organic growth initiatives. Within the Consumer Payments segment, Q4 revenue increased 8% and gross profit increased 6% year-over-year. Our growth has built on steady payment streams with existing clients plus incremental contributions as we process more of our clients' total payment volumes and the ramp of new clients across the verticals we serve. We increased our consumer software partnerships to 189, while also further enhancing many existing integrations, leading to better client and consumer experiences. Deeper integrations address the pain points across our consumer payments verticals by combining Repay's flexible payment processing capabilities directly within our clients' existing workflows. Clients that offer the convenience of modern payment modalities…

Thank you, John, and good afternoon, everyone. In the fourth quarter, Repay delivered solid results across our key metrics. Revenue was $78.6 million and gross profit of $58.3 million. On a normalized basis, revenue and gross profit growth were 10% and 9%, respectively, which excludes the political media contributions during last year's presidential election cycle. As a company, we are proud of the progress we've made to sequentially improve growth in Q4. Q4 gross profit margins were approximately 74.2%, representing a similar margin profile that we experienced during Q3 2025 from lapping political media contributions, enterprise volume discounts and noncard mix as we process more of our clients' overall volumes. Going forward, we expect a similar margin profile that we experienced during Q3 and Q4 2025 to continue during 2026. Consumer Payments revenue and gross profit increased 8% and 6% year-over-year, respectively. Business payments normalized revenue and gross profit increased approximately 41% and 73% in Q4 2025. Q4 adjusted EBITDA was $32.4 million, representing approximately 41% of adjusted EBITDA margins. Repay has been balancing resource allocation throughout 2025 and making incremental investments towards the sales, implementation and client service teams to support our future growth initiatives. Fourth quarter adjusted net income was $16.8 million or $0.19 per share. In the fourth quarter, reported net income was impacted by a noncash goodwill impairment charge of $138.9 million related to our Consumer Payments segment. Free cash flow was $13.8 million during the quarter, resulting in 43% free cash flow conversion. Free cash flow was slightly below our expectations due to the quarterly timing of net working capital that is not expected to reverse in Q1. As of December 31, we had approximately $116 million of cash on the balance sheet. Since year-end, we paid off the $147 million of 0% convertible notes…

[Operator Instructions] And our first question comes from Mike Grondahl with Northland Securities.

I was wondering if you could just spend a moment on kind of the major end markets, maybe auto and personal loans and health care and mortgage, if you could, a little bit.

Mike, Yes, this is John. So from that perspective, what we see is consistent with what we've seen in the fourth quarter, what we've seen throughout last year. We see consistent -- trends that we saw last year on the auto and affordability constraints, that's relatively stable for what we have been seeing. So we still see that occurring in both auto and personal loans. .

Got it. Anything in health care or mortgage to call out in those markets?

Very similar as well. We're not seeing anything that would be different than what we have been experiencing.

Okay. And then any customer renewals in 2026 we should be aware of that are coming up? Anything stick out there?

Nothing major that we would not be inside of our guide that would not be standard on most of our contracts would be auto renewals in some ways, but nothing we wouldn't have already embedded into our guide.

Congrats on the outlook and some growth.

Our next question comes from the line of Alex Neumann with Stephens.

Just quickly, anything on tax refunds? I know there's a lot of data out there, saying average refunds are higher. Just any impact those are having on volumes payment activity?

Alex, yes, this is John. So we have seen a tax refund season. We saw some volume increase in the month of February. But so far to date, we found that to be -- at least we see -- we only see the payment volume, right? So we don't actually see the gross tax refund other than we've seen some normal. And this is a seasonal, this is on the consumer payment side. We do see seasonal uplift in our first quarter related to tax refunds. That appears to be relatively normal. Again, we don't see the total refund, we just see payments. .

Got it. And then if I could just a quick question on B2B. Just on the float income. Could you just dive into how much that contributed to growth, the margins. And where that low income is being generated from?

Yes. Alex, this is Rob. Yes. So the flow is from our customer deposits in our B2B business. We don't typically comment on the exact amount of money, but it was a good portion. We -- in the fourth quarter, we started collecting that interest on customer deposits in 2025. So as we go into our guide into 2026, it's relatively stable. But it played a part of our strong results in the fourth quarter, but we also -- for the B2B business lapped some large customer losses in the fourth quarter versus prior that also helped as well as the monetization efforts we've been making on moving volume to total pay and monetizing some of that volume was a big driver for fourth quarter and the B2B side.

Our next question comes from the line of James Faucette with Morgan Stanley.

This is Shefali Tamaskar asking on behalf of James. So just on the M&A, you called out that recent improvements have allowed you to better digest potential M&A faster. So on that, could you provide an update on what the pipeline looks like? You mentioned potentially new verticals and is it more focused on the consumer versus business payment side.

Shef, this is John. So yes, we've always had a healthy pipeline. Obviously, we haven't done any deals in the last really 3 years. But the opportunity would be in both in consumer and business payments with the selective investment opportunities for us. If we look at partnerships, if we look at potential areas that could drive new vertical reach or additional vertical reach for us that would be complementary to our existing 2 business units. Both of those are possibilities. We're always looking for attractive opportunities for us to help reinvest and drive, that would help us with our overall scale, but also help us with our ability to drive more long-term organic growth as well.

Great. That's helpful. And then you mentioned the focus on organic growth investments as well. Could you speak to what you're most focused on investing in for '26, whether that be I know you focused on some sales support AI investments, if you could rank order what you're most focused on?

Sure. So from an organic perspective, it's continuously, as you are aware, our investments this year will really be our future growth for '27 and beyond. So we're continuing to invest like we did last year in enterprise sales, some of the go-to-market initiatives around sales support, some of the things that we want to do with as we use -- as I said earlier in the call, as we use AI to help drive new product initiatives like a voice AI, the IVR voice AI that we're going to be rolling out, some things with -- on implementations. We want to obviously continue to -- we think that is a great opportunity for us to use AI, both to help us streamline that, simplify things, but also help our clients possibly implement things as well faster. That's something we'll work on throughout the year and as we try to -- that will help us drive even more scale. But some of the things that we're seeing as we drive automation and increase some things with that, that's exciting for us. It does -- that will help us as we scale, especially if we did something around any kind of implementation on -- from an integrated perspective, that we think that would allow us to really bring that on board faster.

[Operator Instructions] Our next question comes from Timothy Chiodo with UBS.

I want to follow up on a topic that we touched on, on the prior earnings call. We talked a little bit about the CEDP from Visa. And as far as it relates to the business payments portion of prepaid's business, clearly, there's 2 sides to that, right? There's the AR side and the AP side. We also saw when Visa reported they had a nice growth rate for commercial revenue potentially related to the CEDP network fee addition. I was hoping you could talk a little bit about how things have evolved now that we're a little bit deeper into that program, both on the AR side, meaning your ability to meet the requirements to get the lower interchange and how that's changing. And then on the AP side, how those receiving your card payments are adapting or not? And if you could -- I guess just talk a little bit on both of those sides.

Yes, great questions. And yes, that's an initiative that, as you're aware, at least 1 of the card brands rolled out in late January and specifically on the Level 2 side. Level 2, Level 3 getting into some details on how cards are qualified, et cetera. So that predominantly will affects the AR side of the world. specifically on the receiving side and how our clients in or how we can affect pricing around that. As you probably are aware, asking that question, you're aware that Level 2 effectively is going a way to level 3 and the -- even the ability for the client side to gain and capture some of that has become a little bit more complex. So on that side of it, we should have -- we would have some impact on our AR side of our B2B business related to that. And on the AP side, we have multiple ways to do virtual cards you can have more than 1 brand that you issue from on that side. So our focus there would be to maximize our ability to monetize based on the overall whichever brand or that we push those rails through or push those transactions through would be optimized for us.

Our next question comes from Pete Heckmann with D.A. Davidson.

I wanted to follow up on the business payment segment and how you think about that business growing over the next couple of years? Do you feel like there's a sustainable level of kind of high teens, low 20s type organic growth possible from that business? And if so, like how do you think about it in terms of signing up new end clients, new partners, volume. How do you build up to that? And then just on the consumer side, are there any of your larger initiatives that you had talked about over the last, let's say, 18 months, some of the big new clients or big new initiatives that you expect to be outsized contributors to the consumer segment in 2026.

So Pete, it's Rob Houser. Answering your first question around B2B, in our guide, we're -- we had a strong fourth quarter. But when you look at our business going forward in 2026, probably one way to think about it is somewhere in the high teens. Now remember, this is a political year. So we -- as we called out, we have strong -- we're expecting a political season and midterm elections in the third and fourth quarter when that typically happens. And as we said on the call, that's around -- estimated around $8 million to $10 million in revenue. So this is a political year versus prior year, which wasn't. So you do have some of that lumpiness between presidential and midterm elections. But we're expecting -- when you think about this business on a normalized basis, it's probably in the high teens type of growth business for us.

Okay. And that's helpful. And then in terms of consumer, are any of those initiatives that we've talked about, like the auto OEM, the mortgage solution? Anything like that, that you expect to be relative outsized contributors to growth?

No, in 2026, specifically, we have some of those initiatives baked into our outlook. And then specifically on mortgage, that's a longer-term pull-through that's taken us way longer than we expected, as I mentioned last year. But effectively, both of those any kind of initiatives associated with both of those are baked into our 2026 forecast. .

There are no further questions at this time. And this now concludes our question-and-answer session. I would like to turn the floor back over to John Morris for closing comments.

Thank you, everyone, for joining us today. Repay exited 2025 with solid momentum. We are now looking towards to the future by executing on our plan for double-digit reported growth in 2026 outlook for the -- to drive our long-term value for our clients and our shareholders. The Repay of tomorrow is built to scale and benefit from the opportunities ahead, and I look forward to sharing more on our progress throughout 2026 and beyond. Thanks again for joining us.

Ladies and gentlemen, thank you for your participation. This concludes today's conference. Please disconnect your lines and have a wonderful day.