All right. Why don't we get started? It's about 9:00. Good morning, everyone, and thank you for joining us today. My name is Chuck Nabhan. This is my partner on the payments and fintechs team, Alex Neumann. Joining us today from Repay is CEO John Morris, newly appointed CFO Rob Houser, and over there is Stewart Grissanti, head of investor relations. Gentlemen, I really appreciate you guys being here and making the trip, and pleased to have Repay again. To start off, for those that don't know the story or maybe aren't as familiar, could you give us a high-level overview of the company and the two segments? Yes. Good morning. Good morning, everyone. Thank you for joining us today. Really appreciate it. Repay was actually started in 2006. We've been around a little while, and yeah, I was there when we started. We are an embedded payments solution inside of enterprise software. The two sides of our business are consumer payments, which we say that surrounds a consumer invoice, and business payments, which surrounds a business invoice. We help with the embedded financial technology that helps with the payment and the repayment of those invoices. We're fully embedded into most of the software platforms that manage that process. Some of those could be actually loan management systems on the consumer side. On the business payment side, they may be accounting ERP systems. Our overall value proposition is that financial technology, as well as the actual clearing and settlement of the successful payment of those invoices. Our go-to-market is a direct approach, but also partner with these over 280-plus software partners that we're embedded in, which make up thousands of various different clients. Our clients are businesses. Even on the consumer side, these are the lenders or the auto lenders or mortgage lenders that actually are making those loans. On the business payment side, it can be a variety. We heavily focus on the business payment side, on the payable side of the house. Our goal is obviously to help monetize and execute on those transactions. Got it. Rob, you recently joined Repay a couple of months ago. I'm curious what attracted you to the company and any initial learnings since you've been in the role. Yeah. Thanks for the question. Sure. Yeah. I think one of the things that really attracted me to Repay, my background, I spent a decent amount of time over at Fiserv in their biller direct and bank bill pay business, running that for a while, and played more upmarket in that business. One of the things that attracted me to Repay is the technology, the market that we play in, in particular, the embedded technology and the integrations we have with so many different platform partners. When I looked at just where we play, our optionality that we have, even from our balance sheet capabilities and capital deployment opportunities, it is an exciting market. I am happy to be part of the Repay team, happy to be back in full-fledged payments. My tour before this was over at Conduent, working for Cliff Skelton, doing some payments work, but I had a big non-compete to get past from my Fiserv days. That's behind me, and I'm happy to be with John and the team now over at Repay and back in the payments arena. Glad to have you. Repay has been focused on what you've called a sequential reacceleration, getting back to sustained profitable growth after a period of recalibration. Can you start by framing what success looks like as we exit 2025? Is it about returning to high single-digit normalized growth, expanding margins, or deepening enterprise relationships? Yeah, sure. I'll start. Rob will add some color there. Ultimately, what we've seen this year is due to a couple of large clients that got bought last year, we began our first quarter on a negative growth, which is actually the first time ever in the Repay history we've actually ever had negative growth. We said we sequentially built on that all year. We did that in the second quarter, and then in the third quarter, we're in the positive overall normalized growth perspective. Executing on that, we obviously are looking for that to continue in the fourth quarter. Maybe Rob wants to add a couple of highlights there. Sure. Sure. As I had said on our call last week and what I've been talking about, when you think about fourth quarter and even the third quarter results, we talked about some of the margin compression that we're seeing as we go upmarket. Standard in payments, saw it all the time when I was at Fiserv. As we go to larger enterprises, clients, you see a little bit more margin pressure as we start to go up against some new competitors, some of the larger competitors out there. When you tamper that, but as John said, we're still seeing this sequential growth going exiting Q4. The guidance that we had given for Q4 of 6%-8% normalized gross profit, the way to think about that and really exiting the year is that when we talk about those client losses that were finally lapping in Q4 from prior years, and you normalize for that and look at that easier comp, we're exiting the year more around the lower end of that range of the 6%. We continue to do a lot of different investments for efficiencies to combat some of those margin pressures. It is standard as you play in these markets and go upmarket. Pricing is obviously getting a lot more competitive than where it was when we were further down. Just to go back on one of the points there about going upmarket, you're sort of refining the go-to-market strategy, optimizing the sales force, speeding up implementation cycles, and going upmarket. Can you just talk about some of the biggest operational changes you've made? Yeah. All those are the major investments we talked about coming out of our strategic review in the spring, where we want to really, we think a really good investment is organic growth. Obviously, that's a multiplier in a lot of ways. We started investing in some of that last year in our enterprise sales, which we're seeing results of that in really strong, healthy bookings this year. We think we want to continue to invest there. It's a really good use on a net dollar basis. Specifically, we're investing in our SDRs, more of our sales development functions, that we think that can help us even more in our enterprise development process. We're investing, obviously, in our technology. We're investing in some of the go-to-market and product solutions that help us enhance that. Overall engagement, we're investing in engagement, where we're engaging our clients. As we're doing some of that, and I've been on the road doing some of that as well, we're actually finding really positive engagement. That helps us guide new product solutions. It actually helps us sell them more things. Those are the areas we're investing in. We want to continue to invest more there. We think there's opportunity to get a really good return out of that. As we move up in the enterprise segment, which as we get bigger, we have to have bigger deals at times, some of those do take longer to implement. As you mentioned, we're investing in trying to accelerate our implementation cycles. There are complexities. We can simplify things on our side. People like our technology, but it has a lot of solutions there that they may want. On an enterprise side, that can take them a little bit longer to implement on their side. We're trying to use AI to help shrink that whole cycle. Those are investments we're going to continue to make. We're going to make some more there, which is what we're looking at. Ultimately, enterprise is a sales cycle and an implementation cycle. It's not an invest this month to get the return next month. It's typical in most businesses. We will start seeing some real reward, hopefully, as we hit mid-next year on some things that we have really been investing in earlier this year. We will continue to invest, which will give us a longer cycle on those returns as well. Right. There's a lot of opportunity there to accelerate organic growth. Operating in a big market, I think you disclosed a total addressable market of just over $5.6 trillion. What gives the company the right to win in that market, and where do you see the most opportunity to capture share? Yes. Ultimately, the markets are there. Really, that digital transformation, which we've talked about before, you guys see that in the payments world. On the business back office, there are tons of inefficiencies there. If you think about the payable side of the world, the first frontier, I call the first frontier of payables, is payroll. Most of that is outsourced now. It used to all be done internally, very manual in a lot of ways. That has all been automated. The rest of the payables, which is a very big number, we're seeing still over 50% of those are still paid with a paper check. We know that because we do the Total Pay Solution. If you will not take any of the electronic ways, we still have to pay you with a virtual check or electronic check in a lot of ways. The opportunity to monetize that, to automate that, to put that in a single pane of glass, that is true on the business payment side. On the consumer side, those of you who have heard me speak before, that digital transformation is real because we, as consumers, we now expect things to be without friction, and we expect automation. I call it two clicks. We expect very seamless integrations. We have that technology. We are embedded in those core platforms to make that more seamless, to interact with that consumer, and interact with that consumer how they want to pay. Our phrase is, "Allow them to pay anywhere, any way, any time. They will pay you more often." It is a very positive experience for them. Again, think through the eyes of the consumer on our consumer side. What we find is the business back office is actually thinking through the eyes of consumers because those are consumers who work somewhere. They are ultimately saying, "Hey, why aren't we doing it this way?" That is a really good thing. As we accelerate into the future and what we see, what we can do just inside of our walls associated with AI and how we can drive automation and drive out friction, we think the next five years is going to be really amazing and go really fast. It is our goal to make sure we are actually going where the puck is and actually leading in some ways there. I think one of the things I'd add is John talks about the volume that we're bringing on, particularly in our B2B business around our Total Pay Solution. We're bringing in a lot of ACH and check volume. The goal is to monetize that over time. As some of the margin compression that we had, our margin mix effect we had in Q3, and I've alluded to continuing Q4, is bringing that volume on, which is our first step. We want to bring it on, and then we've got to monetize it to digital means, which drives a better margin portfolio. As we're seeing that volume come in, that is part of the pressure we've seen on margin is we want to get that volume. We want that volume, and then we'll monetize that over time. We're seeing a lot higher ACH and check volume coming in on that side of the business, and we'll work to monetize that going into the new year. Investing in go-get. We have a history of we can get the volumes, which we're pressing hard on. We think there's lots of opportunity at that point. There's an opportunity to win once you win just overall in investing in what we call TPV or total payment volume, although we don't report that publicly. We think there's a fantastic opportunity to help. If we can get it, we can monetize it and help our clients win as well. Right. Lots to be excited about. If we turn to the two segments, starting with consumer payments, about 85% of the business today, how healthy is the consumer end market right now? Are you seeing any pressure or resilience with any specific verticals? What macro indicators or metrics should we look at to gauge risk and growth? Yeah. We mentioned this on our call. For us, if you have been following us, we've said for the last year and a half or so, two areas that we've seen the overall consumer, specifically in used auto and specifically in accounts receivable management, that's been down for us for some time. We haven't seen a difference in that necessarily. We haven't seen any. We consider it kind of a stabilized consumer relative to what we have seen really over the last year and a half. We haven't seen any major change associated with that. To us, that's kind of normal relative to what we've seen earlier this year and still today. Great. When we look at new payment methods within this business, products like digital wallet, increasing digital adoption for your clients, what's driving some of that growth there? Yeah, sure. Some of that ultimately is, obviously, we actually are from a digital wallet perspective or what we call dynamic wallet. So digital wallet is consumer will actually be wanting to use their Google Pay, Apple Pay at checkout. You obviously, as consumers, you'll use that. Just adding that additional feature if they want to pay with their debit card, ACH, or Google Pay, Apple Pay. What we are doing is one of the new solutions we're rolling out currently, still early on, is we are taking your consumer invoice, and we're dropping it natively into your Apple Wallet or to your Google Wallet. We're going to drop that. That is going to be interactive. It is going to be native to your not going to be in the actual client app. It's actually going to be just native on your phone and still with the notifications. Their ability to interact real time with that, we actually think that's a really long-term winner for us. I've actually had conversations with a lot of our clients around this. A solution we're rolling out so early on there, we think that will drive real positive activity. Had not had an interaction with an actual client, say, on the lending side, they did not think it would be a fantastic solution for them. We already integrate in a lot of ways, but there will be a couple of step processes we have to do with that. That in itself, we think, will drive more electronic adoption. The invoice itself is electronic, right? We think that's a very positive long-term benefit. That'll drive just overall stickiness, but then our ability to add feature functionality inside of that, we think that's a very positive thing for us. The big value on that is even really the push notifications. Having push notifications on your device, which we all carry these continuously, really helps drive that adoption versus just standard emails and paper mail that people get today. If you think about that solution, it's an embedded native solution. It gives you notifications, which effectively is the same thing as a text. Think about your screen being closed. It's going to pop up. Think about that. Think about it as interactive. As we want to push some new type of activity inside of that, we are now a lot more embedded as well. A very positive solution there. It almost treats that invoice like, think about it like an account, or you think about your credit card. If you have, say, your Apple Card in your wallet, it's interactive. We think there's real positive things as we roll that out into 2026. It's available live, but we're early in our stages there. That will be a 2026 rollout function for us. Just to put a fine point on all that, the value proposition to both the consumer and the customer is, number one, you're meeting the consumer where they're at. Secondly, from a customer standpoint, who you're selling into, you're increasing the collectibility by meeting the customer where they're at. Could you maybe talk about that value proposition and how your solutions increase collectibility? Yeah. In a world where things are moving fast and moving faster, in a world where I've been in payments since 1997. Money moves faster than it did in 1997. Float is shrinking ultimately. You're talking about a consumer who is moving in and out of maybe some kind of digital wallet. If you think a consumer that may be very active in the gig economy, or you think a consumer that there's a lot of different ways on the virtual world that they're operating. This puts their ability to control how and who and when they want to make a payment, which is what we know they want. We're helping deliver that on behalf of our clients, which are some forms of lenders or people that are issuing obligations. We have seen over time that consumer actually wants more real time. It actually can, as it's managing its payment cycle, it wants to pay when it wants to pay, and it wants to know it's paid. That becomes, and when they can do that, they interact with the least amount of friction there. The pay anywhere, any way, any time, you absolutely get paid more often. It also solves, I mean, just talking about the dynamic wallet feature that we're rolling out, it solves app fatigue. I mean, how many apps, when you pick up your phone, you got to, "Oh, I got to remember to pay this bill." You got to sign into that app. You got to sign in. If it's a native app that you use for your boarding passes when you fly, and your bill is going to show up there, your invoice there, it's going to make it a lot easier for the consumer. Got it. Switching to B2B, it's about 15% of revenue, but a faster growing piece of the overall business. You've mentioned strong momentum in accounts payable, offset by a little bit of softness on the AR side. What is causing the relative growth rates between AP and AR, and where do you see the most opportunity? We have clearly said we are going to focus heavy on the AP side. AP is that automation I just talked about earlier and the ability to go get. We think as we embed in these enterprise platforms, we think their ability to help monetize that is there. Just the giant large white space there, the long-term winner is the person who actually goes and kind of gets, especially at the medium to enterprise level. Our ability to do that with embedded partners, we think that is very good. As part of that, you have seen as well, we have created our own vendor network. It is up to 524,000 vendors in that, which is relative to industry. That is of scale. What we see, and one of the reasons we go to market there, tells us as we add a net new client inside a vertical, say, maybe in the hospital vertical, we've seen those national vendors already. Our ability to monetize is even better because ultimately we're trying to drive profitability through this. Our ability to do that, we think that's why we're focusing heavily on the AP side of that. Now, we do AR, but without unlimited resources, we're focusing our resources heavy on the AP side. Got it. Staying with the product theme, Repay's full-stack processing capabilities, which includes your own clearing and settlement engine, is somewhat of a differentiator in the market. Could you talk about that? Can you talk about that capability and how that differentiates you? Sure. In the payments world, there's only relatively less than 10 processors that can actually do all of that processing in-house themselves. We truly are clearing transactions directly with the networks every evening, every night, in the early morning hours. Most people use another processor to do that. We actually have the true ecosystem to do that. That's a strategic advantage for two reasons. One is we can control the whole experience, but if it's all about price, we can win. There's not someone in between us. Ultimately, we have our own ecosystem that we can drive that overall experience on that side. Yeah. I mean, the bundling effect is what I call it. To be able to have one vendor versus many and then be able to bundle that and be competitive in the market around prices, to John's point, is huge. Going to my past, until I had a processor come in as part of the first Fiserv integration, having to use multiple different processors made it more competitive and difficult in the market for those like Repay that had the combined effect. So it's definitely a big added benefit. If you think about technology-wise, our ability to open up to various networks could be any kind of network we go to, whether it be we could go directly to Fed or we could go directly to some other type of ecosystem. Our ability to do that, as time moves, some of that flavor may change. Our ability to do that and deliver that holistic approach, a single pane of glass, one-stop shop, is really critical. A lot of people, even in the card world, can do card transactions, but they can't do these other five transactions without it being very clunky. Our ability to take that and put it in a single pane of glass from a reporting, from a reconciliation perspective, and control that ecosystem is a big deal. Now, I would also say our ability and desire is we think we need to be multiple times bigger because we have that platform. We do some processing on behalf of some other large ISOs in just that particular ecosystem that do not really operate in their own verticals areas. Our ability to do that, some of the differentiation in the marketplace that does not get talked about a lot is with some of the consolidation happening, we are actually seeing lots of activity coming our way just because the consolidation is driving some people away from some of the other platforms. Got it. You touched on this a little bit, but just looking ahead, you talked about the flexibility of the platform and the ability to integrate new payment modalities. FedNow is ramping up real-time payment, and other real-time payment rails are expanding. Could you maybe double-click on how you're expanding your functionality and the flexibility of the platform? Sure. I can talk a little bit about the FedNow and RTP. I was previously at Conduent, our government business. We were the first seven transactions down FedNow in July 2023 when we went live with FedNow. I did a lot of work with the Federal Reserve and Bank of New York to deploy FedNow and was very close to RTP. It's early, and banks are now adopting it. They're turning it on. About 80% of the use cases in RTP and FedNow are really push transactions or disbursements. FEMA just announced that they're going to start using FedNow for distribution of people who are in hurricanes, wildfires. They want to move to FedNow. From a request for pay or actual billing, the use cases really aren't there right now. Where it could work, and we're looking into it ourselves right now, Repay is more on our B2B business around the payable side as another modality to disburse funds. Some of the challenges in the market and the buzz around FedNow and real-time payments is the irrevocability of payments. You can't pull the payment back. Once it goes, it goes. There's benefits to that. If you're the biller on Bill Pay, that's a great thing. With our bank relationships that we have and bank partners, we're looking into potentially leveraging those modalities. Look, ACH, when it went live, took 20 years to get adoption. I think FedNow will move much faster than that, especially with the push on digital currencies in the U.S. The U.S. and Canada are the last countries to really turn on real-time payments. It's live in Europe and the rest of the world. It will take off. For now, I think it's probably in our payable side of the business. We'll look at potentially turning on those modalities as time goes. It's still very early in adoption. Yeah. Got it. I want to touch on financials. You have maintained relatively high EBITDA margins and guiding to 50% free cash flow conversion exiting 2025. How sustainable are those levels of conversion and margins as you ramp investments and sales and implementation teams over the next couple of years? I know you have not given formal guidance for 2026, but any context, I think, would be helpful. I can give you we did bring our free cash flow conversion guidance down for Q4 from 60% to north of 50%. The driver for that in Q4 was some of the margin compression we talked about. As we exit 2024, the way I look at it is we feel pretty confident about our exit rate for Q4 at 50%+ on free cash flow conversion. We're making investments, but we're creating efficiencies with some of the technologies John talked about. We're using AI to drive efficiencies on our tech stack, on implementation. We continue to make investments, but a lot of those investments aren't just to go to market. They're to drive efficiencies and automation within the company. We think that will offset some of the margin pressure we're having so you don't see a continuous margin decline. We feel pretty confident exiting Q4 and more to come on 2026 guidance and next earnings call. Our confidence level on the latest guide, we're pretty strong on it. Got it. Can you walk us through your capital allocation priorities and how you think about balancing organic growth, inorganic growth, and managing that with leverage and share buybacks? Sure. We deployed a lot of capital this year. We've year-to-date spent $38 million in share buybacks. We paid down our convert, as we announced on the last call, $74 million on the convert. We have deployed a lot of capital this year around debt and share buyback. The guidance that I gave on the call last week and continue to give is for the remainder of 2024. Our focus is to continue to pay down our debt on that 2026 convert that's due early next year. That's the focus. We will be leveraging our cash to do that. We still have $23 million left on our share repurchase program. Again, in the short term and for the remainder of 2024, going into 2025, going into 2026, it's all about paying down that convert with the use of cash. More to come on the capital allocation plan when I'm on my next guidance call. As you mentioned in the beginning, organic growth, that's embedded in the assumption of the cash flow will be post our proper investments there. We obviously are always, and you would expect us to, we're always working on the business to maximize how we use OpEx in the most efficient way on our go-to-market and growth strategies. We're always working as we look at different things, how we can invest the dollars in the best areas and the best ways to drive that. We're trying to use technology to make us more efficient in the areas that are maybe less, but also how do we get so that's a really good opportunity for us. We're investing those dollars. We're going to invest more. The assumption around that capital allocation assumes always investing in organic growth. Got it. Just understanding that you have not given 2026 guidance and the macro is very uncertain at this point. As we think about 2026 and just a normalization of growth as you move past some of the client losses from the past year, how are you thinking about macro conditions, whether across your verticals, whether it is in the auto market, which your business is a function of vehicle affordability or credit in the personal lending market? Any context there on a high level, I think, would be helpful. As I said earlier, we've already been impacted by some of those areas, and that's already in. We actually haven't seen some of that return back. We don't see that actually getting worse. We actually think some of those normal things will come. Ultimately, the consumer activity, our client side will accommodate some of those solutions, right? Overall, we're not expecting some major macroeconomic or recession necessarily for next year. I would think we'd be early to talk about anything like that. We're not seeing signs of that even today. I mean, the one thing that's positive in our business is we have a really diverse portfolio and multiple different verticals. That diversity helps in a situation if there were any large macro impact. Ultimately, really on both sides of our business, this is not a traditional e-commerce transaction. These are non-discretionary transactions. If you got 60 months of card payments, you need to make your card payments, right? If you got a mortgage payment, you need to make your mortgage payment. We see a prioritization in that world. It does not exactly say that it solves the world's problems. I mean, that is a different, sometimes I think that gets misconstrued. These are very non-discretionary type transactions. Got it. Just to wrap up here, 2025, as you said, is set up year for a stronger 2026. What milestones should investors watch over the next 12 months to gauge that process? Ultimately, what we're talking about is just continue to show that sequential organic growth as we move throughout 2026. We think we're obviously showing good signs of that. Rob, any final thoughts on early priorities as CFO and then anything you see as Repay's biggest opportunity? Yeah. Early thoughts, again, I'm a big believer in automation and creating efficiencies. I'm focusing, even within the finance team, automating a lot of our processes further than we already have, improving strong dashboarding to help the business react quick to market conditions. Going into 2026, it's all about execution. It's all about execution. I think John mentioned earlier in the discussion about our bookings. We had a good bookings year in 2025. It's about getting those clients live, up and running, and deployed in 2026. I'm excited about the year. We still have our challenges as we go up market around pricing, and we're going to continue to work to address that. That's why I gave a guide for Q4 where we're planning to exit Q4. It's about execution in 2026. I'm looking forward to it. Yeah. If actually we got a couple more minutes, if we could just double-click on some of those initiatives to help optimize pricing because I know that's a question that we get from investors since the quarter. Yeah. I mean, around pricing, I mean, again, as we go up market and we face some of those pressures, the things that we're doing around automation is going to allow us to scale faster, take cost out of the system to offset some of those margin pressures. John and I have been talking about those investments we're making, particularly in our tech stack and just on processes, the amount of people touch that we have in both our B2B business, automating that more, using AI. I mean, one of the things that really impressed me, going back to an earlier question you asked about what we're doing at Repay, is how much we embrace AI and how much our CTO embraces AI and John. Leveraging as much of that capability as we can to really automate processes, which takes cost out and allows you to really scale as you bring on more business. I mean, those are the areas we're focusing on to offset some of the margin pressure we're having as we go up market on price points. On the margin side, again, we're trying to go grab share. Keep in mind as well, on an enterprise client, they're in business, which means they're taking payments. We have to compete to get that business. Obviously, we're going to compete on our technology. We're going to compete on our solutions. They won't choose us just on price. To win, that's ultimately a complement on our technology and our solutions and our overall service. Our offering has to be there, which is things we're and we're trying to drive unique experiences there. Because we own our own clearing and settlement, because we own our own ecosystem, our ability to monetize that and can be competitive on the actual COGS part because a lot of the people piece is only going to be in the OpEx side of the world. Technology is going to be embedded in everything. On the COGS part of the world, for the transactional side of it, having our ecosystem and trying to drive volume through it is going to help us drive obviously more clicks or it's cheaper per click. Our goal is to really expand volume, which we think is a good leading indicator for us as we do that. Got it. Rob, John, really appreciate you joining us today. Thank you for your time. Thanks to everybody in the audience for listening. We'll be around all day in case anybody has any questions. Thanks, guys.