0000950170-23-040607 | 10-Q | XBRL Viewer

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

The components of lease cost are presented in the following table:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2023		2022		2023		2022
Components of total lease costs:
Operating lease cost	$	721	$	679	$	1,380	$	1,368
Short-term lease cost		7		22		34		34
Variable lease cost		—		—		—		—
Total lease cost	$	728	$	701	$	1,414	$	1,402

Schedule of Operating Lease and Supplemental Information

Amounts reported in the Condensed Consolidated Balance Sheets were as follows:


($ in thousands)	June 30, 2023			December 31, 2022
Operating leases:
ROU assets	$	9,485		$	9,847
Lease liability, current		1,750			2,263
Lease liability, long-term		8,480			8,295
Total lease liabilities	$	10,230		$	10,558

Weighted-average remaining lease term (in years)		4.1		4.7
Weighted-average discount rate (annualized)		5.7	%		4.5	%

Summary of Other Information Related to Lease

Other information related to leases are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	667	$	684	$	1,341	$	1,329
ROU assets obtained in exchange for lease liabilities:
Operating leases		—		980		—		2,511

Schedule of Maturity Analysis of the Company's Operating Leases Liabilities

The following table presents a maturity analysis of the Company’s operating leases liabilities as of June 30, 2023:


($ in thousands)
2023	$	1,111
2024		2,246
2025		2,222
2026		2,188
2027		1,269
Thereafter		3,542
Total undiscounted lease payments		12,578
Less: Imputed interest		2,348
Total lease liabilities	$	10,230

Fair Value

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value

6. Fair Value

The following table summarizes, by level within the fair value hierarchy, estimated fair values of the Company’s assets and liabilities measured at fair value on a recurring or nonrecurring basis or disclosed, but not carried, at fair value in the Condensed Consolidated Balance Sheets as of the dates presented. There were no transfers into, out of, or between levels within the fair value hierarchy during any of the periods presented.


	June 30, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Other assets	$	—	$	2,500	$	—	$	2,500
Total assets	$	—	$	2,500	$	—	$	2,500
Liabilities:
Contingent consideration	$	—	$	—	$	—	$	—
Borrowings		—		355,300		—		355,300
Tax receivable agreement		—		—		181,596		181,596
Total liabilities	$	—	$	355,300	$	181,596	$	536,896

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Other assets	$	—	$	2,500	$	—	$	2,500
Total assets	$	—	$	2,500	$	—	$	2,500
Liabilities:
Contingent consideration	$	—	$	—	$	1,000	$	1,000
Borrowings		—		344,280		—		344,280
Tax receivable agreement		—		—		179,127		179,127
Total liabilities	$	—	$	344,280	$	180,127	$	524,407

Other assets

Other assets contain a minority equity investment in a privately-held company. The Company elected a measurement alternative for measuring this investment, in which the carrying amount is adjusted based on any observable price changes in orderly transactions. The investment is classified as Level 2 as observable adjustments to value are infrequent and occur in an inactive market.

Contingent consideration

Contingent consideration relates to potential payments that the Company may be required to make associated with acquisitions. The contingent consideration is recorded at fair value based on actuals or estimates of discounted future cash flows associated with the acquired businesses. To the extent that the valuation of these liabilities is based on inputs that are less observable or not observable in the market, the determination of fair value requires more judgment. Accordingly, the fair value of contingent consideration is classified within Level 3 of the fair value hierarchy, under ASC 820. The change in fair value is re-measured at each reporting period with the change in fair value being recognized in accordance with ASC 805, Business Combinations (“ASC 805”).

As of June 30, 2023 and December 31, 2022, the present value of contingent consideration reflects the actual anticipated payments.

The following table provides a rollforward of the contingent consideration related to previous business acquisitions.


	Six Months Ended June 30,
($ in thousands)	2023			2022
Balance at beginning of period	$	1,000		$	17,047
Purchases		—			—
Payments		(1,000	)		(12,747	)
Valuation adjustment		—			(3,950	)
Balance at end of period	$	—		$	350

Borrowings

The revolving credit facility and 2026 Notes are measured at amortized cost, which the carrying value is unpaid principal net of unamortized debt discount and debt issuance costs. The carrying value of the revolving credit facility approximates fair value because its interest rate approximates market interest rates. The estimated fair value of the 2026 Notes is determined using the quoted prices from over-the-counter markets. The estimated fair value of the Company’s borrowings is classified within Level 2 of the fair value hierarchy, as the market interest rates and quoted prices are generally observable and do not contain a high level of subjectivity.

The following table provides the carrying value and estimated fair value of borrowings. See Note 9. Borrowings for further discussion on borrowings.


	June 30, 2023				December 31, 2022
($ in thousands)	Carrying value		Fair value		Carrying value		Fair value
Revolving credit facility	$	—	$	—	$	18,177	$	20,000
2026 Notes		432,742		355,300		433,142		324,280
Total	$	432,742	$	355,300	$	451,319	$	344,280

Tax Receivable Agreement

Upon the completion of the Business Combination, the Company entered into the Tax Receivable Agreement (the “TRA”) with holders of Post-Merger Repay Units. As a result of the TRA, the Company established a liability in its condensed consolidated financial statements. The TRA is recorded at fair value based on estimates of discounted future cash flows associated with the estimated payments to the Post-Merger Repay Unit holders. These inputs are not observable in the market; thus, the TRA is classified within Level 3 of the fair value hierarchy, under ASC 820. The change in fair value is re-measured at each reporting period with the change in fair value being recognized within Change in fair value of tax receivable liability in the Company’s Condensed Consolidated Statements of Operations.

The Company used a discount rate, also referred to as the Early Termination Rate, as defined in the TRA, to determine the present value, based on a risk-free rate plus a spread, pursuant to the TRA. A rate of 7.04% was applied to the forecasted TRA payments at June 30, 2023, in order to determine the fair value. A significant increase or decrease in the discount rate could have resulted in a lower or higher balance, respectively, as of the measurement date. The TRA balance was adjusted by $0.5 million through accretion expense and a valuation adjustment, related to an increase in the discount rate, which was 6.48% as of December 31, 2022.

The following table provides a rollforward of the TRA related to the acquisition and exchanges of Post-Merger Repay Units. See Note 13. Taxation for further discussion on the TRA.


	Six Months Ended June 30,
($ in thousands)	2023		2022
Balance at beginning of period	$	179,127	$	245,828
Purchases		1,987		165
Accretion expense		—		2,657
Valuation adjustment		482		(46,727	)
Balance at end of period	$	181,596	$	201,923

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Share Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate	3.42%	3.42%
Expected volatility	52.82%	52.82%
Dividend yield	0.00%	0.00%
Expected term (in years)	4 years 6 months	4 years 6 months

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (4,643)	$ 9	$ (31,035)	$ 13,663

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Commitments and Contingencies - Summary of Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Components of total lease costs:
Operating lease cost	$ 721	$ 679	$ 1,380	$ 1,368
Short-term lease cost	7	22	34	34
Total lease cost	$ 728	$ 701	$ 1,414	$ 1,402

Fair Value - Additional Information (Details) - Tax Receivable Agreement $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)	Jun. 30, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
TRA, balance adjusted through accretion expense and valuation adjustment	$ (0.5)
TRA, measurement input	6.48	7.04
Alternative Investment, Valuation Technique [Extensible List]		us-gaap:ValuationTechniqueDiscountedCashFlowMember
Alternative Investment, Measurement Input [Extensible List]		us-gaap:MeasurementInputDiscountRateMember
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Fair value change in tax receivable agreement liability

Share Based Compensation - Schedule of Outstanding Performance-based Stock Options (Details) - Performance based Stock Options	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted \| shares	1,148,822
Outstanding ending balance \| shares	1,148,822
Weighted Average Exercise Price, Granted \| $ / shares	$ 6.13
Weighted Average Exercise Price, Outstanding \| $ / shares	$ 6.13
Weighted Average Remaining Contractual Term (in years), Outstanding	7 years
Aggregate Intrinsic Value, Outstanding \| $	$ 1,952,997

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Schedule of Related Party Payables (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Related party payable	$ 1,000
CPS
Related Party Transaction [Line Items]
Related party payable	$ 1,000

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Related Party Payables

Related party payables consisted of the following:


($ in thousands)	June 30, 2023		December 31, 2022
CPS accrued earnout liability	$	—	$	1,000
Other payables to related parties		—		—
	$	—	$	1,000

Segments - Additional Information (Details) - Segment	3 Months Ended	6 Months Ended	12 Months Ended
Segments - Additional Information (Details) - Segment	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Number of operating segment			2
Consumer Payments \| Revenue, Segment Benchmark \| Segment Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk percentage	86.00%	87.00%
Business Payments \| Revenue, Segment Benchmark \| Segment Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk percentage	14.00%	13.00%

Revenue - Summary of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Revenue

Total Revenue

$ 71,783

$ 67,435

$ 146,320

$ 134,999

Elimination of Intersegment Revenues

Revenue

Total Revenue

^[1]

(3,970)

(2,332)

(8,048)

(4,741)

Consumer Payments

Revenue

Total Revenue

65,924

59,833

135,865

120,914

Business Payments

Revenue

Total Revenue

9,829

9,934

18,503

18,826

Direct Relationships

Revenue

Total Revenue

68,459

63,846

139,288

127,483

Direct Relationships | Elimination of Intersegment Revenues

Revenue

Total Revenue

(3,970)

(2,332)

(8,048)

(4,741)

Direct Relationships | Consumer Payments

Revenue

Total Revenue

62,899

56,504

129,373

113,940

Direct Relationships | Business Payments

Revenue

Total Revenue

9,530

9,674

17,964

18,284

Indirect Relationships

Revenue

Total Revenue

3,324

3,589

7,032

7,516

Indirect Relationships | Consumer Payments

Revenue

Total Revenue

3,025

3,329

6,492

6,974

Indirect Relationships | Business Payments

Revenue

Total Revenue

$ 299

$ 260

$ 539

$ 542

[1]	Represents intercompany eliminations between segments for consolidation purpose.

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Segments - Schedule of Revenue and Gross Profit for Each Reportable Segment (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Segment Reporting Information [Line Items]

Total Revenue

$ 71,783

$ 67,435

$ 146,320

$ 134,999

Total gross profit

^[1]

54,943

50,704

111,515

101,703

Total other operating expenses

^[2]

64,809

67,271

139,345

125,178

Total other income (expense)

3,485

18,259

(2,126)

41,897

Income (loss) before income tax benefit (expense)

(6,381)

1,692

(29,956)

18,422

Income tax benefit (expense)

1,051

(3,045)

(3,306)

(6,888)

Net income (loss)

(5,330)

(1,353)

(33,262)

11,534

Consumer Payments

Segment Reporting Information [Line Items]

Total Revenue

65,924

59,833

135,865

120,914

Business Payments

Segment Reporting Information [Line Items]

Total Revenue

9,829

9,934

18,503

18,826

Operating Segments | Consumer Payments

Segment Reporting Information [Line Items]

Total Revenue

65,924

59,833

135,865

120,914

Total gross profit

^[1]

51,704

46,082

106,329

93,572

Operating Segments | Business Payments

Segment Reporting Information [Line Items]

Total Revenue

9,829

9,934

18,503

18,826

Total gross profit

^[1]

7,209

6,954

13,234

12,872

Intersegment Elimination

Segment Reporting Information [Line Items]

Total Revenue

^[3]

(3,970)

(2,332)

(8,048)

(4,741)

Total gross profit

^[1]

$ (3,970)

$ (2,332)

$ (8,048)

$ (4,741)

[1]	Represents revenue less costs of services.
[2]	Represents total operating expenses less costs of services.
[3]	Represents intercompany eliminations between segments for consolidation purpose.

Goodwill

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

8. Goodwill

The following table presents changes to goodwill by business segment for the six months ended June 30, 2023.


($ in thousands)	Consumer Payments			Business Payments		Total
Balance at December 31, 2022	$	609,139		$	218,674	$	827,813
Dispositions		(35,270	)		—		(35,270	)
Balance at June 30, 2023	$	573,869		$	218,674	$	792,543

During the six months ended June 30, 2023, the Company recognized a reduction in goodwill of $35.3 million related to the disposition of BCS.

The Company concluded that goodwill was not impaired for either the Consumer Payments or Business Payments segment as of June 30, 2023. As of June 30, 2023 and December 31, 2022, there were no accumulated impairment losses for either the Consumer Payments or Business Payments segment.

Commitments and Contingencies - Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 667	$ 684	$ 1,341	$ 1,329
ROU assets obtained in exchange for lease liabilities:
Operating leases		$ 980		$ 2,511

Segments

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segments

14. Segments

For performance assessment and resource allocation purposes, the Company’s chief operating decision maker (“CODM”) reviews discrete financial results of two operating segments as of December 31, 2022: (1) Consumer Payments and (2) Business Payments. These operating segments represent reportable segments based on ASC 280, Segment Reporting. Prior year amounts have been reclassified to conform to the current presentation.

Consumer Payments

The Consumer Payments segment provides payment processing solutions (including debit and credit card processing, ACH processing and other electronic payment acceptance solutions, as well as our loan disbursement product) that enable the Company’s clients to collect payments and disburse funds to consumers and includes the Company’s clearing and settlement solutions (“RCS”). RCS is the Company’s proprietary clearing and settlement platform through which the Company markets customizable payment processing programs to other ISOs and payment facilitators. The strategic vertical markets served by the Consumer Payments segment primarily include personal loans, automotive loans, receivables management, credit unions, mortgage servicing, consumer healthcare and diversified retail. The Consumer Payments segment represented approximately 86% and 87% of the Company’s total revenue after any intersegment eliminations for the three and six months ended June 30, 2023, respectively.

Business Payments

The Business Payments segment provides payment processing solutions (including accounts payable automation, debit and credit card processing, virtual credit card processing, ACH processing and other electronic payment acceptance solutions) that enable the Company’s clients to collect or send payments to other businesses. The strategic vertical markets served within the Business Payments segment primarily include retail automotive, education, field services, governments and municipalities, healthcare, media, HOA management and hospitality. The Business Payments segment represented approximately 14% and 13% of the Company’s total revenue after any intersegment eliminations for the three and six months ended June 30, 2023, respectively.

The following table presents revenue and gross profit for each reportable segment.


	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousand)	2023			2022			2023			2022
Revenue
Consumer Payments	$	65,924		$	59,833		$	135,865		$	120,914
Business Payments		9,829			9,934			18,503			18,826
Elimination of intersegment revenues (1)		(3,970	)		(2,332	)		(8,048	)		(4,741	)
Total revenue	$	71,783		$	67,435		$	146,320		$	134,999
Gross profit (2)
Consumer Payments	$	51,704		$	46,082		$	106,329		$	93,572
Business Payments		7,209			6,954			13,234			12,872
Elimination of intersegment revenues		(3,970	)		(2,332	)		(8,048	)		(4,741	)
Total gross profit	$	54,943		$	50,704		$	111,515		$	101,703

Total other operating expenses (3)	$	64,809		$	67,271		$	139,345		$	125,178
Total other income (expense)		3,485			18,259			(2,126	)		41,897
Income (loss) before income tax benefit (expense)		(6,381	)		1,692			(29,956	)		18,422
Income tax benefit (expense)		1,051			(3,045	)		(3,306	)		(6,888	)
Net income (loss)	$	(5,330	)	$	(1,353	)	$	(33,262	)	$	11,534

(1)

Represents intercompany eliminations between segments for consolidation purpose.

(2)

Represents revenue less costs of services.

(3)

Represents total operating expenses less costs of services.

Revenue and costs of services are attributed directly to each segment. There is no significant concentration of revenue or assets in foreign countries as of June 30, 2023. The CODM reporting package does not include discrete asset details of the operating segments as this information is not considered by the CODM for resource allocation or other segment analysis purposes.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

3. Revenue

Disaggregation of revenue

The Company’s revenue is from two types of relationships: (i) direct relationships and (ii) indirect relationships. The following table presents the Company’s revenue disaggregated by segment and by the type of relationship for the periods indicated.


	Three Months Ended June 30, 2023
($ in thousands)	Consumer Payments		Business Payments		Elimination of intersegment revenues			Total
Revenue
Direct relationships	$	62,899	$	9,530	$	(3,970	)	$	68,459
Indirect relationships		3,025		299		—			3,324
Total Revenue	$	65,924	$	9,829	$	(3,970	)	$	71,783


	Three Months Ended June 30, 2022
($ in thousands)	Consumer Payments		Business Payments		Elimination of intersegment revenues			Total
Revenue
Direct relationships	$	56,504	$	9,674	$	(2,332	)	$	63,846
Indirect relationships		3,329		260		—			3,589
Total Revenue	$	59,833	$	9,934	$	(2,332	)	$	67,435


	Six Months Ended June 30, 2023
($ in thousands)	Consumer Payments		Business Payments		Elimination of intersegment revenues			Total
Revenue
Direct relationships	$	129,373	$	17,964	$	(8,048	)	$	139,288
Indirect relationships		6,492		539		—			7,032
Total Revenue	$	135,865	$	18,503	$	(8,048	)	$	146,320


	Six Months Ended June 30, 2022
($ in thousands)	Consumer Payments		Business Payments		Elimination of intersegment revenues			Total
Revenue
Direct relationships	$	113,940	$	18,284	$	(4,741	)	$	127,483
Indirect relationships		6,974		542		—			7,516
Total Revenue	$	120,914	$	18,826	$	(4,741	)	$	134,999

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (a)
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Goodwill - Additional Information (Details) - USD ($)	6 Months Ended
Goodwill - Additional Information (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Consumer Payments
Goodwill [Line Items]
Goodwill impairment loss	$ 0
Accumulated impairment losses	0	$ 0
Business Payments
Goodwill [Line Items]
Goodwill impairment loss	0
Accumulated impairment losses	0	$ 0
Blue Cow Software
Goodwill [Line Items]
Measurement period adjustment	$ (35,300,000)

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
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-Section 50
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+ Details

Share Based Compensation - Schedule of Outstanding Restricted Stock Awards Activity (Details) - Unvested Restricted Share Awards

6 Months Ended

Jun. 30, 2023

$ / shares

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Weighted average grant date fair value, Beginning Balance | $ / shares

$ 16.23

Weighted average grant date fair value, Granted | $ / shares

6.16

Weighted average grant date fair value, Forfeited | $ / shares

15.83

^[1],[2]

Weighted average grant date fair value, Vested | $ / shares

15.75

Weighted average grant date fair value, Ending Balance | $ / shares

$ 9.72

Class A Common Stock

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Unvested, Beginning Balance | shares

2,111,635

Granted | shares

2,533,649

Forfeited | shares

251,387

^[1],[2]

Vested | shares

529,614

Unvested, Ending Balance | shares

3,864,283

[1]	The forfeited shares include the Company’s failure to meet certain performance measures and employee terminations during the six months ended June 30, 2023; further, these forfeited shares are added back to the amount of shares available for grant under the Incentive Plan.
[2]	Upon vesting, award-holders elected to sell shares to the Company in order to satisfy the associated tax obligations. The awards are not deemed outstanding; further, these forfeited shares are added back to the amount of shares available for grant under the Incentive Plan.

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 785,729	$ 777,610
Accumulated Amortization	327,808	277,035
Net Carrying Value	$ 457,921	$ 500,575
Weighted Average Useful Life (Years)	5 years 29 days	5 years 8 months 15 days
Client Relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 523,850
Accumulated Amortization	164,815
Net Carrying Value	$ 359,035
Weighted Average Useful Life (Years)	6 years 9 months 21 days
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value		$ 539,850
Accumulated Amortization		137,515
Net Carrying Value		$ 402,335
Weighted Average Useful Life (Years)		7 years 4 months 24 days
Channel Relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 16,240	$ 16,240
Accumulated Amortization	3,965	3,168
Net Carrying Value	$ 12,275	$ 13,072
Weighted Average Useful Life (Years)	7 years 6 months 21 days	8 years 21 days
Software Costs
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 221,059	$ 196,890
Accumulated Amortization	154,780	132,322
Net Carrying Value	$ 66,279	$ 64,568
Weighted Average Useful Life (Years)	10 months 28 days	11 months 26 days
Non-Complete Agreements
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 4,580	$ 4,580
Accumulated Amortization	4,248	4,030
Net Carrying Value	$ 332	$ 550
Weighted Average Useful Life (Years)	4 months 9 days	6 months 14 days
Trade Names
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 20,000	$ 20,050
Net Carrying Value	$ 20,000	$ 20,050

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	2. Basis of Presentation and Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Statements These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited condensed consolidated financial statements and accompanying notes, which are included in the Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with instructions to Form 10-Q and Rule 10-01 of SEC Regulation S-X as they apply to interim financial information. Accordingly, the interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements, although the Company believes that the disclosures made are adequate to make the information not misleading. The Company uses the accrual basis of accounting whereby revenues are recognized when earned, usually upon the date services are rendered, and expenses are recognized at the date services are rendered or goods are received. The interim condensed consolidated financial statements are unaudited, but in the Company’s opinion include all adjustments of a normal recurring nature or a description of the nature and amount of any adjustments other than normal recurring adjustments, operations and cash flows as of and for the periods presented. The interim financial results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year. Principles of Consolidation The condensed consolidated financial statements include the accounts of Repay Holdings Corporation and its (i) wholly owned subsidiary, BT Intermediate, LLC, and (ii) majority-owned subsidiary, Hawk Parent Holdings LLC, along with Hawk Parent Holdings LLC's wholly owned subsidiaries: Hawk Intermediate Holdings, LLC, Hawk Buyer Holdings, LLC, Repay Holdings, LLC, M&A Ventures, LLC, Repay Management Holdco Inc., Repay Management Services LLC, Sigma Acquisition, LLC, Wildcat Acquisition, LLC, Marlin Acquirer, LLC, REPAY International LLC, REPAY Canada Solutions ULC, TriSource Solutions, LLC (“TriSource”), Mesa Acquirer, LLC, CDT Technologies LTD (“Ventanex”), Viking GP Holdings, LLC, cPayPlus, LLC (“cPayPlus”), CPS Payment Services, LLC, Media Payments, LLC (“MPI”), Custom Payment Systems, LLC, Electronic Payment Providers, LLC, Internet Payment Exchange, LLC, Stratus Payment Solutions, LLC, Clear Payment Solutions, LLC, Harbor Acquisition LLC, Payix Holdings Incorporated and Payix Incorporated. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported Condensed Consolidated Statements of Operations during the reporting period. Actual results could differ materially from those estimates. Segment Reporting Effective December 31, 2022, the Company revised the presentation of segment information to reflect changes in the way the Company manages and evaluates the business. Therefore, the Company reports operating results through two reportable segments: (1) Consumer Payments and (2) Business Payments, as further discussed in Note 14. Segments. Accordingly, segment information for the comparable prior year periods has been revised. Recently Adopted Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”)”, which provides optional expedients and exceptions to contracts, hedging relationships and other transactions affected by the transition away from LIBOR to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company adopted these ASUs as of February 9, 2023. The adoption of these standards does not have a material impact on the Company’s Consolidated Financial Statements. Business Combinations In August 2021, the FASB issued Accounting Standards Update No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 requires an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue (Topic 606), and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. Amendments within ASU 2021-08 are required to be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted ASU 2021-08 as of January 1, 2023. The adoption of this standard does not have a material impact on the Company’s Consolidated Financial Statements.

Borrowings - Summary of Borrowings under Credit Agreement (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Interest expense for the amortization of deferred debt issuance costs		$ 1,423	$ 1,411
Interest Expense
Debt Instrument [Line Items]
Interest expense for the amortization of deferred debt issuance costs	$ 700	$ 1,400		$ 2,800
Revolving Credit Facility
Debt Instrument [Line Items]
Variable interest rate				6.63%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
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+ Details

Goodwill (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes to Goodwill

The following table presents changes to goodwill by business segment for the six months ended June 30, 2023.


($ in thousands)	Consumer Payments			Business Payments		Total
Balance at December 31, 2022	$	609,139		$	218,674	$	827,813
Dispositions		(35,270	)		—		(35,270	)
Balance at June 30, 2023	$	573,869		$	218,674	$	792,543

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
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-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
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Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Accounts receivable from related party		$ 0.3	$ 0.3
Accounts Receivable, after Allowance for Credit Loss, Related and Nonrelated Party Status [Extensible Enumeration]		us-gaap:RelatedPartyMember	us-gaap:RelatedPartyMember
Other liabilities		$ 0.0	$ 0.0
Other Liability, Related Party, Type [Extensible Enumeration]		us-gaap:RelatedPartyMember	us-gaap:RelatedPartyMember
CPS
Related Party Transaction [Line Items]
Contingent consideration payable to related parties		$ 0.0	$ 1.0
Payment to related party	$ 1.0

Insider Trading Arrangements	6 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Cash flows from operating activities
Net income (loss)	$ (5,330)	$ (1,353)	$ (33,262)	$ 11,534
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	26,483	29,191	52,623	57,780
Stock based compensation			10,570	9,016
Amortization of debt issuance costs			1,423	1,411
Loss on business disposition	149		10,027
Other loss	118	150	118	150
Fair value change in tax receivable agreement liability	(4,056)	(19,450)	482	(44,070)
Fair value change in contingent consideration		(1,050)		(3,950)
Payment of contingent consideration liability in excess of acquisition-date fair value				(8,896)
Deferred tax expense			3,306	6,888
Change in accounts receivable			(1,858)	1,838
Change in prepaid expenses and other			4,842	(1,172)
Change in operating lease ROU assets			87	(827)
Change in accounts payable			(3,388)	1,491
Change in related party payable				77
Change in accrued expenses and other			(2,957)	(5,347)
Change in operating lease liabilities			(34)	892
Change in other liabilities			(1,195)	245
Net cash provided by operating activities			40,784	27,060
Cash flows from investing activities
Purchases of property and equipment			(114)	(1,824)
Purchases of intangible assets			(23,600)	(14,825)
Proceeds from sale of business, net of cash retained			40,273
Net cash provided by (used in) investing activities			16,559	(16,649)
Cash flows from financing activities
Payments on long-term debt			(20,000)
Shares repurchased under Incentive Plan and ESPP			(1,376)	(1,840)
Treasury shares repurchased				(1,145)
Distributions to Members			(609)	(386)
Payment of contingent consideration liability up to acquisition-date fair value			(1,000)	(3,851)
Net cash used in financing activities			(22,985)	(7,222)
Increase in cash, cash equivalents and restricted cash			34,358	3,189
Cash, cash equivalents and restricted cash at beginning of period			93,563	76,340	$ 76,340
Cash, cash equivalents and restricted cash at end of period	$ 127,921	$ 79,529	127,921	79,529	$ 93,563
Cash paid during the year for:
Interest			$ 647	$ 628

Borrowings - Summary of Borrowings under Credit Agreement (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Debt Instrument [Line Items]

Total borrowings

$ 440,000

$ 460,000

Less: Long-term loan debt issuance cost

^[1]

7,258

8,681

Total non-current borrowings

432,742

451,319

Convertible Senior Debt

Debt Instrument [Line Items]

Total borrowings

$ 440,000

440,000

Revolving Credit Facility

Debt Instrument [Line Items]

Total borrowings

^[2]

$ 20,000

[1]	The Company incurred $0.7 million and $1.4 million of interest expense for the amortization of deferred debt issuance costs for the three and six months ended June 30, 2023, respectively. The Company incurred $2.8 million of interest expense for the amortization of deferred debt issuance costs for the year ended December 31, 2022.
[2]	The revolving credit facility bears interest at a variable rate, which was 6.63% as of December 31, 2022.

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Legal Matters

The Company is a party to various claims and lawsuits incidental to its business. In the Company’s opinion, the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, are not expected to have a material adverse effect on its financial position, liquidity, results of operations or cash flows.

Leases

The Company has commitments under operating leases for real estate leased from third parties under non-cancelable operating leases. The Company’s leases typically have lease terms between three years and ten years, with the longest lease term having an expiration date in 2035. Most of these leases include one or more renewal options for five years or less, and certain leases also include lessee termination options. At lease commencement, the Company assesses whether it is reasonably certain to exercise a renewal option, or reasonably certain not to exercise a termination option, by considering various economic factors. Options that are reasonably certain of being exercised are factored into the determination of the lease term, and related payments are included in the calculation of the right-of-use (“ROU”) asset and lease liability.

The components of lease cost are presented in the following table:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2023		2022		2023		2022
Components of total lease costs:
Operating lease cost	$	721	$	679	$	1,380	$	1,368
Short-term lease cost		7		22		34		34
Variable lease cost		—		—		—		—
Total lease cost	$	728	$	701	$	1,414	$	1,402

Amounts reported in the Condensed Consolidated Balance Sheets were as follows:


($ in thousands)	June 30, 2023			December 31, 2022
Operating leases:
ROU assets	$	9,485		$	9,847
Lease liability, current		1,750			2,263
Lease liability, long-term		8,480			8,295
Total lease liabilities	$	10,230		$	10,558

Weighted-average remaining lease term (in years)		4.1		4.7
Weighted-average discount rate (annualized)		5.7	%		4.5	%

Other information related to leases are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	667	$	684	$	1,341	$	1,329
ROU assets obtained in exchange for lease liabilities:
Operating leases		—		980		—		2,511

The following table presents a maturity analysis of the Company’s operating leases liabilities as of June 30, 2023:


($ in thousands)
2023	$	1,111
2024		2,246
2025		2,222
2026		2,188
2027		1,269
Thereafter		3,542
Total undiscounted lease payments		12,578
Less: Imputed interest		2,348
Total lease liabilities	$	10,230

Commitments and Contingencies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023
Lease [Line Items]
Operating lease expiration year	2035
Lessee, operating lease, existence of option to extend [true false]	true
Operating lease, option to extend	Most of these leases include one or more renewal options for five years or less
Operating lease, existence of option to terminate [true false]	true
Operating lease, option to terminate	certain leases also include lessee termination options
Minimum
Lease [Line Items]
Operating lease, term of contract	3 years
Maximum
Lease [Line Items]
Operating lease, term of contract	10 years
Operating lease, renewal term	5 years

Commitments and Contingencies - Schedule of Maturity Analysis of the Company's Operating Leases Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023	$ 1,111
2024	2,246
2025	2,222
2026	2,188
2027	1,269
Thereafter	3,542
Total undiscounted lease payments	12,578
Less: Imputed interest	2,348
Total lease liabilities	$ 10,230	$ 10,558

Business Combinations and Dispositions - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Feb. 15, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Cash proceeds from sale of business				$ 40,273
Loss on business disposition		$ (149)		(10,027)
Dispositions				35,270
Revenue		71,783	$ 67,435	146,320	$ 134,999
Consumer Payments
Business Acquisition [Line Items]
Dispositions				35,270
Revenue		65,924	59,833	135,865	120,914
Blue Cow Software
Business Acquisition [Line Items]
Transaction expenses related to the business combination		$ 0		3,400
Cash proceeds from sale of business	$ 41,900
Loss on business disposition	$ (10,000)
Measurement period adjustment				(35,300)
Blue Cow Software \| Consumer Payments
Business Acquisition [Line Items]
Dispositions				35,300
Revenue			700	$ 1,200	3,700
Billing Tree
Business Acquisition [Line Items]
Transaction expenses related to the business combination			1,800		4,300
Kontrol
Business Acquisition [Line Items]
Transaction expenses related to the business combination			1,800		4,300
Payix
Business Acquisition [Line Items]
Transaction expenses related to the business combination			$ 1,800		$ 4,300

Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

15. Subsequent events

Management has evaluated subsequent events and their potential effects on these unaudited condensed consolidated financial statements. Based upon the review, management did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings Per Share

During the three and six months ended June 30, 2023, basic and diluted net loss per common share are the same since the inclusion of the assumed exchange of all limited liability company interests of Hawk Parent (“Post-Merger Repay Units”), unvested share-based awards, outstanding stock options and the Company’s Convertible Senior Notes due 2026 (“2026 Notes”) would have been anti-dilutive.

The following table summarizes net income (loss) attributable to the Company and the weighted average basic and diluted shares outstanding:


	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands, except per share data)	2023			2022			2023			2022
Income (loss) before income tax benefit (expense)	$	(6,381	)	$	1,692		$	(29,956	)	$	18,422
Less: Net loss attributable to non-controlling interests		(687	)		(1,362	)		(2,227	)		(2,129	)
Income tax benefit (expense)		1,051			(3,045	)		(3,306	)		(6,888	)
Net income (loss) attributable to the Company	$	(4,643	)	$	9		$	(31,035	)	$	13,663

Weighted average shares of Class A common stock outstanding - basic		89,170,814			88,903,674			88,894,820			88,756,482
Add weighted average effect of dilutive common stock equivalent shares:
Post-Merger Repay Units exchangeable for Class A common stock					7,883,048						7,883,048
Unvested share-based awards of Class A common stock					3,365,729						3,130,785
Outstanding ESPP purchase rights for Class A common stock					2,876						1,438
2026 Notes convertible into Class A common stock					13,095,238						13,095,238
Weighted average shares of Class A common stock outstanding - diluted		89,170,814			113,250,565			88,894,820			112,866,991

Income (loss) per share of Class A common stock outstanding - basic	$	(0.05	)	$	0.00		$	(0.35	)	$	0.15
Income (loss) per share of Class A common stock outstanding - diluted	$	(0.05	)	$	0.00		$	(0.35	)	$	0.12

For the three and six months ended June 30, 2023, the following common stock equivalent shares were excluded from the computation of the diluted loss per share, since their inclusion would have been anti-dilutive:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023		2023
Post-Merger Repay Units exchangeable for Class A common stock		6,459,153		6,459,153
Unvested share-based awards of Class A common stock		5,772,187		5,772,187
Outstanding stock options for Class A common stock		1,148,822		1,148,822
2026 Notes convertible into Class A common stock		13,095,238		13,095,238
Share equivalents excluded from earnings (loss) per share		26,475,400		26,475,400

Shares of the Company’s Class V common stock do not participate in the earnings or losses of the Company and, therefore, are not participating securities. As such, separate presentation of basic and diluted earnings per share of Class V common stock under the two-class method has not been presented.

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenue	$ 71,783	$ 67,435	$ 146,320	$ 134,999
Operating expenses
Costs of services (exclusive of depreciation and amortization shown separately below)	16,840	16,731	34,805	33,296
Selling, general and administrative	38,177	39,130	76,695	71,348
Depreciation and amortization	26,483	29,191	52,623	57,780
Change in fair value of contingent consideration		(1,050)		(3,950)
Loss on business disposition	149		10,027
Total operating expenses	81,649	84,002	174,150	158,474
Loss from operations	(9,866)	(16,567)	(27,830)	(23,475)
Other income (expense)
Interest expense	(910)	(1,051)	(2,070)	(2,040)
Change in fair value of tax receivable liability	4,056	19,450	(482)	44,070
Other income	457	10	544	17
Other loss	(118)	(150)	(118)	(150)
Total other income (expense)	3,485	18,259	(2,126)	41,897
Income (loss) before income tax benefit (expense)	(6,381)	1,692	(29,956)	18,422
Income tax benefit (expense)	1,051	(3,045)	(3,306)	(6,888)
Net income (loss)	(5,330)	(1,353)	(33,262)	11,534
Less: Net loss attributable to non-controlling interests	(687)	(1,362)	(2,227)	(2,129)
Net income (loss) attributable to the Company	$ (4,643)	$ 9	$ (31,035)	$ 13,663
Income (loss) per Class A share attributable to the Company:
Basic	$ (0.05)	$ 0	$ (0.35)	$ 0.15
Diluted	$ (0.05)	$ 0	$ (0.35)	$ 0.12
Weighted-average shares outstanding:
Basic	89,170,814	88,903,674	88,894,820	88,756,482
Diluted	89,170,814	113,250,565	88,894,820	112,866,991

Fair Value - Summary of Carrying Amounts and Estimated Fair Values of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets:
Other assets	$ 2,500	$ 2,500
Total assets	2,500	2,500
Liabilities:
Contingent consideration		1,000
Borrowings	355,300	344,280
Tax receivable agreement	181,596	179,127
Total liabilities	536,896	524,407
Level 2
Assets:
Other assets	2,500	2,500
Total assets	2,500	2,500
Liabilities:
Borrowings	355,300	344,280
Total liabilities	355,300	344,280
Level 3
Liabilities:
Contingent consideration		1,000
Tax receivable agreement	181,596	179,127
Total liabilities	$ 181,596	$ 180,127

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Unaudited Interim Consolidated Financial Statements	Unaudited Interim Condensed Consolidated Financial Statements These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited condensed consolidated financial statements and accompanying notes, which are included in the Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with instructions to Form 10-Q and Rule 10-01 of SEC Regulation S-X as they apply to interim financial information. Accordingly, the interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements, although the Company believes that the disclosures made are adequate to make the information not misleading. The Company uses the accrual basis of accounting whereby revenues are recognized when earned, usually upon the date services are rendered, and expenses are recognized at the date services are rendered or goods are received. The interim condensed consolidated financial statements are unaudited, but in the Company’s opinion include all adjustments of a normal recurring nature or a description of the nature and amount of any adjustments other than normal recurring adjustments, operations and cash flows as of and for the periods presented. The interim financial results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Repay Holdings Corporation and its (i) wholly owned subsidiary, BT Intermediate, LLC, and (ii) majority-owned subsidiary, Hawk Parent Holdings LLC, along with Hawk Parent Holdings LLC's wholly owned subsidiaries: Hawk Intermediate Holdings, LLC, Hawk Buyer Holdings, LLC, Repay Holdings, LLC, M&A Ventures, LLC, Repay Management Holdco Inc., Repay Management Services LLC, Sigma Acquisition, LLC, Wildcat Acquisition, LLC, Marlin Acquirer, LLC, REPAY International LLC, REPAY Canada Solutions ULC, TriSource Solutions, LLC (“TriSource”), Mesa Acquirer, LLC, CDT Technologies LTD (“Ventanex”), Viking GP Holdings, LLC, cPayPlus, LLC (“cPayPlus”), CPS Payment Services, LLC, Media Payments, LLC (“MPI”), Custom Payment Systems, LLC, Electronic Payment Providers, LLC, Internet Payment Exchange, LLC, Stratus Payment Solutions, LLC, Clear Payment Solutions, LLC, Harbor Acquisition LLC, Payix Holdings Incorporated and Payix Incorporated. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported Condensed Consolidated Statements of Operations during the reporting period. Actual results could differ materially from those estimates.
Segment Reporting	Segment Reporting Effective December 31, 2022, the Company revised the presentation of segment information to reflect changes in the way the Company manages and evaluates the business. Therefore, the Company reports operating results through two reportable segments: (1) Consumer Payments and (2) Business Payments, as further discussed in Note 14. Segments. Accordingly, segment information for the comparable prior year periods has been revised.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”)”, which provides optional expedients and exceptions to contracts, hedging relationships and other transactions affected by the transition away from LIBOR to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company adopted these ASUs as of February 9, 2023. The adoption of these standards does not have a material impact on the Company’s Consolidated Financial Statements. Business Combinations In August 2021, the FASB issued Accounting Standards Update No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 requires an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue (Topic 606), and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. Amendments within ASU 2021-08 are required to be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted ASU 2021-08 as of January 1, 2023. The adoption of this standard does not have a material impact on the Company’s Consolidated Financial Statements.

- Definition

Disclosure of accounting policy for segment reporting.

+ References + Details

Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Estimated Future Amortization Expense
2023	$ 48,951
2024	86,945
2025	69,767
2026	57,420
2027	55,941
Thereafter	$ 118,897

Earnings Per Share - Summary of Net Income (Loss) and Weighted Average Basic and Diluted Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income (loss) before income tax benefit (expense)	$ (6,381)	$ 1,692	$ (29,956)	$ 18,422
Less: Net loss attributable to non-controlling interests	(687)	(1,362)	(2,227)	(2,129)
Income tax benefit (expense)	1,051	(3,045)	(3,306)	(6,888)
Net income (loss) attributable to the Company	$ (4,643)	$ 9	$ (31,035)	$ 13,663
Weighted average shares of Class A common stock outstanding - basic	89,170,814	88,903,674	88,894,820	88,756,482
Add weighted average effect of dilutive common stock equivalent shares:
Weighted average shares of Class A common stock outstanding - diluted	89,170,814	113,250,565	88,894,820	112,866,991
Income (loss) per share of Class A common stock outstanding - basic	$ (0.05)	$ 0	$ (0.35)	$ 0.15
Income (loss) per share of Class A common stock outstanding - diluted	$ (0.05)	$ 0	$ (0.35)	$ 0.12
Class A Common Stock
Weighted average shares of Class A common stock outstanding - basic	89,170,814	88,903,674	88,894,820	88,756,482
Add weighted average effect of dilutive common stock equivalent shares:
Post-Merger Repay Units exchangeable for Class A common stock		7,883,048		7,883,048
Unvested share-based awards of Class A common stock		3,365,729		3,130,785
Outstanding ESPP purchase rights for Class A common stock		2,876		1,438
2026 Notes convertible into Class A common stock		13,095,238		13,095,238
Weighted average shares of Class A common stock outstanding - diluted	89,170,814	113,250,565	88,894,820	112,866,991
Income (loss) per share of Class A common stock outstanding - basic	$ (0.05)	$ 0	$ (0.35)	$ 0.15
Income (loss) per share of Class A common stock outstanding - diluted	$ (0.05)	$ 0	$ (0.35)	$ 0.12

Earnings Per Share - Summary of Components of Common Stock Equivalent Shares Excluded from Computation of Diluted Loss per Share (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Share equivalents excluded from earnings (loss) per share	26,475,400	26,475,400
Class A Common Stock \| Post-Merger Repay Units Exchangeable
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Share equivalents excluded from earnings (loss) per share	6,459,153	6,459,153
Class A Common Stock \| Unvested Share-based Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Share equivalents excluded from earnings (loss) per share	5,772,187	5,772,187
Class A Common Stock \| Outstanding Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Share equivalents excluded from earnings (loss) per share	1,148,822	1,148,822
Class A Common Stock \| 2026 Notes Convertible
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Share equivalents excluded from earnings (loss) per share	13,095,238	13,095,238

Borrowings (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Summary of Borrowings under Credit Agreement

The following table summarizes the total borrowings under the Amended Credit Agreement and 2026 Notes:


($ in thousands)	June 30, 2023		December 31, 2022
Non-current indebtedness:
Revolving Credit Facility (1)	$	—	$	20,000
Convertible Senior Debt		440,000		440,000
Total borrowings		440,000		460,000
Less: Long-term loan debt issuance cost (2)		7,258		8,681
Total non-current borrowings	$	432,742	$	451,319

(1)

The revolving credit facility bears interest at a variable rate, which was 6.63% as of December 31, 2022.

(2)

The Company incurred $0.7 million and $1.4 million of interest expense for the amortization of deferred debt issuance costs for the three and six months ended June 30, 2023, respectively. The Company incurred $2.8 million of interest expense for the amortization of deferred debt issuance costs for the year ended December 31, 2022.

Summary of Principal Maturities of Long-term Debt

The following is a summary of principal maturities of long‑term debt for each of the next five years ending December 31 and in the aggregate:


($ in thousands)
2023	$	—
2024		—
2025		—
2026		440,000
2027		—
	$	440,000

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69B

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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69E

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Share Based Compensation - Schedule of Share Based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-based compensation expense	$ 6.5	$ 5.9	$ 10.6	$ 9.0
Income tax benefit	$ 0.2	$ 1.0	$ 1.3	$ 2.2

Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Carrying Amounts and Estimated Fair Values of Assets and Liabilities Measured at Fair Value


	June 30, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Other assets	$	—	$	2,500	$	—	$	2,500
Total assets	$	—	$	2,500	$	—	$	2,500
Liabilities:
Contingent consideration	$	—	$	—	$	—	$	—
Borrowings		—		355,300		—		355,300
Tax receivable agreement		—		—		181,596		181,596
Total liabilities	$	—	$	355,300	$	181,596	$	536,896

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Other assets	$	—	$	2,500	$	—	$	2,500
Total assets	$	—	$	2,500	$	—	$	2,500
Liabilities:
Contingent consideration	$	—	$	—	$	1,000	$	1,000
Borrowings		—		344,280		—		344,280
Tax receivable agreement		—		—		179,127		179,127
Total liabilities	$	—	$	344,280	$	180,127	$	524,407

Schedule of Contingent Consideration Related to Previous Business Acquisitions

The following table provides a rollforward of the contingent consideration related to previous business acquisitions.


	Six Months Ended June 30,
($ in thousands)	2023			2022
Balance at beginning of period	$	1,000		$	17,047
Purchases		—			—
Payments		(1,000	)		(12,747	)
Valuation adjustment		—			(3,950	)
Balance at end of period	$	—		$	350

Schedule of Carrying Value and Estimated Fair Value of Borrowings

The following table provides the carrying value and estimated fair value of borrowings. See Note 9. Borrowings for further discussion on borrowings.


	June 30, 2023				December 31, 2022
($ in thousands)	Carrying value		Fair value		Carrying value		Fair value
Revolving credit facility	$	—	$	—	$	18,177	$	20,000
2026 Notes		432,742		355,300		433,142		324,280
Total	$	432,742	$	355,300	$	451,319	$	344,280

Tax Receivable Agreement

Schedule of Contingent Consideration Related to Previous Business Acquisitions

The following table provides a rollforward of the TRA related to the acquisition and exchanges of Post-Merger Repay Units. See Note 13. Taxation for further discussion on the TRA.


	Six Months Ended June 30,
($ in thousands)	2023		2022
Balance at beginning of period	$	179,127	$	245,828
Purchases		1,987		165
Accretion expense		—		2,657
Valuation adjustment		482		(46,727	)
Balance at end of period	$	181,596	$	201,923

Segments (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Revenue and Gross Profit for Each Reportable Segment

The following table presents revenue and gross profit for each reportable segment.


	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousand)	2023			2022			2023			2022
Revenue
Consumer Payments	$	65,924		$	59,833		$	135,865		$	120,914
Business Payments		9,829			9,934			18,503			18,826
Elimination of intersegment revenues (1)		(3,970	)		(2,332	)		(8,048	)		(4,741	)
Total revenue	$	71,783		$	67,435		$	146,320		$	134,999
Gross profit (2)
Consumer Payments	$	51,704		$	46,082		$	106,329		$	93,572
Business Payments		7,209			6,954			13,234			12,872
Elimination of intersegment revenues		(3,970	)		(2,332	)		(8,048	)		(4,741	)
Total gross profit	$	54,943		$	50,704		$	111,515		$	101,703

Total other operating expenses (3)	$	64,809		$	67,271		$	139,345		$	125,178
Total other income (expense)		3,485			18,259			(2,126	)		41,897
Income (loss) before income tax benefit (expense)		(6,381	)		1,692			(29,956	)		18,422
Income tax benefit (expense)		1,051			(3,045	)		(3,306	)		(6,888	)
Net income (loss)	$	(5,330	)	$	(1,353	)	$	(33,262	)	$	11,534

(1)

Represents intercompany eliminations between segments for consolidation purpose.

(2)

Represents revenue less costs of services.

(3)

Represents total operating expenses less costs of services.

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 103,784	$ 64,895
Accounts receivable	33,889	33,544
Prepaid expenses and other	13,304	18,213
Total current assets	150,977	116,652
Property, plant and equipment, net	2,956	4,375
Restricted cash	24,137	28,668
Intangible assets, net	457,921	500,575
Goodwill	792,543	827,813
Operating lease right-of-use assets, net	9,485	9,847
Deferred tax assets	135,051	136,370
Other assets	2,500	2,500
Total noncurrent assets	1,424,593	1,510,148
Total assets	1,575,570	1,626,800
Liabilities
Accounts payable	18,830	21,781
Related party payable		1,000
Accrued expenses	26,128	29,016
Current operating lease liabilities	1,750	2,263
Current tax receivable agreement		24,454
Other current liabilities	541	3,593
Total current liabilities	47,249	82,107
Long-term debt	432,742	451,319
Noncurrent operating lease liabilities	8,480	8,295
Tax receivable agreement, net of current portion	181,596	154,673
Other liabilities	1,887	2,113
Total noncurrent liabilities	624,705	616,400
Total liabilities	671,954	698,507
Commitments and contingencies (Note 10)
Stockholders' equity
Additional paid-in capital	1,132,720	1,117,736
Treasury stock, 1,078,141 shares as of June 30, 2023 and December 31, 2022	(10,000)	(10,000)
Accumulated other comprehensive loss	(3)	(3)
Accumulated deficit	(244,215)	(213,180)
Total Repay stockholders' equity	878,511	894,562
Non-controlling interests	25,105	33,731
Total equity	903,616	928,293
Total liabilities and equity	1,575,570	1,626,800
Class A Common Stock
Stockholders' equity
Common stock value	$ 9	$ 9

Business Combinations and Dispositions

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Business Combinations and Dispositions

5. Business Combinations and Dispositions

On February 15, 2023, the Company sold Blue Cow Software, LLC and a related entity (“BCS”) within the Consumer Payments segment for cash proceeds of $41.9 million. During the six months ended June 30, 2023, the Company recognized a loss of $10.0 million associated with the sale, comprised of the difference between the consideration received and the net carrying amount of the assets and liabilities of the business within Loss on business disposition in the Company’s Condensed Consolidated Statement of Operations.

In connection with the disposition of BCS, the Company recognized a reduction in goodwill of $35.3 million within the Consumer Payments segment. See Note 8. Goodwill for further discussion. For the six months ended June 30, 2023, BCS contributed $1.2 million to the Consumer Payments segment revenue. For the three and six months ended June 30, 2022, BCS contributed $1.7 million and $3.7 million to the Consumer Payments segment revenue, respectively.

Transaction Expenses

The Company incurred transaction expenses of $0.0 million and $3.4 million for the three and six months ended June 30, 2023, respectively, related to the disposition of BCS. The Company incurred transaction expenses of $1.8 million and $4.3 million for the three and six months ended June 30, 2022, respectively, related to the acquisitions of BillingTree, Kontrol and Payix. Transaction expenses are included within Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

Borrowings - Additional Information (Details)			3 Months Ended		6 Months Ended
Borrowings - Additional Information (Details)	Feb. 28, 2023 USD ($)	Jan. 19, 2021 USD ($) $ / shares	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 29, 2021 USD ($)	Dec. 28, 2021 USD ($)	Feb. 03, 2021 USD ($)	Feb. 02, 2021 USD ($)
New Credit Agreement
Debt Instrument [Line Items]
Line of credit			$ 0		$ 0
Interest expense			$ 900,000	$ 1,000,000	$ 2,000,000	$ 2,000,000
New Credit Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Undrawn line of credit	$ 185,000,000
Line of credit facility repaid amount	$ 20,000,000
Senior Secured Revolving Credit Facility \| Successor Credit Agreement
Debt Instrument [Line Items]
Undrawn line of credit										$ 30,000,000
Senior Secured Revolving Credit Facility \| New Credit Agreement
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity							$ 185,000,000	$ 60,000,000
Senior Secured Revolving Credit Facility \| New Credit Agreement \| Truist Bank
Debt Instrument [Line Items]
Undrawn line of credit									$ 125,000,000
2026 Notes \| Notes Offering
Debt Instrument [Line Items]
Aggregate principal amount		$ 440,000,000
Debt instrument interest rate		0.00%
Debt instrument, maturity date		Feb. 01, 2026
2026 Notes \| Notes Offering \| Class A Common Stock
Debt Instrument [Line Items]
Debt instrument, convertible notes, conversion rate		29.7619
Debt instrument, convertible notes, conversion price per share \| $ / shares		$ 33.6

Commitments and Contingencies - Schedule of Operating Lease and Supplemental Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating leases:
ROU assets	$ 9,485	$ 9,847
Lease liability, current	1,750	2,263
Lease liability, long-term	8,480	8,295
Total lease liabilities	$ 10,230	$ 10,558
Weighted-average remaining lease term (in years)	4 years 1 month 6 days	4 years 8 months 12 days
Weighted-average discount rate (annualized)	5.70%	4.50%

Share Based Compensation - Schedule of Outstanding Performance Stock Units Activity (Details) - Performance Stock Units

6 Months Ended

Jun. 30, 2023

$ / shares

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Weighted average grant date fair value, Beginning Balance | $ / shares

$ 19.19

Weighted average grant date fair value, Granted | $ / shares

8.87

Weighted average grant date fair value, Ending Balance | $ / shares

$ 12.64

Class A Share

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Unvested, Beginning Balance | shares

634,023

^[1]

Granted | shares

1,102,497

^[1]

Unvested, Ending Balance | shares

1,736,520

^[1]

[1]	Represent shares to be paid out at target level.

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Share Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share Based Compensation

12. Share Based Compensation

Omnibus Incentive Plan

At the 2019 Annual Shareholders Meeting of Thunder Bridge, the shareholders considered and approved the 2019 Omnibus Incentive Plan (the “Incentive Plan”) which resulted in the reservation of 7,326,728 shares of Class A common stock for issuance thereunder. The Incentive Plan initially became effective immediately upon the closing of the Business Combination. In June 2022, the Incentive Plan was amended and restated to reserve a total of 13,826,728 shares of Class A common stock for issuance thereunder.

Under this plan, the Company currently has four types of share-based compensation awards outstanding: performance stock units (“PSUs”), restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance-based stock options (“PSOs”).

Share-Based Awards

The following table summarizes share-based compensation expense and the related income tax benefit recognized for the Company’s share-based compensation awards. Share-based compensation expenses are recorded within Selling, general and administrative in the Company’s Condensed Consolidated Statement of Operations.


	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2023		2022		2023		2022
Share-based compensation expense	$	6.5	$	5.9	$	10.6	$	9.0
Income tax benefit		0.2		1.0		1.3		2.2

Activities for RSAs for the six months ended June 30, 2023 are as follows:


	Class A Common Stock		Weighted Average Grant Date Fair Value
Unvested at December 31, 2022		2,111,635	$	16.23
Granted		2,533,649		6.16
Forfeited (1)(2)		251,387		15.83
Vested		529,614		15.75
Unvested at June 30, 2023		3,864,283	$	9.72

Activities for RSUs for the six months ended June 30, 2023 are as follows:


	Class A Common Stock		Weighted Average Grant Date Fair Value
Unvested at December 31, 2022		108,909	$	13.22
Granted		171,384		7.41
Forfeited		—
Vested		108,909		13.22
Unvested at June 30, 2023		171,384	$	7.41

Activities for PSUs for the six months ended June 30, 2023 are as follows:


	Class A Common Stock (3)		Weighted Average Grant Date Fair Value
Unvested at December 31, 2022		634,023	$	19.19
Granted		1,102,497		8.87
Forfeited		—		—
Vested		—		—
Unvested at June 30, 2023		1,736,520	$	12.64

(1)

The forfeited shares include the Company’s failure to meet certain performance measures and employee terminations during the six months ended June 30, 2023; further, these forfeited shares are added back to the amount of shares available for grant under the Incentive Plan.

(2)

Upon vesting, award-holders elected to sell shares to the Company in order to satisfy the associated tax obligations. The awards are not deemed outstanding; further, these forfeited shares are added back to the amount of shares available for grant under the Incentive Plan.

(3)

Represent shares to be paid out at target level.

Unrecognized compensation expense related to unvested PSUs, RSAs and RSUs was $36.6 million at June 30, 2023, which is expected to be recognized as expense over the weighted-average period of 2.1 years.

Stock Options

Activities for PSOs for the six months ended June 30, 2023 are as follows:


	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2022		—	$	—		—	$	—
Granted		1,148,822		6.13
Forfeited		—		—
Exercised		—		—
Outstanding at June 30, 2023		1,148,822	$	6.13		7.0	$	1,952,997

Options vested and exercisable at June 30, 2023		—	$	—		—	$	—

The Company recognized compensation expense for PSOs of $0.4 million and $0.5 million during the three and six months ended June 30, 2023, respectively. Unrecognized compensation expense related to outstanding PSOs was $2.5 million at June 30, 2023, which is expected to be recognized as expense over the weighted-average period of 1.8 years.

The weighted average grant date fair value of PSOs granted during the three and six months ended June 30, 2023 was $2.61. Fair value was estimated on the date of grant using Monte Carlo simulation with the following weighted average assumptions:


	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Risk-free interest rate		3.42	%		3.42	%
Expected volatility		52.82	%		52.82	%
Dividend yield		0	%		0	%
Expected term (in years)		4.5			4.5

The risk-free interest rate was based on the yield of a zero coupon U.S. Treasury security with a maturity equal to the contractual term of seven years. The assumption on expected volatility was based on the average of historical peer group volatilities using daily prices. The dividend yield assumption was determined as 0% since the Company pays no dividends. Expected term was based on the simplified method outlined in Staff Accounting Bulletin No. 14, Share-Based Payment due to the fact that Company does not have sufficient historical data upon which to estimate an expected term. Given that the Company’s Class A common stock has been publicly traded for less than seven years, the Company believes that the simplified method is an applicable methodology to estimate the expected term of the options as of the grant date.

Employee Stock Purchase Plan

On August 18, 2021, the Company’s stockholders approved the Repay Holdings Corporation 2021 Employee Stock Purchase Plan (the “ESPP”). The purpose of the ESPP is to provide eligible employees with the opportunity to purchase the Company’s Class A common stock through accumulated payroll deductions. A total of 1,000,000 shares of the Company’s Class A common stock are available for issuance under the ESPP. Under the ESPP, participants are offered the right to purchase shares of the Company’s Class A common stock at a discount during a series of offering periods. The length of the offering periods under the ESPP will be determined by the administrator and may be up to twenty-seven months long.

Share Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Aug. 18, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense related to unvested PSUs, RSAs and RSUs	$ 36.6		$ 36.6
Weighted-average period related to unvested PSUs, RSAs, RSUs and PSOs			2 years 1 month 6 days
Recognized compensation expense related to PSOs	$ 6.5	$ 5.9	$ 10.6	$ 9.0
Dividend yield	0.00%		0.00%
Performance based Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense related to PSOs	$ 2.5		$ 2.5
Weighted-average period related to unvested PSUs, RSAs, RSUs and PSOs			1 year 9 months 18 days
Weighted average grant date fair value, Granted	$ 2.61		$ 2.61
Recognized compensation expense related to PSOs	$ 0.4		$ 0.5
2019 Plan \| Class A Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance	7,326,728		7,326,728
2019 Amended Plan \| Class A Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance	13,826,728		13,826,728
2021 Employee Stock Purchase Plan \| Class A Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance					1,000,000

Intangible Assets - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) TradeName	Jun. 30, 2022 USD ($)	Dec. 31, 2022 TradeName
Schedule of Indefinite-Lived Intangible Assets [Table]
Number of trade names \| TradeName			1		2
Amortization of Intangible Assets \| $	$ 25.7	$ 28.6	$ 51.1	$ 56.7

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of the following:


($ in thousands)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (Years)
Client relationships	$	523,850	$	164,815	$	359,035		6.81
Channel relationships		16,240		3,965		12,275		7.56
Software costs		221,059		154,780		66,279		0.91
Non-compete agreements		4,580		4,248		332		0.36
Trade name		20,000		—		20,000		—
Balance as of June 30, 2023	$	785,729	$	327,808	$	457,921		5.08

Customer relationships	$	539,850	$	137,515	$	402,335		7.40
Channel relationships		16,240		3,168		13,072		8.06
Software costs		196,890		132,322		64,568		0.99
Non-compete agreements		4,580		4,030		550		0.54
Trade name		20,050		—		20,050		—
Balance as of December 31, 2022	$	777,610	$	277,035	$	500,575		5.71

Schedule of Estimated Amortization Expense

The estimated amortization expense for the next five years and thereafter in the aggregate is as follows:


($ in thousands)	Estimated Future
Year Ending December 31,	Amortization Expense
2023	$	48,951
2024		86,945
2025		69,767
2026		57,420
2027		55,941
Thereafter		118,897

Fair Value - Schedule of Carrying Value and Estimated Fair Value of Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Borrowings	$ 355,300	$ 344,280
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Borrowings	432,742	451,319
Carrying Value \| 2026 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Borrowings	432,742	433,142
Carrying Value \| Revolving Credit Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Borrowings		18,177
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Borrowings	355,300	344,280
Fair Value \| 2026 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Borrowings	$ 355,300	324,280
Fair Value \| Revolving Credit Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Borrowings		$ 20,000

Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

7. Intangible Assets

The Company holds definite and indefinite-lived intangible assets. As of June 30, 2023, the indefinite-lived intangible assets consist of one trade name, arising from the acquisitions of Hawk Parent. As of December 31, 2022, the indefinite-lived intangible assets consist of two trade names, arising from the acquisitions of Hawk Parent and MPI.

Intangible assets consisted of the following:


($ in thousands)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (Years)
Client relationships	$	523,850	$	164,815	$	359,035		6.81
Channel relationships		16,240		3,965		12,275		7.56
Software costs		221,059		154,780		66,279		0.91
Non-compete agreements		4,580		4,248		332		0.36
Trade name		20,000		—		20,000		—
Balance as of June 30, 2023	$	785,729	$	327,808	$	457,921		5.08

Customer relationships	$	539,850	$	137,515	$	402,335		7.40
Channel relationships		16,240		3,168		13,072		8.06
Software costs		196,890		132,322		64,568		0.99
Non-compete agreements		4,580		4,030		550		0.54
Trade name		20,050		—		20,050		—
Balance as of December 31, 2022	$	777,610	$	277,035	$	500,575		5.71

The Company’s amortization expense for intangible assets was $25.7 million and $51.1 million for the three and six months ended June 30, 2023, respectively. The Company’s amortization expense for intangible assets was $28.6 million and $56.7 million for the three and six months ended June 30, 2022, respectively.

The estimated amortization expense for the next five years and thereafter in the aggregate is as follows:


($ in thousands)	Estimated Future
Year Ending December 31,	Amortization Expense
2023	$	48,951
2024		86,945
2025		69,767
2026		57,420
2027		55,941
Thereafter		118,897

Fair Value - Schedule of Contingent Consideration Related to Previous Business Acquisitions (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Balance at beginning of period	$ 1,000	$ 17,047
Payments	(1,000)	(12,747)
Valuation adjustment		(3,950)
Balance at end of period		350
Tax Receivable Agreement
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Balance at beginning of period	179,127	245,828
Purchases	1,987	165
Accretion expense		2,657
Valuation adjustment	482	(46,727)
Balance at end of period	$ 181,596	$ 201,923

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)	Dec. 01, 2022 Segment
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments	2

Organizational Structure and Corporate Information

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Organizational Structure and Corporate Information

1. Organizational Structure and Corporate Information

Repay Holdings Corporation was incorporated as a Delaware corporation on July 11, 2019 in connection with the closing of a transaction (the “Business Combination”) pursuant to which Thunder Bridge Acquisition Ltd., a special purpose acquisition company organized under the laws of the Cayman Islands (“Thunder Bridge”), (a) domesticated into a Delaware corporation and changed its name to “Repay Holdings Corporation” and (b) consummated the merger of a wholly owned subsidiary of Thunder Bridge with and into Hawk Parent Holdings, LLC, a Delaware limited liability company (“Hawk Parent”).

Throughout this section, unless otherwise noted or unless the context otherwise requires, the terms “we”, “us”, “Repay” and the “Company” and similar references refer to Repay Holdings Corporation and its consolidated subsidiaries.

The Company is headquartered in Atlanta, Georgia.

On February 15, 2023, the Company sold Blue Cow Software, LLC and a related entity (“BCS”) for cash proceeds of $41.9 million. The Company recognized a loss of $10.0 million associated with the sale, comprised of the difference between the consideration received and the net carrying amount of the assets and liabilities of the business. See Note 5. Business Combinations and Dispositions for further discussion.

Taxation

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Taxation

13. Taxation

Repay Holdings Corporation is taxed as a corporation and is subject to paying corporate federal, state and local taxes on the income allocated to it from Hawk Parent, based upon Repay Holding Corporation’s economic interest held in Hawk Parent, as well as any stand-alone income or loss it generates. Hawk Parent is treated as a partnership for U.S. federal

and most applicable state and local income tax purposes. As a partnership, Hawk Parent is not subject to U.S. federal and certain state and local income taxes. Hawk Parent’s members, including Repay Holdings Corporation, are liable for federal, state and local income taxes based on their allocable share of Hawk Parent’s pass-through taxable income.

The Company’s effective tax rate was 19% and (11%) for the three and six months ended June 30, 2023, respectively. The Company recorded an income tax benefit of $1.1 million and an income tax expense of $3.3 million for the three and six months ended June 30, 2023, respectively. The effective tax rate for the three and six months ended June 30, 2023 includes a stock-based compensation adjustments net tax shortfall of $2.3 million related to restricted stock awards vesting, which is required to be recorded discretely in the interim period in which it occurs. In addition, the effective tax rate includes a net tax impact of $5.8 million related to the disposition of BCS, which is required to be recorded discretely in the interim period in which it occurs due to it being a significant, infrequently occurring item disclosed separately in the quarterly financial statements. The effective tax rate of the Company differs from the federal statutory rate of 21% primarily due to the tax structure of the Company, the relative weighting of the noncontrolling interest, and lower income from operations over the current relevant period, as well as the aforementioned items required to be reported discretely in the interim period. The Company’s effective tax rate was 181% and 37.4% for the three and six months ended June 30, 2022, respectively. The Company recorded an income tax expense of $3.0 million and $6.9 million for the three and six months ended June 30, 2022, respectively. The effective tax rate for the three and six months ended June 30, 2022 includes a stock-based compensation adjustments net tax shortfall related to restricted stock awards vesting, which is required to be recorded discretely in the interim period in which it occurs.

The Company recognized adjustments of $1.1 million and ($3.3) million for the three and six months ended June 30, 2023, respectively, of deferred tax assets related to the income tax benefit and expense, respectively, derived from the net operating income generated over the same period. The Company recognized $3.0 million and $6.9 million for the three and six months ended June 30, 2022, respectively, of deferred tax assets related to the income tax expense derived from the net operating income generated over the same period.

Deferred tax assets, net of $135.1 million as of June 30, 2023, relates primarily to the basis difference in the Company’s investment in Hawk Parent. The basis difference arose primarily as a result of the subsequent purchase of Post-Merger Repay Units by the Company pursuant to the Unit Purchase Agreements entered into in 2020 with CC Payment Holdings, LLC, an entity controlled by Corsair, and the subsequent exchanges of Post-Merger Repay Units for shares of the Company’s Class A common stock in accordance with the Exchange Agreement. In addition, as a result of the merger with BillingTree on June 15, 2021, an estimated opening deferred tax liability net of $36.1 million, as adjusted, was recorded. The merger was recognized as a Qualified Stock Purchase within the meaning of Internal Revenue Code (the “Code”) Section 338(d)(3). As such, no step up in the tax asset basis was permitted creating an estimated net deferred tax liability related to the tax asset basis difference in the investment in Hawk Parent on the opening balance sheet date.

The Company did not recognize any adjustment to the deferred tax asset (“DTA”) and offsetting deferred tax liability (“DTL”) recorded as a result of the ceiling rule limitation arising under Code Sec. 704(c) for the three and six months ended June 30, 2023, to account for the portion of the Company’s outside basis in the partnership interest that it will not recover through tax deductions. As the ceiling rule causes taxable income allocations to be in excess of 704(b) book allocations the DTL will unwind, leaving only the DTA, which may only be recovered through the sale of the partnership interest in Hawk Parent. The Company has concluded, based on the weight of all positive and negative evidence, that all of the DTA associated with the ceiling rule limitation is not likely to be realized. As such, a 100% valuation allowance was recognized.

No uncertain tax positions existed as of June 30, 2023.

Tax Receivable Agreement Liability

Pursuant to the Company’s election under Section 754 of the Code, the Company expects to obtain an increase in its share of the tax basis in the net assets of Hawk Parent when Post-Merger Repay Units are redeemed or exchanged for Class A common stock of Repay Holdings Corporation. The Company intends to treat any redemptions and exchanges of Post-Merger Repay Units as direct purchases for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that the Company would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.

On July 11, 2019, the Company entered into a TRA that provides for the payment by the Company of 100% of the amount of any tax benefits realized, or in some cases are deemed to realize, as a result of (i) increases in its share of the tax basis in the net assets of Hawk Parent resulting from any redemptions or exchanges of Post-Merger Repay Units and from its acquisition of the equity of the selling Hawk Parent members, (ii) tax basis increases attributable to payments made under the TRA, and (iii) deductions attributable to imputed interest pursuant to the TRA (the “TRA Payments”). The TRA Payments are not conditioned upon any continued ownership interest in Hawk Parent or the Company. The rights of each party under the TRA other than the Company are assignable. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the timing and amount of taxable income generated by the Company each year, as well as the tax rate then applicable, among other factors.

As of June 30, 2023, the Company had a liability of $181.6 million related to its projected obligations under the TRA, which is captioned as tax receivable agreement liability in the Company’s Unaudited Condensed Consolidated Balance Sheet. The increase of $2.5 million in the TRA liability for the six months ended June 30, 2023, was primarily a result of subsequent exchanges of Post-Merger Repay Units occurring during the three months ended June 30, 2023, as well as an offsetting decrease to the TRA liability as a result of a change in the Early Termination Rate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
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-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Organizational Structure and Corporate Information (Additional Information) (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Feb. 15, 2023	Jun. 30, 2023	Jun. 30, 2023
Summary Of Significant Accounting Policies [Line Items]
Cash proceeds from sale of business			$ 40,273
Loss on business disposition		$ (149)	$ (10,027)
Blue Cow Software
Summary Of Significant Accounting Policies [Line Items]
Cash proceeds from sale of business	$ 41,900
Loss on business disposition	$ (10,000)

Share Based Compensation - Schedule of Outstanding Restricted Stock Units Activity (Details) - Restricted Stock Units	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value, Beginning Balance \| $ / shares	$ 13.22
Weighted average grant date fair value, Granted \| $ / shares	7.41
Weighted average grant date fair value, Vested \| $ / shares	13.22
Weighted average grant date fair value, Ending Balance \| $ / shares	$ 7.41
Class A Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested, Beginning Balance \| shares	108,909
Granted \| shares	171,384
Vested \| shares	108,909
Unvested, Ending Balance \| shares	171,384

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Related Party Transactions

6 Months Ended

Jun. 30, 2023

Related Party Transactions

11. Related Party Transactions

Related party payables consisted of the following:


($ in thousands)	June 30, 2023		December 31, 2022
CPS accrued earnout liability	$	—	$	1,000
Other payables to related parties		—		—
	$	—	$	1,000

The Company held receivables from related parties of $0.3 million as of both June 30, 2023 and December 31, 2022. These amounts were due from employees, related to tax withholding on vesting of equity compensation. See Note 12. Share Based Compensation for more detail on these restricted share awards. Further, the Company owed employees $0.0 million for amounts paid on behalf of the Company as of both June 30, 2023 and December 31, 2022.

The Company owed $0 and $1.0 million to related parties, in the form of contingent consideration payable to the sellers of CPS, who were employees of Repay, as of June 30, 2023 and December 31, 2022, respectively. In March 2023, the Company paid the CPS earnout payment of $1.0 million.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Summary of Net Income (Loss) and Weighted Average Basic and Diluted Shares Outstanding

The following table summarizes net income (loss) attributable to the Company and the weighted average basic and diluted shares outstanding:


	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands, except per share data)	2023			2022			2023			2022
Income (loss) before income tax benefit (expense)	$	(6,381	)	$	1,692		$	(29,956	)	$	18,422
Less: Net loss attributable to non-controlling interests		(687	)		(1,362	)		(2,227	)		(2,129	)
Income tax benefit (expense)		1,051			(3,045	)		(3,306	)		(6,888	)
Net income (loss) attributable to the Company	$	(4,643	)	$	9		$	(31,035	)	$	13,663

Weighted average shares of Class A common stock outstanding - basic		89,170,814			88,903,674			88,894,820			88,756,482
Add weighted average effect of dilutive common stock equivalent shares:
Post-Merger Repay Units exchangeable for Class A common stock					7,883,048						7,883,048
Unvested share-based awards of Class A common stock					3,365,729						3,130,785
Outstanding ESPP purchase rights for Class A common stock					2,876						1,438
2026 Notes convertible into Class A common stock					13,095,238						13,095,238
Weighted average shares of Class A common stock outstanding - diluted		89,170,814			113,250,565			88,894,820			112,866,991

Income (loss) per share of Class A common stock outstanding - basic	$	(0.05	)	$	0.00		$	(0.35	)	$	0.15
Income (loss) per share of Class A common stock outstanding - diluted	$	(0.05	)	$	0.00		$	(0.35	)	$	0.12

Summary of Components of Common Stock Equivalent Shares Excluded from Computation of Diluted Loss per Share


	Three Months Ended June 30,		Six Months Ended June 30,
	2023		2023
Post-Merger Repay Units exchangeable for Class A common stock		6,459,153		6,459,153
Unvested share-based awards of Class A common stock		5,772,187		5,772,187
Outstanding stock options for Class A common stock		1,148,822		1,148,822
2026 Notes convertible into Class A common stock		13,095,238		13,095,238
Share equivalents excluded from earnings (loss) per share		26,475,400		26,475,400

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock Class A Common Stock	Common Stock Class V Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income	Non-controlling Interests
Balance at Dec. 31, 2021	$ 913,036	$ 9		$ 1,100,012		$ (226,016)	$ (2)	$ 39,033
Balance, shares at Dec. 31, 2021		88,502,621	100
Exchange of Post-Merger Repay Units				210				(210)
Exchange of Post-Merger Repay Units Shares		43,528
Release of share awards vested under Incentive Plan and ESPP , Shares		574,370
Shares Repurchased Under Incentive Plan and ESPP	(1,840)			(1,842)				2
Shares repurchased under incentive Plan and ESPP , Shares		(126,797)
Treasury shares repurchased	(1,146)				$ (1,152)			6
Treasury shares repurchased, shares		(100,803)
Stock-based compensation	9,017			9,052				(35)
Tax distribution from Hawk Parent	(386)							(386)
Net income (loss)	11,534					13,663		(2,129)
Balance at Jun. 30, 2022	930,215	$ 9		1,107,432	(1,152)	(212,353)	(2)	36,281
Balance, shares at Jun. 30, 2022		88,892,919	100
Balance at Mar. 31, 2022	927,319	$ 9		1,101,432		(212,362)	(2)	38,242
Balance, shares at Mar. 31, 2022		88,817,111	100
Exchange of Post-Merger Repay Units				210				(210)
Exchange of Post-Merger Repay Units Shares		43,528
Release of share awards vested under Incentive Plan and ESPP , Shares		146,615
Shares Repurchased Under Incentive Plan and ESPP	(141)			(139)				(2)
Shares repurchased under incentive Plan and ESPP , Shares		(13,532)
Treasury shares repurchased	(1,146)				(1,152)			6
Treasury shares repurchased, shares		(100,803)
Stock-based compensation	5,922			5,929				(7)
Tax distribution from Hawk Parent	(386)							(386)
Net income (loss)	(1,353)					9		(1,362)
Balance at Jun. 30, 2022	930,215	$ 9		1,107,432	(1,152)	(212,353)	(2)	36,281
Balance, shares at Jun. 30, 2022		88,892,919	100
Balance at Dec. 31, 2022	928,293	$ 9		1,117,736	(10,000)	(213,180)	(3)	33,731
Balance, shares at Dec. 31, 2022		88,276,613	100
Exchange of Post-Merger Repay Units				5,716				(5,716)
Exchange of Post-Merger Repay Units Shares		1,416,578
Release of share awards vested under Incentive Plan and ESPP				2				(2)
Release of share awards vested under Incentive Plan and ESPP , Shares		778,210
Shares Repurchased Under Incentive Plan and ESPP	(1,376)			(1,384)				8
Shares repurchased under incentive Plan and ESPP , Shares		(176,673)
Stock-based compensation	10,570			10,650				(80)
Tax distribution from Hawk Parent	(609)							(609)
Net income (loss)	(33,262)					(31,035)		(2,227)
Balance at Jun. 30, 2023	903,616	$ 9		1,132,720	(10,000)	(244,215)	(3)	25,105
Balance, shares at Jun. 30, 2023		90,294,728	100
Balance at Mar. 31, 2023	903,155	$ 9		1,120,721	(10,000)	(239,572)	(3)	32,000
Balance, shares at Mar. 31, 2023		88,672,189	100
Exchange of Post-Merger Repay Units				5,655				(5,655)
Exchange of Post-Merger Repay Units Shares		1,402,118
Release of share awards vested under Incentive Plan and ESPP				2				(2)
Release of share awards vested under Incentive Plan and ESPP , Shares		249,367
Shares Repurchased Under Incentive Plan and ESPP	(171)			(174)				3
Shares repurchased under incentive Plan and ESPP , Shares		(28,946)
Stock-based compensation	6,517			6,516				1
Tax distribution from Hawk Parent	(555)							(555)
Net income (loss)	(5,330)					(4,643)		(687)
Balance at Jun. 30, 2023	$ 903,616	$ 9		$ 1,132,720	$ (10,000)	$ (244,215)	$ (3)	$ 25,105
Balance, shares at Jun. 30, 2023		90,294,728	100

Taxation - Additional Information (Details) - USD ($)		3 Months Ended		6 Months Ended
Taxation - Additional Information (Details) - USD ($)	Jul. 11, 2019	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Jun. 15, 2021
Valuation Allowance [Line Items]
Effective tax rate		19.00%	181.00%	(11.00%)	37.40%
Income tax expense (benefit)		$ 1,051,000	$ (3,045,000)	$ (3,306,000)	$ (6,888,000)
Stock based compensation adjustments net tax shortfall		2,300,000		$ 2,300,000
Federal statutory rate				21.00%
Deferred tax liabilities, net							$ 36,100,000
Deferred tax assets, net		135,051,000		$ 135,051,000		$ 136,370,000
Valuation allowance recognized, percentage				100.00%
Uncertain tax positions		0		$ 0
Percentage of tax benefits payable under Tax Receivable Agreement	100.00%
Liability related to projected obligations under Tax Receivable Agreement		$ 181,600,000		181,600,000
Increase in TRA liability				2,500,000
Blue Cow Software
Valuation Allowance [Line Items]
Net tax impact				$ 5,800,000

Revenue (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

The following table presents the Company’s revenue disaggregated by segment and by the type of relationship for the periods indicated.


	Three Months Ended June 30, 2023
($ in thousands)	Consumer Payments		Business Payments		Elimination of intersegment revenues			Total
Revenue
Direct relationships	$	62,899	$	9,530	$	(3,970	)	$	68,459
Indirect relationships		3,025		299		—			3,324
Total Revenue	$	65,924	$	9,829	$	(3,970	)	$	71,783


	Three Months Ended June 30, 2022
($ in thousands)	Consumer Payments		Business Payments		Elimination of intersegment revenues			Total
Revenue
Direct relationships	$	56,504	$	9,674	$	(2,332	)	$	63,846
Indirect relationships		3,329		260		—			3,589
Total Revenue	$	59,833	$	9,934	$	(2,332	)	$	67,435


	Six Months Ended June 30, 2023
($ in thousands)	Consumer Payments		Business Payments		Elimination of intersegment revenues			Total
Revenue
Direct relationships	$	129,373	$	17,964	$	(8,048	)	$	139,288
Indirect relationships		6,492		539		—			7,032
Total Revenue	$	135,865	$	18,503	$	(8,048	)	$	146,320


	Six Months Ended June 30, 2022
($ in thousands)	Consumer Payments		Business Payments		Elimination of intersegment revenues			Total
Revenue
Direct relationships	$	113,940	$	18,284	$	(4,741	)	$	127,483
Indirect relationships		6,974		542		—			7,516
Total Revenue	$	120,914	$	18,826	$	(4,741	)	$	134,999

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Aug. 04, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Registrant Name	Repay Holdings Corporation
Entity Central Index Key	0001720592
Entity Tax Identification Number	98-1496050
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity File Number	001-38531
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Address, Address Line One	3 West Paces Ferry Road
Entity Address, Address Line Two	Suite 200
Entity Address, Postal Zip Code	30305
City Area Code	404
Local Phone Number	504-7472
Entity Incorporation, State or Country Code	DE
Trading Symbol	RPAY
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Address, State or Province	GA
Entity Address, City or Town	Atlanta
Class A Common Stock
Entity Common Stock, Shares Outstanding		94,700,866
Class V Common Stock
Entity Common Stock, Shares Outstanding		100

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Treasury stock, shares	1,078,141	1,078,141
Class A Common Stock
Common shares, par value	$ 0.0001	$ 0.0001
Common shares, shares authorized	2,000,000,000	2,000,000,000
Common shares, shares issued	91,372,869	89,354,754
Common shares, shares outstanding	90,294,728	88,276,613
Class V Common Stock
Common shares, par value	$ 0.0001	$ 0.0001
Common shares, shares authorized	1,000	1,000
Common shares, shares issued	100	100
Common shares, shares outstanding	100	100

Share Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share Based Compensation Expense and Related Income Tax Benefit


	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2023		2022		2023		2022
Share-based compensation expense	$	6.5	$	5.9	$	10.6	$	9.0
Income tax benefit		0.2		1.0		1.3		2.2

Schedule of Outstanding Performance Stock Units Activity, Restricted Stock Awards, Restricted Stock Units and Performance-based Stock Options

Activities for RSAs for the six months ended June 30, 2023 are as follows:


	Class A Common Stock		Weighted Average Grant Date Fair Value
Unvested at December 31, 2022		2,111,635	$	16.23
Granted		2,533,649		6.16
Forfeited (1)(2)		251,387		15.83
Vested		529,614		15.75
Unvested at June 30, 2023		3,864,283	$	9.72

Activities for RSUs for the six months ended June 30, 2023 are as follows:


	Class A Common Stock		Weighted Average Grant Date Fair Value
Unvested at December 31, 2022		108,909	$	13.22
Granted		171,384		7.41
Forfeited		—
Vested		108,909		13.22
Unvested at June 30, 2023		171,384	$	7.41

Activities for PSUs for the six months ended June 30, 2023 are as follows:


	Class A Common Stock (3)		Weighted Average Grant Date Fair Value
Unvested at December 31, 2022		634,023	$	19.19
Granted		1,102,497		8.87
Forfeited		—		—
Vested		—		—
Unvested at June 30, 2023		1,736,520	$	12.64

(1)

(2)

(3)

Represent shares to be paid out at target level.

Activities for PSOs for the six months ended June 30, 2023 are as follows:


	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2022		—	$	—		—	$	—
Granted		1,148,822		6.13
Forfeited		—		—
Exercised		—		—
Outstanding at June 30, 2023		1,148,822	$	6.13		7.0	$	1,952,997

Options vested and exercisable at June 30, 2023		—	$	—		—	$	—

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

Fair value was estimated on the date of grant using Monte Carlo simulation with the following weighted average assumptions:


	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Risk-free interest rate		3.42	%		3.42	%
Expected volatility		52.82	%		52.82	%
Dividend yield		0	%		0	%
Expected term (in years)		4.5			4.5

Goodwill - Schedule of Changes to Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Line Items]
Beginning balance	$ 827,813
Dispositions	(35,270)
Ending balance	792,543
Business Payments
Goodwill [Line Items]
Beginning balance	218,674
Dispositions	0
Ending balance	218,674
Consumer Payments
Goodwill [Line Items]
Beginning balance	609,139
Dispositions	(35,270)
Ending balance	$ 573,869

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Borrowings - Summary of Principal Maturities of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
2026	$ 440,000
Total borrowings	$ 440,000	$ 460,000

Borrowings

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Borrowings

9. Borrowings

Amended Credit Agreement

On February 3, 2021, the Company announced the closing of a new undrawn $125.0 million senior secured revolving credit facility through Truist Bank (the “Amended Credit Agreement”). The Amended Credit Agreement replaced the Company’s prior senior secured credit facility, which included an undrawn $30.0 million revolving credit facility.

On December 29, 2021, the Company increased its existing senior secured credit facility by $60.0 million to provide for a $185.0 million revolving credit facility in favor of Hawk Parent pursuant to an amendment to the Amended Credit Agreement. The revolving credit facility is guaranteed by Repay Holdings Corporation and certain of its subsidiaries.

On February 9, 2023, the Company further amended the Amended Credit Agreement to replace London Inter-bank Offer Rate (“LIBOR”) with term Secured Overnight Financing Rate (“SOFR”) as the interest rate benchmark.

On February 28, 2023, the Company repaid in full the entire amount of $20.0 million of the outstanding revolving credit facility. The undrawn capacity of the existing revolving credit facility under the Amended Credit Agreement became $185.0 million after the repayment.

As of June 30, 2023, the Company had $0 drawn against the revolving credit facility. The Company’s interest expense on the revolving credit facility, including unused commitment fees and amortization of deferred issuance costs, totaled $0.9 million and $2.0 million for the three and six months ended June 30, 2023, respectively. Interest expense was $1.0 million and $2.0 million for the three and six months ended June 30, 2022, respectively.

Convertible Senior Debt

On January 19, 2021, the Company issued $440.0 million in aggregate principal amount of 0.00% Convertible Senior Notes due 2026 in a private placement. The conversion rate of any 2026 Notes was 29.7619 shares of Class A common stock per $1,000 principal amount of 2026 Notes (equivalent to an initial conversion price of approximately $33.60 per share of Class A common stock). Upon conversion of the 2026 Notes, the Company may choose to pay or deliver cash, shares of the Company’s Class A common stock, or a combination of cash and shares of the Company’s Class A common stock. The 2026 Notes will mature on February 1, 2026, unless earlier converted, repurchased or redeemed. Subject to Nasdaq requirements, the Company controls the conversion rights prior to November 3, 2025, unless a fundamental change or an event of default occurs.

During the six months ended June 30, 2023, the conversion contingencies of the 2026 Notes were not met, and the conversion terms of the 2026 Notes were not significantly changed.

The following table summarizes the total borrowings under the Amended Credit Agreement and 2026 Notes:


($ in thousands)	June 30, 2023		December 31, 2022
Non-current indebtedness:
Revolving Credit Facility (1)	$	—	$	20,000
Convertible Senior Debt		440,000		440,000
Total borrowings		440,000		460,000
Less: Long-term loan debt issuance cost (2)		7,258		8,681
Total non-current borrowings	$	432,742	$	451,319

(1)

The revolving credit facility bears interest at a variable rate, which was 6.63% as of December 31, 2022.

(2)

The following is a summary of principal maturities of long‑term debt for each of the next five years ending December 31 and in the aggregate:


($ in thousands)
2023	$	—
2024		—
2025		—
2026		440,000
2027		—
	$	440,000