Investing.com -- Shares of Repay Holdings (NASDAQ: RPAY ) Corporation (NASDAQ: RPAY) climbed 3% following the company’s announcement of a comprehensive strategic review process that may include a range of potential strategic alternatives aimed at enhancing shareholder value. The review, as detailed by the Atlanta-based vertically-integrated payment solutions provider, could encompass M&A, a sale, or a private take-over of the company, among other options.

Repay Holdings reported its fourth quarter and full-year financials for the period ending December 31, 2024, with the fourth quarter showing a revenue increase of 3% year-over-year (YoY) to $78.3 million. Gross profit for the quarter also rose by 2% YoY to $59.7 million. For the full year, the company’s revenue grew by 6% compared to the previous year, alongside a gross profit increase of 6% YoY.

Adjusted EBITDA for Q4 2024 improved by 9% YoY, reaching $36.5 million, while free cash flow for the quarter was up by 8% YoY. The company’s free cash flow conversion also accelerated, increasing from 42% in 2023 to 75% in 2024. Despite these positive metrics, the company’s net loss for Q4 2024 was reported at $4 million, impacted by a $75.7 million goodwill impairment loss recorded in the fourth quarter of 2023.

John Morris, CEO of REPAY, expressed confidence in the company’s profitable growth trajectory and the resilience of its business model. In his statement, Morris highlighted the company’s dedication to delivering superior payment experiences for clients and leveraging the shift towards digital payment flows.

The strategic review process launched by REPAY does not have a set deadline, and the company has stated that it will not provide further updates until the review is completed, unless deemed necessary or legally required. This announcement comes amidst a period of significant growth within the Business Payments segment, which saw gross profit soar by approximately 60% YoY, driven by strong contributions from the political media vertical.

The Consumer Payments segment, however, experienced a decline in gross profit of approximately 5% YoY, partly due to clients rolling off in the fourth quarter. Despite this, REPAY’s overall financial health appears robust, with the company’s achievements reinforcing management’s belief in sustained growth across its diversified business model.

Investors will be watching closely as REPAY explores strategic alternatives that could potentially unlock further value for shareholders.

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