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Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segments

13. Segments

The Company organizes its business structure around two operating segments based on review of discrete financial results for each of the operating segments by the Company’s chief operating decision maker (“CODM”), for performance assessment and resource allocation purposes. Each of the Company’s operating segments represents a reportable segment based on ASC 280, Segment Reporting. The Company’s two reportable segments are as follows: (1) Consumer Payments and (2) Business Payments. The Company’s CODM is the Chief Executive Officer. For both segments, the CODM uses the segment gross profit to allocate resources (including employees, property, and financial or capital resources) and assess performance of each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for the gross profit measure when making decisions about allocating capital and personnel to the segments.

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”) offering. RCS is the Company’s proprietary clearing and settlement platform through which the Company markets customizable payment processing programs to other Independent Sales Organizations (“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 88% of the Company’s total revenue after any intersegment eliminations for the three months ended March 31, 2025 and 2024, 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 12% of the Company’s total revenue after any intersegment eliminations for the three months ended March 31, 2025 and 2024, respectively.

The following table presents revenue, cost of services and gross profit for each reportable segment.

 

 

 

Three Months Ended March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Revenue

 

 

 

 

 

 

Consumer Payments

 

$

71,942

 

 

$

76,136

 

Business Payments

 

 

10,988

 

 

 

9,677

 

Elimination of intersegment revenues (1)

 

 

(5,605

)

 

 

(5,093

)

Total revenue

 

$

77,325

 

 

$

80,720

 

Cost of services (exclusive of depreciation and amortization)

 

 

 

 

 

 

Consumer Payments

 

$

15,233

 

 

$

16,545

 

Business Payments

 

 

3,431

 

 

 

2,630

 

Total cost of services (exclusive of depreciation and amortization)

 

$

18,664

 

 

$

19,175

 

Gross profit (2)

 

 

 

 

 

 

Consumer Payments

 

$

56,709

 

 

$

59,591

 

Business Payments

 

 

7,557

 

 

 

7,047

 

Elimination of intersegment revenues

 

 

(5,605

)

 

 

(5,093

)

Total gross profit

 

$

58,661

 

 

$

61,545

 

 

 

 

 

 

 

 

Total other operating expenses (3)

 

$

62,281

 

 

$

64,049

 

Total other income (expense)

 

 

(5,000

)

 

 

(2,559

)

Loss before income tax (expense) benefit

 

 

(8,620

)

 

 

(5,063

)

Income tax benefit (expense)

 

 

452

 

 

 

(302

)

Net loss

 

$

(8,168

)

 

$

(5,365

)
(1)
Represents revenue eliminations between business units within the Consumer Payments segment and eliminations of intersegment revenues for consolidation purpose.
(2)
Represents revenue less costs of services (exclusive of depreciation and amortization).
(3)
Represents total operating expenses less costs of services (exclusive of depreciation and amortization).

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 March 31, 2025. The CODM reporting package does not include interest income (expense), net, depreciation and amortization, income tax benefit (expense) and discrete asset details of the operating segments as this information is not considered by the CODM for resource allocation or other segment analysis purposes.