Tear Sheet: RealPage Inc.'s Improving Credit Profile Is Offset By Ongoing Litigation

This report does not constitute a rating action. RealPage operates in a competitive market and its revenue growth has recently slowed relative to its historical norms. The pressure on the company's top-line revenue largely stems from its weaker-than-expected subscription revenue due to litigation challenges, which are negatively affecting its revenue management product (about 8% of revenue). We anticipate that RealPage will increase its revenue by the 2%-4% range over the next two years, which compares with our previous forecast for a high-single-digit percent expansion. Despite the company's slower top-line growth, we believe it will expand its S&P Global Ratings-adjusted EBITDA margins by approximately 300 basis points in 2025 on a rise in its average revenue per unit (ARPU), supported by

...September 17, 2025 This report does not constitute a rating action. We forecast healthy free operating cash flow (FOCF) and declining S&P Global Ratings- adjusted leverage despite the company's slowing top-line expansion. RealPage operates in a competitive market and its revenue growth has recently slowed relative to its historical norms. The pressure on the company's top-line revenue largely stems from its weaker-than-expected subscription revenue due to litigation challenges, which are negatively affecting its revenue management product (about 8% of revenue). We anticipate that RealPage will increase its revenue by the 2%-4% range over the next two years, which compares with our previous forecast for a high-single-digit percent expansion. Despite the company's slower top-line growth, we believe it will expand its S&P Global Ratings- adjusted EBITDA margins by approximately 300 basis points in 2025 on a rise in its average revenue per unit (ARPU), supported by its product enhancements...

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