Priority Technology (NASDAQ: PRTH) posts 2025 profit surge and guides 2026 growth
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Priority Technology Holdings reported solid growth for 2025, with revenue rising to
Net income attributable to common shareholders improved to
Positive
- Strong earnings turnaround and EPS growth: Net income attributable to common shareholders improved from a
$23.96 million loss in 2024 to$55.68 million profit in 2025, while diluted adjusted EPS rose 102% from$0.51 to$1.03 . - Margin expansion and higher profitability: Adjusted gross profit grew 14.2% to
$374.7 million with adjusted gross margin up 200 basis points to39.3% , and adjusted EBITDA increased 10.2% to$225.2 million . - Constructive 2026 guidance: Management projects 2026 revenue of
$1.01–$1.04 billion (6–9% growth), adjusted gross profit of$405–$425 million , and adjusted EBITDA of$230–$245 million , indicating expectations for continued growth. - Improving leverage profile: The company reports a net leverage ratio of 4.19x LTM adjusted EBITDA at Q4 2025 and cites a pro forma ratio of about 3.9x, with an explicit plan to prioritize debt repayment and de‑leveraging in 2026.
Negative
- High leverage and stockholders’ deficit: Total liabilities of
$2.49 billion exceed total assets of$2.40 billion , leaving a stockholders’ deficit of$92.4 million , while net leverage remains elevated at 4.19x LTM adjusted EBITDA. - Rising operating expenses: For 2025, salary and employee benefits increased to
$107.8 million from$89.2 million , and selling, general and administrative expenses rose to$62.5 million from$47.4 million , partly reflecting higher stock‑based compensation and investment in cloud and compliance. - Significant interest burden: Interest expense was
$90.65 million in 2025, slightly above$88.95 million in 2024, consuming a substantial portion of operating income of$141.25 million .
Insights
Priority delivered profitable growth in 2025 and issued constructive 2026 guidance.
Priority Technology Holdings showed balanced topline and margin expansion. 2025 revenue rose to
Profitability strengthened as adjusted EBITDA increased 10.2% to
Management’s 2026 outlook targets revenue of
Leverage remains elevated but is trending down with clear de‑leveraging plans.
The company ended
Using LTM adjusted EBITDA of
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact Name of Registrant as Specified in its Charter)
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Registrant's telephone number, including area code: (800 ) 935-5961
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of (1933 §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
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Item 2.02. Results of Operations and Financial Condition.
On March 10, 2026 , Priority Technology Holdings, Inc. ("Priority") issued a press release announcing its financial results for the quarter ended December 31, 2025. A copy of that press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7.01. Regulation FD Disclosure.
On March 10, 2026 , Priority will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss the financial results for the quarter ended December 31, 2025. The press release referenced in Item 2.02 contains information about how to access the conference call and webcast. A copy of the slide presentation to be used during the earnings call and webcast is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slide presentation also will be available on our website, www.prioritycommerce.com under the "Investor Relations" section.
The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits – The following exhibit is furnished as part of this Current Report on Form 8-K.
| Exhibit Number | Description | ||||
99.1 | Press Release of Priority Technology Holdings, Inc. dated March 10, 2026 | ||||
99.2 | Supplemental Slide Presentation | ||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: | ||||||||
| PRIORITY TECHNOLOGY HOLDINGS, INC. | ||||||||
| By: /s/ Timothy O'Leary | ||||||||
| Name: Timothy O'Leary | ||||||||
| Title: Chief Financial Officer | ||||||||
EXHIBIT 99.1
Priority Technology Holdings, Inc. Announces Fourth Quarter and Full Year 2025 Financial Results
Strong Fourth Quarter Growth Driven by Performance Across Diverse Business Segments
ALPHARETTA, GA - March 10, 2026 -- Priority Technology Holdings, Inc. (NASDAQ: PRTH) ("Priority" or the "Company"), is a payments and banking fintech purpose-built to collect, store, lend and send money with a connected commerce engine that combines full-service merchant acquiring for accounts receivable, complete automated payables tools for bill payment, and sophisticated treasury management solutions to accelerate cash flow and optimize working capital for its customers, announced its fourth quarter and full year 2025 financial results including strong year-over-year diversified revenue growth.
Highlights of Consolidated Results
Fourth Quarter 2025 Compared with Fourth Quarter 2024
Financial highlights of the fourth quarter of 2025 compared with the fourth quarter of 2024, are as follows2:
•Revenue of $247.1 million increased 8.8% from $227.1 million, including 6.8% of organic growth
•Adjusted gross profit (a non-GAAP measure1) of $100.2 million increased 19.4% from $83.9 million
•Adjusted gross profit margin (a non-GAAP measure1) of 40.6% increased 360 basis points from 37.0%
•Operating income of $33.5 million decreased 1.9% from $34.1 million
•Adjusted EBITDA (a non-GAAP measure1) of $60.1 million increased 16.2% from $51.7 million
•Adjusted EPS - diluted (a non-GAAP measure1) of $0.27 increased 50.0% from $0.18
•In October 2025, the Company acquired the assets of Dealer Merchant Services, a leading provider of vertically focused software and payments in the automotive dealership arena
Full Year 2025 Compared with Full Year 2024
Financial highlights of the Full Year of 2025 compared with the Full Year of 2024, are as follows(2):
•Revenue of $953.0 million increased 8.3% from $879.7 million, including 7.7% in organic growth
•Adjusted gross profit (a non-GAAP measure1) of $374.7 million increased 14.2% from $328.1 million
•Adjusted gross profit margin (a non-GAAP measure1) of 39.3% increased 200 basis points from 37.3%
•Operating income of $141.2 million increased 5.9% from $133.4 million
•Adjusted EBITDA (a non-GAAP measure(1)) of $225.2 million increased 10.2% from $204.3 million
•Adjusted EPS - diluted (a non-GAAP measure(1)) of $1.03 increased 102.0% from $0.51
(1)See "Non-GAAP Financial Measures" and the reconciliations of Adjusted Gross Profit (non-GAAP), Adjusted Gross Profit Margin (non-GAAP), Adjusted EBITDA (non-GAAP), and Adjusted EPS (non-GAAP), to their most comparable GAAP measures provided below for additional information.
1
(2)Certain amounts/percentages may not add mathematically due to rounding
“Our results reflect the strength and diversification of Priority’s Connected Commerce platform, with almost 9% revenue growth and over 19% adjusted gross profit growth in the fourth quarter,” said Tom Priore, Chairman and CEO of Priority. “The ability to deliver payments and treasury solutions across our business segments generated over 18% revenue growth for Treasury Solutions and 13% growth for Payables, while adjusted gross profit margins expanded by nearly 360 basis points.”
Full Year 2026 Financial Guidance
Priority's outlook remains strong, which is reflected in our full year 2026 guidance:
•Revenue forecast to achieve a growth rate of 6% to 9% compared to fiscal 2025 results, resulting in a revenue range between $1.01 billion to $1.04 billion
•Adjusted gross profit (a non-GAAP measure) forecast to range between $405 million and $425 million
•Adjusted EBITDA (a non-GAAP measure) forecast to range between $230 million to $245 million
Conference Call
Priority's leadership will host a conference call on Tuesday, March 10, 2026 at 10:00 a.m. EST to discuss its fourth quarter and full-year 2025 financial results. Participants can access the call by phone in the U.S. or Canada at (833) 636-1319 or internationally at (412) 902-4286.
The Internet webcast link and accompanying slide presentation can be accessed at https://viavid.webcasts.com/starthere.jsp?ei=1751303&tp_key=851a6179f9 and will also be posted in the "Investor Relations" section of the Company's website at www.prioritycommerce.com.
An audio replay of the call will be available shortly after the conference call until March 24, 2026 at 11:59 p.m. EST. To listen to the audio replay, dial (844) 512-2921 or (412) 317-6671 and enter conference ID number 10206470. Alternatively, you may access the webcast replay in the "Investor Relations" section of the Company's website at https://ir.prioritycommerce.com/.
2
Non-GAAP Financial Measures
This communication includes certain non-GAAP financial measures that we regularly review to evaluate our business and trends, measure our performance, prepare financial projections, allocate resources, and make strategic decisions. We believe these non-GAAP measures help to illustrate the underlying financial and business trends relating to our results of operations and comparability between current and prior periods. We also use these non-GAAP measures to establish and monitor operational goals. However, these non-GAAP measures are not superior to or a substitute for prominent measurements calculated in accordance with GAAP. Rather, the non-GAAP measures are meant to be a complement to understanding measures prepared in accordance with GAAP.
Gross Profit and Adjusted Gross Profit Margin
The Company's adjusted gross profit metric represents revenues less cost of services (excludes depreciation and amortization). Adjusted gross profit margin is adjusted gross profit divided by revenues. We review these non-GAAP measures to evaluate our underlying profit trends. The reconciliation of adjusted gross profit to its most comparable GAAP measure is provided below:
| (in thousands) | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | $ | 247,128 | $ | 227,067 | $ | 953,009 | $ | 879,702 | |||||||||||||||
| Cost of services (excludes depreciation and amortization) | (146,882) | (143,134) | (578,315) | (551,621) | |||||||||||||||||||
| Adjusted gross profit | $ | 100,246 | $ | 83,933 | $ | 374,694 | $ | 328,081 | |||||||||||||||
| Adjusted gross profit margin | 40.6 | % | 37.0 | % | 39.3 | % | 37.3 | % | |||||||||||||||
| Depreciation and amortization of revenue generating assets | (7,166) | (4,467) | (21,747) | (16,516) | |||||||||||||||||||
| Gross profit | $ | 93,080 | $ | 79,466 | $ | 352,947 | $ | 311,565 | |||||||||||||||
| Gross profit margin | 37.7 | % | 35.0 | % | 37.0 | % | 35.4 | % | |||||||||||||||
3
EBITDA and Adjusted EBITDA
EBITDA and adjusted EBITDA are performance measures. EBITDA is earnings before interest expense, income tax, and depreciation and amortization expenses ("EBITDA"). Adjusted EBITDA begins with EBITDA but further excludes certain non-cash costs, such as stock-based compensation and the write-off of the carrying value of investments or other assets, as well as debt extinguishment and modification expenses and other expenses and income items considered non-recurring, such as acquisition integration expenses, certain professional fees, and litigation settlements. We review the non-GAAP adjusted EBITDA measure to evaluate our business and trends, measure our performance, prepare financial projections, allocate resources, and make strategic decisions.
The reconciliation of adjusted EBITDA to its most comparable GAAP measure is provided below:
| (in thousands) | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | 8,946 | $ | 7,220 | $ | 55,681 | $ | 24,015 | |||||||||||||||
| Interest expense | 21,961 | 23,111 | 90,654 | 88,948 | |||||||||||||||||||
| Income tax expense (benefit) | 4,126 | 3,270 | (9,402) | 13,266 | |||||||||||||||||||
| Depreciation and amortization | 20,191 | 13,811 | 63,183 | 58,041 | |||||||||||||||||||
| EBITDA | 55,224 | 47,412 | 200,116 | 184,270 | |||||||||||||||||||
| Debt modification and extinguishment expenses | — | 1,703 | 12,514 | 10,369 | |||||||||||||||||||
| Selling, general and administrative (non-recurring) | 1,633 | 1,379 | 5,718 | 3,510 | |||||||||||||||||||
Non-cash stock-based compensation(1) | 1,187 | 1,241 | 8,306 | 6,118 | |||||||||||||||||||
Non-cash bargain purchase gain(2) (non-recurring) | (482) | — | (3,989) | — | |||||||||||||||||||
Salary and employee benefits(3) (non-recurring) | 2,501 | — | 2,501 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 60,063 | $ | 51,735 | $ | 225,166 | $ | 204,267 | |||||||||||||||
(1) Excludes stock-based compensation settled in cash subsequent to December 31, 2025.
(2) Bargain purchase gain recognized from acquiring Sila, Inc.
(2) Bargain purchase gain recognized from acquiring Sila, Inc.
(3) Represents stock-based compensation that was settled in cash (non-recurring).
Further detail of certain of these adjustments, and where these items are recorded in our consolidated statements of operations, is provided below:
| (in thousands) | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Selling, general and administrative expenses (non-recurring): | |||||||||||||||||||||||
| Certain legal fees | $ | 760 | 1,347 | $ | 3,203 | 2,769 | |||||||||||||||||
| Professional, accounting and consulting fees | 869 | 20 | 2,092 | 544 | |||||||||||||||||||
| Other expenses, net | 4 | 12 | 293 | 197 | |||||||||||||||||||
| Litigation settlement | — | — | 130 | — | |||||||||||||||||||
| $ | 1,633 | $ | 1,379 | $ | 5,718 | $ | 3,510 | ||||||||||||||||
4
Adjusted Earnings (Loss) Per Share (Adjusted EPS)
Adjusted EPS is a performance measure. Adjusted EPS is calculated by dividing adjusted net income attributable to common shareholders by weighted average number shares outstanding for the respective periods.
Adjusted net income attributable to common shareholders begins with net income attributable to common shareholders adjusted to exclude various items listed below. We believe that Adjusted EPS is a measure that is useful to investors and management in understanding our ongoing profitability and in analysis of ongoing profitability trends.
| (in thousands) | Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Reconciliation of Adjusted EPS | ||||||||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 8,946 | $ | (3,769) | $ | 55,681 | $ | (23,960) | ||||||||||||||||||
| Non-recurring release of valuation allowance on deferred tax assets | 284 | — | (20,386) | — | ||||||||||||||||||||||
| Accelerated accretion expense and excise tax attributable to redeemable senior preferred stockholders | — | 8,154 | — | 17,703 | ||||||||||||||||||||||
| Debt modification and extinguishment expenses | — | 1,703 | 12,514 | 10,369 | ||||||||||||||||||||||
| Non-cash stock-based compensation | 1,187 | 1,241 | 8,306 | 6,118 | ||||||||||||||||||||||
| Selling, general and administrative (non recurring) | 1,633 | 1,379 | 5,718 | 3,510 | ||||||||||||||||||||||
| Amortization of acquisition related intangible assets | 12,931 | 9,243 | 41,996 | 42,173 | ||||||||||||||||||||||
| Salary and employee benefits (non recurring) | 2,501 | — | 2,501 | — | ||||||||||||||||||||||
Tax impact of adjustments(1) | (4,745) | (3,526) | (18,469) | (16,158) | ||||||||||||||||||||||
| Non-cash bargain purchase gain (non-recurring) | (482) | — | (3,989) | — | ||||||||||||||||||||||
| Adjusted net income attributable to common share holders | $ | 22,255 | $ | 14,425 | $ | 83,872 | $ | 39,755 | ||||||||||||||||||
| Weighted average common shares outstanding (basic) | 81,081 | 78,241 | 79,798 | 77,993 | ||||||||||||||||||||||
| Effect of dilutive potential common shares | 2,541 | 1,145 | 1,670 | 647 | ||||||||||||||||||||||
| Adjusted Weighted average shares outstanding (diluted) | 83,622 | 79,386 | 81,468 | 78,640 | ||||||||||||||||||||||
| Earnings (loss) per common share | ||||||||||||||||||||||||||
| Basic | $ | 0.11 | $ | (0.05) | $ | 0.70 | $ | (0.31) | ||||||||||||||||||
| Diluted | $ | 0.11 | $ | (0.05) | $ | 0.68 | $ | (0.31) | ||||||||||||||||||
| Adjusted earnings per common share | ||||||||||||||||||||||||||
| Basic | $ | 0.27 | $ | 0.18 | $ | 1.05 | $ | 0.51 | ||||||||||||||||||
| Diluted | $ | 0.27 | $ | 0.18 | $ | 1.03 | $ | 0.51 | ||||||||||||||||||
(1) The tax impact calculated using the blended statutory income tax rate (i.e. 26.0% for 2025 and 26.0% for 2024)
5
Priority does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for various cash and non-cash reconciling items that would be difficult to predict with reasonable accuracy. For example, stock-based compensation expense would be difficult to estimate because it depends on the Company's future hiring and retention needs, as well as the future fair market value of the Company's common stock, all of which are difficult to predict and subject to constant change. As a result, the Company does not believe that a GAAP reconciliation would provide meaningful supplemental information about the Company's outlook.
6
About Priority Technology Holdings, Inc.
Priority is the payments and banking solution that enables businesses to collect, store, lend and send funds through a unified commerce engine. Our platform combines payables, merchant solutions, and treasury solutions so leaders can streamline financial operations efficiently — and our innovative industry experts help businesses navigate and build momentum on the path to growth. With the Priority Commerce Engine, leaders can accelerate cash flow, optimize working capital, reduce unnecessary costs, and unlock new revenue opportunities. To learn more about Priority (NASDAQ: PRTH), visit prioritycommerce.com
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services, and other statements identified by words such as "may," "will," "should," "anticipates," "believes," "expects," "plans," "future," "intends," "could," "estimate," "predict," "projects," "targeting," "potential" or "contingent," "guidance," "outlook" or words of similar meaning. These forward-looking statements include, but are not limited to, our 2026 outlook and statements regarding our market and growth opportunities. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. Our actual results could differ materially, and potentially adversely, from those discussed or implied herein.
We caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in our SEC filings, including our most recent Annual Report on Form 10-K filed with the SEC on March 10, 2026. These filings are available online at www.sec.gov or www.prioritycommerce.com.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the way we expect. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.
7
Priority Technology Holdings, Inc.
Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except per share amounts)
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | $ | 247,128 | $ | 227,067 | $ | 953,009 | $ | 879,702 | |||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Cost of services (excludes depreciation and amortization) | 146,882 | 143,134 | 578,315 | 551,621 | |||||||||||||||||||
| Salary and employee benefits | 28,812 | 23,199 | 107,787 | 89,216 | |||||||||||||||||||
| Depreciation and amortization | 20,191 | 13,811 | 63,183 | 58,041 | |||||||||||||||||||
| Selling, general and administrative | 17,745 | 12,784 | 62,479 | 47,403 | |||||||||||||||||||
| Total operating expenses | 213,630 | 192,928 | 811,764 | 746,281 | |||||||||||||||||||
| Operating income | 33,498 | 34,139 | 141,245 | 133,421 | |||||||||||||||||||
| Other expense | |||||||||||||||||||||||
| Interest expense | (21,961) | (23,111) | (90,654) | (88,948) | |||||||||||||||||||
| Debt extinguishment and modification costs | — | (1,703) | (12,514) | (10,369) | |||||||||||||||||||
| Other income, net | 1,535 | 1,165 | 8,202 | 3,177 | |||||||||||||||||||
| Total other expense, net | (20,426) | (23,649) | (94,966) | (96,140) | |||||||||||||||||||
| Income before income taxes | 13,072 | 10,490 | 46,279 | 37,281 | |||||||||||||||||||
| Income tax expense (benefit) | 4,126 | 3,270 | (9,402) | 13,266 | |||||||||||||||||||
| Net income | 8,946 | 7,220 | 55,681 | 24,015 | |||||||||||||||||||
| Less: Dividends, accretion, and related excise tax attributable to redeemable senior preferred stockholders | — | (10,989) | — | (47,336) | |||||||||||||||||||
| Less: Return on redeemable non-controlling interests in consolidated subsidiary, net of deferred tax benefit | — | — | — | (639) | |||||||||||||||||||
| Net income (loss) attributable to common shareholders | 8,946 | (3,769) | $ | 55,681 | $ | (23,960) | |||||||||||||||||
| Other comprehensive loss | |||||||||||||||||||||||
| Foreign currency translation adjustments | (15) | (109) | (34) | (147) | |||||||||||||||||||
| Comprehensive income (loss) | $ | 8,931 | $ | (3,878) | $ | 55,647 | $ | (24,107) | |||||||||||||||
| Earnings (loss) per common share: | |||||||||||||||||||||||
| Basic | $ | 0.11 | $ | (0.05) | $ | 0.70 | $ | (0.31) | |||||||||||||||
| Diluted | $ | 0.11 | $ | (0.05) | $ | 0.68 | $ | (0.31) | |||||||||||||||
Adjusted earnings per common share(1): | |||||||||||||||||||||||
| Basic | $ | 0.27 | $ | 0.18 | $ | 1.05 | $ | 0.51 | |||||||||||||||
| Diluted | $ | 0.27 | $ | 0.18 | $ | 1.03 | $ | 0.51 | |||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||||
| Basic | 81,081 | 78,241 | 79,798 | 77,993 | |||||||||||||||||||
| Diluted | 83,622 | 78,241 | 81,468 | 77,993 | |||||||||||||||||||
8
Priority Technology Holdings, Inc.
Unaudited Consolidated Balance Sheets
(in thousands)
| December 31, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 77,192 | $ | 58,600 | |||||||
| Restricted cash | 16,457 | 11,090 | |||||||||
| Accounts receivable, net of allowances | 91,300 | 67,969 | |||||||||
| Prepaid expenses and other current assets | 32,145 | 22,990 | |||||||||
| Current portion of notes receivable, net of allowance | 2,062 | 3,638 | |||||||||
| Settlement assets | 1,295,896 | 940,798 | |||||||||
| Total current assets | 1,515,052 | 1,105,085 | |||||||||
| Notes receivable, less current portion | 17,629 | 4,919 | |||||||||
| Property, equipment and software, net | 58,636 | 52,477 | |||||||||
| Goodwill | 416,641 | 376,091 | |||||||||
| Intangible assets, net | 315,190 | 240,874 | |||||||||
| Deferred income taxes, net | 46,350 | 24,697 | |||||||||
| Other noncurrent assets | 29,306 | 22,717 | |||||||||
| Total assets | $ | 2,398,804 | $ | 1,826,860 | |||||||
| Liabilities, Stockholders' Deficit and Non-controlling interests | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 70,636 | $ | 62,149 | |||||||
| Accrued residual commissions | 40,463 | 37,560 | |||||||||
| Customer deposits and advance payments | 1,972 | 2,246 | |||||||||
| Current portion of long-term debt | — | 9,503 | |||||||||
| Settlement obligations | 1,297,263 | 940,213 | |||||||||
| Total current liabilities | 1,410,334 | 1,051,671 | |||||||||
| Long-term debt, net of current portion, discounts and debt issuance costs | 1,039,358 | 920,888 | |||||||||
| Other noncurrent liabilities | 41,484 | 19,326 | |||||||||
| Total liabilities | 2,491,176 | 1,991,885 | |||||||||
| Stockholders' deficit: | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 82 | 77 | |||||||||
| Treasury stock, at cost | (22,759) | (19,607) | |||||||||
| Additional paid-in capital | 13,925 | — | |||||||||
| Accumulated other comprehensive loss | (210) | (176) | |||||||||
| Accumulated deficit | (91,453) | (147,134) | |||||||||
| Total stockholders' deficit attributable to shareholders of PRTH | (100,415) | (166,840) | |||||||||
| Non-controlling interests | 8,043 | 1,815 | |||||||||
| Total stockholders' deficit | (92,372) | (165,025) | |||||||||
| Total liabilities, stockholders' deficit and Non-controlling interests | $ | 2,398,804 | $ | 1,826,860 | |||||||
9
Priority Technology Holdings, Inc
Unaudited Consolidated Statements of Cash Flows
(in thousands)
| Years Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 55,681 | $ | 24,015 | |||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization of assets | 63,183 | 58,041 | |||||||||
| Stock-based compensation, ESPP, and incentive units compensation | 10,807 | 6,118 | |||||||||
| Amortization of debt issuance costs and discounts | 1,798 | 2,736 | |||||||||
| Debt extinguishment and modification costs | 12,514 | 10,369 | |||||||||
| Deferred income tax benefit | (12,153) | (2,194) | |||||||||
| Change in contingent consideration liability | 2,692 | 2,839 | |||||||||
| Other non-cash items, net | (293) | (147) | |||||||||
| Bargain purchase gain | (3,989) | — | |||||||||
| Change in operating assets and liabilities: | |||||||||||
| Accounts receivable | (21,863) | (9,387) | |||||||||
| Prepaid expenses and other current assets | (84) | (6,062) | |||||||||
| Income taxes (receivable) payable | (8,554) | (3,633) | |||||||||
| Accounts payable and accrued expenses | 5,743 | 4,535 | |||||||||
| Accrued residuals commissions | 2,903 | 5,027 | |||||||||
| Customer deposits and advance payments | (319) | (1,688) | |||||||||
| Other assets, net | (4,449) | (6,214) | |||||||||
| Other liabilities, net | (3,612) | 1,254 | |||||||||
| Net cash provided by operating activities | 100,005 | 85,609 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Acquisitions of businesses, net of cash acquired | (39,301) | — | |||||||||
| Additions to property, equipment and software | (24,926) | (21,693) | |||||||||
| Notes receivable, net | (11,134) | (3,361) | |||||||||
| Acquisition of assets | (69,462) | (5,667) | |||||||||
| Other investing activities | (29,218) | (4,825) | |||||||||
| Net cash used in investing activities | (174,041) | (35,546) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from issuance of long-term debt, net of issue discount | 1,066,607 | 945,126 | |||||||||
| Debt issuance and modification costs paid | (4,826) | (7,680) | |||||||||
| Repayments of long-term debt | (960,985) | (658,835) | |||||||||
| Redemption of senior preferred stock | — | (225,000) | |||||||||
| Redemption of accumulated dividend on redeemable preferred stock | — | (54,557) | |||||||||
| Redemption of redeemable non-controlling interest in subsidiary | (7,017) | (2,130) | |||||||||
| Shares withheld for taxes | (3,152) | (1,538) | |||||||||
| Dividends paid to redeemable senior preferred stockholders | — | (23,646) | |||||||||
| Proceeds from the exercise of stock options | 467 | 1,816 | |||||||||
| Settlement obligations, net | 355,127 | 179,614 | |||||||||
| Payment of contingent consideration related to a business combination | (20,051) | (5,592) | |||||||||
| Net cash provided by financing activities | 426,170 | 147,578 | |||||||||
10
Priority Technology Holdings, Inc
Unaudited Consolidated Statements of Cash Flows
(in thousands)
| Years Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net change in cash and cash equivalents, and restricted cash: | |||||||||||
| Net increase in cash and cash equivalents, and restricted cash | 352,134 | 197,641 | |||||||||
| Cash and cash equivalents, and restricted cash at beginning of period | 993,864 | 796,223 | |||||||||
| Cash and cash equivalents, and restricted cash equivalents at end of period | $ | 1,345,998 | $ | 993,864 | |||||||
| Reconciliation of cash and cash equivalents, and restricted cash: | |||||||||||
| Cash and cash equivalents | $ | 77,192 | $ | 58,600 | |||||||
| Restricted cash | 16,457 | 11,090 | |||||||||
| Cash and cash equivalents included in settlement assets (restricted in nature) | 1,252,349 | 924,174 | |||||||||
| Total cash and cash equivalents, and restricted cash | $ | 1,345,998 | $ | 993,864 | |||||||
11
Priority Technology Holdings, Inc.
Unaudited Reportable Segments' Results
(in thousands)
| Three Months Ended December 31 | Years Ended December 31 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Merchant Solutions: | |||||||||||||||||||||||
| Revenues | $ | 165,275 | $ | 155,672 | $ | 642,069 | $ | 613,547 | |||||||||||||||
| Adjusted EBITDA | $ | 30,612 | $ | 26,648 | $ | 111,793 | $ | 108,913 | |||||||||||||||
| Key Indicators: | |||||||||||||||||||||||
| Total card processing dollar value | $ | 18,549,964 | $ | 18,137,274 | $ | 72,373,800 | $ | 71,566,091 | |||||||||||||||
| Total card transaction count | 218,807 | 215,267 | 888,688 | 857,548 | |||||||||||||||||||
| Payables: | |||||||||||||||||||||||
| Revenues | $ | 26,759 | $ | 23,735 | $ | 100,872 | $ | 89,103 | |||||||||||||||
| Adjusted EBITDA | $ | 3,850 | $ | 2,395 | $ | 14,591 | $ | 7,605 | |||||||||||||||
| Key Indicators: | |||||||||||||||||||||||
| Buyer funded card processing dollar value | $ | 795,210 | $ | 733,680 | $ | 3,090,310 | $ | 2,816,270 | |||||||||||||||
| Supplier funded issuing dollar value | $ | 231,461 | $ | 63 | $ | 244,689 | $ | 919,860 | $ | 977,278 | |||||||||||||
| ACH transaction count | 5,009 | 4,860 | 19,286 | 17,182 | |||||||||||||||||||
| Treasury Solutions: | |||||||||||||||||||||||
| Revenues | $ | 57,349 | $ | 48,690 | $ | 215,779 | $ | 180,448 | |||||||||||||||
| Adjusted EBITDA | $ | 47,554 | $ | 42,025 | $ | 182,231 | $ | 154,936 | |||||||||||||||
| Key Indicators: | |||||||||||||||||||||||
| Average CFTPay billed clients | 1,101,919 | 891,157 | 1,022,225 | 797,567 | |||||||||||||||||||
| Average CFTPay monthly enrollments | 53,542 | 52,444 | 57,123 | 56,072 | |||||||||||||||||||
| Average total account balances | $ | 1,336,551 | $ | 970,572 | $ | 1,193,011 | $ | 878,257 | |||||||||||||||
12
Priority Technology Holdings, Inc.
Unaudited Reportable Segments' Results
| Three Months Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| Merchant Solutions | Payables | Treasury Solutions | Corporate | Total Consolidated | ||||||||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to GAAP Measure: | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 30,612 | $ | 3,850 | $ | 47,554 | $ | (21,953) | $ | 60,063 | ||||||||||||||||||||||
| Interest expense | (967) | — | (147) | (20,847) | (21,961) | |||||||||||||||||||||||||||
| Depreciation and amortization | (10,237) | (1,283) | (5,119) | (3,552) | (20,191) | |||||||||||||||||||||||||||
| Selling, general and administrative (non-recurring) | — | — | — | (1,633) | (1,633) | |||||||||||||||||||||||||||
Non-cash stock based compensation(1) | — | (35) | (32) | (1,120) | (1,187) | |||||||||||||||||||||||||||
Salary and employee benefits (non recurring)(2) | — | — | — | (2,501) | (2,501) | |||||||||||||||||||||||||||
| Bargain purchase gain (non-recurring) | — | — | — | 482 | 482 | |||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 19,408 | $ | 2,532 | $ | 42,256 | $ | (51,124) | $ | 13,072 | ||||||||||||||||||||||
| Income tax expense | (4,126) | |||||||||||||||||||||||||||||||
| Net income | $ | 8,946 | ||||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| Merchant Solutions | Payables Solutions | Treasury Solutions | Corporate | Total Consolidated | ||||||||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to GAAP Measure: | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 111,793 | $ | 14,591 | $ | 182,231 | $ | (83,449) | $ | 225,166 | ||||||||||||||||||||||
| Interest expense | (1,324) | (2,158) | (532) | (86,640) | (90,654) | |||||||||||||||||||||||||||
| Depreciation and amortization | (31,102) | (5,081) | (19,626) | (7,374) | (63,183) | |||||||||||||||||||||||||||
| Debt modification and extinguishment expenses | — | — | — | (12,514) | (12,514) | |||||||||||||||||||||||||||
| Selling, general and administrative (non-recurring) | — | — | — | (5,718) | (5,718) | |||||||||||||||||||||||||||
Non-cash stock based compensation(1) | (1) | (336) | (130) | (7,839) | (8,306) | |||||||||||||||||||||||||||
Salary and employee benefits (non recurring)(2) | — | — | — | (2,501) | (2,501) | |||||||||||||||||||||||||||
| Bargain purchase gain (non-recurring) | — | — | — | 3,989 | 3,989 | |||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 79,366 | $ | 7,016 | $ | 161,943 | $ | — | $ | (202,046) | $ | — | $ | 46,279 | ||||||||||||||||||
| Income tax benefit | 9,402 | |||||||||||||||||||||||||||||||
| Net income | $ | 55,681 | ||||||||||||||||||||||||||||||
(1) excludes stock based compensation settled in cash of $2.5 million subsequent to the year ended December 31, 2025
(2) represents cash settled stock based compensation which is non-recurring in nature
13
Priority Technology Holdings, Inc.
Unaudited Reportable Segments' Results
| Three Months Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| Merchant Solutions | Payables | Treasury Solutions | Corporate | Total Consolidated | ||||||||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to GAAP Measure: | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 26,648 | $ | 2,395 | $ | 42,025 | $ | (19,333) | $ | 51,735 | ||||||||||||||||||||||
| Interest expense | — | (1,060) | — | (22,051) | (23,111) | |||||||||||||||||||||||||||
| Depreciation and amortization | (6,799) | (1,266) | (4,498) | (1,248) | (13,811) | |||||||||||||||||||||||||||
| Debt modification and extinguishment expenses | — | — | — | (1,703) | (1,703) | |||||||||||||||||||||||||||
| Selling, general and administrative (non-recurring) | — | — | — | (1,379) | (1,379) | |||||||||||||||||||||||||||
| Non-cash stock based compensation | (4) | 79 | (33) | (1,283) | (1,241) | |||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 19,845 | $ | 148 | $ | 37,494 | $ | (46,997) | $ | 10,490 | ||||||||||||||||||||||
| Income tax expense | (3,270) | |||||||||||||||||||||||||||||||
| Net income | $ | 7,220 | ||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| Merchant Solutions | Payables | Treasury Solutions | Corporate | Total Consolidated | ||||||||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to GAAP Measure: | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 108,913 | $ | 7,605 | $ | 154,936 | $ | (67,187) | $ | 204,267 | ||||||||||||||||||||||
| Interest expense | (1) | (4,340) | — | (84,607) | (88,948) | |||||||||||||||||||||||||||
| Depreciation and amortization | (30,865) | (5,258) | (16,928) | (4,990) | (58,041) | |||||||||||||||||||||||||||
| Debt modification and extinguishment expenses | — | — | — | (10,369) | (10,369) | |||||||||||||||||||||||||||
| Selling, general and administrative (non-recurring) | — | — | — | (3,510) | (3,510) | |||||||||||||||||||||||||||
| Non-cash stock based compensation | (16) | (220) | (131) | (5,751) | (6,118) | |||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 78,031 | $ | (2,213) | $ | 137,877 | $ | (176,414) | $ | 37,281 | ||||||||||||||||||||||
| Income tax expense | (13,266) | |||||||||||||||||||||||||||||||
| Net income | $ | 24,015 | ||||||||||||||||||||||||||||||
14
R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 Priority Technology Holdings, Inc. (Nasdaq: PRTH) Supplemental Slides Q4 2025 Earnings Call March 2026
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 2 Disclaimer Important Notice Regarding Forward-Looking Statements and Non-GAAP Measures This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services, and other statements identified by words such as “may,” “will,” “should,” “anticipates,” “believes,” “expects,” “plans,” “future,” “intends,” “could,” “estimate,” “predict,” “projects,” “targeting,” “potential” or “contingent,” “guidance,” “anticipates,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, Priority Technology Holdings, Inc.’s (“Priority”, “we”, “our” or “us”) 2026 outlook and statements regarding our market and growth opportunities. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. Our actual results could differ materially, and potentially adversely, from those discussed or implied herein. We caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward- looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this presentation in the context of the risks and uncertainties disclosed in our Securities and Exchange Commission (“SEC”) filings, including our Annual Report on Form 10-K filed with the SEC on March 10, 2026. These filings are available online at www.sec.gov or www.prioritycommerce.com. We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the way we expect. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. The forward-looking statements included in this presentation are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements. This presentation includes certain non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and that may be different from non- GAAP financial measures used by other companies. Priority believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends of the Company. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. See the footnotes on the slides where these measures are discussed and the slides at the end of this presentation for a reconciliation of such non-GAAP financial measures to the most comparable GAAP numbers. Additionally, we present guidance for Adjusted EBITDA and Adjusted EBITDA as percentage of revenue, non-GAAP measures without reconciliation due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. See more information in Priority’s earnings press release. Adjusted Gross profit referred throughout this presentation is a non-GAAP measure calculated by subtracting Cost of services (excluding depreciation and amortization) from Revenue. Adjusted Gross profit margin referred throughout this presentation is a non-GAAP measure calculated by dividing Adjusted Gross Profit discussed above by Revenue. Adjusted EBITDA referred to throughout this presentation is a non-GAAP measure calculated as net income prior to interest expense, tax expense, depreciation and amortization expense, adjusted to add back certain non-cash charges and / or non-recurring charges deemed to not be part of normal operating expenses. Adjusted EBITDA margin referred throughout this presentation is a non-GAAP measure calculated by dividing Adjusted EBITDA discussed above by Revenue. See Appendix 1 – 2 of this presentation for a reconciliation of Adjusted Gross Profit to Gross Profit as per GAAP, a reconciliation of Adj. EBITDA to GAAP Income (loss) before Taxes and Priority’s earnings press release for more details.
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 $2252025 2026 $3752025 2026 $9532025 2026 3 Key 2025 Highlights FY 2025 RESULTS FY 2026 GUIDE REFLECTS HSD GROWTH FY 2025 KEY METRICS REVENUE (In Millions) NET REVENUE +8% ADJ GROSS PROFIT1 +14% ADJ EBITDA1 +10% ADJ EPS (diluted) $1.03 $1.7B Account Balances 1.8M Customer Accounts $150B Total Payments Volume1 1 Represents LTM payments volume as of December 31, 2025 2 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details (+102%) $1.01 - $1.04B 6-9% Growth (4-7% Organic) 2026 Guidance Range ADJ. EBITDA2 (In Millions) ADJ. GROSS PROFIT2 (In Millions) $405 - $4252026 Guidance Range $230 - $2452026 Guidance Range
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 4 Q4 2025 Consolidated Results $83.9M $100.2M $51.7M $60.1M $227.1M $247.1M Q4 24 Q4 25 Q4 24 Q4 25 Q4 24 Q4 25Q4 24 Q4 25 9% 19% 16% Adjusted EBITDA1 increased 16% to $60.1 million Adj Gross Profit margin1 increased 360 basis points to 40.6% Adj Gross Profit1 increased 19% to $100.2 million Revenue increased 9% to $247.1 million 1 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details 360bp 37.0% 40.6%
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 5 Full Year 2025 Consolidated Results $328.1M $374.7M $204.3M $225.2M $879.7M $953.0M 8% 14% 10% Adjusted EBITDA1 increased 10% to $225.2 million Adj Gross Profit margin1 increased 200 basis points to 39.3% Adj Gross Profit1 increased 14% to $374.7 million Revenue increased 8% to $953.0 million 1 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details 200bp 37.3% 39.3% FY 24 FY 25 FY 24 FY 25 FY 24 FY 25FY 24 FY 25
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 6 Accelerate Cash Flow Optimize Working Capital ▪ Priority Commerce Engine (PCE) is a unified platform that provides our customers a personalized financial toolset to accelerate cash flow and optimize working capital on a single platform to collect, store, lend, and send money combining merchant services, payables and banking & treasury solutions ▪ Built with vision: PCE is a native platform built to manage money movement in complex multi- party environments Priority Commerce: Powering an Ecosystem of Integrated Financial Solutions A Proprietary API Suite that Enables Acquiring, Treasury & Payables Solutions Treasury Solutions Passport automates reconciliation, streamlines financial operations & provides full transparency to your liquidity Merchant Solutions Full featured POS & merchant acquiring solutions that accelerate your cash flow to capture revenue opportunities for businesses Payables Optimize your working capital and earn cash back by leveraging our payables & financing solutions while automating reconciliation LendCollect Store We Provide Personalized Payments and Banking Solutions to: Send + Priority Commerce Engine
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 7 Priority Commerce Engine Acc el er at eC as h Fl ow Payment Orchestration Optim ize W orkingCapital TreasurySolutionsDat a& Bu sin es s In sig ht s Payable Management (Credit, Debit, ACH, Check, Wire) (GLMapping,Recon,FIDC Pass-Through Insurance) (Card Issuing, AP Automation, ACH+) In te gr at ed Pa rt ne rs Consumer Finance Sports & Entertainment Payroll & Benefits Property Tech & Construction Others Consumers Small Businesses Property Managers Others Sports Franchises ✓ Monthly Platform SaaS Fees✓ Interchange on Card Volume ✓ Payment Processing Fees ✓ Float Income on Account Balances End Custom ers Revenue Streams
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 8 Fourth Quarter 2025 Financial Results
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 % of Adj. Gross Profit from Payables & Treasury Solutions1,2 9 1 Contribution percentages exclude intersegment eliminations 2 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details Continued Shift to High Value Segments 44% 47% 52% 56% 58% 56% 59% 62% 62% 62% 63% Quarter-to-Date (Payables + Treasury Solutions) 60% 35% 39% 42% 45% 47% 49% 50% 51% 52% 53% 54% 54% 4% 4% 4% 5% 7% 7% 7% 7% 8% 8% 8% 8% 39% 42% 46% 50% 54% 56% 57% 59% 60% 61% 62% 62% Q1 2023 (LTM) Q2 2023 (LTM) Q3 2023 (LTM) Q4 2023 (LTM) Q1 2024 (LTM) Q2 2024 (LTM) Q3 2024 (LTM) Q4 2024 (LTM) Q1 2025 (LTM) Q2 2025 (LTM) Q3 2025 (LTM) Q4 2025 (LTM) Treasury Solutions Payables +1% Impact of Excluding Acquisitions +1% +2% +5% Payables and Treasury Solutions segments represented 62% of LTM Adj Gross Profit (63% excluding impact of acquisitions) Contributed to ~360 bps of YoY expansion in Adj Gross Margins in Q4 2025 63% of Adjusted Gross Profit in Q4 2025 was from recurring revenues
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 10 Merchant Solutions Highlights – Q4 2025 1 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details Revenue $165.3MM +6% YoY Adj. Gross Profit1 $40.1MM +25% YoY | 24.3% Margin Adj. EBITDA1 $30.6MM +15% YoY | 18.5% Margin Q4 2025 Segment Highlights ➔ Revenue growth driven by a combination of (i) Boom and Dealer Merchant Services acquisitions and (ii) 3% organic growth in core portfolio ➔ Total Card $ Volumes increased over 2% to $18.5bn ➔ New monthly boards averaged 3.0K during quarter
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 11 Payables Highlights – Q4 2025 1 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details Revenue $26.8MM +13% YoY Adj. Gross Profit1 $7.4MM +16% YoY | 27.6% Margin Adj. EBITDA1 $3.9MM +61% YoY | 14.4% Margin Q4 2025 Segment Highlights ➔ Revenue growth driven by 20% increase in Supplier-Funded revenues and 11% increase in Buyer-Funded revenues ➔ Adj Gross Profit growth of 16% driven by revenue and 70 bps margin expansion ➔ Adj EBITDA growth of 61% driven by continued strong operating leverage
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 12 Treasury Solutions Highlights – Q4 2025 1 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details Revenue $57.3MM +18% YoY Adj. Gross Profit1 $52.7MM +16% YoY | 91.9% Margin Adj. EBITDA1 $47.6MM +13% YoY | 82.9% Margin Q4 2025 Segment Highlights ➔ CFTPay Avg Monthly New Enrollments of 54K contributed to 24% increase in Billed Clients to 1.1MM ➔ Growth in account balances more than offset the impact of 125 bps of YoY rate cuts ➔ 120 Integrated Partners at quarter-end (up 30% from end of 2024)
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 13 Consolidated Operating Expenses – Q4 2025 Salaries & Benefits $28.8MM +24% YoY SG&A $17.7MM +39% YoY Depreciation & Amortization $20.2MM +46% YoY Q4 2025 Segment Highlights ➔ Higher Salaries & Benefits driven by higher stock-based comp and acquisition-related headcount additions ➔ Increase in SG&A expenses primarily driven by software (incl public cloud migration) combined with acquisition, accounting, marketing and S-OX related expenses
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 14 Capital Structure Highlights Net Leverage Calculation Total Debt Balance1 $1,020.0 ( - ) Unrestricted Cash Balance $77.2 Net Debt $942.8 LTM Adj. EBITDA (Q4 2025)2 $225.2 Net Leverage Ratio 4.19x 1 Total debt balance excludes non-recourse borrowings under the residual financing facility 2 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details Key Updates and Highlights Closed DMS acquisition on 10/1/2025 and upsized Term Loan by $35 million Priority made $15 million prepayment to Term Loan on 10/31/2025 Pro forma net leverage ratio of 3.9x based on run-rate impact of acquisitions Capital allocation strategy will focus on continued debt repayment and de-leveraging throughout 2026 Historical Leverage Profile 5.1x 4.9x 4.6x 4.3x 4.2x 4.1x 4.4x 4.2x Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Senior Debt Preferred Equity
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 15 2026 Financial Guidance 1 Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details Total Revenue Adj. Gross Profit1 Adj. EBITDA1 $1.01 – $1.04B (6-9% Growth) $405 – $425MM $230 – $245MM High single-digit Revenue growth will drive continued improvements in Adjusted Gross Profit1 and Adjusted EBITDA1 with some offsets to margins resulting from lower interest rates and increased operating expenses for continued investments in the platform and team
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 16 Appendix
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 Merchant Solutions Payables Treasury Solutions Eliminations Total Merchant Solutions Payables Treasury Solutions Eliminations Total Revenues $ 165.3 $ 26.8 $ 57.3 $ (2.3) $ 247.1 $ 155.7 $ 23.7 $ 48.7 $ (1.0) $ 227.1 Cost of Revenue (excluding depreciation and amortization) (125.1) (19.4) (4.6) 2.3 (146.9) (123.7) (17.4) (3.1) 1.0 (143.1) Adjusted Gross Profit 40.1 7.4 52.7 0.0 100.2 32.0 6.4 45.6 (0.0) 83.9 Adjusted Gross Profit Margin 24.3% 27.6% 91.9% 40.6% 20.5% 26.8% 93.6% 37.0% Depreciation and amortization of revenue generating assets (3.6) (0.8) (2.7) -- (7.2) (2.2) (0.6) (1.6) -- (4.5) Gross profit $ 36.5 $ 6.5 $ 50.0 $ 0.0 $ 93.1 $ 29.8 $ 5.7 $ 44.0 $ (0.0) $ 79.5 Gross profit margin 22.1% 24.5% 87.2% 37.7% 19.1% 24.2% 90.3% 35.0% Merchant Solutions Payables Treasury Solutions Eliminations Total Merchant Solutions Payables Treasury Solutions Eliminations Total Revenues $ 642.1 $ 100.9 $ 215.8 $ (5.7) $ 953.0 $ 613.5 $ 89.1 $ 180.4 $ (3.4) $ 879.7 Cost of Revenue (excluding depreciation and amortization) (497.9) (71.7) (14.3) 5.7 (578.3) (478.5) (64.7) (11.9) 3.4 (551.6) Adjusted Gross Profit 144.1 29.1 201.4 (0.0) 374.7 135.1 24.4 168.6 (0.0) 328.1 Adjusted Gross Profit Margin 22.4% 28.9% 93.4% 39.3% 22.0% 27.4% 93.4% 37.3% Depreciation and amortization of revenue generating assets (9.6) (3.0) (9.1) -- (21.7) (7.7) (2.8) (6.0) -- (16.5) Gross profit $ 134.5 $ 26.2 $ 192.3 $ (0.0) $ 352.9 $ 127.4 $ 21.7 $ 162.5 $ (0.0) $ 311.6 Gross profit margin 20.9% 25.9% 89.1% 37.0% 20.8% 24.3% 90.1% 35.4% Twelve Months Ended December 31, 2025 Twelve Months Ended December 31, 2024 (in Millions) (in Millions) Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 (in Millions) (in Millions) 17 The reconciliation of adjusted gross profit to its most comparable GAAP measure is provided below: Appendix 1 – Adjusted Gross Profit1 Reconciliation Note: Certain dollar amounts may not add mathematically due to rounding 1Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details.
prioritycommerce.com R: 0 G: 62 B: 41 R: 1 G: 39 B: 26 R: 254 G: 109 B: 18 R: 255 G: 255 B: 255 R: 231 G: 229 B: 170 R: 166 G: 166 B: 166 R: 117 G: 209 B: 208 R: 131 G: 201 B: 126 R: 37 G: 37 B: 37 (in Millions) (in Millions) Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 Merchant Solutions Payables Treasury Solutions Eliminations Total Merchant Solutions Payables Treasury Solutions Eliminations Total Adjusted EBITDA 30.6$ 3.9$ 47.6$ (22.0)$ 60.1$ 26.6$ 2.4$ 42.0$ (19.3)$ 51.7$ Adjusted EBITDA Margin 18.5% 14.4% 82.9% 24.3% 17.1% 10.1% 86.3% 22.8% Interest Expense (0.9) 0.0 (0.1) (20.8) (21.9) -- (1.1) -- (22.1) (23.1) Depreciation and Amortization (10.2) (1.3) (5.1) (3.7) (20.3) (6.8) (1.3) (4.5) (1.2) (13.8) Debt Modification and Extinguishment Expenses -- -- -- (0.0) (0.0) -- -- -- (1.7) (1.7) Selling, General and Administrative (Non-Recurring) -- -- -- (1.6) (1.6) -- -- -- (1.4) (1.4) Non-Cash Stock Based Compensation 0.0 (0.0) (0.0) (1.1) (1.2) (0.0) 0.1 (0.0) (1.3) (1.2) Salary & Employee Benefits (Non-Recurring) -- -- -- (2.5) (2.5) -- -- -- -- -- Bargain Purchase (Non-Recurring) -- -- -- 0.5 0.5 -- -- -- -- -- Income (Loss) Before Taxes 19.5$ 2.6$ 42.3$ (51.2)$ 13.1$ 19.8$ 0.1$ 37.5$ (47.0)$ 10.5$ Income (Loss) Before Taxes % of Revenue 11.8% 9.6% 73.7% 5.3% 12.7% 0.6% 77.0% 4.6% (in Millions) (in Millions) Twelve Months Ended December 31, 2025 Twelve Months Ended December 31, 2024 Merchant Solutions Payables Treasury Solutions Eliminations Total Merchant Solutions Payables Treasury Solutions Eliminations Total Adjusted EBITDA 111.8$ 14.6$ 182.2$ (83.4)$ 225.2$ 108.9$ 7.6$ 154.9$ (67.2)$ 204.3$ Adjusted EBITDA Margin 17.4% 14.5% 84.5% 23.6% 17.8% 8.5% 85.9% 23.2% Interest Expense (1.3) (2.2) (0.5) (86.6) (90.7) (0.0) (4.3) -- (84.6) (88.9) Depreciation and Amortization (31.1) (5.1) (19.6) (7.4) (63.2) (30.9) (5.3) (16.9) (5.0) (58.0) Debt Modification and Extinguishment Expenses -- -- -- (12.5) (12.5) -- -- -- (10.4) (10.4) Selling, General and Administrative (Non-Recurring) -- -- -- (5.7) (5.7) -- -- -- (3.5) (3.5) Non-Cash Stock Based Compensation 0.0 (0.3) (0.1) (7.8) (8.3) (0.0) (0.2) (0.1) (5.7) (6.1) Salary & Employee Benefits (Non-Recurring) -- -- -- (2.5) (2.5) -- -- -- -- -- Bargain Purchase (Non-Recurring) -- -- -- 4.0 4.0 -- -- -- -- -- Income (Loss) Before Taxes 79.4$ 7.0$ 161.9$ (202.0)$ 46.3$ 78.0$ (2.2)$ 137.9$ (176.4)$ 37.3$ Income (Loss) Before Taxes % of Revenue 12.4% 7.0% 75.0% 4.9% 12.7% (2.5%) 76.4% 4.2% 18 The reconciliation of adjusted EBITDA to its most comparable GAAP measure is provided below: Appendix 2 – Adjusted EBITDA1 Reconciliation Note: Certain dollar amounts may not add mathematically due to rounding 1Adjusted Gross Profit, Adjusted Gross Profit margin, Adjusted EBITDA and Adjusted EBITDA margin referred to in this presentation are non-GAAP measures. See slide 2 for further details.
FAQ
How did Priority Technology Holdings (PRTH) perform financially in 2025?
Priority Technology’s 2025 revenue reached $953.0 million, up 8.3% from 2024, with 7.7% organic growth. Adjusted EBITDA rose 10.2% to $225.2 million, and net income attributable to common shareholders improved to $55.68 million from a prior-year loss.
What were Priority Technology Holdings’ earnings per share results for 2025?
Diluted earnings per share were $0.68 in 2025 versus a $(0.31) loss in 2024. Diluted adjusted EPS, which excludes specified non‑recurring and non‑cash items, increased to $1.03 from $0.51, reflecting stronger profitability and margin expansion.
What 2026 financial guidance did Priority Technology Holdings (PRTH) provide?
For 2026, Priority guides total revenue to $1.01–$1.04 billion, implying 6–9% growth over 2025. Management also expects adjusted gross profit between $405–$425 million and adjusted EBITDA between $230–$245 million, indicating plans for continued profitable expansion.
How did Priority Technology’s business segments perform in 2025?
In 2025, Merchant Solutions revenue was $642.1 million, Payables revenue $100.9 million, and Treasury Solutions revenue $215.8 million. Treasury Solutions delivered particularly high margins, with adjusted gross profit margin of 93.4% and adjusted EBITDA of $182.2 million.
What is Priority Technology Holdings’ leverage and debt position after 2025?
As of December 31, 2025, long‑term debt net of current portion was $1.04 billion. Using LTM adjusted EBITDA of $225.2 million, the company reports a net leverage ratio of 4.19x, and it emphasizes debt repayment and de‑leveraging as 2026 capital allocation priorities.
Did Priority Technology Holdings complete any notable acquisitions in 2025?
Yes. In October 2025, Priority acquired the assets of Dealer Merchant Services, a provider of vertically focused software and payments for automotive dealerships. Management also notes a bargain purchase gain from acquiring Sila, Inc. within the year’s financial adjustments.
How are non-GAAP metrics like adjusted EBITDA used by Priority Technology Holdings?
Priority uses non-GAAP metrics such as adjusted gross profit and adjusted EBITDA to evaluate business trends, allocate resources, and set operational goals. These measures exclude items like non‑recurring expenses and certain non‑cash charges and are reconciled to comparable GAAP figures in the financial tables.
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417.19M
28.93M
Software - Infrastructure
Services-business Services, Nec
United States
ALPHARETTA