Priority Technology Holdings, Inc. (PRTH) Market Cap
Priority Technology Holdings, Inc. has a market capitalization of $431.2M.
Financials based on reported quarter end 2025-12-31
Price: $5.24
▼ -0.07 (-1.32%)
Market Cap: 431.18M
NASDAQ · time unavailable
CEO: Thomas Charles Priore
Sector: Technology
Industry: Software - Infrastructure
IPO Date: 2016-12-06
Website: https://www.prth.com
Priority Technology Holdings, Inc. (PRTH) - Company Information
Market Cap: 431.18M · Sector: Technology
Priority Technology Holdings, Inc. operates as a payment technology company in the United States. It operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business Payments, and Enterprise Payments. The company offers MX product line, including MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing as our leverage point. It also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, the company provides curated managed services and a suite of integrated accounts payable automation solutions to various financial institutions and card networks; and payment-adjacent technologies to facilitate the acceptance of electronic payments from customers. Further, it offers embedded payment and banking solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. The company serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. Priority Technology Holdings, Inc. was founded in 2005 and is headquartered in Alpharetta, Georgia.
Analyst Sentiment
Based on 5 ratings
Analyst 1Y Forecast: $11.00
Average target (based on 2 sources)
Consensus Price Target
Low
$11
Median
$11
High
$11
Average
$11
Potential Upside: 109.9%
Price & Moving Averages
Related Companies in Technology
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"PRTH reported revenue of $247.1M and a net income of $8.9M for the year ended December 31, 2025. The company has shown consistent revenue but is struggling with substantial net debt of approximately $969.3M, leading to negative total equity of $92.4M. Although the operating cash flow is healthy at $36.8M, the free cash flow reflects positively at $30.9M as capital expenditures are managed. The company's stock has decreased significantly, with a one-year change of -39.75%, indicating strong volatility and investor concerns. With a target price consensus of $11, PRTH is currently trading at $4.85, suggesting potential for recovery if operational strategies improve and leverage is controlled. Overall, there are challenges in profitability and leverage that may hinder short-term growth but opportunities exist in revenue generation and cash flow management."
Revenue Growth
Revenue at $247.1M indicates growth potential but needs consistent performance.
Profitability
Positive net income of $8.9M but low earnings per share (EPS) at $0.11 raises concerns.
Cash Flow Quality
Strong free cash flow of $30.9M reflects good cash management and operational efficiency.
Leverage & Balance Sheet
High net debt relative to total assets and negative equity indicate leverage concerns.
Shareholder Returns
No dividends paid and negative price appreciation over the past year negatively impact shareholder returns.
Analyst Sentiment & Valuation
Current trading price compared to target suggests undervaluation, but sentiment is cautious due to performance.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
PRTH delivered strong Q4 and FY25 profitability with margin expansion and clear segment-driven momentum: revenue $247.1M (+9% YoY), adjusted gross profit $100.2M (+19%), and adjusted EBITDA $60.1M (+16%). Gross margin performance was materially better (+360 bps YoY to 40.6%), helped by Payables and Treasury mix and acquisition accretion. However, the quarter also shows where pressure can re-emerge: Merchant core organic growth slowed in restaurants, construction, and some retail verticals; excluding acquisitions Merchant gross profit was flat with a -60 bps gross margin decline. Treasury’s gross margin was ~170 bps lower YoY due to mix (Passport and Priority Tech Ventures growing faster at lower margins), even as enrollment and integrated partners expanded (CFTPay >1.1M billed clients; partners +30%). For 2026, management guided revenue $1.010B–$1.040B (+6%–+9%) and adjusted EBITDA $230M–$245M, explicitly baking in lower interest-rate headwinds and assuming macro stability from Q4. Net leverage improved to 4.2x (3.9x pro forma).
Growth Catalysts
- Payables: 13% Q4 revenue growth supported by continued buyer-funded (10.9%) and supplier-funded (20%) growth
- Treasury Solutions: CFTPay enrollment and billed clients exceeded 1.1 million, plus integrated partners up 30% YoY
- Merchant Solutions: improving gross profit (+25.5% YoY) despite core organic slowdown in late-2025 verticals
- Platform scaling and higher-margin mix from Payables and Treasury (Payables+Treasury = 60% of Q4 adjusted gross profit)
Business Development
- Boom Commerce and DMS acquisitions contributed to Merchant Solutions Q4 growth
- Bank channel partner acquired (contract paused) and then re-won with the larger bank; drove supplier-funded issuing dollars volatility
- Rewon contract with the larger bank that acquired the prior bank channel partner
- ACH.com business within Payables platform benefited from expanding ACH volumes and float balances
- Integrated partners expansion in Treasury Solutions (CFTPay + Passport); number of integrated partners up 30% YoY
Financial Highlights
- Revenue: $247.1M, +9% YoY (Q4), with organic growth +6.8% (reported growth +8.8% disclosed elsewhere)
- Adjusted gross profit: $100.2M, +19% YoY
- Adjusted EBITDA: $60.1M, +16% YoY
- Adjusted gross margin: 40.6% in Q4, +360 bps YoY; also +130+ bps sequentially vs Q3
- Payables+Treasury adjusted gross profit mix: 60% in Q4 (63% full year on organic comparison)
- If normalizing for Q4 2024 nonrecurring inventory write-off, YoY gross margin expansion still +210 bps
- Merchant Solutions gross margin: 24.3%, +370 bps YoY (benefit from Boom Commerce and DMS); excluding acquisitions, organic gross profit flat and organic gross margin -60 bps YoY
- Payables gross margin: 27.6%, +70+ bps YoY; payables operating expenses -~9% YoY (before D&A) enabling leverage
- Treasury Solutions gross margin: 91.9%, ~170 bps lower YoY due to mix shift from Passport (+110% revenue growth) and Priority Tech Ventures (over +200% growth) at lower gross margins
- Full-year EPS: $1.03, +$0.52 (+102%) YoY on adjusted EPS
- Full-year adjusted gross profit and adjusted EBITDA growth: +14% and +10%, respectively
Capital Funding
- Debt at quarter end: $1.02B
- Available liquidity: $177M, including $100M revolver borrowing capacity and $77M unrestricted cash
- Q4 free cash flow: $28M (based on ~$60M adjusted EBITDA less ~$6M CapEx, ~$22M interest expense, and just over ~$4M income taxes)
- Run-rate free cash flow: ~$112M; ~1.34 free cash flow per diluted share
- LTM ended Dec 31: adjusted EBITDA $225.2M; net debt $945.4M; net leverage 4.2x (down from 4.4x at end of Q3)
- Pro forma (including run-rate EBITDA impact of acquisitions): net leverage 3.9x at year-end
Strategy & Ops
- Merchant Solutions core organic growth slowed in H2 2025 driven by restaurants, construction, and certain retail trade (home furnishings, building materials)
- Treasury Solutions growth moderation in 2026 explicitly tied to lower interest rates despite strong prior-year scaling
- CFTPay seasonality: Q4 new enrollments softer; expected uptick in Q1 as holiday season ends
- Shift from growth construction/capex building mode to execution mode reduces ability to capitalize development costs (impacting gross profit vs EBITDA bridge)
- Capital discipline framework: CapEx consistently ~10% of EBITDA
- Internal controls remediation: material weakness from Dec 31, 2024 remediated; effective internal controls confirmed for FY2025 end
Market Outlook
- 2026 full-year guidance (consolidated): revenue $1.010B to $1.040B (+6% to +9% top line growth); includes $10M intercompany eliminations assumption
- 2026 full-year organic component: 4% to 7% organic growth (within the 6% to 9% total revenue range)
- 2026 adjusted gross profit: $405M to $425M; gross margin expansion +75 to +100 bps vs FY2025 levels
- 2026 adjusted EBITDA: $230M to $245M
- Segment guidance: Merchant Solutions revenue +6% to +8% (approx. 3% to 4% organic), Payables organic growth 8% to 10% (with headwinds from lower interest rates and certain card network changes), Treasury Solutions low double-digit growth (moderated for lower interest rates and larger denominator)
- Macro assumption for 2026: similar macro environment to current quarter; no explicit positive/negative change baked in beyond stated rate and organic headwinds
Risks & Headwinds
- Lower interest rates: headwind impacting payables and Treasury Solutions growth assumptions
- Challenging macro/consumer spending environment (management cited in 2026 outlook)
- Merchant Solutions: core portfolio slower growth in late-2025 verticals—restaurants, construction, and certain retail trade (home furnishings/building materials)
- Treasury Solutions mix shift: Passport and Priority Tech Ventures at lower gross margins (~170 bps gross margin headwind in Q4)
- Payables: supplier-funded dollar volume down YoY driven by a bank channel partner acquisition integration pause (contract put on hold) and re-won thereafter
- Long sales/conversion cycles in verticals (real estate renter/property conversions; sports/entertainment integration and rollout; ISV integration/release cycles) leading to conservative guidance
Sentiment: MIXED
Note: This summary was synthesized by AI from the PRTH Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.