Priority Technology Holdings, Inc. operates as a payment technology firm primarily within the United States. Its operations are organized into three distinct ...
Priority Technology Holdings, Inc. is a payment technology firm operating primarily in the United States, headquartered in Alpharetta, Georgia. Founded in 2005, the company has grown into a nearly $1 billion enterprise, processing over $39 billion in electronic transactions annually. Its operations are organized into three divisions: payments for small ...Priority Technology Holdings, Inc. is a payment technology firm operating primarily in the United States, headquartered in Alpharetta, Georgia. Founded in 2005, the company has grown into a nearly $1 billion enterprise, processing over $39 billion in electronic transactions annually. Its operations are organized into three divisions: payments for small and medium-sized businesses (SMB), business-to-business (B2B) transactions, and enterprise-level payment solutions. The company offers the MX product suite, including MX Connect and MX Merchant tools such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B, and ACH.com, which provide flexible business applications to manage critical functions and enhance revenue through core payment processing. Additionally, CPX streamlines accounts payable with virtual cards, purchase cards, advanced ACH, dynamic discounting, and traditional checks. Priority also provides managed services and integrated accounts payable automation to financial institutions and card networks. For enterprise clients, it delivers embedded payment and banking solutions, modernizing legacy systems and helping software partners monetize payment services. The company serves SMBs, large enterprises, and distribution partners like independent sales organizations, financial institutions, and independent software vendors. As of the latest data, Priority has approximately 1,186 full-time employees. Financially, the company shows a market cap of about $443.9 million, revenue per share of $12.27, and a price-to-earnings ratio of 7.8 in the trailing twelve months. With a gross profit margin of 39.4% and an EBITDA margin of 30.5%, it demonstrates solid operational performance. Key leadership includes CEO Thomas (Tom) Priore, who co-founded the company in 2005 and has guided its growth to become the fifth largest non-bank merchant acquirer in the U.S. by volume. The company is publicly traded on NASDAQ under the symbol PRTH, with an IPO date of December 6, 2016.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$953.0M
+8.3%
+5.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$55.7M
+131.9%
+1.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+21.4%
-42.7%
-3.8%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+14.8%
-2.3%
-5.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+5.8%
+114.0%
-3.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$75.1M
+17.5%
+33.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+7.9%
+8.4%
+26.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-1042.1%
-86.9%
-13.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.07x
+2.2%
+1.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings. Welcome to Priority Technology Holdings First Quarter 2026 Earnings Call. [Operator Instructions] Please note that this conference is being recorded. At this time, I'll turn the conference over to Meghna Mehra, Managing Director of ICR. Thank you, Meghna. You may now begin.
Meghna Mehra: Good morning, and thank you for joining us. With me today are Tom Priore, Chairman and Chief Executive Officer of Priority Technology Holdings; and Tim O'Leary, Chief Financial Officer. Before giving our prepared remarks, I would like to remind all participants that our comments today will include forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. We provide a detailed discussion of the various risk factors in our SEC filings, and we encourage you to review these filings. Additionally, we may refer to non-GAAP measures, including but not limited to, EBITDA and adjusted EBITDA during the call. Reconciliations of our non-GAAP performance and liquidity measures to the appropriate GAAP measures can be found in our press release and SEC filings, available in the Investors section of our website. Before I turn the call over to Tom, I would like to say that on today's call, we will only be discussing Priority's financial and operational results and outlook. We will not be commenting on or answering questions related to the Special Committee's ongoing evaluation of the Take Private Proposal. Please continue to refer to the company's prior press releases for the latest on that topic. With that, I would like to turn the call over to our Chairman and CEO, Tom Priore.
Thomas Priore: Thank you, Meghna, and thanks to everyone for joining us this morning. I'll cover our aggregate first quarter performance and outlook before handing the call over to Tim, who'll provide segment-level performance, key trends and developments across our business segments and priority overall. This morning, we reported strong growth in both revenue and profits for the first quarter. As summarized on Slide 3, Priority had a solid Q1 by every key financial metric, growing net revenue by 11%, generating adjusted gross profit and adjusted EBITDA growth of 13% each and increasing adjusted EPS by 27% year-over-year to $0.28. We ended the first quarter with 1.8 million total customer accounts operating on our commerce platform, which is up 50,000 from the end of 2025. Annual transaction volume increased by $3 billion from year-end to $153 billion and average account balances under administration improved by over $100 million from year-end to $1.8 billion. Tim will provide more context on the full-year outlook later in the call, but I can reflect that the value our diverse partners and customers see in our unified …
