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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on PRTH

Here is a 90-word analysis of the positive drivers behind Priority Technology Holdings, Inc.'s recent stock performance: Priority Technology's strong momentum is driven by growing optimism about its earnings prospects, reflected in its recent rating upgrade to Strong Buy. The company's fast-paced momentum, combined with its reasonable valuation, makes it an attractive investment opportunity. Additionally, the successful pricing of its secondary offering of common stock at $7.75 per share is likely to boost investor confidence. With analysts predicting a potential upside of 36.9%, Priority Technology's future looks promising.

1.c. Company Highlights

2. Priority's Q3 2025 Earnings: A Mixed Bag

Priority reported a 6% year-over-year increase in net revenue, with adjusted gross profit and adjusted EBITDA growing by 10% and 6%, respectively. The company's adjusted EPS came in at $0.28, slightly below estimates of $0.3. The total customer accounts operating on the commerce platform reached 1.7 million, up from 1.4 million in the previous quarter. Annual transaction volume in the LTM period increased by nearly $4 billion to $144 billion.

Publication Date: Nov -29

📋 Highlights
  • Q3 Net Revenue Growth:: 6% increase with adjusted gross profit and adjusted EBITDA growing 10% and 6%, respectively.
  • Customer Accounts Expansion:: Total customer accounts rose to 1.7 million (+21.4% QoQ from 1.4 million).
  • Revised Full-Year Revenue Guidance:: Lowered to 8–10% growth (from 10–12.5%) due to Merchant Solutions deceleration.
  • Gross Profit Guidance Raised:: New range of $370–$380 million (up from $365–$380 million) despite revenue moderation.
  • Segment Performance Contrast:: Payables (+14%) and Treasury Solutions (+18% revenue growth) outpaced Merchant Solutions (+2%).

Segment Performance

The Merchant Solutions segment experienced a slowdown, with growth moderating to 2% due to decelerated same-store sales in multiple areas. However, the Payables and Treasury Solutions segments drove strong growth, with revenue increasing by 14% and 18%, respectively. The company's adjusted gross profit margin expanded by 140 basis points, reflecting the ongoing performance of its diverse, high-margin Payables and Treasury Solutions segment.

Guidance and Outlook

Priority revised its full-year revenue guidance to 8%-10% growth, down from the initial estimate of 10%-12.5%. However, the company raised the low end of its full-year gross profit guidance to $370 million from $365 million and modestly improved its adjusted EBITDA guidance to $223 million-$228 million. For 2026, the company expects high single-digit revenue growth and adjusted gross margins to expand by 75-100 basis points or more.

Valuation and Growth Prospects

With a P/E Ratio of 8.61 and an EV/EBITDA of 9.3, the market seems to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 7.9%, which is slightly above the company's current guidance. The company's ROIC of 18.99% indicates a strong ability to generate returns on invested capital. However, the ROE of -37.55% is a concern, highlighting the need for improved profitability. As the company continues to expand its commerce platform and explore new segments, its growth prospects will be closely watched.

Cash Flow and Liquidity

Priority generated $29 million of free cash flow in the quarter, with a free cash flow yield of 13.69%. The company's net debt to EBITDA ratio stands at 6.23, indicating a relatively high level of leverage. As the company continues to invest in its business and explore new opportunities, its cash flow and liquidity profile will be important to monitor.

3. NewsRoom

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Contrasting DIAGNOS (OTCMKTS:DGNOF) & Priority Technology (NASDAQ:PRTH)

Dec -01

Source: defenseworld.net

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PRTH STOCKHOLDER NOTICE: Kaskela Law LLC Announces Investigation of Priority Technology Holdings, Inc. (PRTH) and Encourages Long-Term investors to Contact the Firm

Nov -25

Source: newsfilecorp.com

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Buckley Capital Advisors Issues Statement Regarding Controlling Shareholder's Take-Private Proposal for Priority Technology Holdings, Inc.

Nov -19

Source: prnewswire.com

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Priority Technology Holdings, Inc. (NASDAQ:PRTH) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Nov -19

Source: defenseworld.net

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Connor Clark & Lunn Investment Management Ltd. Purchases 53,163 Shares of Priority Technology Holdings, Inc. $PRTH

Nov -17

Source: defenseworld.net

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Acadian Asset Management LLC Has $4.62 Million Holdings in Priority Technology Holdings, Inc. $PRTH

Nov -14

Source: defenseworld.net

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Priority Technology Holdings: Kehoe Law Firm Investigating Proposed All-Cash Acquisition - PRTH

Nov -13

Source: newsfilecorp.com

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Priority Technology Holdings, Inc. Forms Special Committee to Evaluate Preliminary, Non-Binding Take Private Proposal

Nov -12

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.29%)

6. Segments

Small and Medium-size Business Payments

Expected Growth: 10%

Priority Technology Holdings, Inc.'s 10% growth in Small and Medium-size Business Payments is driven by increasing adoption of digital payment solutions, rising e-commerce transactions, and growing demand for efficient payment processing. Additionally, the company's expanding merchant network, strategic partnerships, and innovative product offerings also contribute to this growth.

Enterprise Payments

Expected Growth: 12%

Priority Technology Holdings, Inc.'s 12% growth in Enterprise Payments is driven by increasing adoption of digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovative payment processing technologies, such as tokenization and contactless payments, has contributed to its growth.

Business-to-business Payments

Expected Growth: 9%

Priority Technology Holdings, Inc.'s 9% growth in business-to-business payments is driven by increasing adoption of digital payment solutions, expansion into new industries, and strategic partnerships. Additionally, the company's focus on providing integrated payment platforms, robust security features, and seamless user experiences has contributed to its growth.

7. Detailed Products

Payment Processing

Priority Technology Holdings, Inc. offers payment processing services that enable businesses to accept and process payments securely and efficiently.

Merchant Services

Priority's merchant services provide businesses with the tools and support needed to manage their payment processing, including point-of-sale systems and online payment gateways.

Integrated Partnerships

Priority partners with software companies to integrate payment processing capabilities into their platforms, providing a seamless payment experience for their customers.

Commercial Payments

Priority's commercial payments solutions enable businesses to manage their accounts payable and accounts receivable processes, including virtual card payments and electronic invoicing.

Consumer Payments

Priority's consumer payments solutions provide individuals with convenient and secure payment options, including online bill pay and mobile payments.

8. Priority Technology Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Priority Technology Holdings, Inc. is medium due to the presence of alternative payment processing solutions.

Bargaining Power Of Customers

The bargaining power of customers for Priority Technology Holdings, Inc. is low due to the company's diversified customer base and lack of concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Priority Technology Holdings, Inc. is medium due to the presence of multiple suppliers and moderate switching costs.

Threat Of New Entrants

The threat of new entrants for Priority Technology Holdings, Inc. is high due to the relatively low barriers to entry in the payment processing industry.

Intensity Of Rivalry

The intensity of rivalry for Priority Technology Holdings, Inc. is high due to the presence of multiple competitors and high competition in the payment processing industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 85.21%
Debt Cost 3.95%
Equity Weight 14.79%
Equity Cost 8.70%
WACC 4.65%
Leverage 575.97%

11. Quality Control: Priority Technology Holdings, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 2.4

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Momentum: 8.0

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A-Score: 4.7/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.67$

Current Price

5.67$

Potential

-0.00%

Expected Cash-Flows