Strong Second Quarter Growth Driven by Performance Across Unified Commerce Platform
Priority Technology Holdings, Inc. (NASDAQ: PRTH) ("Priority" or the "Company"), the payments and banking solution that streamlines collecting, storing, lending, and sending money to unlock revenue opportunities, today announced its second quarter 2025 financial results including strong year-over-year diversified revenue growth.
"Our strong second quarter results reflect the continued success of Priority's Connected Commerce platform, with over 9% revenue growth and 13% adjusted gross profit growth," said Tom Priore, Chairman & CEO of Priority. "Importantly, our ability to connect payments and banking solutions across our diverse business segments delivered over 30% growth in adjusted gross profit for B2B and over 20% growth in Enterprise, while adjusted gross profit from recurring revenue represents 62% of total. This strong momentum and high level of visibility gives us confidence to raise the low end of our full-year revenue guidance to $970 million and narrow our adjusted EBITDA guidance range to $222.5-$227.5 million. Priority is uniquely positioned to capitalize on the accelerating trend toward embedded finance as businesses increasingly seek comprehensive payment and banking solutions from a single platform.”
Highlights of Consolidated Results1
Second Quarter 2025 Financial Highlights compared with Second Quarter 2024
- Revenue of $239.8 million increased 9.1% from $219.9 million
- Adjusted gross profit (a non-GAAP measure2) of $92.4 million increased 13.0% from $81.7 million
- Adjusted gross profit margin (a non-GAAP measure2) of 38.5% increased 135 basis points from 37.2%
- Operating income of $37.4 million increased 12.6% from $33.2 million
- Adjusted EBITDA (a non-GAAP measure2) of $56.0 million increased 8.7% from $51.6 million
- Adjusted EPS (a non-GAAP measure2) of $0.26 increased by $0.15, or 136.4%, from $0.11
(1) |
|
Certain amounts/percentages may not compute accurately due to rounding. |
(2) |
|
See "Non-GAAP Financial Measures" and the reconciliations of Adjusted Gross Profit (non-GAAP), Adjusted Gross Profit Margin (non-GAAP), Adjusted EBITDA, and Adjusted EPS (non-GAAP) to their most comparable GAAP measures provided within this document for additional information. |
Full Year 2025 Financial Guidance
Priority's outlook remains strong, and we are adjusting our full year 2025 guidance to reflect narrower ranges around the midpoint of our original full year guidance. We anticipate an acceleration of organic growth in the second half of 2025 based on timing of sales pipeline, the impact of year over year comparatives, and moderating headwinds in certain areas from the first half of 2025 that offset strong growth in core operating performance. The adjusted full year 2025 guidance is as follows:
- Revenue forecast to range between $970 million to $990 million, a growth rate of 10.2% to 12.5%, compared to fiscal 2024 results. This ranges compares to original full year 2025 guidance of $965 million to $1 billion.
- Adjusted gross profit (a non-GAAP measure) forecast to range between $365 million and $380 million, which compares to the original full year 2025 guidance range of $360 million to $385 million.
- Adjusted EBITDA (a non-GAAP measure) forecast to range between $222.5 million to $227.5 million, which compares to the original full year 2025 guidance range of $220 million to $230 million.
Conference Call
The Company will host a conference call on Thursday, August 7, 2025 at 10:00 a.m. EDT to discuss its second quarter 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=1725531&tp_key=078fc7a00a and will also be posted in the "Investor Relations" section of the Company's website at www.prioritycommerce.com/investors.
An audio replay of the call will be available shortly after the conference call until August 21, 2025, at 11:59 p.m. EDT. To listen to the audio replay, dial (844) 512-2921 or (412) 317-6671 and enter conference ID number 10200777. Alternatively, you may access the webcast replay in the "Investor Relations" section of the Company's website at https://ir.prioritycommerce.com/.
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.
Adjusted Gross Profit and Adjusted Gross Profit Margin
The Company's adjusted gross profit metric represents revenues less cost of revenue (excluding 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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenues |
$ |
239,812 |
|
|
$ |
219,867 |
|
|
$ |
464,442 |
|
|
$ |
425,586 |
|
Cost of revenue (excluding depreciation and amortization) |
|
(147,399 |
) |
|
|
(138,118 |
) |
|
|
(284,752 |
) |
|
|
(267,416 |
) |
Adjusted gross profit |
$ |
92,413 |
|
|
$ |
81,749 |
|
|
$ |
179,690 |
|
|
$ |
158,170 |
|
Adjusted gross profit margin |
|
38.5 |
% |
|
|
37.2 |
% |
|
|
38.7 |
% |
|
|
37.2 |
% |
Depreciation and amortization of revenue generating assets |
|
(4,911 |
) |
|
|
(3,941 |
) |
|
|
(9,597 |
) |
|
|
(7,842 |
) |
Gross profit |
$ |
87,502 |
|
|
$ |
77,808 |
|
|
$ |
170,093 |
|
|
$ |
150,328 |
|
Gross profit margin |
|
36.5 |
% |
|
|
35.4 |
% |
|
|
36.6 |
% |
|
|
35.3 |
% |
EBITDA and Adjusted EBITDA
EBITDA and adjusted EBITDA are performance measures. EBITDA is earnings before interest, 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 June 30, |
|
Six Months Ended June 30, |
||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Net income |
$ |
10,879 |
|
$ |
994 |
|
$ |
19,147 |
|
$ |
6,187 |
Interest expense |
|
23,054 |
|
|
21,710 |
|
|
46,230 |
|
|
42,590 |
Income tax expense |
|
4,423 |
|
|
2,515 |
|
|
6,673 |
|
|
5,097 |
Depreciation and amortization |
|
14,093 |
|
|
15,244 |
|
|
27,870 |
|
|
30,497 |
EBITDA |
|
52,449 |
|
|
40,463 |
|
|
99,920 |
|
|
84,371 |
Debt modification and extinguishment expenses |
|
— |
|
|
8,623 |
|
|
38 |
|
|
8,623 |
Selling, general and administrative (non-recurring) |
|
395 |
|
|
636 |
|
|
2,594 |
|
|
1,435 |
Non-cash stock-based compensation |
|
3,206 |
|
|
1,829 |
|
|
4,792 |
|
|
3,462 |
Adjusted EBITDA |
$ |
56,050 |
|
$ |
51,551 |
|
$ |
107,344 |
|
$ |
97,891 |
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 June 30, |
|
Six Months Ended June 30, |
|||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||
Selling, general and administrative expenses (non-recurring): |
|
|
|
|
|
|
|
|||||
Certain legal fees |
|
314 |
|
|
204 |
|
|
1,610 |
|
|
|
654 |
Professional, accounting and consulting fees |
|
64 |
|
|
310 |
|
|
1,108 |
|
|
|
499 |
Other expenses, net |
|
17 |
|
|
122 |
|
|
36 |
|
|
|
282 |
Litigation settlement |
|
— |
|
|
— |
|
|
(160 |
) |
|
|
— |
|
$ |
395 |
|
$ |
636 |
|
$ |
2,594 |
|
|
$ |
1,435 |
Adjusted Earnings Per Share (Adjusted EPS)
Adjusted EPS is a performance measure. Adjusted EPS is calculated by dividing adjusted net income (loss) 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 (loss) 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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Reconciliation of Adjusted EPS |
||||||||||||||||
Net income (loss) attributable to common shareholders |
|
$ |
10,879 |
|
|
$ |
(17,629 |
) |
|
$ |
19,147 |
|
|
$ |
(25,679 |
) |
Accelerated accretion expense and excise tax attributable to redeemable senior preferred stockholders |
|
|
— |
|
|
|
9,549 |
|
|
|
— |
|
|
|
9,549 |
|
Debt extinguishment and modification costs |
|
|
— |
|
|
|
8,623 |
|
|
|
38 |
|
|
|
8,623 |
|
Stock based compensation |
|
|
3,206 |
|
|
|
1,829 |
|
|
|
4,792 |
|
|
|
3,462 |
|
Other non-recurring expenses |
|
|
395 |
|
|
|
636 |
|
|
|
2,594 |
|
|
|
1,435 |
|
Amortization of acquisition related intangible assets |
|
|
9,417 |
|
|
|
11,425 |
|
|
|
18,731 |
|
|
|
23,117 |
|
Tax impact of adjustments(1) |
|
|
(3,244 |
) |
|
|
(5,855 |
) |
|
|
(6,800 |
) |
|
|
(9,526 |
) |
Adjusted net income attributable to common share holders |
|
$ |
20,653 |
|
|
$ |
8,578 |
|
|
$ |
38,502 |
|
|
$ |
10,981 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding (basic) |
|
|
78,981 |
|
|
|
77,736 |
|
|
|
78,878 |
|
|
|
77,878 |
|
Effect of dilutive potential common shares |
|
|
856 |
|
|
|
403 |
|
|
|
1,090 |
|
|
|
302 |
|
Weighted average common shares outstanding (diluted) |
|
|
79,837 |
|
|
|
78,139 |
|
|
|
79,968 |
|
|
|
78,180 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.14 |
|
|
$ |
(0.23 |
) |
|
$ |
0.24 |
|
|
$ |
(0.33 |
) |
Diluted |
|
$ |
0.14 |
|
|
$ |
(0.23 |
) |
|
$ |
0.24 |
|
|
$ |
(0.33 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per common share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.26 |
|
|
$ |
0.11 |
|
|
$ |
0.49 |
|
|
$ |
0.14 |
|
Diluted |
|
$ |
0.26 |
|
|
$ |
0.11 |
|
|
$ |
0.48 |
|
|
$ |
0.14 |
|
(1) The tax impact calculated using the blended statutory income tax rate (i.e. 26.0% for three and six months ended June 30, 2025 and 2024) |
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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.
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 services, and banking 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 2025 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 6, 2025. 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.
Priority Technology Holdings, Inc. |
|||||||||||||||
Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) |
|||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenues |
$ |
239,812 |
|
|
$ |
219,867 |
|
|
$ |
464,442 |
|
|
$ |
425,586 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Cost of revenue (excludes depreciation and amortization) |
|
147,399 |
|
|
|
138,118 |
|
|
|
284,752 |
|
|
|
267,416 |
|
Salary and employee benefits |
|
27,060 |
|
|
|
22,119 |
|
|
|
52,835 |
|
|
|
44,269 |
|
Depreciation and amortization |
|
14,093 |
|
|
|
15,244 |
|
|
|
27,870 |
|
|
|
30,497 |
|
Selling, general and administrative |
|
13,910 |
|
|
|
11,212 |
|
|
|
29,010 |
|
|
|
22,207 |
|
Total operating expenses |
|
202,462 |
|
|
|
186,693 |
|
|
|
394,467 |
|
|
|
364,389 |
|
Operating income |
|
37,350 |
|
|
|
33,174 |
|
|
|
69,975 |
|
|
|
61,197 |
|
Other (expense) income |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(23,054 |
) |
|
|
(21,710 |
) |
|
|
(46,230 |
) |
|
|
(42,590 |
) |
Debt extinguishment and modification costs |
|
— |
|
|
|
(8,623 |
) |
|
|
(38 |
) |
|
|
(8,623 |
) |
Other income, net |
|
1,006 |
|
|
|
668 |
|
|
|
2,113 |
|
|
|
1,300 |
|
Total other expense, net |
|
(22,048 |
) |
|
|
(29,665 |
) |
|
|
(44,155 |
) |
|
|
(49,913 |
) |
Income before income taxes |
|
15,302 |
|
|
|
3,509 |
|
|
|
25,820 |
|
|
|
11,284 |
|
Income tax expense |
|
4,423 |
|
|
|
2,515 |
|
|
|
6,673 |
|
|
|
5,097 |
|
Net income |
|
10,879 |
|
|
|
994 |
|
|
|
19,147 |
|
|
|
6,187 |
|
Less: Dividends and accretion attributable to redeemable senior preferred stockholders |
|
— |
|
|
|
(18,565 |
) |
|
|
— |
|
|
|
(31,227 |
) |
Less: Return on redeemable NCI |
|
— |
|
|
|
(58 |
) |
|
|
— |
|
|
|
(639 |
) |
Net income (loss) attributable to common stockholders |
|
10,879 |
|
|
|
(17,629 |
) |
|
$ |
19,147 |
|
|
$ |
(25,679 |
) |
Other comprehensive income (loss) |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
217 |
|
|
|
4 |
|
|
|
260 |
|
|
|
(9 |
) |
Comprehensive income (loss) |
$ |
11,096 |
|
|
$ |
(17,625 |
) |
|
$ |
19,407 |
|
|
$ |
(25,688 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.14 |
|
|
$ |
(0.23 |
) |
|
$ |
0.24 |
|
|
$ |
(0.33 |
) |
Diluted |
$ |
0.14 |
|
|
$ |
(0.23 |
) |
|
$ |
0.24 |
|
|
$ |
(0.33 |
) |
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per common share(1): |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.26 |
|
|
$ |
0.11 |
|
|
$ |
0.49 |
|
|
$ |
0.14 |
|
Diluted |
$ |
0.26 |
|
|
$ |
0.11 |
|
|
$ |
0.48 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
78,981 |
|
|
|
77,736 |
|
|
|
78,878 |
|
|
|
77,878 |
|
Diluted |
|
79,837 |
|
|
|
77,736 |
|
|
|
79,968 |
|
|
|
77,878 |
|
(1) Adjusted EPS in a non-GAAP earnings measure. See Adjusted EPS reconciliation for further detail. |
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Priority Technology Holdings, Inc. |
|||||||
Unaudited Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
|
June 30, 2025 |
|
December 31, 2024 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
50,564 |
|
|
$ |
58,600 |
|
Restricted cash |
|
14,205 |
|
|
|
11,090 |
|
Accounts receivable, net of allowances |
|
86,029 |
|
|
|
67,969 |
|
Prepaid expenses and other current assets |
|
25,870 |
|
|
|
22,990 |
|
Current portion of notes receivable, net of allowance |
|
3,283 |
|
|
|
3,638 |
|
Settlement assets |
|
1,125,934 |
|
|
|
940,798 |
|
Total current assets |
|
1,305,885 |
|
|
|
1,105,085 |
|
Notes receivable, less current portion |
|
6,704 |
|
|
|
4,919 |
|
Property, equipment and software, net |
|
57,529 |
|
|
|
52,477 |
|
Goodwill |
|
382,497 |
|
|
|
376,091 |
|
Intangible assets, net |
|
225,035 |
|
|
|
240,874 |
|
Deferred income taxes, net |
|
27,015 |
|
|
|
24,697 |
|
Other noncurrent assets |
|
22,755 |
|
|
|
22,717 |
|
Total assets |
$ |
2,027,420 |
|
|
|
1,826,860 |
|
Liabilities, Stockholders' Deficit and NCI |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
53,692 |
|
|
$ |
62,149 |
|
Accrued residual commissions |
|
40,526 |
|
|
|
37,560 |
|
Customer deposits and advance payments |
|
3,433 |
|
|
|
2,246 |
|
Current portion of long-term debt |
|
4,254 |
|
|
|
9,503 |
|
Settlement obligations |
|
1,127,266 |
|
|
|
940,213 |
|
Total current liabilities |
|
1,229,171 |
|
|
|
1,051,671 |
|
Long-term debt, net of current portion, discounts and debt issuance costs |
|
917,017 |
|
|
|
920,888 |
|
Other noncurrent liabilities |
|
25,366 |
|
|
|
19,326 |
|
Total liabilities |
|
2,171,554 |
|
|
|
1,991,885 |
|
Stockholders' deficit: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
80 |
|
|
|
77 |
|
Treasury stock, at cost |
|
(21,921 |
) |
|
|
(19,607 |
) |
Additional paid-in capital |
|
3,629 |
|
|
|
— |
|
Accumulated other comprehensive loss |
|
84 |
|
|
|
(176 |
) |
Accumulated deficit |
|
(127,987 |
) |
|
|
(147,134 |
) |
Total stockholders' deficit attributable to stockholders of Priority |
|
(146,115 |
) |
|
|
(166,840 |
) |
Non-controlling interests in consolidated subsidiaries |
|
1,981 |
|
|
|
1,815 |
|
Total stockholders' deficit |
|
(144,134 |
) |
|
|
(165,025 |
) |
Total liabilities, stockholders' deficit and NCI |
$ |
2,027,420 |
|
|
$ |
1,826,860 |
|
Priority Technology Holdings, Inc. |
|||||||
Unaudited Consolidated Statements of Cash Flows |
|||||||
(in thousands) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2025 |
|
2024 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
19,147 |
|
|
$ |
6,187 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of assets |
|
27,870 |
|
|
|
30,497 |
|
Stock-based, ESPP and incentive units compensation |
|
4,792 |
|
|
|
3,462 |
|
Amortization of debt issuance costs and discounts |
|
882 |
|
|
|
1,824 |
|
Debt extinguishment and modification costs |
|
38 |
|
|
|
8,623 |
|
Deferred income tax |
|
(2,318 |
) |
|
|
(3,023 |
) |
Change in deferred consideration |
|
2,039 |
|
|
|
2,213 |
|
Other non-cash items, net |
|
(228 |
) |
|
|
(929 |
) |
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(17,912 |
) |
|
|
(7,145 |
) |
Prepaid expenses and other current assets |
|
(2,312 |
) |
|
|
(1,148 |
) |
Income taxes (receivable) payable |
|
(339 |
) |
|
|
(5,037 |
) |
Notes receivable |
|
— |
|
|
|
(584 |
) |
Accounts payable and accrued expenses |
|
(6,810 |
) |
|
|
10,225 |
|
Accrued residuals commissions |
|
2,966 |
|
|
|
3,066 |
|
Customer deposits and advance payments |
|
1,187 |
|
|
|
(365 |
) |
Other noncurrent assets and liabilities, net |
|
(1,922 |
) |
|
|
(5,859 |
) |
Net cash provided by operating activities |
|
27,080 |
|
|
|
42,007 |
|
Cash flows from investing activities: |
|
|
|
||||
Acquisition of business, net of cash acquired |
|
(4,452 |
) |
|
|
— |
|
Additions to property, equipment and software |
|
(12,988 |
) |
|
|
(11,718 |
) |
Notes receivable, net |
|
(1,430 |
) |
|
|
(1,406 |
) |
Acquisitions of assets and other investing activities |
|
(2,275 |
) |
|
|
(7,474 |
) |
Net cash used in investing activities |
|
(21,145 |
) |
|
|
(20,598 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net of issue discount |
|
— |
|
|
|
830,200 |
|
Debt issuance and modification costs paid |
|
(40 |
) |
|
|
(7,555 |
) |
Repayments of long-term debt |
|
(10,000 |
) |
|
|
(654,372 |
) |
Redemption of PHOT redeemable NCI |
|
— |
|
|
|
(2,130 |
) |
Repurchases of shares withheld for taxes |
|
(2,314 |
) |
|
|
(604 |
) |
Redemption of senior preferred stock |
|
— |
|
|
|
(136,936 |
) |
Redemption of accumulated unpaid dividend on redeemable senior preferred stock |
|
— |
|
|
|
(30,819 |
) |
Dividends paid to redeemable senior preferred stockholders |
|
— |
|
|
|
(16,393 |
) |
Proceeds from exercise of stock options |
|
334 |
|
|
|
— |
|
Settlement obligations, net |
|
190,863 |
|
|
|
40,914 |
|
Payment of deferred/contingent consideration related to business combination |
|
(752 |
) |
|
|
(4,156 |
) |
Net cash provided by financing activities |
|
178,091 |
|
|
|
18,149 |
|
Net change in cash and cash equivalents and restricted cash: |
|
|
|
||||
Net increase in cash and cash equivalents, and restricted cash |
|
184,026 |
|
|
|
39,558 |
|
Cash and cash equivalents and restricted cash at beginning of period |
|
993,864 |
|
|
|
796,223 |
|
Cash and cash equivalents and restricted cash at end of period |
$ |
1,177,890 |
|
|
$ |
835,781 |
|
|
|
|
|
||||
Reconciliation of cash and cash equivalents, and restricted cash: |
|
|
|
||||
Cash and cash equivalents |
$ |
50,564 |
|
|
$ |
34,626 |
|
Restricted cash |
|
14,205 |
|
|
|
12,625 |
|
Cash and cash equivalents included in settlement assets (restricted in nature) |
|
1,113,121 |
|
|
|
788,530 |
|
Total cash and cash equivalents, and restricted cash |
$ |
1,177,890 |
|
|
$ |
835,781 |
|
Priority Technology Holdings, Inc. |
|||||||||||
Unaudited Reportable Segments' Results |
|||||||||||
(in thousands) |
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
SMB Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
163,230 |
|
$ |
155,101 |
|
$ |
314,920 |
|
$ |
299,105 |
Adjusted EBITDA |
$ |
27,749 |
|
$ |
28,597 |
|
$ |
53,454 |
|
$ |
53,620 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
Merchant bankcard processing dollar value |
$ |
16,150,363 |
|
$ |
15,801,626 |
|
$ |
31,444,496 |
|
$ |
30,579,730 |
Merchant bankcard transaction count |
|
205,530 |
|
|
193,841 |
|
|
391,068 |
|
|
369,069 |
Total card processing dollar value |
$ |
18,667,898 |
|
$ |
18,253,900 |
|
$ |
36,353,389 |
|
$ |
35,352,661 |
|
|
|
|
|
|
|
|
||||
B2B Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
25,033 |
|
$ |
21,881 |
|
$ |
48,951 |
|
$ |
43,225 |
Adjusted EBITDA |
$ |
3,770 |
|
$ |
1,530 |
|
$ |
7,286 |
|
$ |
3,276 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
B2B issuing dollar volume |
$ |
220,227 |
|
$ |
249,454 |
|
$ |
457,517 |
|
$ |
477,266 |
B2B issuing transaction count |
|
223 |
|
|
242 |
|
|
434 |
|
|
482 |
|
|
|
|
|
|
|
|
||||
Enterprise Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
52,658 |
|
$ |
43,670 |
|
$ |
102,746 |
|
$ |
84,660 |
Adjusted EBITDA |
$ |
45,558 |
|
$ |
37,244 |
|
$ |
88,001 |
|
$ |
71,971 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
Average CFTPay billed clients |
|
992,279 |
|
|
762,873 |
|
|
966,371 |
|
|
733,380 |
Average CFTPay monthly new enrollments |
|
57,818 |
|
|
55,416 |
|
|
56,882 |
|
|
54,484 |
Priority Technology Holdings, Inc. |
||||||||||||||||||||
Unaudited Reportable Segments' Results |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
|
|
Three Months Ended June 30, 2025 |
||||||||||||||||||
|
|
SMB
|
|
B2B
|
|
Enterprise
|
|
Corporate |
|
Total
|
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
27,749 |
|
|
$ |
3,770 |
|
|
$ |
45,558 |
|
|
$ |
(21,027 |
) |
|
$ |
56,050 |
|
Interest expense |
|
|
— |
|
|
|
(790 |
) |
|
|
(243 |
) |
|
|
(22,021 |
) |
|
|
(23,054 |
) |
Depreciation and amortization |
|
|
(6,633 |
) |
|
|
(1,262 |
) |
|
|
(4,941 |
) |
|
|
(1,257 |
) |
|
|
(14,093 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(395 |
) |
|
|
(395 |
) |
Non-cash stock based compensation |
|
|
5 |
|
|
|
(84 |
) |
|
|
(33 |
) |
|
|
(3,094 |
) |
|
|
(3,206 |
) |
Income (loss) before taxes |
|
$ |
21,121 |
|
|
$ |
1,634 |
|
|
$ |
40,341 |
|
|
$ |
(47,794 |
) |
|
$ |
15,302 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
(4,423 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
|
$ |
10,879 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Six Months Ended June 30, 2025 |
||||||||||||||||||
|
|
SMB
|
|
B2B
|
|
Enterprise
|
|
Corporate |
|
Total
|
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
53,454 |
|
|
$ |
7,286 |
|
|
$ |
88,001 |
|
|
$ |
(41,397 |
) |
|
$ |
107,344 |
|
Interest expense |
|
|
— |
|
|
|
(1,796 |
) |
|
|
(243 |
) |
|
|
(44,191 |
) |
|
|
(46,230 |
) |
Depreciation and amortization |
|
|
(13,258 |
) |
|
|
(2,523 |
) |
|
|
(9,583 |
) |
|
|
(2,506 |
) |
|
|
(27,870 |
) |
Debt modification and extinguishment expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(38 |
) |
|
|
(38 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,594 |
) |
|
|
(2,594 |
) |
Non-cash stock based compensation |
|
|
1 |
|
|
|
(168 |
) |
|
|
(65 |
) |
|
|
(4,560 |
) |
|
|
(4,792 |
) |
Income (loss) before taxes |
|
$ |
40,197 |
|
|
$ |
2,799 |
|
|
$ |
78,110 |
|
|
$ |
(95,286 |
) |
|
$ |
25,820 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
(6,673 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
|
$ |
19,147 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended June 30, 2024 |
||||||||||||||||||
|
|
SMB
|
|
B2B
|
|
Enterprise
|
|
Corporate |
|
Total
|
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
28,597 |
|
|
$ |
1,530 |
|
|
$ |
37,244 |
|
|
$ |
(15,820 |
) |
|
$ |
51,551 |
|
Interest expense |
|
|
— |
|
|
|
(1,241 |
) |
|
|
— |
|
|
|
(20,469 |
) |
|
|
(21,710 |
) |
Depreciation and amortization |
|
|
(8,541 |
) |
|
|
(1,261 |
) |
|
|
(4,087 |
) |
|
|
(1,355 |
) |
|
|
(15,244 |
) |
Debt modification and extinguishment expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,623 |
) |
|
|
(8,623 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(636 |
) |
|
|
(636 |
) |
Non-cash stock based compensation |
|
|
(4 |
) |
|
|
(109 |
) |
|
|
(32 |
) |
|
|
(1,684 |
) |
|
|
(1,829 |
) |
Income (loss) before taxes |
|
$ |
20,052 |
|
|
$ |
(1,081 |
) |
|
$ |
33,125 |
|
|
$ |
(48,587 |
) |
|
$ |
3,509 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
(2,515 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
|
$ |
994 |
|
||||||||
|
|
Six Months Ended June 30, 2024 |
||||||||||||||||||
|
|
SMB
|
|
B2B
|
|
Enterprise
|
|
Corporate |
|
Total
|
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
53,620 |
|
|
$ |
3,276 |
|
|
$ |
71,971 |
|
|
$ |
(30,976 |
) |
|
$ |
97,891 |
|
Interest expense |
|
|
— |
|
|
|
(2,214 |
) |
|
|
— |
|
|
|
(40,376 |
) |
|
|
(42,590 |
) |
Depreciation and amortization |
|
|
(17,127 |
) |
|
|
(2,731 |
) |
|
|
(8,126 |
) |
|
|
(2,513 |
) |
|
|
(30,497 |
) |
Debt modification and extinguishment expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,623 |
) |
|
|
(8,623 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,435 |
) |
|
|
(1,435 |
) |
Non-cash stock based compensation |
|
|
(8 |
) |
|
|
(227 |
) |
|
|
(65 |
) |
|
|
(3,162 |
) |
|
|
(3,462 |
) |
Income (loss) before taxes |
|
$ |
36,485 |
|
|
$ |
(1,896 |
) |
|
$ |
63,780 |
|
|
$ |
(87,085 |
) |
|
$ |
11,284 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
(5,097 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
|
$ |
6,187 |
|
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250807401973/en/
Contacts
Priority Investor Inquiries:
priorityIR@icrinc.com