PRTH

Priority Technology Holdings, Inc. PRTH used its second-quarter call to reinforce confidence in revenue growth while sharpening expectations around profitability. Management maintained full-year guidance but now expects revenue near the high end of its range and adjusted gross profit and adjusted EBITDA near the low ends. The company reported adjusted earnings of $0.29, beating the Zacks Consensus Estimate of $0.28. Revenues of $262.3 million beat the consensus mark of $259 million. The more important call takeaway was the widening role of business mix in shaping margins. Priority Technology Holdings, Inc. price-consensus-eps-surprise-chart | Priority Technology Holdings, Inc. Quote Chief financial officer Tim O'Leary said that full-year revenue guidance remains $1.01-$1.04 billion, with performance expected toward the high end after strong first-half trends. O'Leary maintained adjusted gross profit guidance of $405-$425 million and adjusted EBITDA guidance of $230-$245 million, but expects both near the lower ends of those ranges. He tied that positioning to business mix, higher residual expenses, increased card network and interchange costs, and continued investment in newer vertical software assets and Priority Tech Ventures. O'Leary said that Payables revenues rose 21.6% to $30.4 million, while adjusted gross profit fell 10.4% to $6.5 million. Gross margin declined 760 basis points to 21.4%. In response to a KBW analyst, O'Leary said faster-growing buyer-funded revenue carries lower reported margins, while large enterprise customers are also entering at lower initial margin profiles. Treasury faces a similar mix effect. O'Leary said that Passport revenues grew more than 125% and Priority Tech Ventures almost 400%, with those businesses carrying 30% to 40% gross margins. He said Treasury gross margin will move closer to 80% over time as their mix increases. Merchant Solutions generated $175.8 million in revenues, up 7.7%, including 4.5% organic growth. O'Leary said total card volume increased 3.6% to $19.5 billion. He described strength in wholesale trade and parts of retail, while home furnishings, building materials, construction and restaurants remained softer year over year. During Q&A, O'Leary told a TD Cowen analyst that 3-4% organic growth remains an appropriate longer-term framework for Merchant Solutions, while current execution is running above that range. Chairman and CEO Thomas Priore said that Priority is using its connected commerce platform to combine payments and treasury tools through a single operating environment for customers. O'Leary said that management expects cross-selling to larger enterprise customers to help expand margins over time as clients add banking, treasury, acquiring and payables services. Priore also highlighted expansion in sports and automotive, including partnerships with the Pittsburgh Steelers and Texas Rangers and endorsements from 19 state automotive dealership associations. O'Leary said that quarter-end debt remained $1.02 billion, while available liquidity exceeded $220 million, including $120.3 million of cash and full availability under the $100 million revolving credit facility. Net leverage ended the quarter at 3.8 times, down from 4 times at the end of the first quarter. O'Leary said second-quarter free cash flow was $27.4 million. Management plans to prioritize further deleveraging through the rest of 2026 while continuing to evaluate tuck-in acquisitions in attractive verticals or new markets. Priore's closing message centered on continued execution of the Commerce Engine and API strategy, with vertical-specific applications intended to deepen payments and treasury relationships. O'Leary's outlook was more measured on profitability, keeping attention on mix-driven margin pressure even as management maintained confidence in second-half revenue trends. PRTH carries a Zacks Rank #3 (Hold), alongside a Value Score of A, a Growth Score of B, a Momentum Score of C and a VGM Score of A. The Zacks framework treats A and B Style Scores as more favorable, while the VGM Score combines value, growth and momentum characteristics. The A VGM and Value scores and B Growth score are favorable style indicators, while the C Momentum score is less strong. The Zacks Rank #3 is more neutral than the top-ranked Zacks Rank #1 (Strong Buy) and 2 (Buy) categories, and the Rank can change as earnings estimates are revised following the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Priority Technology Holdings, Inc. (PRTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Priority Technology Holdings, Inc.? Here are five stocks we like better. Priority Technology reported solid Q2 growth: Revenue rose 9% year over year to $262.3 million, while Adjusted EBITDA increased 6% to $59.4 million and adjusted EPS climbed 12% to $0.29. Customer accounts, transaction volume and balances under administration also grew. Payables and Treasury Solutions drove segment growth, with revenue increases of 21.6% and 14.9%, respectively. However, both segments faced margin pressure from customer mix shifts, lower-margin businesses and higher card-network and interchange costs. The company maintained its 2026 outlook and expects to finish near the high end of its $1.01 billion-$1.04 billion revenue range, but near the low ends of its Adjusted Gross Profit and EBITDA targets. Priority generated $27.4 million in quarterly free cash flow and reduced net leverage to 3.8 times while prioritizing further deleveraging. Priority Technology (NASDAQ:PRTH) reported second-quarter 2026 revenue and profit growth, supported by gains across its Merchant Solutions, Payables and Treasury Solutions businesses, while maintaining its full-year outlook. Chairman and Chief Executive Officer Tom Priore said the company generated second-quarter revenue of $262.3 million, up 9% from the prior-year period. Adjusted gross profit increased 8% to $99.9 million, while Adjusted EBITDA rose 6% to $59.4 million. Adjusted earnings per share increased 12% year over year to $0.29. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company ended the quarter with 1.8 million customer accounts on its commerce platform, an increase of nearly 13% from a year earlier. Annual transaction volume rose 8% to $151 billion, and average account balances under administration increased 26% to $1.8 billion. For the first six months of 2026, Priority reported revenue of $511.8 million, up 10% from the comparable period last year. Year-to-date adjusted gross profit rose 11% to $198.7 million and Adjusted EBITDA increased just over 9% to $117.5 million. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Chief Financial Officer Tim O’Leary said consolidated revenue increased 9.4% in the quarter, including 7.2% organic growth. Payables revenue increased 21.6%, Treasury Solutions revenue grew 14.9%, and Merchant Solutions revenue rose 7.7%, including 4.5% organic growth. O’Leary said Payables and Treasury Solutions represented 66% of total adjusted gross profit on an organic trailing-12-month basis. → Ulta's Growth Is Real, But So Are the Risks Merchant Solutions generated $175.8 million in second-quarter revenue, up $12.5 million from the prior year. The increase included organic growth as well as contributions from the Boom and DMS acquisitions completed in the second half of 2025. Total card volume in Merchant Solutions rose 3.6% to $19.5 billion. The company cited strength in wholesale trade and retail, including convenience stores, gas stations and food stores. Home furnishings and building materials declined, while construction and restaurants remained soft year over year, though construction and restaurant trends improved from the first quarter. Merchant Solutions adjusted gross profit increased 12.4% to $39.8 million, and adjusted gross margin rose by more than 100 basis points to 22.7%. O’Leary attributed the improvement to the Boom and DMS acquisitions, partly offset by higher residual expenses. Segment Adjusted EBITDA rose 11.3% to $30.9 million. Payables revenue increased 21.6% to $30.4 million. Buyer-funded revenue rose 26.3% to $25.3 million, while supplier-funded revenue increased 2.6% to $5.1 million. However, adjusted gross profit declined 10.4% to $6.9 million, and gross margin fell 760 basis points to 21.4%. O’Leary said the margin decline reflected a greater mix of larger enterprise customers with lower initial margin profiles, higher card-network and interchange expenses, and the increasing share of buyer-funded revenue. He said buyer-funded revenue is reported on a gross basis under GAAP because the company is the merchant of record, resulting in a lower reported gross margin. “As that business becomes a more and more meaningful portion of Payables on a revenue basis, it’s going to run at lower margins because of that accounting aspect,” O’Leary said during the question-and-answer session. Payables Adjusted EBITDA declined 17.5% to $3.1 million, primarily due to lower gross margin in the buyer-funded business. Treasury Solutions revenue increased 14.9% to $60.5 million. O’Leary cited stable, though slower, new enrollment trends in CFTPay; a 15% increase in billed clients to more than 1.1 million; a 30% increase in integrated partners; and growth from existing Passport program managers. Higher account balances in CFTPay and Passport more than offset lower interest rates compared with the prior-year quarter, according to the company. Treasury Solutions adjusted gross profit rose 7.7% to $53.6 million, while gross margin declined about 590 basis points to 88.5%. O’Leary said the margin pressure was driven by the growth of Passport and Priority Tech Ventures, which operate at lower gross margins than the CFTPay platform. Passport revenue increased more than 125% year over year, while Priority Tech Ventures revenue rose nearly 400%. “The CFTPay margins have remained very constant,” O’Leary said. “It’s a mix shift with Passport and Priority Tech Ventures broadly.” He said those newer Treasury Solutions businesses generally have gross margins in the 30% to 40% range, and that Treasury Solutions margins could move closer to 80% over time as those operations expand. Priority ended the quarter with $1.02 billion in debt and more than $220 million in available liquidity, including $120.3 million in cash and the full $100 million of borrowing capacity under its revolving credit facility. The company generated $27.4 million of free cash flow during the quarter. Net leverage was 3.8 times at June 30, down from four times at the end of the first quarter. O’Leary said Priority intends to focus on continued deleveraging during the remainder of 2026 while continuing to evaluate tuck-in acquisitions in attractive verticals or markets. Priority maintained its 2026 revenue guidance of $1.01 billion to $1.04 billion and said it expects to finish at the high end of that range. It also reaffirmed its adjusted gross profit outlook of $405 million to $425 million and Adjusted EBITDA outlook of $230 million to $245 million, while expecting results at the low end of both ranges. The company cited mix-related margin pressure across all three segments, higher residual expenses, increased card-network and interchange costs, and investment in Priority Tech Ventures. Priore added that Mastercard and Visa implemented interchange price increases during the quarter, creating additional cost-of-goods-sold pressure. Priore also highlighted new vertical-market activity, including the Pittsburgh Steelers as Priority Commerce Sports’ first National Football League franchise and the Texas Rangers in Major League Baseball. He said Priority Commerce Automotive is now endorsed by 19 state automotive dealership associations, with Florida and California recently announcing support. The company did not discuss or take questions regarding the special committee’s ongoing evaluation of a take-private proposal. Priority Technology Acquisition Corp is a special purpose acquisition company formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization or similar business combination with one or more businesses in the technology sector. As a blank-check company, it does not conduct any operations of its own and holds the proceeds from its initial public offering in a trust account pending the identification and completion of a business combination. The company’s management team is focused on evaluating target businesses that offer scalable technology products or services, including software, digital platforms and related infrastructure. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Priority Technology Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Priority Technology (PRTH) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.57%. A quarter ago, it was expected that this company would post earnings of $0.22 per share when it actually produced earnings of $0.28, delivering a surprise of +27.27%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Priority Technology, which belongs to the Zacks Technology Services industry, posted revenues of $262.26 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $239.81 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Priority Technology shares have added about 22.2% since the beginning of the year versus the S&P 500's gain of 12.8%. While Priority Technology has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Priority Technology was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $260.75 million in revenues for the coming quarter and $1.24 on $1.03 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Pixelworks (PXLW), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This maker of chips used in high-end digital video devices is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +80%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Pixelworks' revenues are expected to be $0.3 million, down 96.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Priority Technology Holdings, Inc. (PRTH) : Free Stock Analysis Report Pixelworks, Inc. (PXLW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter Performance Driven by Strength of Unified Commerce Platform ALPHARETTA, Ga., August 06, 2026--(BUSINESS WIRE)--Priority Technology Holdings, Inc. (NASDAQ: PRTH) ("Priority Commerce" or the "Company"), delivers payments and banking solutions that power connected commerce. Through a unified platform of payables, merchant services, and banking and treasury, Priority Commerce helps businesses manage money more effectively and unlock growth. The Priority Commerce Engine accelerates cash flow, improves working capital, reduces costs, and creates new revenue opportunities and today has announced its second quarter 2026 financial results including strong year-over-year revenue growth. Highlights of Consolidated Results and Additional Information1 Second Quarter 2026 Financial Highlights compared with Second Quarter 2025 Revenue of $262.3 million increased 9.4% from $239.8 million, including organic growth of 7.2% Gross profit of $94.4 million increased 7.9% from $87.5 million Adjusted gross profit (a non-GAAP measure2) of $99.9 million increased 8.1% from $92.4 million Gross profit margin of 36.0% decreased by nearly 50 basis points from 36.5% Adjusted gross profit margin (a non-GAAP measure2) of 38.1% decreased by nearly 40 basis points from 38.5% Operating income of $33.0 million decreased 11.8% from $37.4 million Net Income of $9.9 million decreased 9.3% from $10.9 million Adjusted EBITDA (a non-GAAP measure2) of $59.4 million increased 6.0% from $56.0 million Diluted EPS of $0.12 decreased by $0.02, or by 14.3%, from $0.14 Adjusted Diluted EPS (a non-GAAP measure2) of $0.29 increased by $0.03, or 11.5%, from $0.26 (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 (non-GAAP), and Adjusted EPS- diluted (non-GAAP) to their most comparable GAAP measures provided within this document for additional information. "Strong second quarter results reflect the continued success of Priority’s Connected Commerce engine, with over 9% revenue growth and 8% adjusted gross profit growth," said Tom Priore, Chairman & CEO of Priority. "The growing base of partners leveraging our platform for payments and treasury solutions to improve visibility into their financial environment with total command of their cashflow reinforces our belief in our vision for the future of commerce and confidence to affirm our full year 2026 financial guidance." Full Year 2026 Financial Guidance Priority Commerce's outlook remains strong and we affirm our full year 2026 guidance: Revenue forecast to range between $1.01 billion to $1.04 billion, a growth rate of 6% to 9% compared to fiscal 2025 results 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 The Company will host a conference call on Thursday, August 6, 2026 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=1770268&tp_key=a6ff1aab23 and will also be posted in the "Investor Relations" section of the Company's website at https://ir.prioritycommerce.com/. An audio replay of the call will be available shortly after the conference call until August 20, 2026, 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 10210738. 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: EBITDA and Adjusted EBITDA EBITDA and adjusted EBITDA are performance measures. EBITDA is earnings before interest, income tax, 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: Further detail of certain of these adjustments, and where these items are recorded in our consolidated statements of operations, is provided below: Adjusted Earnings 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 adjusted EPS is a measure that is useful to investors and management in understanding our ongoing profitability and in analysis of ongoing profitability trends. Priority Commerce 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 Commerce Priority Commerce delivers payments and banking solutions that power connected commerce. Through a unified platform of payables, merchant services, and banking and treasury, we help businesses manage money more effectively and unlock growth. The Priority Commerce Engine accelerates cash flow, improves working capital, reduces costs, and creates new revenue opportunities. Learn more about Priority Commerce (NASDAQ: PRTH) at 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806512383/en/ Contacts Priority Commerce Investor Inquiries: [email protected]

Priority Technology Holdings PRTH is slated to release second-quarter 2026 results on Aug. 6, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 28 cents and $259.0 million, respectively. While the consensus mark for second-quarter 2026 EPS has remained unchanged over the past 30 days, it suggests a 7.69% increase year over year. The Zacks Consensus Estimate for quarterly revenues implies a year-over-year jump of 8%.For the current year, the Zacks Consensus Estimate for Priority’s revenues is pegged at $1.03 billion, indicating a rise of 8.47% year over year. The consensus mark for 2026 EPS stands at $1.24, suggesting a 20.39% expansion from the year-ago period. Image Source: Zacks Investment Research Over the trailing four quarters, the company’s EPS surpassed the Zacks Consensus Estimate on two occasions for as many misses. This is depicted in the graph below: Priority Technology Holdings, Inc. price-eps-surprise | Priority Technology Holdings, Inc. Quote Our proven model does not conclusively predict an earnings beat for PRTH this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.PRTH has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Priority Technology’s second-quarter 2026 results are expected to show whether the strong start to the year carried into a seasonally stronger period. After first-quarter revenues rose 11% to $249.6 million, second-quarter revenue growth is expected to have been supported by steady payment activity, acquisition benefits and continued demand across payables and treasury services.Merchant Solutions may have benefited from strength in property management, auto, gas, grocery and retail activity. However, softer trends in restaurants, construction and legal services are likely to have weighed on organic growth. Higher equipment costs and tariffs could have hurt margins, though management previously described that exposure as limited.Payables is likely to have contributed another quarter of strong growth as larger enterprise customers increased domestic and cross-border activity. New client ramp-ups could have strengthened transaction volumes and operating leverage. Still, the continued shift toward buyer-funded revenues is likely to have affected margins in the quarter under review because that business carries lower reported gross margins.Treasury Solutions is expected to have supported profit growth through higher account balances, CFTPay enrollments, Passport activity and partner additions. These trends are expected to have improved revenue visibility. Lower interest rates may have constrained yield-related income, but balance growth is likely to have offset part of that pressure.Investors should also watch operating costs, free cash flow and leverage after net leverage improved to 4.0 times in March. Priority had maintained 2026 guidance for revenues of $1.01-$1.04 billion and adjusted EBITDA of $230-$245 million. The second quarter could confirm continued progress, although elevated debt, interest expense and uneven small-business demand remain key risks. Over the past three months, PRTH shares have rallied more than 27%, outperforming the industry as well as the S&P 500 composite. With respect to peers Shift4 Payments FOUR and Repay Holdings RPAY, the performance has been mixed. Shift4 Payments has risen 29.7% over this time frame, while Repay Holdings has gained 20%. Image Source: Zacks Investment Research PRTH’s rally has already priced in a lot of optimism, so the company needs to keep delivering strong quarters. The stock trades at 6.14X EV/EBITDA, while Shift4 Payments and Repay Holdings trade at 7.29X and 3.83X, respectively.PRTH: Valuation Image Source: Zacks Investment Research Priority Technology’s shift toward payables and treasury revenues could have strengthened earnings quality, while acquisition contributions and operating leverage may have supported EBITDA and free cash flow. Continued account growth and higher balances also suggest that the platform is gaining use among partners and customers. However, investors should weigh those upsides against elevated debt, interest expense and uneven demand within parts of Merchant Solutions. The buyer-funded payables mix is expected to have pressured margins, and lower rates could have limited Treasury Solutions profitability despite balance growth. The second quarter will matter most for evidence of cash generation, margin control and further leverage reduction. Until those measures improve consistently, the shares appear fairly positioned, supporting a neutral stance rather than a more aggressive commitment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Priority Technology Holdings, Inc. (PRTH) : Free Stock Analysis Report Repay Holdings Corporation (RPAY) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by the 'Connected Commerce' vision, which integrates merchant acquiring, payables, and treasury solutions into a single API-driven platform. The Payables segment outperformed due to a strategic shift upmarket, positioning the platform as a working capital solution for large enterprises seeking alternatives to traditional revolvers. Treasury Solutions growth was fueled by strong enrollment in CFTPay and a 28% year-over-year increase in integrated partners, enhancing the 'storage' component of the collect-store-send model. Management attributes consistent performance across economic cycles to the diversification of revenue sources and the ability to capture multi-party money movement within software environments. Operational efficiency improved through cost discipline and the realization of synergies from 2025 acquisitions, specifically BoomCommerce and DMS. The company is intentionally focusing on segments where storing money is critical, as higher account balances create recurring earning streams for both Priority and its partners. Full-year 2026 guidance is maintained with revenue expected between $1.01 billion and $1.04 billion, supported by high visibility into segment performance. Management expects a continued mix shift toward Payables and Treasury Solutions, which will likely drive further expansion of consolidated gross margins. The financial framework assumes a consistent quarterly progression, with EBITDA growth expected to accelerate in the latter half of the year to meet the $230 million to $245 million target range. Strategic focus remains on embedding commerce and finance solutions into SaaS provider workflows to address the increasing demand for unified business management tools. The company anticipates that the storage of funds within its network will act as a substantial catalyst for recurring revenue growth in future periods. Merchant Solutions margins were partially offset by higher-than-normal credit losses during the first quarter. Payables gross margins declined by 210 basis points due to a revenue mix shift toward buyer-funded revenues, which require gross versus net GAAP reporting. SG&A expenses increased 27.4% year-over-year, driven by higher cloud and software costs alongside nonrecurring legal and transaction-related expenses. Management noted that while some POS equipment saw price increases due to tariffs, the impact was mitigated by proactive equipment purchases and represents a small portion of total revenue. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is resulting from moving upmarket to serve larger organizations with domestic and cross-border working capital needs. Management noted that these large enterprise relationships are now fully integrated and contributing to volume after a period of onboarding. Management clarified that margin dynamics are driven by payment commoditization and mix shifts rather than hardware or memory chip costs. The company mitigated potential tariff impacts on POS equipment through early inventory purchases before price increases took effect. Softness persists in restaurants, construction, and legal services, though restaurant declines have moderated compared to previous quarters. Strength was observed in real estate, which management attributed to market share gains in property management solutions rather than overall market growth. Retail trade, specifically auto and gas, benefited from inflationary factors and higher gas prices.

This article first appeared on GuruFocus. Revenue: $249.6 million, increased 11% year-over-year. Adjusted Gross Profit: $98.8 million, up 13% year-over-year. Adjusted EBITDA: $58.1 million, up 13% year-over-year. Adjusted EPS: Increased by 27% to $0.28. Adjusted Gross Profit Margin: 39.6%, increased 70 basis points from the prior year. Total Customer Accounts: 1.8 million, up 50,000 from the end of 2025. Annual Transaction Volume: $153 billion, increased by $3 billion from year-end. Average Account Balances Under Administration: Improved by over $100 million to $1.8 billion. Merchant Solutions Revenue: $161.8 million, up 6.7% year-over-year. Payables Segment Revenue: $32.4 million, up 35.6% year-over-year. Treasury Solutions Revenue: $58.8 million, up 17.5% year-over-year. Free Cash Flow: $28 million for the quarter. Net Leverage: 4 times at quarter end, down from 4.2 times at the end of Q4. Debt: $1.02 billion at the end of the quarter. Available Liquidity: Over $192 million, including $100 million of borrowing capacity and $92.2 million of cash. Warning! GuruFocus has detected 8 Warning Signs with PRTH. Is PRTH fairly valued? Test your thesis with our free DCF calculator. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Priority Technology Holdings Inc (NASDAQ:PRTH) reported strong growth in both revenue and profits for the first quarter, with net revenue increasing by 11% year-over-year. The company achieved a 13% growth in adjusted gross profit and adjusted EBITDA, reflecting solid financial performance. Adjusted EPS increased by 27% year-over-year, indicating improved profitability. The company ended the first quarter with 1.8 million total customer accounts, up by 50,000 from the end of 2025, showcasing customer growth. The Payables and Treasury Solutions segments showed robust growth, with payables growing by 35.6% and Treasury Solutions by 17.5% year-over-year. Merchant Solutions saw a decline in the number of merchant accounts, averaging 175,000 during the quarter, down from 178,000 last year. The Payables segment experienced a decline in gross margins by 210 basis points compared to last year's first quarter due to revenue mix shifts. The Treasury Solutions segment's gross margins decreased by 370 basis points year-over-year due to a mix shift in revenue sources. Operating expenses increased, with salaries and benefits rising by 10.7% year-over-year, driven by stock compensation and acquisition-related headcount additions. SG&A expenses increased by 27.4% year-over-year due to higher cloud and software expenses and non-recurring legal and transaction-related costs. Q: Can you elaborate on the strong growth in the payables segment and if there are any one-time factors affecting this growth? A: Thomas Priore, CEO, explained that the growth is due to moving upmarket, targeting larger organizations using the platform for domestic and cross-border opportunities. This is seen as a viable working capital solution, and there are no one-time factors affecting this growth. Q: Are there any concerns about margin pressure due to higher memory chip costs for hardware, and is this accounted for in the outlook? A: Thomas Priore, CEO, stated that while there is always a focus on costs, the margin pressure is not hardware-related. The company is comfortable mitigating these pressures through its platform's breadth, which includes payables and treasury tools. Q: How do you see the quarterly EBITDA cadence for the rest of the year? A: Tim O'Leary, CFO, indicated that the pattern will be consistent with continued growth in the business, benefiting from last year's acquisitions and strong organic performance. The guidance suggests growth in EBITDA throughout the year. Q: Is there a ceiling for the recurring revenue from payables and treasury, and can it expand further? A: Tim O'Leary, CFO, believes the recurring revenue will continue to expand, driven by strong growth in payables and treasury solutions. The focus on segments where storing money is crucial will further catalyze this growth. Q: What are the macro trends in the merchant segment, and what is a reasonable expectation for card volume growth? A: Tim O'Leary, CFO, noted consistent trends with some softness in restaurants and construction, but strength in real estate and retail trade. The card volume growth is expected to remain in the low single-digit organic range. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Priority Technology (PRTH) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +27.27%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.27, delivering a surprise of -6.9%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Priority Technology, which belongs to the Zacks Technology Services industry, posted revenues of $249.56 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.83%. This compares to year-ago revenues of $224.63 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Priority Technology shares have added about 3.1% since the beginning of the year versus the S&P 500's gain of 8.1%. While Priority Technology has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Priority Technology was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $259 million in revenues for the coming quarter and $1.17 on $1.02 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Fathom Holdings (FTHM), another stock in the same industry, has yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +72.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Fathom Holdings' revenues are expected to be $93.7 million, up 0.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Priority Technology Holdings, Inc. (PRTH) : Free Stock Analysis Report Fathom Holdings Inc. (FTHM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research