10-Q · May 11, 2026
Priority Technology Holdings, Inc. reported Q1 2026 earnings with revenue of $249.6 million, up 11.1% from $224.6 million last year, driven by growth in merchant solutions and payables segments. Diluted EPS declined to…
PRTH earnings analysis
10-Q · Filed November 5, 2026 · Our reading of the company's report
The latest report
Priority delivered strong third-quarter revenue growth, with revenue up 11.3% to $268.623 million and Adjusted EBITDA up 5.5% to $60.926 million, led by growth across all three operating segments. However, gross margin…
Read full summary
Priority delivered strong third-quarter revenue growth, with revenue up 11.3% to $268.623 million and Adjusted EBITDA up 5.5% to $60.926 million, led by growth across all three operating segments. However, gross margin fell to 36.1% and GAAP diluted EPS declined to $0.14 from $0.34 a year earlier, with the effective tax rate shifting to 26.3% from a 273.5% benefit rate in the prior-year quarter. Liquidity improved, but debt remained approximately $1.0647 billion and investing cash use was elevated. The outlook is effectively withdrawn because of the pending Merger, which management currently expects to complete in the first half of 2027 but cannot assure will close.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.14
What stood out
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Revenue Grew Double Digits
Third-quarter revenue increased 11.3% year over year to $268.623 million from $241.439 million. Merchant card fees rose 14.4% to $204.291 million, supported by higher card-processing dollar value and acquisition activity.
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Adjusted EBITDA Increased
Adjusted EBITDA increased 5.5% year over year to $60.926 million from $57.759 million. Merchant Solutions Adjusted EBITDA rose 17.7% to $32.627 million and Payables increased 13.6% to $3.925 million.
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Broad Segment Revenue Growth
All three operating segments grew revenue year over year: Merchant Solutions rose 11.0% to $179.645 million, Payables rose 25.7% to $31.626 million, and Treasury Solutions rose 8.2% to $60.267 million.
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Tax Swing Depressed GAAP EPS
GAAP diluted EPS was $0.14 versus $0.34 in the prior-year quarter and $0.12 in 2026's second quarter. Net income declined to $12.223 million from $27.588 million, despite income before taxes increasing to $16.594 million from $7.387 million.
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Liquidity Position Improved
Cash and cash equivalents increased to $135.6 million at September 30, 2026 from $57.0 million a year earlier, while working capital rose to $155.3 million from $82.0 million.
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Operating Cash Flow Improved
Operating cash flow for the first nine months increased to $98.025 million from $63.161 million. Capital additions were $20.4 million, representing approximately 2.6% of nine-month revenue of $780.437 million.
What to watch
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Merger Completion Risk
The proposed $8.05-per-share cash Merger requires approval by a majority of outstanding shares and a majority of unaffiliated votes. Supporting stockholders own approximately 61.4%, but failure to close could require a $15.75 million termination fee and pressure the share price.
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Merger Disruption and Costs
The pending Merger restricts acquisitions, indebtedness, share repurchases and compensation changes, while merger-related professional and legal fees contributed to a 24.9% year-over-year increase in quarterly SG&A to $19.647 million.
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Margin Compression
Gross margin declined to 36.1% from 39.3% in the prior-year quarter, while cost of revenue increased 13.1% to $165.908 million, faster than the 11.3% revenue increase.
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Volume and Enrollment Headwinds
Merchant Solutions transaction count decreased by 7,126 to 223,077, despite processing dollar value increasing $807.253 million to $19.265 billion. Treasury monthly enrollments also declined by 9,825 to 51,360.
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High Debt Balance
Debt obligations increased to $1.0647 billion at September 30, 2026 from $1.0554 billion at December 31, 2025, including $1.0200 billion outstanding under the 2024 Credit Agreement term facility.
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Elevated Investing Cash Use
Investing cash outflows reached $547.189 million in the first nine months, including $500.0 million of net short-term investments of money-transmission-license funds, compared with $151.898 million in the prior-year period.
Management's outlook
The company does not provide quantitative forward guidance because of the pending Merger and does not expect to provide guidance in future quarters. Management anticipates completing the Merger in the first half of 2027, but states there is no assurance it will close within that timeframe or at all.
Earlier filings 4
10-K · March 10, 2026
Priority Technology Holdings, Inc. (PRTH) reported strong financial growth in 2025, with revenues increasing by 8.3% to $953 million, primarily driven by the Merchant Solutions and Treasury Solutions segments. The…
10-Q · November 6, 2025
Priority Technology Holdings (PRTH) reported Q3 2025 results showing a year-over-year revenue increase of 6.3% to $241.4 million, although it fell short of consensus estimates by 4.5%. The company posted a diluted EPS…
10-Q · August 7, 2025
Priority Technology Holdings, Inc. reported a strong second quarter for 2025 with consolidated revenue of $239.8 million, up 9.1% year-over-year, and an earnings surprise with EPS at $0.26 versus estimates of $0.22. Key…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.
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