Priority Technology (PRTH) closed the last trading session at $7.66, gaining 4.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $12.80 indicates a 67.1% upside potential.The mean estimate comprises five short-term price targets with a standard deviation of $2.77. While the lowest estimate of $10 indicates a 30.6% increase from the current price level, the most optimistic analyst ...

Priority Technology (PRTH) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual inves ...

Priority Technology (PRTH) closed the last trading session at $6.71, gaining 2.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $12.80 indicates a 90.8% upside potential.The mean estimate comprises five short-term price targets with a standard deviation of $2.77. While the lowest estimate of $10 indicates a 49% increase from the current price level, the most optimistic analyst ex ...

Group 1 - Priority Technology Holdings, Inc. held its Q1 2025 Earnings Conference Call on May 6, 2025, at 11:00 AM ET [1] - The call featured key participants including Tom Priore, Chairman and CEO, and Tim O'Leary, CFO [3] - Meghna Mehra, Managing Director at ICR, introduced the call and the participants [2][3] Group 2 - The company emphasized that the remarks during the call would include forward-looking statements, which are subject to risks and uncertainties [4] - There is no obligation for the company to update or revise these forward-looking statements based on new information or future events [4] - The call may reference non-GAAP measures such as EBITDA and adjusted EBITDA, with reconciliations available in the press release and SEC filings [5]

Priority (PRTH) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Company Participants Meghna Mehra - MD - IR(Fintech & Crypto)Thomas Priore - Chairman & CEOTim O’Leary - Chief Financial OfficerHal Goetsch - Managing DirectorBryan Bergin - MD - Equity ResearchTim Switzer - Vice PresidentBrian Kinstlinger - MD, Director of Research & Head of Technology Research Conference Call Participants Jacob Stephan - Senior Research Analyst Operator Greetings, and welcome to the Priority Technology Holdings Q1 twenty twent ...

Financial Data and Key Metrics Changes - The company reported a 9% increase in net revenue, reaching $224.6 million, with adjusted gross profit growing by 14% to $87.3 million and adjusted EBITDA increasing by 11% to $51.3 million [4][6] - Adjusted EPS rose by $0.19 year over year, reaching $0.22 for the quarter [21][22] - Annual transaction volume increased by $5 billion to over $135 billion, and account balances under administration improved to $1.3 billion [5][6] Business Segment Data and Key Metrics Changes - The SMB segment generated Q1 revenue of $151.7 million, a 5.3% increase year over year, with adjusted gross profit of $33.1 million, up 3.9% [12][13] - B2B revenue grew by 12.1% to $23.9 million, with adjusted gross profit increasing by 17.8% to $7.3 million [15][17] - The Enterprise segment saw revenue of $50.1 million, a 22.2% increase, with adjusted gross profit also rising by 22.2% to $46.9 million [18] Market Data and Key Metrics Changes - The company noted a 0.3% decline in U.S. GDP during Q1, with consumer spending growth slowing to 1.8% from 4% [25][26] - The company reported that its core acquiring channels produced 10% organic revenue growth, while countercyclical segments grew by 12% to 22% [27][28] Company Strategy and Development Direction - The company aims to gain market share in the acquiring segment while strengthening countercyclical assets like automated payables and CFT Pay [26][27] - The focus is on investing efficiently in new verticals with large total addressable markets (TAMs) that are still early in the adoption of integrated payment and banking solutions [26][28] - The company is positioned to benefit from the fallout of less stable banking as a service providers [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10% to 14% top-line revenue growth for 2025, despite potential headwinds from lower interest rates and macroeconomic uncertainty [5][22] - The company is actively working to remediate a material weakness related to automated controls, with substantial progress reported [23] Other Important Information - The company ended the quarter with $117.6 million in available liquidity, including $70 million of borrowing capacity under its revolving credit facility [19] - The company has made a $10 million prepayment on its term loan during the quarter, reducing debt levels to $935.5 million [19][20] Q&A Session Summary Question: Can you provide details on the increase in SG&A and salaries? - Management clarified that SG&A increased by 26% year over year when normalizing for non-recurring items, with significant costs related to cloud migration and headcount additions [31][32] Question: What percentage of gross profit comes from B2B and enterprise? - Management confirmed that over 62% of gross profit now comes from B2B and enterprise segments, with a significant portion also from recurring revenues [34][35] Question: Can you elaborate on the Minnesota Wild contract win? - Management highlighted that the contract was won due to the ability to optimize cash flow and provide banking transparency, which is crucial for sports franchises [39][41] Question: How did the one less day in Q1 impact revenue? - Management acknowledged that the one less day did impact daily revenue, particularly in the SMB segment, and noted other unusual influences on volume [43][44] Question: What are the considerations for segment growth in Q2? - Management indicated that shifts in interest rates could impact growth, particularly in high-margin interest income [48] Question: How has consumer behavior changed post-tariffs? - Management noted no material changes in consumer behavior yet, with a resilient portfolio that includes recession-resistant sectors [54][56] Question: What opportunities exist in the embedded finance space? - Management stated that the company is well-positioned to capture opportunities from the fallout of less stable banking service providers [64]

Priority Technology (PRTH) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.18, delivering a surprise of 200%.Over the last four quarters, the company has s ...

Revenue Performance - Consolidated revenue for Q1 2025 was $224.6 million, an increase of $18.9 million or 9.2% from $205.7 million in Q1 2024[121] - Merchant card fees revenue increased to $167.1 million, up $9.1 million or 5.8% from $157.9 million in Q1 2024, driven by higher transaction counts and card values[123] - Money transmission services revenue rose to $37.4 million, an increase of $8.3 million or 28.5% from $29.1 million in Q1 2024, attributed to new customer enrollments[124] - Total revenues from the SMB Payments segment were $151.7 million, a 5.3% increase from $144.0 million in Q1 2024, driven by increased card processing activity[139] - B2B Payments segment revenue increased to $23.9 million for Q1 2025, up 12.1% from $21.3 million in Q1 2024, driven by higher issuing dollar volume[142] - Enterprise Payments segment revenue reached $50.1 million in Q1 2025, reflecting a 22.2% increase from $41.0 million in Q1 2024, primarily due to growth in billed clients and new customer enrollments[145] Operating Expenses - Total operating expenses for Q1 2025 were $192.0 million, an increase of $14.3 million or 8.1% from $177.7 million in Q1 2024[127] - Salary and employee benefits expense increased by $3.6 million or 16.4% to $25.8 million in Q1 2025, due to merit increases and higher headcount[129] EBITDA Performance - Adjusted EBITDA for the SMB Payments segment was $25.7 million, a 2.7% increase from $25.0 million in Q1 2024, driven by revenue growth[140] - Adjusted EBITDA for the B2B Payments segment rose to $3.5 million in Q1 2025, a 101.3% increase from $1.7 million in Q1 2024, attributed to contributions from CPX and Plastiq businesses[143] - Adjusted EBITDA for the Enterprise Payments segment was $42.4 million in Q1 2025, up 22.2% from $34.7 million in Q1 2024, driven by revenue increases[146] - Total consolidated adjusted EBITDA for Q1 2025 was $51.3 million, compared to $46.3 million in Q1 2024, indicating overall growth[147] Cash Flow and Financing - Net cash provided by operating activities decreased to $10.0 million in Q1 2025 from $13.3 million in Q1 2024, primarily due to changes in operating assets and liabilities[155] - Cash used in investing activities was $9.7 million in Q1 2025, up from $7.7 million in Q1 2024, with significant investments in property and acquisitions[156] - Net cash provided by financing activities was $47.3 million in Q1 2025, contrasting with $10.3 million used in Q1 2024, driven by changes in customer fund obligations[157] - As of March 31, 2025, the company had cash totaling $47.6 million, an increase from $34.3 million at the same time in 2024[152] Debt and Tax - Outstanding debt obligations decreased to $935.5 million as of March 31, 2025, down from $945.5 million at December 31, 2024, due to an unscheduled principal payment[158] - Interest expense for Q1 2025 was $23.2 million, an increase of $2.3 million or 11.0% from $20.9 million in Q1 2024, due to higher outstanding balances[133] - Effective tax rate for Q1 2025 was 21.4%, down from 33.2% in Q1 2024, primarily due to changes in valuation allowances[134] Merchant Processing - Merchant bankcard processing dollar value increased to $15.3 billion in Q1 2025, up $506.0 million from $14.8 billion in Q1 2024[138]

Priority Technology Holdings, Inc. (Nasdaq: PRTH) Supplemental Slides: Q1 2025 Earnings Call May 2025 Important Notice Regarding Forward-Looking Statements and Non-GAAP Measures This presentation 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 a ...

Priority Technology Holdings, Inc. Reports First Quarter Financial Results Strong First Quarter Growth Driven by Performance Across Unified Commerce Platform ALPHARETTA, GA - May 6, 2025 -- Priority Technology Holdings, Inc. (NASDAQ: PRTH) ("Priority" or the "Company"), the payments and banking fintech that streamlines collecting, storing, lending, and sending money to unlock revenue opportunities, today announced its first quarter 2025 financial results including strong year-over-year diversified revenue g ...