Summary of Priority Technology (PRTH) FY Conference Call Company Overview - **Company Name**: Priority Technology - **Industry**: Fintech, Payments, and Banking - **Established**: 20 years ago, celebrating its anniversary in August 2025 - **Business Segments**: - Merchant acquiring - B2B payables - Enterprise payments - **Core Services**: A comprehensive commerce engine for collecting, storing, lending, and sending money, including traditional payment methods and virtual/physical card issuance [4][5][6] Financial Performance - **Annual Payments Volume**: Approximately $140 billion [7] - **Customer Accounts**: About 1.4 million accounts with $1.6 billion in customer funds under administration [8] - **Revenue Model**: - Transaction-based revenue - 62% of adjusted gross profit from recurring revenue [10][11] - **Recent Financial Highlights**: - Q2 net revenue increased by 9% - Adjusted gross profit rose by 13% - Adjusted EBITDA grew by 9% - EPS of $0.26, up 15% year-over-year [25][26] Market Position and Growth Potential - **Total Addressable Market (TAM)**: - B2C market in the US: $6 trillion - B2B market in the US: Nearly $20 trillion, largely underpenetrated [13][15] - **Market Share**: Fifth largest non-bank merchant acquirer in the US [18][19] - **Growth Strategy**: - Focus on B2B segment and enterprise solutions - High customer growth rate of 2,500 to 3,000 new customers per month [29] - Emphasis on integrated solutions for cash flow optimization and working capital [21][22] Competitive Landscape - **Competitors**: Traditional acquirers like Fiserv, TSYS, and newer entrants like Stripe [7] - **Market Trends**: Increasing demand for integrated payment solutions across various sectors, including healthcare and construction [30][34] Risks and Challenges - **Execution Risks**: Importance of maintaining delivery and operational precision to sustain growth [35][36] - **Economic Sensitivity**: Potential impacts from economic cycles and tariff policies, though currently positioned to benefit from such conditions [47][48] Capital Allocation and M&A Strategy - **Debt Management**: Recently refinanced debt to reduce capital costs and improve liquidity [39][40] - **M&A Focus**: Targeting countercyclical segments and early-stage conversion opportunities within fintech [41][42] - **Investment Areas**: Payroll, benefits, construction technology, and property technology [45][46] Investor Insights - **Valuation Perspective**: Analysts suggest that certain business lines are undervalued, indicating potential for higher market valuation [50][51] - **Shareholder Commitment**: CEO holds over 60% of shares, indicating strong alignment with shareholder interests [52] Conclusion Priority Technology is positioned for growth within the fintech space, leveraging its diversified service offerings and strong market presence. The company is focused on executing its growth strategy while managing risks associated with economic fluctuations and operational execution.

Financial Data and Key Metrics Changes - The company reported a 9% increase in net revenue for Q2 2025, reaching $239.8 million, with adjusted gross profit growing by 13% to $92.4 million and adjusted EBITDA increasing by 9% to $56 million [4][5][6] - Adjusted EPS rose by $0.15 year over year to $0.26, and adjusted gross profit margin improved by 135 basis points to 38.5% [4][6] - For the year-to-date, revenue grew by 9% to $464.4 million, with adjusted gross profit up 14% to $179.7 million and adjusted EBITDA up 10% to $107.3 million [6][12] Business Line Data and Key Metrics Changes - The SMB segment generated Q2 revenue of $163.2 million, a 5.2% increase year over year, with adjusted gross profit remaining consistent at $35.4 million [12][14] - B2B revenue grew by 14.4% year over year to $25 million, with adjusted gross profit increasing by 30.8% to $7.3 million [15][16] - The Enterprise segment saw a revenue increase of 20.6% to $52.7 million, with adjusted gross profit rising by 22.6% to $49.7 million [17][18] Market Data and Key Metrics Changes - The company ended Q2 with over 1.6 million total customer accounts, up from 1.3 million in the previous quarter [4] - Annual transaction volume increased by nearly $5 billion to $140 billion [4] - Average account balances under administration improved to $1.4 billion from $1.3 billion [4] Company Strategy and Development Direction - The company is focused on its Connected Commerce platform, which integrates payments and banking capabilities to enhance operational success for customers [5][10] - There is a strategic emphasis on expanding recurring revenue, which now represents 62% of total adjusted gross profit, indicating a shift towards more stable revenue streams [24][25] - The company is also pursuing tuck-in acquisitions to enhance its service offerings and capitalize on favorable market conditions [21][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10% to 12.5% revenue growth for 2025, citing strong growth trends and a favorable business mix [5][22] - The company anticipates moderating headwinds in the SMB segment and expects to see an acceleration of growth in the second half of the year [22][32] - Management noted that the economic environment has not significantly impacted performance, with resilience observed in various customer segments [38][56] Other Important Information - The company successfully refinanced its debt, lowering interest rates and extending maturities, which is expected to save approximately $7 million in annual interest expenses [20][21] - A material weakness related to automated controls has been substantially remediated, with testing currently underway [23] Q&A Session Summary Question: What was the core growth net of the VAMP and the residual headwind versus the 1Q growth? - Core growth was 9.5% for the quarter, slightly down from 10% in Q1, driven by strong performance in larger ISOs despite some attrition in lower-end accounts [30][31] Question: Can you talk about the underlying assumptions at the low end versus the high end of the revised 2025 revenue guide? - The acceleration in the second half is expected due to moderating headwinds in SMB and the onboarding of large customers, with potential upside from deposit balances [32][34] Question: Have you seen any shift in volume trends given the softening jobs and business sentiment? - The portfolio has performed well, with resilience noted in various sectors, although same store sales have been a headwind [38] Question: How have you been thinking about capital allocation in the near and longer term? - The allocation strategy remains focused on deleveraging while being opportunistic in acquisitions, particularly in a favorable market [39] Question: Can you describe the go-to-market strategy of larger ISOs? - The company leads with a technology suite that allows for flexibility in solutions, emphasizing high-quality customer service as a key component [60][63]

Q2 2025 Financial Performance - Priority Technology Holdings' total revenue increased by 9% to $239.8 million in Q2 2025[14] - Adjusted Gross Profit increased by 13% to $92.4 million, with Adjusted Gross Profit margin increasing by 135 basis points to 38.5%[16, 17] - Adjusted EBITDA increased by 9% to $56.0 million[20] - Year-to-date revenue increased by 9% to $464.4 million[24] - Year-to-date Adjusted Gross Profit increased by 14% to $179.7 million, with Adjusted Gross Profit margin increasing by 150 basis points to 38.7%[26, 27] - Year-to-date Adjusted EBITDA increased by 10% to $107.3 million[30] Segment Performance in Q2 2025 - SMB revenue was $163.2 million, a 5% year-over-year increase, with Adjusted Gross Profit of $35.4 million and Adjusted EBITDA of $27.7 million[47] - B2B revenue was $25.0 million, a 14% year-over-year increase, with Adjusted Gross Profit of $7.3 million and Adjusted EBITDA of $3.8 million[53] - Enterprise revenue was $52.7 million, a 21% year-over-year increase, with Adjusted Gross Profit of $49.7 million and Adjusted EBITDA of $45.6 million[59] - B2B and Enterprise segments represented approximately 62% of Adjusted Gross Profit[44] Capital Structure and Guidance - As of June 30, 2025, the company's total debt balance was $935.5 million, with a net debt of $884.9 million and a net leverage ratio of 4.1x[68, 69] - The company revised its 2025 financial guidance, projecting total revenue between $970 million and $990 million, Adjusted Gross Profit between $365 million and $380 million, and Adjusted EBITDA between $222.5 million and $227.5 million[9, 74, 76]

Company Performance - Priority Technology (PRTH) reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and showing a significant improvement from a loss of $0.12 per share a year ago, resulting in an earnings surprise of +4.00% [1] - The company posted revenues of $239.81 million for the quarter ended June 2025, which was 0.82% below the Zacks Consensus Estimate, but an increase from $219.87 million in the same quarter last year [2] - Over the last four quarters, Priority Technology has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Priority Technology shares have declined approximately 42.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current Zacks Rank for Priority Technology is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $254.3 million, and for the current fiscal year, it is $1.06 on revenues of $979.6 million [7] - The outlook for the Technology Services industry, where Priority Technology operates, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37872 Priority Technology Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 47-4257046 (State or other jurisdi ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) Priority Technology Holdings, Inc. presents its strong Q2 2025 financial results and updated full-year 2025 guidance [Second Quarter 2025 Consolidated Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Consolidated%20Financial%20Highlights) Priority Technology Holdings, Inc. reported strong second-quarter 2025 financial results, driven by performance across its Unified Commerce Platform - The company's strong Q2 2025 results are attributed to the continued success of its Connected Commerce platform, with over **9% revenue growth** and **13% adjusted gross profit growth**[2](index=2&type=chunk) - Adjusted gross profit from recurring revenue represents **62% of total**, indicating a stable and predictable revenue base[2](index=2&type=chunk) Q2 2025 Consolidated Financial Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Revenue | $239.8 | $219.9 | 9.1% | | Adjusted Gross Profit | $92.4 | $81.7 | 13.0% | | Adjusted Gross Profit Margin | 38.5% | 37.2% | +135 bps | | Operating Income | $37.4 | $33.2 | 12.6% | | Adjusted EBITDA | $56.0 | $51.6 | 8.7% | | Adjusted EPS | $0.26 | $0.11 | 136.4% | [Full Year 2025 Financial Guidance Update](index=2&type=section&id=Full%20Year%202025%20Financial%20Guidance%20Update) Priority Technology Holdings, Inc. updated its full-year 2025 financial guidance, narrowing ranges for revenue and adjusted EBITDA - The company expects an acceleration of organic growth in the second half of 2025 due to sales pipeline timing, year-over-year comparatives, and moderating headwinds[4](index=4&type=chunk) Full Year 2025 Financial Guidance | Metric | New FY 2025 Guidance (Millions) | Original FY 2025 Guidance (Millions) | Growth Rate (vs FY 2024) | | :-------------------- | :----------------------------- | :---------------------------------- | :----------------------- | | Revenue | $970 - $990 | $965 - $1,000 | 10.2% - 12.5% | | Adjusted Gross Profit | $365 - $380 | $360 - $385 | N/A | | Adjusted EBITDA | $222.5 - $227.5 | $220 - $230 | N/A | [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) Priority Technology Holdings, Inc. will host a conference call on August 7, 2025, to discuss its second-quarter financial results - A conference call to discuss Q2 2025 financial results will be held on Thursday, August 7, 2025, at **10:00 a.m. EDT**[5](index=5&type=chunk) - Access to the live webcast and accompanying slide presentation is available via the company's investor relations website[6](index=6&type=chunk) - An audio replay of the call will be available until **August 21, 2025**[7](index=7&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles key non-GAAP financial measures used by the company to assess performance [Non-GAAP Measures Introduction](index=2&type=section&id=Non-GAAP%20Measures%20Introduction) The company uses non-GAAP financial measures like Adjusted Gross Profit and Adjusted EBITDA to evaluate business trends and performance - Non-GAAP measures are used to evaluate business and trends, measure performance, prepare financial projections, allocate resources, and make strategic decisions[8](index=8&type=chunk) - These non-GAAP measures are intended to complement GAAP measures and illustrate underlying financial and business trends, but are not superior to or a substitute for GAAP[8](index=8&type=chunk) [Adjusted Gross Profit and Adjusted Gross Profit Margin Reconciliation](index=3&type=section&id=Adjusted%20Gross%20Profit%20and%20Adjusted%20Gross%20Profit%20Margin%20Reconciliation) Adjusted gross profit, defined as revenues less cost of revenue (excluding D&A), is reconciled for Q2 and H1 2025 and 2024 - Adjusted gross profit excludes depreciation and amortization from cost of revenue to evaluate underlying profit trends[10](index=10&type=chunk) Adjusted Gross Profit and Margin Reconciliation | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 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 Reconciliation](index=3&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) EBITDA and Adjusted EBITDA, which excludes non-cash and non-recurring items, are reconciled for Q2 and H1 2025 and 2024 - Adjusted EBITDA starts with EBITDA and excludes non-cash costs (e.g., stock-based compensation) and non-recurring expenses (e.g., acquisition integration, litigation settlements) to provide a clearer view of operational performance[11](index=11&type=chunk) EBITDA and Adjusted EBITDA Reconciliation | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 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** | [Adjusted Earnings Per Share (Adjusted EPS) Reconciliation](index=5&type=section&id=Adjusted%20Earnings%20Per%20Share%20%28Adjusted%20EPS%29%20Reconciliation) Adjusted EPS, a performance measure excluding non-recurring and non-cash items, is reconciled for Q2 and H1 2025 and 2024 - Adjusted EPS is calculated by adjusting net income for items such as accelerated accretion expense, debt extinguishment costs, stock-based compensation, other non-recurring expenses, and amortization of acquisition-related intangible assets, along with their tax impact[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) Adjusted Earnings Per Share Reconciliation | (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------------- | :--------------------------------- | :------------------------------- | :------------------------------- | | 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 | (3,244) | (5,855) | (6,800) | (9,526) | | **Adjusted net income attributable to common shareholders** | **$20,653** | **$8,578** | **$38,502** | **$10,981** | | Weighted average common shares outstanding (diluted) | 79,837 | 78,139 | 79,968 | 78,180 | | **Adjusted earnings per common share (Diluted)** | **$0.26** | **$0.11** | **$0.48** | **$0.14** | [Forward-Looking Non-GAAP Measures Disclosure](index=6&type=section&id=Forward-Looking%20Non-GAAP%20Measures%20Disclosure) The company does not reconcile forward-looking non-GAAP measures to GAAP due to the difficulty in estimating future reconciling items - Reconciliation of forward-looking non-GAAP measures to GAAP is not provided due to the unreasonable effort required to estimate future reconciling items like stock-based compensation expense[16](index=16&type=chunk) - The company primarily plans, forecasts, and analyzes future periods on a non-GAAP basis[16](index=16&type=chunk) [About the Company](index=7&type=section&id=About%20the%20Company) Priority Technology Holdings, Inc. provides a unified commerce engine offering payments and banking solutions for businesses - Priority provides a unified commerce engine that combines payables, merchant services, and banking and treasury solutions[19](index=19&type=chunk) - The platform helps businesses accelerate cash flow, optimize working capital, reduce costs, and unlock new revenue opportunities[19](index=19&type=chunk) [Forward-Looking Statements Disclaimer](index=7&type=section&id=Forward-Looking%20Statements%20Disclaimer) This press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially - The press release includes forward-looking statements regarding future financial and operating results, plans, objectives, and intentions[21](index=21&type=chunk) - These statements are subject to significant business, economic, and competitive risks and uncertainties that could cause actual results to differ materially[21](index=21&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, and the company disclaims any obligation to publicly update or revise them[23](index=23&type=chunk) [Investor Relations Contact](index=7&type=section&id=Investor%20Relations%20Contact) Investor inquiries for Priority Technology Holdings, Inc. can be directed to the provided email address - Investor inquiries should be sent to **priorityIR@icrinc.com**[24](index=24&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated statements of operations, balance sheets, and cash flows for the reported periods [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) The unaudited consolidated statements of operations show increased net income for Q2 and H1 2025, driven by revenue growth Consolidated Statements of Operations and Comprehensive Income (Loss) | (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------------- | :--------------------------------- | :------------------------------- | :------------------------------- | | Revenues | $239,812 | $219,867 | $464,442 | $425,586 | | Total operating expenses | 202,462 | 186,693 | 394,467 | 364,389 | | Operating income | 37,350 | 33,174 | 69,975 | 61,197 | | Income before income taxes | 15,302 | 3,509 | 25,820 | 11,284 | | Net income | 10,879 | 994 | 19,147 | 6,187 | | Net income (loss) attributable to common stockholders | 10,879 | (17,629) | 19,147 | (25,679) | | Basic EPS | $0.14 | $(0.23) | $0.24 | $(0.33) | | Diluted EPS | $0.14 | $(0.23) | $0.24 | $(0.33) | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show an increase in total assets and liabilities as of June 30, 2025, primarily due to settlement activities Consolidated Balance Sheets | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :-------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $50,564 | $58,600 | | Settlement assets | 1,125,934 | 940,798 | | Total current assets | 1,305,885 | 1,105,085 | | Goodwill | 382,497 | 376,091 | | Intangible assets, net | 225,035 | 240,874 | | **Total assets** | **$2,027,420** | **$1,826,860** | | **Liabilities, Stockholders' Deficit and NCI** | | | | Settlement obligations | 1,127,266 | 940,213 | | Total current liabilities | 1,229,171 | 1,051,671 | | Long-term debt, net | 917,017 | 920,888 | | **Total liabilities** | **$2,171,554** | **$1,991,885** | | Total stockholders' deficit | (144,134) | (165,025) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows indicate decreased operating cash flow but increased financing cash flow in H1 2025 Consolidated Statements of Cash Flows | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $27,080 | $42,007 | | Net cash used in investing activities | $(21,145) | $(20,598) | | Net cash provided by financing activities | $178,091 | $18,149 | | Net increase in cash and cash equivalents, and restricted cash | $184,026 | $39,558 | | Cash and cash equivalents and restricted cash at end of period | $1,177,890 | $835,781 | - The significant increase in net cash provided by financing activities in H1 2025 was largely driven by settlement obligations, which provided **$190,863 thousand**[30](index=30&type=chunk) [Reportable Segments' Results (Unaudited)](index=11&type=section&id=Reportable%20Segments%27%20Results%20%28Unaudited%29) This section details the unaudited financial performance of Priority's SMB, B2B, and Enterprise Payments segments [Segment Performance Overview (SMB, B2B, Enterprise)](index=11&type=section&id=Segment%20Performance%20Overview%20%28SMB%2C%20B2B%2C%20Enterprise%29) Priority's SMB, B2B, and Enterprise Payments segments show diversified performance in revenue and Adjusted EBITDA for Q2 and H1 2025 Segment Performance Overview **Three Months Ended June 30, 2025 vs 2024:** | Segment | Q2 2025 Revenue (Thousands) | Q2 2024 Revenue (Thousands) | Revenue Change (%) | Q2 2025 Adj. EBITDA (Thousands) | Q2 2024 Adj. EBITDA (Thousands) | Adj. EBITDA Change (%) | | :---------------- | :-------------------------- | :-------------------------- | :----------------- | :------------------------------ | :------------------------------ | :--------------------- | | SMB Payments | $163,230 | $155,101 | 5.2% | $27,749 | $28,597 | -3.0% | | B2B Payments | $25,033 | $21,881 | 14.4% | $3,770 | $1,530 | 146.4% | | Enterprise Payments | $52,658 | $43,670 | 20.6% | $45,558 | $37,244 | 22.3% | **Six Months Ended June 30, 2025 vs 2024:** | Segment | H1 2025 Revenue (Thousands) | H1 2024 Revenue (Thousands) | Revenue Change (%) | H1 2025 Adj. EBITDA (Thousands) | H1 2024 Adj. EBITDA (Thousands) | Adj. EBITDA Change (%) | | :---------------- | :-------------------------- | :-------------------------- | :----------------- | :------------------------------ | :------------------------------ | :--------------------- | | SMB Payments | $314,920 | $299,105 | 5.3% | $53,454 | $53,620 | -0.3% | | B2B Payments | $48,951 | $43,225 | 13.2% | $7,286 | $3,276 | 122.4% | | Enterprise Payments | $102,746 | $84,660 | 21.4% | $88,001 | $71,971 | 22.3% | - Enterprise Payments showed strong growth in average CFTPay billed clients (**992,279 in Q2 2025** vs **762,873 in Q2 2024**) and monthly new enrollments (**57,818 in Q2 2025** vs **55,416 in Q2 2024**)[32](index=32&type=chunk) - B2B issuing dollar volume decreased in both Q2 and H1 2025 compared to 2024, despite revenue and Adjusted EBITDA growth in the segment[32](index=32&type=chunk) [Reconciliation of Adjusted EBITDA to GAAP Measure by Segment](index=12&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20to%20GAAP%20Measure%20by%20Segment) Detailed reconciliations of Adjusted EBITDA to GAAP Income (loss) before taxes are provided for each reportable segment and corporate overhead - The reconciliation tables provide a detailed breakdown of adjustments from Adjusted EBITDA to Income (loss) before taxes for each segment and the corporate overhead[34](index=34&type=chunk)[36](index=36&type=chunk) - Corporate expenses, including interest, depreciation, non-recurring SG&A, and stock-based compensation, significantly impact the consolidated income before taxes[34](index=34&type=chunk)[36](index=36&type=chunk)

Core Insights - Priority Technology Holdings, Inc. (PRTH) is set to report its second-quarter 2025 results on August 7, with revenue expectations of $241.8 million, reflecting a 10% year-over-year increase, and earnings per share (EPS) estimated at 25 cents, indicating over 100% growth from the previous year [1][7] Financial Performance - The consensus estimate for Q2 revenues is $241.8 million, with an EPS of $0.25, both showing strong year-over-year growth [7] - PRTH's first-quarter earnings surprise was 10%, indicating a positive trend in financial performance [2] - The company has shown a 9% year-over-year revenue increase in Q1 2025, with gross margin and adjusted EBITDA rising by 14% and 11%, respectively [16] Market Position - PRTH's current P/E ratio stands at 5.45X, significantly lower than the industry average of 22.89X, suggesting it is undervalued compared to peers [11] - Despite a 45.2% increase in stock price over the past year, PRTH has underperformed compared to its industry, which saw a 69.3% rise [8] Growth Drivers - The global digital payment market is projected to grow at a CAGR of 21.4% from 2025 to 2030, providing PRTH with opportunities to capture market share [15] - The company's platform is designed to foster long-term partnerships and enhance operational efficiency across various industry segments [5][19] Challenges - PRTH faces potential margin pressures from changes in card fees and banking regulations, as well as operational disruptions from delays in the rollout of its One Priority system [18][20] - The company currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating a low probability of an earnings beat in the upcoming report [4][7]

Image Source: Zacks Investment Research Key Takeaways The bulls appear firmly in charge as we inch closer to July, fueled by tech earnings growth and trade war progress. Even though the market dipped on Friday, investors are largely shaking off recent concerns about the escalating conflict in the Middle East. Wall Street has largely held its ground in June, content to chop around above the Nasdaq and the S&P 500's 21- day moving averages and below their all-time highs. The calm stretch came after the furiou ...

Market Overview - The stock market is experiencing a new wave of uncertainty due to geopolitical tensions and weaker-than-expected economic data, particularly in U.S. retail sales for May [1][2] - The Israel-Iran conflict has escalated, contributing to investor unease [1] - The upcoming Federal Reserve meeting is a focal point, with expectations that weak economic data may lead to a more dovish stance from policymakers [2] Investment Strategy - In the current volatile market environment, a value investing approach focusing on fundamentally strong companies with reasonable prices is recommended [3] - Companies with high earnings yields are highlighted as potential investment opportunities [3] Earnings Yield Insights - Earnings yield is a key metric for assessing potential returns, calculated by dividing earnings per share by stock price [4] - A higher earnings yield may indicate undervaluation, while a lower yield could suggest overvaluation [5] - Comparing earnings yield to the yield on 10-year Treasury bonds can help determine investment worthiness [5] Screening Criteria - The primary screening criterion is an earnings yield greater than 10% [6] - Additional parameters include estimated EPS growth exceeding the S&P 500 and an average daily trading volume of at least 100,000 shares [7][6] - Stocks must also have a current price of $5 or more [8] Selected Stocks - Five stocks with earnings yields above 10% and strong growth potential have been identified: - **Aris Mining Corporation (ARMN)**: Expected earnings growth of 226% and 81% for 2025 and 2026, respectively, with a Zacks Rank 1 [10] - **Quanex Building Products Corporation (NX)**: Projected earnings growth of 19.6% and 14% for 2025 and 2026, respectively, also with a Zacks Rank 1 [11] - **Heritage Insurance Holdings, Inc. (HRTG)**: Anticipated earnings growth of 62% and 13% for 2025 and 2026, respectively, with a Zacks Rank 1 [12] - **Popular, Inc. (BPOP)**: Expected earnings growth of 17% and 20% for 2025 and 2026, respectively, holding a Zacks Rank 1 [13] - **Priority Technology Holdings Inc. (PRTH)**: Projected earnings growth of 108% and 34% for 2025 and 2026, respectively, with a Zacks Rank 1 [14]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Strategy - Investors are attracted to fast-moving stocks, but determining the right entry point can be challenging, as stocks may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Case Study - Priority Technology (PRTH) - PRTH has shown a four-week price change of 5.7%, indicating growing investor interest and recent price momentum [4] - Over the past 12 weeks, PRTH gained 0.8%, with a beta of 1.51, suggesting it moves 51% more than the market in either direction [5] - PRTH has a Momentum Score of B, indicating a favorable time to invest, and it has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates [6][7] - The stock is trading at a Price-to-Sales ratio of 0.71, meaning investors pay 71 cents for each dollar of sales, indicating a reasonable valuation [7] Group 3: Additional Opportunities - Besides PRTH, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]