Priority Technology (PRTH)2025-05-06 13:18Revenue 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]