Priority Technology (US:PRTH)2025-11-06 12:03Revenue and Profitability - Revenue for Q3 2025 was $241.4 million, a 6.3% increase from $227.0 million in Q3 2024[3] - Adjusted gross profit for Q3 2025 was $94.8 million, up 10.2% from $86.0 million in Q3 2024, with an adjusted gross profit margin of 39.2%, an increase of nearly 140 basis points[3] - Adjusted EBITDA for Q3 2025 was $57.8 million, a 5.7% increase from $54.6 million in Q3 2024[3] - Adjusted EPS for Q3 2025 was $0.28, a 55.6% increase from $0.18 in Q3 2024[3] - Operating income for the nine months ended September 30, 2025, was $107,747,000, compared to $99,282,000 for the same period in 2024, reflecting an 8.4% increase[29] - Net income for the nine months ended September 30, 2025, was $46,735,000, significantly up from $16,795,000 in the same period of 2024, marking a 178.5% increase[29] - Basic earnings per share for Q3 2025 were $0.34, compared to $0.07 in Q3 2024, indicating a substantial increase of 385.7%[29] - Adjusted EBITDA for the consolidated entity for the nine months ended September 30, 2025, was $165,103,000, compared to $152,532,000 in 2024, reflecting an 8.2% increase[40] - Net income for the nine months ended September 30, 2025, was $46,735,000, compared to $16,795,000 in 2024, representing a significant increase of 178%[41] Revenue Segments - Treasury Solutions revenue grew by over 18%, while Payables revenue increased by 14%[2] - Merchant Solutions revenue for the three months ended September 30, 2025, was $161,874,000, up from $158,770,000 in 2024, reflecting a 1.4% growth[38] - Payables segment revenue for the three months ended September 30, 2025, was $25,162,000, an increase of 13.7% from $22,143,000 in 2024[38] - Treasury Solutions revenue for the three months ended September 30, 2025, was $55,684,000, compared to $47,099,000 in 2024, marking a 18.2% increase[38] Cash Flow and Assets - The company made a $15.0 million voluntary prepayment on its term loan on October 31, 2025, driven by strong cash flow performance[3] - Cash flows from operating activities for the nine months ended September 30, 2025, amounted to $63,161,000, compared to $61,852,000 in 2024, showing a slight increase of 2.1%[33] - Total cash and cash equivalents, and restricted cash at the end of the period on September 30, 2025, was $1,193,761,000, compared to $918,057,000 at the end of the same period in 2024, a 30% increase[35] - Net increase in cash and cash equivalents and restricted cash for the nine months ended September 30, 2025, was $199,897,000, compared to $121,834,000 for the same period in 2024, representing a 64% increase[35] Assets and Liabilities - Total assets as of September 30, 2025, were $2,217,132,000, up from $1,826,860,000 at the end of 2024, indicating a growth of 21.4%[31] - The total liabilities increased to $2,325,646,000 as of September 30, 2025, from $1,991,885,000 at the end of 2024, reflecting a rise of 16.8%[31] - The company reported a total of $1,187,417,000 in settlement assets as of September 30, 2025, compared to $940,798,000 at the end of 2024, representing a 26.2% increase[31] Acquisitions and Investments - The company acquired Boom Commerce in August 2025 and Dealer Merchant Services in October 2025 to enhance its service offerings[3] - The company has made significant investments in acquisitions, with net cash used in investing activities totaling $151,898,000 for the nine months ended September 30, 2025[33] Credit Facilities - A new $1.1 billion credit facility was closed on July 31, 2025, with a 100 basis point reduction in interest rates[3]