Priority Technology (US:PRTH)2025-11-06 13:41Revenue Performance - For the three months ended September 30, 2025, consolidated revenue was $241.4 million, an increase of $14.4 million or 6.3% from $227.0 million for the same period in 2024[143]. - For the nine months ended September 30, 2025, consolidated revenue was $705.9 million, an increase of $53.2 million or 8.2% from $652.6 million for the same period in 2024[144]. - Merchant card fees revenue for the three months ended September 30, 2025 was $178.5 million, an increase of $6.7 million or 3.9% from $171.8 million for the same period in 2024[146]. - Money transmission services revenue for the three months ended September 30, 2025 was $41.0 million, an increase of $7.1 million or 21.0% from $33.9 million for the same period in 2024[148]. - Revenue from the Merchant Solutions segment was $161.9 million for the three months ended September 30, 2025, an increase of $3.1 million or 2.0% from $158.8 million in the same period of 2024[177]. - Revenue from the Payables segment was $25.2 million for the three months ended September 30, 2025, an increase of $3.0 million or 13.6% from $22.1 million in the same period of 2024[182]. - Revenue from the Treasury Solutions segment was $55.7 million for the three months ended September 30, 2025, an increase of $8.6 million from $47.1 million in the same period of 2024[187]. - For the nine months ended September 30, 2025, Treasury Solutions segment revenue reached $158.4 million, a 20.2% increase from $131.8 million in 2024[189]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025 were $203.7 million, an increase of $14.7 million or 7.8% from $189.0 million for the same period in 2024[154]. - Salary and employee benefits expense for the three months ended September 30, 2025 was $26.1 million, an increase of $4.4 million or 20.2% from $21.7 million for the same period in 2024[157]. - Selling, general and administrative expenses for the three months ended September 30, 2025 were $15.7 million, an increase of $3.3 million or 26.7% from $12.4 million for the same period in 2024[161]. - Depreciation and amortization expense for the three months ended September 30, 2025 was $15.1 million, an increase of $1.4 million or 10.1% from $13.7 million for the same period in 2024[159]. EBITDA and Other Income - Adjusted EBITDA from the Merchant Solutions segment was $27.7 million for the three months ended September 30, 2025, a decrease of $0.9 million or 3.2% from $28.6 million in the same period of 2024[179]. - Adjusted EBITDA from the Payables segment was $3.5 million for the three months ended September 30, 2025, an increase of $1.5 million or 78.7% from $1.9 million in the same period of 2024[185]. - Adjusted EBITDA for the Treasury Solutions segment was $46.7 million for the three months ended September 30, 2025, reflecting a 14.0% increase from $40.9 million in 2024[191]. - For the nine months ended September 30, 2025, Adjusted EBITDA was $134.7 million, up 19.3% from $112.9 million in the same period of 2024[192]. - Other income, net for the three months ended September 30, 2025, was $4.6 million, an increase of $3.8 million or 540.5% from $0.7 million in the same period of 2024[169]. Cash Flow and Debt - Net cash provided by operating activities was $63.2 million for the nine months ended September 30, 2025, compared to $61.9 million in 2024[201]. - Net cash used in investing activities was $151.9 million for the nine months ended September 30, 2025, significantly higher than $24.7 million in 2024, primarily due to acquisitions[202]. - Net cash provided by financing activities was $288.6 million for the nine months ended September 30, 2025, compared to cash used of $84.7 million in 2024[203]. - Outstanding debt obligations increased to $1,023.9 million as of September 30, 2025, from $945.5 million at December 31, 2024[204]. Compliance and Risk Management - The Company must comply with restrictions on its Total Net Leverage Ratio if outstanding revolving loans exceed 35% of the total revolving facility, with a maximum permitted ratio of 6.90:1.00 until March 31, 2026, and 6.40:1.00 thereafter[207]. - As of September 30, 2025, the Company was in compliance with the covenants in the 2024 Credit Agreement[207]. - The Residual Finance Credit Facility requires a minimum liquidity of $2.0 million and a minimum tangible net worth of $5.0 million[209]. - The maximum default ratio allowed under the Residual Finance Credit Facility is 2.5%, and the maximum delinquency ratio is 5.0%[209]. - The Company was in compliance with the restrictions in the Residual Finance Credit Facility as of September 30, 2025[209]. - Market risk exposures have not changed materially since December 31, 2024[212]. Future Considerations - New accounting pronouncements may affect future financial statements, as discussed in the Quarterly Report[210]. - The increase in revenues was primarily driven by an increase in total card dollar value processed and new enrollments in the Merchant Solutions segment[143]. - The company experienced a decrease in issuing volume, which partially offset the overall revenue growth[144]. - Interest expense for the three months ended September 30, 2025, was $22.5 million, a decrease of $0.8 million or 3.4% from $23.2 million in the same period of 2024[165]. - Interest expense for the nine months ended September 30, 2025, was $68.7 million, an increase of $2.9 million or 4.3% from $65.8 million for the same period in 2024[166]. - Total other expense, net for the three months ended September 30, 2025, was $(30.4) million, an increase of $(7.8) million from $(22.6) million in the same period of 2024[164].