Priority Sees Pullback in Consumer Spending for Restaurants and Construction

Core Insights - Priority Technology Holdings experienced slower growth in its Merchant Solutions segment due to macroeconomic factors affecting various industries, including restaurants, construction, and wholesale trade [1][4][5] - The revenue growth in the Merchant Solutions segment slowed to 2% year over year, while the Payables and Treasury Solutions segments saw growth rates of 14% and 18%, respectively [2] - The company rebranded its operating segments to better reflect their solutions and customer base, changing SMB, B2B, and Enterprise to Merchant Solutions, Payables, and Treasury Solutions [3] Segment Performance - In the Merchant Solutions segment, same-store sales decelerated across multiple areas, although merchant attrition remained stable, indicating that macroeconomic factors are influencing performance [4] - The Chief Financial Officer noted that the slower growth in the Merchant Solutions segment's core portfolio was largely due to a decline in consumer spending in specific verticals [5] Strategic Acquisitions - During the third quarter, Priority made two significant acquisitions: Boom Commerce and Dealer Merchant Services (DMS), enhancing its capabilities in the automotive commerce sector [6][7] - The acquisition of Boom Commerce is expected to strengthen sales and expand distribution partnerships, while DMS will support the company's strategy in integrated payments and treasury solutions [7]