Priority Technology Holdings (PRTH)
NASDAQ:PRTH
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Priority Technology Holdings
(NASDAQ:PRTH)
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Rating:65Neutral
Price Target:
$6.00
▲(16.50% Upside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by balance-sheet risk (high debt and negative equity) despite improving profitability and healthy free cash flow. Technical momentum is constructive and valuation appears relatively inexpensive (P/E ~9.84), while the latest earnings call was positive with maintained guidance but still flagged leverage and margin/mix headwinds.
Positive Factors
Free cash flow generation
Consistent and improving trailing‑twelve‑month free cash flow gives the company durable capacity to service debt, fund integrations, and invest in product development. Positive FCF reduces dependence on external equity and supports deleveraging or strategic M&A over the medium term.
Negative Factors
High leverage and negative equity
Elevated debt and a shift to negative stockholders' equity materially weaken the capital cushion and increase refinancing and covenant risk. High leverage forces significant free cash flow allocation to interest and principal, constraining strategic options and magnifying downside in stress scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistent and improving trailing‑twelve‑month free cash flow gives the company durable capacity to service debt, fund integrations, and invest in product development. Positive FCF reduces dependence on external equity and supports deleveraging or strategic M&A over the medium term.
Read all positive factors
Priority Technology Holdings (PRTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$478.48M
Dividend YieldN/A
Average Volume (3M)256.06K
Price to Earnings (P/E)9.8
Beta (1Y)1.64
Revenue Growth8.83%
EPS GrowthN/A
CountryUS
Employees1,005
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.71
Shares Outstanding82,355,170
10 Day Avg. Volume320,606
30 Day Avg. Volume256,058
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-4.33
Price to Sales (P/S)0.46
P/FCF Ratio5.79
Enterprise Value/Market Cap2.94
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda6.84
Forecast
1Y Price Target
$9.80Price Target Upside90.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.95
Revenue Forecast (FY)$1.03B
Priority Technology Holdings Business Overview & Revenue Model
Company Description
Priority Technology Holdings, Inc. operates as a payment technology company in the United States. It operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business Payments, and Enterprise Payments. The com...
How the Company Makes Money
PRTH primarily makes money by enabling merchants to accept and manage electronic payments and by monetizing software and value-added services tied to those payment flows. Key revenue streams typically include: (1) Payment processing and merchant s...
Priority Technology Holdings Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: the company reported solid consolidated top-line growth (11%), meaningful profit expansion (adjusted gross profit and EBITDA up 13%), strong segment-level momentum—notably Payables (+35.6%) and Treasury (+17.5%)—improvements in recurring revenue mix and customer metrics, and maintained full-year guidance. Key challenges include margin compression in Payables and Treasury driven by mix and GAAP recognition, modest merchant account declines and higher credit losses in Merchant Solutions, rising operating expenses and a sizable debt load (net leverage ~4.0x). On balance, the positive growth, profitability gains, cash generation, and maintained guidance outweigh the headwinds.Positive Updates
Revenue and Profit Growth
Consolidated revenue of $249.6 million, up 11.1% year-over-year; adjusted gross profit of $98.8 million, up 13%; adjusted EBITDA of $58.1 million, up 13%; adjusted EPS increased 27% year-over-year to $0.28.
Negative Updates
Operational Headwinds — Hardware and Tariffs
Some POS equipment price increases and tariffs were noted; management indicated these are a small revenue stream but contributed to limited margin pressure and required pre-purchase actions to mitigate impact.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Profit Growth
Consolidated revenue of $249.6 million, up 11.1% year-over-year; adjusted gross profit of $98.8 million, up 13%; adjusted EBITDA of $58.1 million, up 13%; adjusted EPS increased 27% year-over-year to $0.28.
Read all positive updates
Company Guidance
Management maintained full-year guidance of revenue $1.01–$1.04 billion and adjusted EBITDA $230–$245 million, citing strong Q1 momentum and high visibility into the business; Q1 results supporting the outlook included revenue of $249.6 million (up 11.1% YoY), adjusted gross profit $98.8 million (+13%, 39.6% margin, +70 bps), adjusted EBITDA $58.1 million (+13%), adjusted EPS $0.28 (+27%), and free cash flow of $28 million. Segment detail: Merchant Solutions revenue $161.8 million (+6.7%), Payables $32.4 million (+35.6%), Treasury Solutions $58.8 million (+17.5%), with Payables and Treasury representing ~63% of adjusted gross profit for the quarter; company-wide metrics also highlighted 1.8 million customer accounts (+50k), $153 billion annual transaction volume (+$3 billion), average account balances of ~$1.8 billion (+$100 million). Balance sheet and leverage metrics cited in support of the guidance included debt of $1.02 billion, cash of $92.2 million, >$192 million total available liquidity (including $100 million revolver), LTM adjusted EBITDA $232 million, net debt $927.8 million and net leverage of 4.0x (3.8x pro forma).Priority Technology Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
28
Negative
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 977.94M | 953.01M | 879.70M | 755.61M | 663.64M | 514.90M |
| Gross Profit | 345.04M | 203.72M | 328.08M | 275.31M | 226.89M | 155.02M |
| EBITDA | 205.62M | 204.43M | 184.27M | 151.66M | 127.44M | 82.31M |
| Net Income | 57.17M | 55.68M | 24.02M | -1.31M | -2.15M | 1.39M |
Balance Sheet | ||||||
| Total Assets | 2.47B | 2.40B | 1.83B | 1.62B | 1.37B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 108.56M | 77.19M | 58.60M | 39.60M | 18.45M | 20.30M |
| Total Debt | 1.05B | 1.05B | 930.39M | 638.68M | 605.13M | 610.30M |
| Total Liabilities | 2.55B | 2.49B | 1.99B | 1.50B | 1.24B | 1.21B |
| Stockholders Equity | -89.92M | -100.42M | -166.84M | 110.89M | 131.54M | 145.92M |
Cash Flow | ||||||
| Free Cash Flow | 88.53M | 75.08M | 63.92M | 60.00M | 51.64M | -342.00K |
| Operating Cash Flow | 113.89M | 100.00M | 85.61M | 81.26M | 70.52M | 9.38M |
| Investing Cash Flow | -146.91M | -174.04M | -35.55M | -55.75M | -36.50M | -451.03M |
| Financing Cash Flow | 443.54M | 426.17M | 147.58M | 210.10M | 8.50M | 871.63M |
Priority Technology Holdings Technical Analysis
Neutral
5.15
Price Trends
5.20
Positive
5.42
Positive
6.10
Negative
Market Momentum
0.18
Positive
53.87
Neutral
37.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTH, the sentiment is Neutral. The current price of 5.15 is below the 20-day moving average (MA) of 5.58, below the 50-day MA of 5.20, and below the 200-day MA of 6.10, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 37.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRTH.
Priority Technology Holdings Risk Analysis
Priority Technology Holdings disclosed 32 risk factors in its most recent earnings report. Priority Technology Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Priority Technology Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $520.29M | 4.50 | 5285.71% | ― | 0.47% | 6.39% | |
65 Neutral | $478.48M | 9.84 | -51.19% | ― | 8.83% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.86B | 34.27 | -1.28% | ― | 4.88% | -534.80% | |
56 Neutral | $291.57M | -5.40 | -46.76% | ― | 1.00% | -2032.50% | |
48 Neutral | $224.84M | -9.10 | -0.48% | ― | 0.95% | -200.75% | |
44 Neutral | $101.79M | -2.99 | -80.28% | ― | 8.95% | 59.41% |
* Technology Sector Average
PRTH
Priority Technology Holdings
5.68
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-24.06%
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Priority Technology Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Priority Technology Posts Strong Q1 2026 Results, Reaffirms Outlook
Positive
May 11, 2026
On May 11, 2026, Priority Technology Holdings reported first-quarter 2026 results showing revenue rose 11.1% year over year to $249.6 million, driven largely by organic growth of 9.1%. Gross profit climbed 13.2% to $93.5 million, net income increa...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Priority Technology Posts Strong Q4 2025 Results, Issues 2026 Outlook
Positive
Mar 10, 2026
Priority Technology Holdings reported its fourth-quarter and full-year 2025 results on March 10, 2026, highlighting broad-based growth across its business segments. Quarterly revenue rose 8.8% year over year to $247.1 million, with adjusted gross ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.