Priority Technology Holdings (PRTH) AI Stock Analysis

• Market Cap: $571.41M
• Dividend Yield: N/A
• Average Volume (3M): 466.49K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.57
• Revenue Growth: 12.86%
• EPS Growth: N/A
• Country: US
• Employees: 1,005
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.26
• Shares Outstanding: 79,917,920
• 10 Day Avg. Volume: 473,140
• 30 Day Avg. Volume: 466,492
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.59
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 7.58
• 1Y Price Target: $11.60
• Price Target Upside: 65.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: $8.00 ▲(14.12% Upside)

Priority Technology Holdings' overall stock score is driven by strong earnings call results, highlighting robust financial performance and strategic debt refinancing. However, financial leverage challenges and valuation concerns weigh down the score. Technical indicators suggest a neutral trend, adding moderate influence.

Positive Factors

Revenue Growth

Strong growth in key segments like B2B and Enterprise indicates robust demand and effective market positioning, supporting long-term revenue expansion.

Debt Refinancing

Successful debt refinancing reduces interest expenses, enhancing cash flow and financial flexibility, which supports strategic growth initiatives.

Acquisition Strategy

Strategic acquisitions expand service offerings and market reach, potentially increasing revenue and strengthening competitive position.

Negative Factors

Financial Leverage

High financial leverage and negative equity pose risks to balance sheet stability, potentially limiting financial flexibility and increasing vulnerability.

Declining Free Cash Flow

Decreasing free cash flow growth may impact the company's ability to fund operations and strategic initiatives without relying on external financing.

Increased Operating Expenses

Rising operating expenses can pressure margins and profitability, potentially affecting long-term financial performance if not managed effectively.

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 company offers MX product line, including MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing as our leverage point. It also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, the company provides curated managed services and a suite of integrated accounts payable automation solutions to various financial institutions and card networks; and payment-adjacent technologies to facilitate the acceptance of electronic payments from customers. Further, it offers embedded payment and banking solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. The company serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. Priority Technology Holdings, Inc. was founded in 2005 and is headquartered in Alpharetta, Georgia.

How the Company Makes Money

Priority Technology Holdings generates revenue primarily through its payment processing services, which include transaction fees charged to merchants for processing credit and debit card transactions. The company also earns income through value-added services such as fraud prevention, data analytics, and customer loyalty programs. Additionally, PRTH has established partnerships with various financial institutions and technology providers, which contribute to its revenue by expanding its service offerings and customer base. Key revenue streams include fees from transaction processing, subscription fees for value-added services, and commissions from referral partnerships, all of which are supported by the increasing demand for digital payment solutions in an evolving marketplace.

Priority Technology Holdings Financial Statement Overview

Summary

Priority Technology Holdings shows strong revenue growth and improving profitability, with a TTM revenue increase of 18.5% and improved gross profit margins. However, the balance sheet reveals significant leverage risks due to negative equity, and cash flow is stable but limited in cash generation relative to earnings.

Income Statement

The company demonstrated strong revenue growth, with a TTM increase of 18.5% from 2023 to 2024. Gross profit margin improved to 33.57% in TTM, indicative of effective cost management. Net profit margin is relatively low at 3.08%, though it has improved from negative in previous years, indicating better profitability management. EBIT and EBITDA margins are healthy, showing operational efficiency.

Balance Sheet

Priority Technology Holdings shows a concerning debt-to-equity ratio due to negative equity, indicating high leverage risk. The company's equity ratio is negative, reflecting its poor capital structure. However, the return on equity is not meaningful due to the negative equity, making profitability analysis challenging.

Cash Flow

The company has shown a stable free cash flow, with a positive trend in operating cash flow. However, the free cash flow to net income ratio is low, indicating limited cash generation relative to earnings. The operating cash flow to net income ratio is strong, reflecting good cash conversion from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	918.56M	879.70M	755.61M	663.64M	514.90M	404.34M
Gross Profit	308.45M	328.08M	275.31M	226.89M	155.02M	126.97M
EBITDA	195.26M	184.27M	151.66M	126.57M	82.31M	167.57M
Net Income	37.61M	24.02M	-1.31M	-2.15M	1.39M	71.06M
Balance Sheet
Total Assets	2.03B	1.83B	1.62B	1.37B	1.35B	417.83M
Cash, Cash Equivalents and Short-Term Investments	64.77M	58.60M	39.60M	18.45M	20.30M	9.24M
Total Debt	921.27M	930.39M	638.68M	605.13M	610.30M	377.31M
Total Liabilities	2.17B	1.99B	1.50B	1.24B	1.21B	516.39M
Stockholders Equity	-146.12M	-166.84M	110.89M	131.54M	145.92M	-98.56M
Cash Flow
Free Cash Flow	47.72M	63.92M	60.00M	51.64M	-49.80M	34.05M
Operating Cash Flow	70.68M	85.61M	81.26M	70.52M	9.38M	47.07M
Investing Cash Flow	-36.09M	-35.55M	-55.75M	-36.50M	-451.03M	166.40M
Financing Cash Flow	307.52M	147.58M	210.10M	8.50M	871.63M	-175.81M

Priority Technology Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTH, the sentiment is Negative. The current price of 7.01 is below the 20-day moving average (MA) of 7.56, below the 50-day MA of 7.51, and below the 200-day MA of 8.30, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of 17.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRTH.

Priority Technology Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSPN	73 Outperform	624.69M	10.54	24.70%	2.21%	-2.79%	259.00%
IMXI	69 Neutral	421.81M	8.67	36.17%	―	-4.19%	-3.52%
PAYS	69 Neutral	315.82M	47.85	12.54%	―	27.84%	-13.78%
PRTH	57 Neutral	$571.41M	26.75	57.39%	―	12.86%	―
RPAY	46 Neutral	447.22M	-4.09	-1.33%	―	1.45%	-28.78%
BKKT	43 Neutral	414.85M	-4.10	-137.66%	―	111.83%	73.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Priority Technology Holdings Corporate Events

Priority Technology Holdings Acquires Boom Commerce Assets

On August 18, 2025, Priority Technology Holdings, Inc. announced the acquisition of Boom Commerce’s payment processing assets and secured a $50 million financing facility. The acquisition is expected to enhance Priority’s direct sales channel and provide approximately $5 million in incremental revenue in 2025. The financing facility will support Priority’s expansion into alternative financing solutions, offering flexibility to its reseller base and reinforcing its market positioning.

Priority Technology Holdings Reports Strong Q2 2025 Results

On August 7, 2025, Priority Technology Holdings announced its second quarter 2025 financial results, highlighting a strong year-over-year revenue growth of 9.1% and a 13% increase in adjusted gross profit. The company reported significant growth in its B2B and Enterprise segments and raised its full-year revenue guidance to a range of $970 million to $990 million. The results reflect Priority’s successful positioning in the market and its ability to provide comprehensive payment and banking solutions, with a notable increase in recurring revenue contributing to 62% of total adjusted gross profit.

Priority Technology Holdings Secures $1.1 Billion Credit Facilities

On July 31, 2025, Priority Technology Holdings, Inc. announced the successful closing of $1.1 billion in new senior credit facilities, consisting of a $1 billion term loan with a 7-year maturity and a $100 million revolving credit facility with a 5-year maturity. This refinancing effort, which lowered the interest rate on the term loan by 100 basis points, aims to refinance existing debt, fund strategic growth initiatives, and enhance financial flexibility, thereby strengthening the company’s balance sheet and cash flow.

Priority Technology Launches New Senior Credit Facilities

On July 8, 2025, Priority Technology Holdings announced the launch of new senior credit facilities, comprising a $70 million revolving credit facility and a $1 billion term loan. These facilities aim to refinance existing debt, partially finance a prospective acquisition, and settle considerations related to a prior acquisition. The initiative aligns with the company’s strategy to optimize its capital structure, supported by favorable debt market conditions and recent positive ratings from Moody’s and S&P. The transactions are expected to close in the third quarter of 2025, potentially impacting the company’s financial operations and market positioning.

Priority Technology Holdings Holds Annual Stockholders Meeting

On June 13, 2025, Priority Technology Holdings, Inc. conducted its annual stockholders meeting with 80.3% of shares represented. Key outcomes included the election of directors, approval of amendments to the Employee Stock Purchase Plan, endorsement of executive compensation, and the ratification of Ernst & Young LLP as the accounting firm for 2025.