Priority Technology Holdings (PRTH) AI Stock Analysis

• Market Cap: $451.93M
• Dividend Yield: N/A
• Average Volume (3M): 763.29K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.61
• Revenue Growth: 9.51%
• EPS Growth: N/A
• Country: US
• Employees: 1,005
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.28
• Shares Outstanding: 81,871,570
• 10 Day Avg. Volume: 399,043
• 30 Day Avg. Volume: 763,288
• PEG Ratio: -0.75
• Price to Book (P/B): -5.49
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 14.34
• Enterprise Value/Market Cap: 3.31
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: 7.67
• 1Y Price Target: $10.20
• Price Target Upside: 84.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): $953.89M

• Rating: 59 Neutral
• Price Target: $6.00 ▲(8.70% Upside)

Priority Technology Holdings' overall stock score is driven by moderate financial performance with significant risks due to negative equity and high leverage. The stock's undervaluation and positive corporate events provide some upside potential, but bearish technical indicators and mixed earnings call sentiment highlight challenges.

Positive Factors

Cash Flow Growth

Strong free cash flow growth enhances liquidity and provides flexibility for strategic investments and debt management, supporting long-term stability.

Customer Base Expansion

Expanding customer base indicates successful market penetration and potential for increased transaction volume, driving future revenue growth.

Strategic Acquisitions

Strategic acquisitions enhance service offerings and market reach, potentially increasing revenue streams and competitive positioning.

Negative Factors

Negative Equity

Negative equity poses financial risk, limiting the company's ability to raise capital and potentially affecting long-term financial health.

High Debt Levels

High debt levels increase financial risk and interest burden, potentially constraining future growth and operational flexibility.

Merchant Solutions Segment Challenges

Slowing growth in a key segment could hinder overall revenue growth and reflects potential market saturation or competitive pressures.

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, where it earns transaction fees from merchants for handling electronic payments. Additionally, the company benefits from subscription fees for its software and point-of-sale systems, which provide businesses with essential tools for managing transactions and financial reporting. Key revenue streams include merchant services, which encompass credit and debit card processing, as well as value-added services such as fraud prevention and analytics. PRTH also engages in strategic partnerships with financial institutions and technology providers, enhancing its service offerings and expanding its customer base, which contributes significantly to its earnings.

Priority Technology Holdings Financial Statement Overview

Summary

Priority Technology Holdings shows moderate revenue growth and profitability, but faces significant financial risks due to negative equity and high leverage. Strong cash flow growth is a positive sign for liquidity, but improving financial stability and equity position should be a priority.

Income Statement

Priority Technology Holdings shows a moderate revenue growth rate of 1.57% TTM, indicating steady expansion. The gross profit margin of 33.58% and EBIT margin of 15.18% TTM reflect decent profitability, though slightly below industry leaders. The net profit margin of 4.09% TTM is modest, suggesting room for improvement in cost management and efficiency.

Balance Sheet

The company has a concerning negative stockholders' equity, leading to a high and negative debt-to-equity ratio of -6.31 TTM, indicating financial instability. Return on equity is also negative, reflecting challenges in generating returns for shareholders. The equity ratio is not available due to negative equity, highlighting potential financial risk.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate of 32.69% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.06 TTM suggests limited cash conversion efficiency, but the free cash flow to net income ratio of 0.68 TTM is healthy, reflecting good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	932.95M	879.70M	755.61M	663.64M	514.90M	404.34M
Gross Profit	317.23M	328.08M	275.31M	226.89M	155.02M	126.97M
EBITDA	195.06M	184.27M	151.66M	127.44M	82.31M	167.57M
Net Income	54.59M	24.02M	-1.31M	-2.15M	1.39M	25.66M
Balance Sheet
Total Assets	2.22B	1.83B	1.62B	1.37B	1.35B	417.83M
Cash, Cash Equivalents and Short-Term Investments	69.96M	58.60M	39.60M	18.45M	20.30M	9.24M
Total Debt	1.01B	930.39M	638.68M	605.13M	610.30M	377.31M
Total Liabilities	2.33B	1.99B	1.50B	1.24B	1.21B	516.39M
Stockholders Equity	-110.30M	-166.84M	110.89M	131.54M	145.92M	-98.56M
Cash Flow
Free Cash Flow	63.32M	63.92M	60.00M	51.64M	-342.00K	4.74M
Operating Cash Flow	86.92M	85.61M	81.26M	70.52M	9.38M	12.20M
Investing Cash Flow	-162.71M	-35.55M	-55.75M	-36.50M	-451.03M	166.40M
Financing Cash Flow	351.50M	147.58M	210.10M	8.50M	871.63M	-140.94M

Priority Technology Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.52 is below the 20-day moving average (MA) of 5.63, below the 50-day MA of 6.26, and below the 200-day MA of 7.22, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 30.28 is Neutral, 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CCSI	61 Neutral	$443.97M	5.55	―	―	-0.44%	-7.23%
PRTH	59 Neutral	$451.93M	10.38	―	―	9.51%	―
DAVA	58 Neutral	$394.02M	34.88	1.63%	―	4.02%	34.45%
REKR	54 Neutral	$223.79M	-3.81	-114.65%	―	11.89%	34.27%
BAND	52 Neutral	$457.82M	-37.68	-3.20%	―	7.42%	34.42%
RPAY	51 Neutral	$602.04M	-2.70	-17.60%	―	-0.58%	-57.43%

Priority Technology Holdings Corporate Events

Priority Technology Evaluates Take-Private Proposal

On December 8, 2025, Priority Technology Holdings announced that its Special Committee of independent directors has retained Barclays as its financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal counsel. This move is part of the committee’s evaluation of a preliminary, non-binding take-private proposal from Thomas Priore, the company’s Chairman and Executive Officer, dated November 9, 2025. The Special Committee is considering the proposal and other strategic alternatives, but no definitive timetable or assurance of a transaction has been set.

Priority Technology Receives Buyout Proposal from CEO

On November 10, 2025, Priority Technology Holdings announced it received a preliminary, non-binding proposal from an investor group led by its Chairman and CEO, Thomas Priore, to acquire the remaining shares of the company’s common stock. This proposal offers cash consideration of $6.00 to $6.15 per share for shares not currently held by the group, which already owns approximately 58% of the company’s stock. The announcement highlights potential changes in company ownership but emphasizes that no agreement has been reached, and shareholders are not required to take any action at this time.

Priority Technology Holdings Reports Strong Q3 2025 Results

On November 6, 2025, Priority Technology Holdings announced its third quarter 2025 financial results, highlighting a 6.3% increase in revenue to $241.4 million and a 10.2% rise in adjusted gross profit to $94.8 million compared to the same quarter in 2024. The company achieved significant operational milestones, such as launching a residual financing facility, activating card acquiring in Canada, and acquiring assets from Boom Commerce and Dealer Merchant Services, which contributed to its strong performance and reinforced its platform’s strength.

Priority Technology Completes Dealer Merchant Services Acquisition

On October 1, 2025, Priority Technology Holdings, Inc. completed the acquisition of Dealer Merchant Services’ assets, a reseller in the auto and truck dealership sector, for $35 million in cash and additional earnout payments. This strategic acquisition is expected to enhance Priority’s offerings in the automotive dealership arena and contribute approximately $3 million in incremental revenue and over $1 million in adjusted EBITDA in Q4 2025.