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Priority Technology Holdings
(NASDAQ:PRTH)
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Rating:62Neutral
Price Target:
$7.00
▲(11.29% Upside)
Action:Reiterated
Date:08/06/26
PRTH earns a mid-range score driven by improving financial performance (growth, return to profitability, and solid free cash flow) but meaningfully constrained by balance-sheet risk (negative equity) and elevated leverage. Valuation is supportive with a low P/E, while technical indicators are mostly neutral with slightly negative momentum and higher volatility. Earnings-call tone and maintained guidance are constructive, though margin pressure and expense/debt headwinds temper the outlook.
Positive Factors
Sustained Revenue Growth and Scale
Priority's revenue trajectory demonstrates durable top-line scaling: recurring transaction volume and multi-quarter organic growth have driven revenue from mid-single digits to roughly $1B TTM. That scale supports investment in platform features, partner onboarding, and long-term customer retention, reducing unit economics sensitivity to short-term volume swings and improving odds of sustained margin recovery through operating leverage.
Negative Factors
Weak Capital Structure and Negative Equity
Persistent negative equity and elevated net leverage constrain financial flexibility and increase refinancing, covenant, and stakeholder risks. Even with improving earnings, a pressured capital structure limits the company's ability to absorb shocks, pursue large strategic investments, or opportunistic M&A without further financing or equity remedies, a multi-month structural constraint.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth and Scale
Priority's revenue trajectory demonstrates durable top-line scaling: recurring transaction volume and multi-quarter organic growth have driven revenue from mid-single digits to roughly $1B TTM. That scale supports investment in platform features, partner onboarding, and long-term customer retention, reducing unit economics sensitivity to short-term volume swings and improving odds of sustained margin recovery through operating leverage.
Read all positive factors
Priority Technology Holdings (PRTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$464.14M
Dividend YieldN/A
Average Volume (3M)527.97K
Price to Earnings (P/E)8.1
Beta (1Y)1.66
Revenue Growth8.91%
EPS Growth162.25%
CountryUS
Employees1,193
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.69
Shares Outstanding82,440,370
10 Day Avg. Volume322,287
30 Day Avg. Volume527,965
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$8.63Price Target Upside37.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.12
Revenue Forecast (FY)$1.03B
Priority Technology Holdings Business Overview & Revenue Model
Company Description
Priority Technology Holdings, Inc. operates as a payment technology firm primarily within the United States. Its operations are organized into three distinct divisions: payments for small and medium-sized businesses (SMB), business-to-business (B2...
How the Company Makes Money
PRTH primarily makes money by enabling merchants to accept and process electronic payments and by providing software/technology platforms that support payment-enabled business workflows. Key revenue streams generally include: (1) payment processin...
Priority Technology Holdings Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 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
Margin Compression in Payables
Payables gross margins declined ~210 basis points year-over-year to 28.4%, largely due to revenue mix shift and GAAP recognition changes (more buyer-funded revenue reported gross vs. net), putting pressure on segment margins despite revenue growth.
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
74
Positive
Balance Sheet
28
Negative
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 953.01M | 879.70M | 755.61M | 663.64M | 514.90M |
| Gross Profit | 393.67M | 203.72M | 328.08M | 275.31M | 226.89M | 155.02M |
| EBITDA | 304.74M | 197.42M | 184.27M | 151.66M | 127.44M | 82.31M |
| Net Income | 56.16M | 55.68M | 24.02M | -1.31M | -2.15M | 1.39M |
Balance Sheet | ||||||
| Total Assets | 2.50B | 2.40B | 1.83B | 1.62B | 1.37B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 120.26M | 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 | 2.57B | 2.49B | 1.99B | 1.50B | 1.24B | 1.21B |
| Stockholders Equity | -79.17M | -100.42M | -166.84M | 110.89M | 131.54M | 145.92M |
Cash Flow | ||||||
| Free Cash Flow | 103.72M | 75.08M | 63.92M | 60.00M | 51.64M | -342.00K |
| Operating Cash Flow | 128.27M | 100.00M | 85.61M | 81.26M | 70.52M | 9.38M |
| Investing Cash Flow | -349.92M | -174.04M | -35.55M | -55.75M | -36.50M | -451.03M |
| Financing Cash Flow | 325.31M | 426.17M | 147.58M | 210.10M | 8.50M | 871.63M |
Priority Technology Holdings Technical Analysis
Negative
6.29
Price Trends
6.45
Negative
5.97
Negative
5.76
Negative
Market Momentum
-0.30
Positive
41.36
Neutral
62.14
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 6.29 is above the 20-day moving average (MA) of 5.96, below the 50-day MA of 6.45, and above the 200-day MA of 5.76, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 62.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.68B | -614.16 | <0.01% | ― | 9.25% | ― | |
72 Outperform | $698.55M | 7.36 | 506.78% | ― | 1.45% | 20.83% | |
62 Neutral | $464.14M | 8.10 | -59.14% | ― | 8.91% | 162.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $325.40M | -1.89 | -32.64% | ― | 8.84% | -62.58% | |
51 Neutral | $82.14M | -3.51 | -59.05% | ― | 9.78% | 69.23% | |
46 Neutral | $174.81M | -0.28 | -88.28% | ― | -2.00% | -2798.10% |
* Technology Sector Average
PRTH
Priority Technology Holdings
5.59
-2.39
-29.95%
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34.03
241.01%
RPAY
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DAVA
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3.07
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-76.37%
REKR
Rekor Systems
0.59
-0.51
-46.73%
CCSI
Consensus Cloud Solutions
37.19
11.85
46.76%
Priority Technology Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Priority Technology Reaffirms 2026 Outlook After Q2 Growth
Positive
Aug 6, 2026
On August 6, 2026, Priority Technology Holdings, Inc. reported second-quarter 2026 results showing revenue of $262.3 million, up 9.4% year over year with 7.2% organic growth, and adjusted gross profit rising 8.1% to $99.9 million, though gross and...
Executive/Board ChangesShareholder Meetings
Priority Technology Shareholders Approve Directors and Governance Matters
Positive
Jun 15, 2026
At its June 11, 2026 annual meeting, Priority Technology Holdings, Inc. reported that 83.5% of outstanding common shares were represented, establishing a quorum, and stockholders elected six directors, including Thomas Priore and other incumbent n...
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...
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.