Priority Technology Holdings (PRTH) AI Stock Analysis

• Market Cap: $408.14M
• Dividend Yield: N/A
• Average Volume (3M): 338.41K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 1.58
• Revenue Growth: 9.51%
• EPS Growth: N/A
• Country: US
• Employees: 1,005
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.27
• Shares Outstanding: 82,285,360
• 10 Day Avg. Volume: 389,536
• 30 Day Avg. Volume: 338,408
• PEG Ratio: -0.02
• Price to Book (P/B): -4.33
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 5.79
• Enterprise Value/Market Cap: 3.37
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 6.74
• 1Y Price Target: $9.80
• Price Target Upside: 97.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.11
• Revenue Forecast (FY): $1.03B

• Rating: 58 Neutral
• Price Target: $5.50 ▲(10.89% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by improving operating performance and positive free cash flow, tempered by material balance-sheet risk from persistent negative equity. Technically, the stock is in a weak downtrend (below key moving averages), while valuation is a support given the low P/E. Earnings-call messaging was mixed, with stronger profitability but lowered revenue guidance.

Positive Factors

Cash generation

Consistent positive operating cash flow ($100M TTM) and strong free cash flow ($75.1M, ~18.6% growth) provide durable internal funding for organic investment, acquisitions and working-capital needs. High FCF supports strategic flexibility and reduces reliance on external financing over the medium term.

Revenue and margin expansion

Sustained top-line growth (953M TTM) coupled with meaningful margin expansion (net margin ~5.9%, EBIT ~14.8%, EBITDA ~20.9%) indicates improving operating leverage and a more durable earnings base. This trend supports future cash conversion and reinvestment capacity if it persists across cycles.

Business diversification and M&A

Growth in higher-margin Payables and Treasury segments and targeted acquisitions (e.g., Dealer Merchant Services, Boom Commerce) expand product breadth and recurring revenue. The residual financing facility strengthens ISO/ISV partnerships, structurally diversifying revenue sources and reducing dependence on merchant-sales cyclicality.

Negative Factors

Negative shareholders' equity

A persistent equity deficit (TTM -$100.4M) is a structural capital-structure weakness that constrains financial flexibility, limits access to equity markets, and raises stakeholder risk during downturns. Even with recent debt improvements, an equity shortfall impairs long-term resilience and return metrics.

Merchant Solutions slowdown

Merchant Solutions deceleration (slow growth and same-store weakness) led to a downward revenue guide revision, showing structural exposure to consumer and sector-specific spending. Continued weakness here would require stronger diversification or product shifts to maintain overall growth targets.

Rising operating expenses

Material increases in salaries and SG&A (20%+ and 26%+ respectively) driven by acquisitions and scaling raise the fixed cost base. If revenue mix or growth slows, these elevated operating costs can compress margins and reduce the sustainability of recent profitability gains absent ongoing efficiency improvements.

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

Operations and cash flow are improving (TTM revenue up vs. 2024, net margin higher, positive free cash flow), but financial risk remains elevated due to persistent negative equity despite the reported drop in total debt to zero.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly versus 2024 (953.0M vs. 879.7M), showing continued top-line momentum after several years of expansion. Profitability has improved meaningfully: net margin rose to ~5.9% in TTM from ~2.7% in 2024, with solid operating profitability (TTM EBIT margin ~14.8% and EBITDA margin ~20.9%). The main weaknesses are mixed gross margin performance (TTM ~34.0% vs. 2024 ~37.3%) and a track record that includes low/negative net income in 2021–2023, indicating earnings durability is still developing.

Balance Sheet

Balance sheet quality is the key concern. Stockholders’ equity is negative in TTM (-100.4M) and was also negative in 2024 and 2020, which limits financial flexibility and increases downside risk. While TTM total debt is shown as 0 (a major improvement from 930.4M in 2024), the negative equity still drives an unfavorable leverage picture and weak equity returns (TTM return on equity is negative). Overall, despite the sharp debt reduction in the latest period, the capital structure remains a notable risk due to the equity deficit.

Cash Flow

Cash generation is a relative strength. TTM operating cash flow is solid (100.0M) and free cash flow is positive (75.1M), with strong TTM free-cash-flow growth (~18.6%). Cash conversion is decent, with free cash flow at ~73% of net income in TTM (similar to 2024), suggesting earnings are reasonably backed by cash. The main drawback is that operating cash flow remains low relative to the company’s asset base (coverage ratio is ~0.07 in TTM and ~0.08 in 2024), implying capital intensity and/or working-capital demands can still pressure liquidity efficiency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	953.01M	879.70M	755.61M	663.64M	514.90M
Gross Profit	203.72M	328.08M	275.31M	226.89M	155.02M
EBITDA	204.43M	184.27M	151.66M	127.44M	82.31M
Net Income	55.68M	24.02M	-1.31M	-2.15M	1.39M
Balance Sheet
Total Assets	2.40B	1.83B	1.62B	1.37B	1.35B
Cash, Cash Equivalents and Short-Term Investments	77.19M	58.60M	39.60M	18.45M	20.30M
Total Debt	1.05B	930.39M	638.68M	605.13M	610.30M
Total Liabilities	2.49B	1.99B	1.50B	1.24B	1.21B
Stockholders Equity	-100.42M	-166.84M	110.89M	131.54M	145.92M
Cash Flow
Free Cash Flow	75.08M	63.92M	60.00M	51.64M	-342.00K
Operating Cash Flow	100.00M	85.61M	81.26M	70.52M	9.38M
Investing Cash Flow	-174.04M	-35.55M	-55.75M	-36.50M	-451.03M
Financing Cash Flow	426.17M	147.58M	210.10M	8.50M	871.63M

Priority Technology Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.96
• 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 4.96 is below the 20-day moving average (MA) of 5.48, below the 50-day MA of 5.62, and below the 200-day MA of 6.71, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 31.23 is Neutral, neither overbought nor oversold. The STOCH value of 15.38 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
CCSI	65 Neutral	$567.01M	4.97	-522.60%	―	-0.44%	-7.23%
BAND	62 Neutral	$478.02M	-35.89	-3.39%	―	7.42%	34.42%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRTH	58 Neutral	$408.14M	7.81	-43.23%	―	9.51%	―
RPAY	50 Neutral	$231.94M	-1.22	-17.60%	―	-0.58%	-57.43%
DAVA	50 Neutral	$273.18M	-9.10	-0.48%	―	4.02%	34.45%
REKR	49 Neutral	$137.82M	-11.89	-126.37%	―	11.89%	34.27%

Priority Technology Holdings Corporate Events

Priority Technology Posts Strong Q4 2025 Results, Issues 2026 Outlook

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 profit up 19.4% and adjusted EBITDA up 16.2%, while full-year revenue increased 8.3% to $953.0 million and adjusted EPS more than doubled, supported in part by its October 2025 acquisition of Dealer Merchant Services and strong gains in Treasury Solutions and Payables.

The company also issued full-year 2026 guidance, projecting revenue growth of 6% to 9% to between $1.01 billion and $1.04 billion, alongside higher adjusted gross profit and adjusted EBITDA. The results and outlook underscore the strength and diversification of Priority’s connected commerce platform, with expanding margins signaling improved operating efficiency and a more profitable mix for stakeholders.

The most recent analyst rating on (PRTH) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Priority Technology Holdings stock, see the PRTH Stock Forecast page.