Priority Technology Holdings (PRTH) AI Stock Analysis

• Market Cap: $634.04M
• Dividend Yield: N/A
• Average Volume (3M): 419.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 15.76%
• EPS Growth: 82.78%
• Country: US
• Employees: 1,005
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 0.10
• Shares Outstanding: 79,753,480
• 10 Day Avg. Volume: 374,396
• 30 Day Avg. Volume: 419,170
• PEG Ratio: 0.79
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.97
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 1.45
• 1Y Price Target: $12.00
• Price Target Upside: 53.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $8.00 ▲(2.04%Upside)

Priority Technology Holdings shows strong revenue growth and a positive outlook from its earnings call, which supports its score. However, the company's valuation is weak due to negative profitability metrics, and the balance sheet's high leverage poses a risk. Technical indicators are neutral, reflecting market uncertainty.

Positive Factors

Financial Strategy

Acquisitions and organic investments have transformed PRTH into a more diversified and integrated financial solutions provider, processing significant transaction volumes for a large customer base.

Profitability

The favorable shift in business mix is shown through an expansion in adjusted gross margin, with a significant portion of profits coming from recurring sources.

Stock Valuation

Priority's shares are seen as undervalued compared to competitors, with a strong potential for price appreciation.

Negative Factors

Market Sentiment

The market backdrop is understandably skeptical and that drove pressure in shares that is exacerbated by limited trading liquidity in a small-cap stock.

Revenue Expectations

Revenue for Q4 is expected slightly below consensus.

Revenue Performance

1Q performance was mixed versus Street, largely due to lighter SMB Merchant growth, leaving a more pronounced ramp to achieve its affirmed CY25 outlook.

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 fees and charges associated with its payment processing services and financial technology solutions. The company earns money by facilitating transactions between merchants and financial institutions, charging a percentage of each transaction as a processing fee. Additionally, it offers value-added services such as payment gateway solutions, card issuing, and other business management tools, which provide additional revenue streams. Strategic partnerships with financial institutions and technology providers also play a significant role in expanding its service offerings and customer base, contributing to its overall earnings.

Priority Technology Holdings Financial Statement Overview

Summary

Priority Technology Holdings shows solid revenue growth and improving profitability metrics. However, the balance sheet reflects significant leverage risk due to negative equity, which is a concern. Cash flow is stable and supports operational activities, but high debt levels and poor capital structure are notable financial risks.

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
898.61M	879.70M	755.61M	663.64M	514.90M	404.34M
	Gross Profit
301.57M	328.08M	275.31M	226.89M	155.02M	126.97M
	EBIT
138.02M	133.42M	81.52M	56.16M	33.09M	20.86M
	EBITDA
147.94M	179.93M	151.66M	126.57M	82.31M	167.57M
	Net Income Common Stockholders
27.67M	24.02M	-1.31M	-2.15M	1.39M	71.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.59M	58.60M	39.60M	18.45M	20.30M	9.24M
	Total Assets
1.89B	1.83B	1.62B	1.37B	1.35B	417.83M
	Total Debt
920.82M	930.39M	638.68M	605.13M	610.30M	377.31M
	Net Debt
873.24M	871.79M	599.07M	586.67M	590.00M	368.07M
	Total Liabilities
2.05B	1.99B	1.50B	1.24B	1.21B	516.39M
	Stockholders Equity
-158.33M	-166.84M	110.89M	131.54M	145.92M	-98.56M
Cash Flow		Free Cash Flow
62.08M	63.92M	60.00M	51.64M	-49.80M	34.05M
	Operating Cash Flow
82.26M	85.61M	81.26M	70.52M	9.38M	47.07M
	Investing Cash Flow
-37.59M	-35.55M	-55.75M	-36.50M	-451.03M	166.40M
	Financing Cash Flow
205.12M	147.58M	210.10M	8.50M	871.63M	-175.81M

Priority Technology Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.84
• 50DMA: Positive
• 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 7.84 is below the 20-day moving average (MA) of 8.12, above the 50-day MA of 7.48, and below the 200-day MA of 8.05, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 17.64 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
PAYS	73 Outperform	$277.87M	46.40	18.82%	―	26.77%	-13.24%
OSPN	69 Neutral	$605.19M	10.76	28.92%	3.03%	-0.26%	―
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
PRTH	61 Neutral	$634.04M	―	57.39%	―	15.76%	82.78%
IMXI	61 Neutral	$307.56M	5.93	39.27%	―	-1.90%	0.05%
BKKT	55 Neutral	$181.96M	―	-60.94%	―	128.83%	73.67%
RPAY	53 Neutral	$438.53M	―	-1.64%	―	2.26%	85.37%

Priority Technology Holdings Corporate Events

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.

The most recent analyst rating on (PRTH) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Priority Technology Holdings stock, see the PRTH Stock Forecast page.

Priority Technology Holdings Reports Q1 2025 Revenue Growth

On May 6, 2025, Priority Technology Holdings announced its financial results for the first quarter of 2025, reporting a 9.2% increase in revenue to $224.6 million compared to the previous year. The company highlighted strong growth across its unified commerce platform, with significant increases in adjusted gross profit and operating income, reinforcing its market position despite economic uncertainties.