Priority Technology Holdings (PRTH) AI Stock Analysis

• Market Cap: $594.96M
• Dividend Yield: N/A
• Average Volume (3M): 443.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: 15.76%
• EPS Growth: 82.78%
• Country: US
• Employees: 1,005
• Sector: Technology
• Sector Strength: 80
• Industry: Software - Infrastructure
• EPS (TTM): 0.10
• Shares Outstanding: 79,753,480
• 10 Day Avg. Volume: 529,060
• 30 Day Avg. Volume: 443,484
• PEG Ratio: -0.45
• Price to Book (P/B): -3.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.55
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 2.02
• 1Y Price Target: $11.60
• Price Target Upside: 54.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Priority Technology Holdings exhibits solid revenue growth and improving profitability, which are positive indicators. However, significant leverage and a negative P/E ratio present financial challenges. The technical analysis suggests cautious optimism, while the earnings call provides a positive outlook tempered by operational challenges. These factors collectively result in a moderate overall stock score.

Positive Factors

Financial Performance

All segments registered double-digit organic revenue growth and EBITDA profitability in Q4.

Revenue Growth

The initial outlook for 2025 revenue growth is above consensus, indicating positive performance expectations.

Valuation

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

Negative Factors

1Q 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.

Market Skepticism

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.

Priority Technology Holdings Business Overview & Revenue Model

Company Description

Priority Technology Holdings, Inc. (PRTH) is a provider of merchant acquiring and commercial payment solutions, operating primarily in the financial technology sector. The company offers payment processing services, enterprise software solutions, and various other technology-driven services aimed at enhancing business efficiency and customer engagement. Priority Technology Holdings serves a diverse clientele, including small and medium-sized businesses, financial institutions, and enterprise-level organizations.

How the Company Makes Money

Priority Technology Holdings generates revenue through various streams, primarily from payment processing fees, software as a service (SaaS) subscriptions, and value-added services. The company earns transaction fees each time a payment is processed through its systems, making it a critical partner for businesses needing efficient and secure payment solutions. Furthermore, Priority offers subscription-based software solutions that provide businesses with tools for financial management, accounting, and customer relationship management. Additionally, the company forms strategic partnerships with financial institutions and other technology providers to expand its service offerings and market reach, thereby contributing to its revenue growth.

Priority Technology Holdings Financial Statement Overview

Summary

Priority Technology Holdings exhibits strong revenue growth but faces challenges in profitability and financial stability, particularly with negative equity and significant liabilities. Cash flow remains a positive aspect, but reliance on external financing highlights potential liquidity concerns.

Income Statement

Priority Technology Holdings shows strong revenue growth with an increase from $663.6M in 2022 to $879.7M in 2024. However, the company experiences volatility in profitability; net income remains negative despite an increase in EBIT. EBITDA margin decline from 2023 to 2024 is notable, indicating rising operational challenges.

Balance Sheet

The balance sheet reflects a concerning financial position with negative stockholders' equity in 2024, driven by significant liabilities. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is similarly concerning. The high level of liabilities poses a risk to financial stability.

Cash Flow

Cash flow analysis reveals positive operating cash flow and free cash flow in recent years, with a stable operating cash flow to net income ratio. However, the free cash flow growth rate is modest, and substantial financing cash flows indicate reliance on external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
879.70M	755.61M	663.64M	514.90M	404.34M
	Gross Profit
328.08M	275.31M	226.89M	155.02M	126.97M
	EBIT
133.42M	81.52M	56.16M	33.09M	20.86M
	EBITDA
179.93M	151.66M	126.57M	82.31M	167.57M
	Net Income Common Stockholders
24.02M	-1.31M	-2.15M	1.39M	71.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.60M	39.60M	18.45M	20.30M	9.24M
	Total Assets
1.83B	1.62B	1.37B	1.35B	417.83M
	Total Debt
930.39M	638.68M	605.13M	610.30M	377.31M
	Net Debt
871.79M	599.07M	586.67M	590.00M	368.07M
	Total Liabilities
1.99B	1.50B	1.24B	1.21B	516.39M
	Stockholders Equity
-166.84M	110.89M	131.54M	145.92M	-98.56M
Cash Flow		Free Cash Flow
63.92M	60.00M	51.64M	-49.80M	34.05M
	Operating Cash Flow
85.61M	81.26M	70.52M	9.38M	47.07M
	Investing Cash Flow
-35.55M	-55.75M	-36.50M	-451.03M	166.40M
	Financing Cash Flow
147.58M	210.10M	8.50M	871.63M	-175.81M

Priority Technology Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTH, the sentiment is Positive. The current price of 7.52 is above the 20-day moving average (MA) of 7.19, above the 50-day MA of 7.21, and below the 200-day MA of 7.73, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRTH.

Priority Technology Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYS	75 Outperform	$180.54M	35.00	18.82%	―	26.77%	-13.24%
OSPN	72 Outperform	$615.51M	10.94	28.92%	0.74%	-0.26%	―
IMXI	71 Outperform	$345.03M	6.79	39.27%	―	-1.90%	0.05%
RPAY	61 Neutral	$387.49M	―	-1.64%	―	2.26%	85.37%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
PRTH	58 Neutral	$594.96M	―	57.39%	―	15.76%	82.78%
BKKT	53 Neutral	$179.60M	―	-60.94%	―	128.83%	73.67%

Priority Technology Holdings Corporate Events

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.

Spark’s Take on PRTH Stock

According to Spark, TipRanks’ AI Analyst, PRTH is a Neutral.

Priority Technology Holdings demonstrates strong revenue growth but is hindered by financial instability due to negative equity and significant liabilities. The earnings call provides a positive outlook with substantial revenue and EBITDA growth, although this is tempered by operational challenges. Technical analysis suggests potential caution, and valuation metrics indicate the company is not currently profitable, impacting its attractiveness.

To see Spark’s full report on PRTH stock, click here.

Priority Technology Holdings Announces Board Changes

On February 26, 2025, John V. Priore announced his resignation from the Board of Priority Technology Holdings, effective April 1, 2025. His departure was not due to any disagreements with the company. Clayton Main, an experienced executive with over 20 years in leveraged financing and structured equity investments, will replace Priore on the board. Main’s appointment is expected to bring valuable expertise to Priority as it seeks to optimize its capital structure and explore growth in new enterprise payment verticals.