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Priority Technology Holdings
(NASDAQ:PRTH)
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Rating:62Neutral
Price Target:
$8.50
▲(57.99% Upside)
Action:Reiterated
Date:09/22/26
The score is primarily held back by balance-sheet weakness (negative equity) despite clear improvements in profitability and free cash flow. Technically, the stock is in a strong uptrend but looks extended on momentum indicators (RSI/Stoch), raising near-term pullback risk. Valuation (P/E 11.3) and the go-private offer provide support, but do not fully offset the capital-structure risk.
Positive Factors
Sustained revenue growth
PRTH has nearly doubled revenue since 2021 and continued growing into the latest trailing period. This indicates expanding payment volume, merchant reach, or software-enabled distribution, giving the business a broader base from which to compound earnings and absorb operating investments.
Negative Factors
Persistent negative equity
Persistent negative equity signals a pressured capital structure and reduces financial flexibility even as earnings and cash flow improve. It can constrain the company’s ability to absorb setbacks, support acquisitions, or allocate capital freely, making balance-sheet repair an important longer-term priority.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth
PRTH has nearly doubled revenue since 2021 and continued growing into the latest trailing period. This indicates expanding payment volume, merchant reach, or software-enabled distribution, giving the business a broader base from which to compound earnings and absorb operating investments.
Read all positive factors
Priority Technology Holdings (PRTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$643.03M
Dividend YieldN/A
Average Volume (3M)1.30M
Price to Earnings (P/E)11.3
Beta (1Y)1.42
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. Volume3,074,770
30 Day Avg. Volume1,295,973
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
$8.41Price Target Upside56.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.97
Revenue Forecast (FY)$1.04B
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 earning fees generated when merchants accept electronic payments (e.g., card-present and card-not-present transactions). The company’s core revenue stream is payment processing economics: it earns the net spread and/o...
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
Positive
5.38
Price Trends
6.04
Positive
6.19
Positive
5.80
Positive
Market Momentum
0.46
Negative
79.10
Negative
97.99
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 5.38 is below the 20-day moving average (MA) of 6.06, below the 50-day MA of 6.04, and below the 200-day MA of 5.80, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 79.10 is Negative, neither overbought nor oversold. The STOCH value of 97.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $668.31M | 7.09 | 506.78% | ― | 1.45% | 20.83% | |
62 Neutral | $643.03M | 11.30 | -59.14% | ― | 8.91% | 162.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $1.88B | -754.21 | <0.01% | ― | 9.25% | ― | |
51 Neutral | $343.04M | -1.86 | -32.64% | ― | 8.84% | -62.58% | |
46 Neutral | $118.60M | -0.19 | -88.28% | ― | -2.00% | -2798.10% | |
43 Neutral | $63.40M | -2.57 | -59.05% | ― | 9.78% | 69.23% |
* Technology Sector Average
PRTH
Priority Technology Holdings
7.79
0.78
11.13%
BAND
Bandwidth
61.83
44.31
252.91%
RPAY
Repay Holdings
3.93
-1.22
-23.69%
DAVA
Endava
1.70
-7.19
-80.88%
REKR
Rekor Systems
0.43
-1.32
-75.60%
CCSI
Consensus Cloud Solutions
35.37
5.98
20.35%
Priority Technology Holdings Corporate Events
Delistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
Priority Technology agrees to go-private merger deal
Positive
Sep 21, 2026
On September 18, 2026, Priority Technology Holdings entered into a definitive merger agreement under which WD Capital Partners Parent Inc., an entity controlled by Chairman and CEO Thomas C. Priore, will acquire all outstanding shares it does not ...
Business Operations and StrategyM&A Transactions
Priority Technology Expands into Public Sector Payments with IntelliPay
Positive
Aug 26, 2026
On August 25, 2026, Priority Payment Systems, an indirect wholly owned subsidiary of Priority Technology Holdings, acquired all membership interests of Convenient Payments, LLC for $11.5 million plus up to $3.5 million in earnout payments over eig...
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...
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.