Priority Technology Holdings AI Stock Analysis
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Priority Technology Holdings (PRTH) AI Stock Analysis
Priority Technology Holdings
(NASDAQ:PRTH)
The score is primarily driven by improving operating results and strong free-cash-flow generation, offset by material balance-sheet risk from negative equity. Technicals are supportive but look overextended, while corporate events (notably the go-private deal) add a meaningful positive catalyst. Valuation appears reasonable based on the P/E.
Priority Technology Holdings (PRTH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $652.33M
- Dividend Yield
- ―
- Average Volume (3M)
- 1.04M
- Price to Earnings (P/E)
- 15.8
- Beta (1Y)
- 1.17
- Revenue Growth
- 10.14%
- EPS Growth
- -6.90%
- Country
- US
- Employees
- 1,193
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Infrastructure
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 (B2B)...
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/or p...
Priority Technology Holdings Earnings Call Summary
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.
Q1-2026 Updates
Positive Updates
Negative 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
Strong revenue growth (to ~$1.03B TTM) and improving profitability are supported by solid, rising free cash flow (~$108M TTM). However, the balance sheet is a major overhang with negative stockholders’ equity in recent periods, which increases financial risk despite sharply lower reported debt in TTM.
Income Statement
74PositiveBalance Sheet
24NegativeCash Flow
79Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.03B | 953.01M | 879.70M | 755.61M | 663.64M | 514.90M |
| Gross Profit | 401.63M | 203.72M | 328.08M | 275.31M | 226.89M | 155.02M |
| EBITDA | 180.63M | 197.42M | 184.27M | 151.66M | 127.44M | 82.31M |
| Net Income | 40.79M | 55.68M | 24.02M | -1.31M | -2.15M | 1.39M |
Balance Sheet | ||||||
| Total Assets | 2.65B | 2.40B | 1.83B | 1.62B | 1.37B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 660.65M | 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 | 2.71B | 2.49B | 1.99B | 1.50B | 1.24B | 1.21B |
| Stockholders Equity | -65.63M | -100.42M | -166.84M | 110.89M | 131.54M | 145.92M |
Cash Flow | ||||||
| Free Cash Flow | 108.47M | 75.08M | 63.92M | 60.00M | 51.64M | -342.00K |
| Operating Cash Flow | 134.87M | 100.00M | 85.61M | 81.26M | 70.52M | 9.38M |
| Investing Cash Flow | -563.33M | -174.04M | -35.55M | -55.75M | -36.50M | -451.03M |
| Financing Cash Flow | 354.03M | 426.17M | 147.58M | 210.10M | 8.50M | 871.63M |
Priority Technology Holdings Technical Analysis
Price Trends
Market Momentum
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 7.90 is above the 20-day moving average (MA) of 7.85, above the 50-day MA of 7.32, and above the 200-day MA of 6.16, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 73.82 is Negative, neither overbought nor oversold. The STOCH value of 61.21 is Neutral, 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.
Latest Risks Added
3 New RisksPriority Technology Holdings Peers Comparison
Overall Rating
ACIW72Outperform- PRTH66Neutral
USIO64Neutral
FOUR58Neutral
IIIV57Neutral
RPAY53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ACIW | 72Outperform | $6.16B | 37.71 | 11.11% | ― | 1.93% | -34.45% |
| PRTH | 66Neutral | $652.33M | 15.80 | -48.69% | ― | 10.14% | -6.90% |
| USIO | 64Neutral | $82.92M | -73.00 | -4.71% | ― | 13.67% | -115.33% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| FOUR | 58Neutral | $3.28B | 52.82 | 6.49% | ― | 26.96% | -69.75% |
| IIIV | 57Neutral | $508.54M | 48.06 | 2.53% | ― | -8.15% | -91.81% |
| RPAY | 53Neutral | $362.00M | -2.03 | -36.02% | ― | 33.84% | -51.47% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PRTH | Priority Technology Holdings | 7.90 | 2.57 | 48.22% | |
| ACIW | ACI Worldwide, Inc. | 61.85 | 14.69 | 31.15% | |
| USIO | Usio | 2.19 | 0.77 | 54.23% | |
| IIIV | I3 Verticals | 19.59 | -8.95 | -31.36% | |
| RPAY | Repay Holdings | 4.20 | 0.70 | 20.00% | |
| FOUR | Shift4 Payments, Inc. | 43.56 | -28.70 | -39.72% |
Priority Technology Holdings Corporate Events
Priority Technology agrees to go-private merger deal
PositiveOn 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 alr...
Priority Technology Expands into Public Sector Payments with IntelliPay
PositiveOn 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 eight...
Priority Technology Reaffirms 2026 Outlook After Q2 Growth
PositiveOn 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 ad...
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.
Date of analysis: Nov 05, 2026