Priority Technology Holdings Reports Strong 2025 Financial Results With 8% Revenue Growth and Positive 2026 Outlook

Priority Technology Holdings, Inc. Reports Strong Q4 and FY 2025 Results, Issues Upbeat 2026 Guidance

Key Highlights from the Report

Robust Revenue Growth: Q4 2025 revenue rose to \$247.1 million, up 8.8% from Q4 2024, with organic growth contributing 6.8%. Full year 2025 revenue increased 8.3% year-over-year to \$953.0 million, with organic growth at 7.7%.
Significant Margin Expansion: Adjusted gross profit for Q4 was \$100.2 million (up 19.4%), with an adjusted gross profit margin of 40.6% (up 360 basis points). For the full year, adjusted gross profit reached \$374.7 million (up 14.2%), and margin improved to 39.3% (up 200 basis points).
EBITDA and EPS Surge: Q4 adjusted EBITDA grew 16.2% to \$60.1 million. Adjusted EPS – diluted jumped 50% to \$0.27. Full year adjusted EBITDA was \$225.2 million (up 10.2%), and adjusted EPS – diluted soared 102% to \$1.03.
Strategic Acquisition: In October 2025, Priority acquired Dealer Merchant Services, a provider of vertically focused software and payments in the automotive dealership sector.
Segment Performance: Treasury Solutions delivered over 18% revenue growth, Payables grew by 13%, and Merchant Solutions continued to be the largest revenue driver.
2026 Financial Guidance: Priority forecasts revenue growth of 6% to 9% for FY 2026, targeting \$1.01 to \$1.04 billion. Adjusted gross profit is expected between \$405 million and \$425 million, while adjusted EBITDA is projected between \$230 million and \$245 million.
Conference Call: Management will host a conference call on March 10, 2026, at 10:00 a.m. EST to discuss results and outlook.

Detailed Financial Performance

Fourth Quarter 2025 vs. Fourth Quarter 2024

Revenue: \$247.1 million (up 8.8%)
Adjusted Gross Profit: \$100.2 million (up 19.4%)
Adjusted Gross Profit Margin: 40.6% (up from 37.0%)
Operating Income: \$33.5 million (down 1.9%)
Adjusted EBITDA: \$60.1 million (up 16.2%)
Adjusted EPS – Diluted: \$0.27 (up 50%)
Net Income: \$8.9 million (up from \$7.2 million)

Full Year 2025 vs. Full Year 2024

Revenue: \$953.0 million (up 8.3%)
Adjusted Gross Profit: \$374.7 million (up 14.2%)
Adjusted Gross Profit Margin: 39.3% (up from 37.3%)
Operating Income: \$141.2 million (up 5.9%)
Adjusted EBITDA: \$225.2 million (up 10.2%)
Adjusted EPS – Diluted: \$1.03 (up 102%)
Net Income: \$55.7 million (up from \$24.0 million)

Segment Performance and KPIs

Merchant Solutions

Q4 Revenue: \$165.3 million (up from \$155.7 million)
Full Year Revenue: \$642.1 million (up from \$613.5 million)
Adjusted EBITDA: \$111.8 million (up from \$108.9 million)
Card Processing Dollar Value: \$72.4 billion for the year
Total Card Transactions: 888.7 million for the year

Payables

Q4 Revenue: \$26.8 million (up from \$23.7 million)
Full Year Revenue: \$100.9 million (up from \$89.1 million)
Adjusted EBITDA: \$14.6 million (up from \$7.6 million)
Buyer funded card processing: \$3.09 billion for the year
Supplier funded issuing: \$919.9 million for the year
ACH Transaction Count: 19,286 for the year

Treasury Solutions

Q4 Revenue: \$57.3 million (up from \$48.7 million)
Full Year Revenue: \$215.7 million (up from \$180.4 million)
Adjusted EBITDA: \$182.2 million (up from \$154.9 million)
Average CFTPay billed clients: 1.02 million
Average Total Account Balances: \$1.19 billion

Balance Sheet and Cash Flow Highlights

Total Assets: \$2.40 billion (up from \$1.83 billion)
Cash and Cash Equivalents (including restricted): \$1.35 billion (up from \$993.9 million)
Operating Cash Flow: \$100 million (up from \$85.6 million)
Net Change in Cash and Cash Equivalents: \$352.1 million (up from \$197.6 million)
Total Liabilities: \$2.49 billion (up from \$1.99 billion)
Stockholders’ Deficit: \$(100.4) million (improved from \$(166.8) million)
Long-term Debt: \$1.04 billion (up from \$920.9 million)

Important Shareholder Information & Price Sensitive Developments

Strong growth in revenue, gross profit, and earnings—significant year-over-year improvements.
Margin expansion and double-digit growth in adjusted EBITDA and EPS—indicative of operational leverage and efficiency.
Acquisition of Dealer Merchant Services—strategic move into the automotive dealership sector, potentially expanding addressable market and revenue streams.
2026 outlook is robust—management guides for continued growth and profitability, signaling confidence in business fundamentals and execution.
Reduction in stockholders’ deficit—suggests improved financial health, potentially positive for investor sentiment.
Cash and liquidity position is strong—enables flexibility for further acquisitions, debt repayment, or shareholder returns.
Conference call scheduled—could provide additional insights, updates, or guidance; investors should monitor for further disclosures.
Non-GAAP metrics used extensively—investors should understand the adjustments and reconcile them with GAAP figures for a comprehensive view.
Forward-looking statements—results subject to risks; investors should review SEC filings for full risk disclosures.

Potential Share Price Movers

Positive financial results, margin expansion, and strong guidance for 2026 are likely to be viewed favorably by investors.
The acquisition of Dealer Merchant Services could drive further growth and market expansion, potentially impacting share price.
Improved liquidity and reduction in stockholders’ deficit may enhance investor confidence and valuation multiples.
Any updates or additional disclosures during the March 10, 2026 conference call could further influence share price direction.

Disclaimer

The information provided in this article is based on unaudited financial results and management guidance. Investors should conduct their own due diligence and review official SEC filings and company disclosures for a comprehensive understanding of risks and opportunities. Forward-looking statements are inherently subject to uncertainties and actual results may differ materially. This article does not constitute investment advice.