Priority Technology Holdings Stock Earnings Reports

Priority Technology reported a solid Q1 2026 with broad-based revenue and profit growth driven by payables and Treasury Solutions. Consolidated revenue was $249.6M, up 11% YoY; adjusted gross profit rose 13% to $98.8M; adjusted EBITDA rose 13% to $58.1M; and adjusted EPS increased 27% YoY to $0.28. Operational highlights include 1.8M customer accounts, $153B annual transaction volume, and average account balances of $1.8B. Segment performance: Merchant Solutions revenue $161.8M (6.7% YoY), modest card volume growth (+2.5%) and margin improvement but some credit losses; Payables revenue $32.4M (35.6% YoY) with strong buyer- and supplier-funded growth and meaningful EBITDA leverage; Treasury Solutions revenue $58.8M (17.5% YoY) driven by enrollments (CFTPay >1.1M build clients), Passport expansion, and very high gross margins. Margin expansion was aided by a shift toward higher‑margin recurring payables/treasury streams and acquisition contributions (Boom, DMS, others from H2 2025). Balance sheet and cash: debt ~$1.02B, cash $92.2M, $100M undrawn revolver (total liquidity >$192M); free cash flow of $28M in Q1; LTM adjusted EBITDA $232M and net leverage ~4.0x (pro forma ~3.8x when including acquisition run‑rate). Management is maintaining full‑year guidance (revenue $1.01B–$1.04B; adjusted EBITDA $230M–$245M). Key ongoing drivers/risks: continued mix shift to recurring treasury/payables, integration and contribution of recent acquisitions, modest merchant softness in restaurants and construction, and potential margin effects from mix shifts and contractual/operational items. The company will not discuss the Special Committee’s take‑private evaluation on this call.