Priority Technology 2025 Q1 Earnings Beats Expectations as Net Income Surges 59.2%

Priority Technology (PRTH) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company exceeded expectations with significant growth, showcasing a 59.2% increase in net income compared to the previous year. Priority Technology affirmed its full-year 2025 guidance, projecting revenue between $965 million and $1 billion, reflecting a growth rate of 10% to 14% compared to fiscal 2024 results. The company anticipates adjusted gross profit to range from $360 million to $385 million, indicating growth of 10% to 17%, and adjusted EBITDA is forecasted between $220 million and $230 million, representing an 8% to 13% growth compared to the previous fiscal year.

Revenue

Priority Technology's revenue for Q1 2025 grew by 9.2% to $224.63 million, compared to $205.72 million in the same period last year. The SMB Payments segment contributed $151.69 million, while B2B Payments generated $23.92 million. Enterprise Payments added $50.09 million, and eliminations accounted for a reduction of $1.07 million, culminating in the total revenue of $224.63 million.

Earnings/Net Income

Priority Technology returned to profitability in Q1 2025, with an EPS of $0.10, reversing the previous year's loss of $0.10 per share. Net income reached $8.27 million, marking a 59.2% growth from $5.19 million in Q1 2024. This achievement represents the highest fiscal Q1 net income in eight years. The EPS improvement reflects positively on the company's financial health.

Price Action

The stock price of Priority Technology jumped 12.20% during the latest trading day, dropped 6.38% during the most recent full trading week, and edged up 2.22% month-to-date.

Post-Earnings Price Action Review

The strategy of acquiring Priority Technology shares following a quarter of revenue growth and maintaining them for 30 days has consistently yielded strong results over the past five years. This approach generated an annualized return of 24.5% with a total profit of $2.4 billion, significantly outperforming the SPY ETF, which achieved an annualized return of 14.6% and a total profit of $760 million during the same timeframe. These results underscore the advantages of capitalizing on PRTH's revenue growth potential, suggesting promising future performance prospects.

CEO Commentary

Tom Priore, Chairman & CEO of Priority Technology Holdings, Inc., emphasized the strong first-quarter growth in revenue and profits, highlighting the effectiveness of the Priority Commerce Engine in enhancing cash flow and optimizing working capital. He noted consistent performance across the SMB Acquiring, B2B Payables, and Enterprise Payments segments. Priore stated that the diverse and counter-cyclical nature of their platform, combined with a focus on market share expansion, positions the company favorably for continued success throughout 2025, despite challenges in the macroeconomic environment.

Guidance

Priority Technology Holdings, Inc. affirms its full-year 2025 guidance, projecting revenue between $965 million and $1 billion, representing a growth rate of 10% to 14% compared to fiscal 2024 results. The company anticipates adjusted gross profit to range from $360 million to $385 million, reflecting a growth rate of 10% to 17%. Additionally, adjusted EBITDA is forecasted between $220 million and $230 million, indicating an 8% to 13% growth compared to the previous fiscal year.

Additional News

Marshall Wace LLP recently acquired 36,491 Priority Technology shares, underscoring investor confidence in the company's growth potential. Meanwhile, Priority Technology has maintained its 2025 revenue guidance, projecting robust growth amid a challenging macroeconomic landscape. There have been no major changes in the company's executive team, indicating stability in leadership and strategic direction. Furthermore, Priority Technology has continued its trajectory without announcing any new dividend or buyback plans, focusing on reinvestment in its core operations to drive long-term growth.