What is the revenue and EPS growth rate for Priority Technology year over year?

What does Priority Technology do and what are its main business segments?

What were the key takeaways from Priority Technology’s earnings call?

What were the key takeaways from Priority Technology's earnings call?

What is the market's earnings forecast for Priority Technology next quarter?

What is Priority Technology's gross profit margin?

What guidance did Priority Technology's management provide for the next earnings period?

What factors drove the changes in Priority Technology's revenue and profit?

- **Revenue Growth**: Q3 2025 revenue up 6% to $241.4M, with Payables/Treasury Solutions driving 14%/18% growth. Full year guide $950-965M (+8-10%).
- **Margin Expansion**: Gross profit margin 39.2% (vs. 38.2% Q2), Payables/Treasury 63% of gross profit.
- **Strategic Acquisitions**: $50M residual financing facility and DMS acquisition, deposits under admin +$200M to $1.6B.
- **Debt Reduction**: $15M Q3 debt paydown, targeting 4.35x leverage with $1.17/share 2026 free cash flow.
- **Risk Management**: Merchant Solutions Q3 same-store sales down 2%, but Payables/Treasury offsetting with 28.5% margins.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue of $241.4 million (+6% YoY), driven by Payables & Treasury Solutions (+14% and +18% YoY). Full year guidance revised to $950-965 million (+8-10%).
- **Segment Reclassification**: Shifted to Merchant Solutions, Payables, and Treasury Solutions to reflect evolving customer base. Payables/Treasury now 63% of gross profit (vs. 40% in 2023).
- **Strategic Moves**: Acquired Boom Commerce and DMS, launched $50M residual financing facility. Q3 deposits under admin grew $200M to $1.6B.

**【CFO Financial Commentary】**
- **Gross Profit Margin**: 39.2% (vs. 38.2% Q2, +140bps YoY). Payables/Treasury margins 28.5% vs. 21.9% for Merchant Solutions.
- **Expense Control**: Operating expenses +20.2% YoY ($26.1M) due to acquisitions, but free cash flow $29M/Q3 ($71M LTM).
- **Debt Management**: Reduced net debt by $15M Q3, targeting 4.35x leverage. 2026 free cash flow ~$1.17/share.

**【Q&A Highlights】**
- **Merchant Solutions Weakness**: Q3 same-store sales down in restaurants, construction, and wholesale trade. Residual portfolio drag moderating to $2M/Q4 vs. $4.5M H1.
- **2026 Outlook**: High single-digit revenue growth, 75-100bps margin expansion. Treasury Solutions +20%+ growth from CFTPay and Passport programs.
- **Expense Trends**: Salaries +20% YoY due to acquisitions, but moderating to $1M/Q4. SG&A +26.7% YoY from legal and marketing.

Priority Technology Holdings, Inc. (PRTH) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PRTH

PRTH fundamentals

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