Priority Technology forecasts $1.01B–$1.04B 2026 revenue as platform expansion continues

Earnings Call Insights: Priority Technology Holdings, Inc. (PRTH) Q4 2025

Management View

CEO Thomas Priore reported that Priority grew net revenue for the year by 8%, adjusted gross profit by 14%, adjusted EBITDA by 10%, and increased adjusted EPS by $0.52 or 102% year-over-year to $1.03 for fiscal 2025. He highlighted, "We ended the year with 1.8 million total customer accounts operating on our commerce platform, up from 1.2 million at the end of last year. Annual transaction volume in 2025 increased by $20 billion to $150 billion and average account balances under administration improved by $500 million from the prior year to $1.7 billion."
Priore stated, "We anticipate achieving 6% to 9% top line revenue growth to a range of $1.010 billion to $1.040 billion and generating adjusted EBITDA of $230 million to $245 million in 2026 despite headwinds related to lower interest rates, a challenging macroeconomic and consumer spending environment and the continued investment in early-stage growth opportunities within Priority Tech Ventures."
CFO Tim O’Leary shared, "For the fourth quarter, reported revenue growth of 8.8% included organic growth of 6.8%, fueled by strong 13% growth in payables and 18% growth in Treasury Solutions, complemented by 6% reported growth in Merchant Solutions, which included 3% organic growth."
O’Leary emphasized segment performance: "Adjusted gross profit from our Payables and Treasury Solutions segments represented 62% of the total for the year... The 3 percentage point year-over-year organic increase in Q4 is indicative of our continued investment in higher growth, higher-margin operating segments."

Outlook

Management expects consolidated revenue of $1.01 billion to $1.04 billion in 2026, reflecting 6% to 9% growth, with 4% to 7% organic growth. Adjusted EBITDA is forecast between $230 million and $245 million. Segment guidance includes 6% to 8% revenue growth in Merchant Solutions (3% to 4% organic), 8% to 10% organic growth in Payables, and low double-digit growth in Treasury Solutions. O’Leary noted, "We expect 6% to 8% revenue growth in Merchant Solutions, inclusive of approximately 3% to 4% organic growth... Payables organic top line growth in 2026 is expected to be in the 8% to 10% range... Lastly, Treasury Solutions is expected to continue its momentum, although we have moderated our growth expectations in 2026 to low double-digit percentages."

Financial Results

Q4 revenue was $247.1 million, a 9% increase from the prior year. Adjusted gross profit rose 19% to $100.2 million, and adjusted EBITDA increased 16% to $60.1 million. Adjusted gross profit margin reached 40.6%, up 360 basis points year-over-year. Merchant Solutions posted $165.3 million in Q4 revenue and $40.1 million in adjusted gross profit, while Payables delivered $26.8 million revenue and $7.4 million adjusted gross profit. Treasury Solutions revenue was $57.3 million, with adjusted gross profit of $52.7 million. Free cash flow in the quarter was $28 million, with $177 million in available liquidity and net leverage at 4.2x, or 3.9x pro forma for acquisitions.

Q&A

Vasundhara Govil, KBW: Asked about macro environment stabilization and guidance assumptions. O’Leary responded, "I think we've seen Q4 stabilize from what we saw in Q3... As we think about the '26 guidance, we've assumed a similar macro environment that we're operating in now."
Govil (KBW): Inquired about enterprise business pipeline and ISV adoption. Priore replied, "The pipeline remains strong... those sales cycles and conversion cycles are longer... we've tried to be conservative in the way we've reflected that in guidance."
Jacob Stephan, Lake Street: Questioned CFTPay enrollment trends and partner ramp. O’Leary confirmed, "The slowdown in new enrollments in Q4 compared to Q3 is seasonal... Most of the new increase in partners is coming on the non-CFTPay side of the business."
Stephan (Lake Street): Sought context on supplier-funded issuing dollars versus revenue. O’Leary explained volume was down due to a bank partner acquisition but, "We've since rewon that contract... The uptick overall on the supplier funded side was also from some of the balances we manage."
Brian Kinstlinger, Alliance Global Partners: Asked about 2026 strategic investments, especially NIL/sports/entertainment. Priore said, "Most of those are sitting on legacy systems... we think we've been ahead of the game in sort of building nimble platforms... now it's about driving adoption and distribution."
Kinstlinger (Alliance GP): Queried free cash flow and debt reduction. O’Leary stated, "We did $36 million of operating cash flow in Q4... there's no reason that should come down going into '26... So we've got plenty of liquidity, and we'll continue to look at opportunities to pay down the debt."
David Duke, TD Cowen: Sought clarity on strategic shifts and investment priorities. Priore responded, "No strategic shifts... We'll look at some M&A opportunistically... we're acutely focused on maintaining that discipline."
Duke (TD Cowen): Asked about bridging gross profit to EBITDA. O’Leary said, "It's mainly from the investments in the business, both personnel from a sales talent standpoint, continue to add to the development team."
Dylan Hines, B. Riley: Asked about payables margin sustainability. O’Leary noted, "We'll continue to be very efficient in that business... I think you'll see EBITDA growth more closely correlate with revenue growth going forward."

Sentiment Analysis

Analysts posed primarily neutral to slightly positive questions, seeking detail on guidance assumptions, pipeline conversion, and investment discipline, with a focus on operational clarity rather than skepticism.
Management maintained a confident but measured tone in prepared remarks, using phrases like "we are confident" and “we feel really confident about where we're set,” while being conservative in guidance language in the Q&A. Compared to Q3, management appeared slightly more constructive, reflecting stabilization and segment outperformance.

Quarter-over-Quarter Comparison

The Q4 call shifted tone to a more stable and constructive outlook versus Q3, which highlighted segment-level mixed performance and macro headwinds. Q4 guidance is more specific and includes consolidated growth targets for 2026. Merchant Solutions growth continues to be moderated due to ongoing vertical headwinds, but Payables and Treasury Solutions maintain strong growth. Management’s tone is more confident, citing stabilization in the macro environment. Analysts’ questions remained focused on growth drivers and sustainability, but without the concerns about segment underperformance seen in Q3.

Risks and Concerns

Management noted headwinds from lower interest rates, a challenging macroeconomic and consumer spending environment, and slower sales cycles in key verticals like restaurants and construction. O’Leary stated, "expected interest rate declines... have some headwinds to the business overall." Priore emphasized the importance of investing in defensive segments such as real estate, sports entertainment, health care, and auto to hedge long-term risks. Seasonal impacts and acquisition integration challenges were also mentioned.

Final Takeaway

Priority Technology Holdings projects continued top-line and EBITDA growth in 2026, driven by strong performance in Payables and Treasury Solutions and ongoing investment in new verticals. The company remains confident in its unified commerce platform strategy, highlighting strong customer growth, stable macro trends, and a disciplined approach to capital allocation and M&A, while actively managing segment headwinds and positioning for long-term stability.

Read the full Earnings Call Transcript

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