Q4 2025 Priority Technology Holdings Inc Earnings Call Transcript
Key Points
- Priority Technology Holdings Inc (PRTH) reported an 8% increase in net revenue for the year, with adjusted gross profit and adjusted EBITDA growing by 14% and 10%, respectively.
- The company ended the year with 1.8 million total customer accounts, up from 1.2 million the previous year, and increased annual transaction volume by $20 billion to $150 billion.
- Adjusted gross profit margin improved by 360 basis points in Q4, reflecting strong performance in high-margin payables and Treasury Solutions segments.
- The company anticipates 6% to 9% top-line revenue growth for 2026, with adjusted EBITDA expected to range from $230 million to $245 million.
- Priority Technology Holdings Inc (PRTH) successfully remediated a material weakness in its internal controls over financial reporting by the end of 2025.
- The company faces headwinds from lower interest rates and a challenging macroeconomic environment, which could impact growth.
- Slower growth was observed in the core Merchant Solutions portfolio, particularly in key verticals such as restaurants, construction, and certain retail trade markets.
- The company reported a 24.2% increase in salaries and benefits expenses, driven by higher stock compensation and acquisition-related costs.
- SG&A expenses increased by 38.8% due to higher accounting, S-OX-related expenses, and cloud and software expenses.
- The company is investing in early-stage growth opportunities within Priority Tech Ventures, which are not yet profitable and could impact short-term financial performance.
Good day, and welcome to the Priority Technology Holdings fourth-quarter 2025 earnings conference call. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Meghna Mehra, Managing Director of Investor Relations. Please go ahead.
Good morning, and thank you for joining us. With me today are Tom Priore, Chairman and Chief Executive Officer of Priority Technology Holdings; and Tim O'Leary, Chief Financial Officer. Before giving our prepared remarks, I would like to remind all participants that our comments today will include forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements.
The company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. We provide a detailed discussion of the various risk factors in our SEC
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