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PRTH (Priority Technology Holdings) Gross Margin % : 36.96% (As of Dec. 2024)


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What is Priority Technology Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Priority Technology Holdings's Gross Profit for the three months ended in Dec. 2024 was $83.9 Mil. Priority Technology Holdings's Revenue for the three months ended in Dec. 2024 was $227.1 Mil. Therefore, Priority Technology Holdings's Gross Margin % for the quarter that ended in Dec. 2024 was 36.96%.


The historical rank and industry rank for Priority Technology Holdings's Gross Margin % or its related term are showing as below:

PRTH' s Gross Margin % Range Over the Past 10 Years
Min: 28.35   Med: 32.08   Max: 37.3
Current: 37.3


During the past 10 years, the highest Gross Margin % of Priority Technology Holdings was 37.30%. The lowest was 28.35%. And the median was 32.08%.

PRTH's Gross Margin % is ranked worse than
55.06% of 2650 companies
in the Software industry
Industry Median: 41.27 vs PRTH: 37.30

Priority Technology Holdings had a gross margin of 36.96% for the quarter that ended in Dec. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Priority Technology Holdings was 3.90% per year.


Priority Technology Holdings Gross Margin % Historical Data

The historical data trend for Priority Technology Holdings's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Priority Technology Holdings Gross Margin % Chart

Priority Technology Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.40 30.11 34.19 36.43 37.29

Priority Technology Holdings Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.58 37.15 37.18 37.87 36.96

Competitive Comparison of Priority Technology Holdings's Gross Margin %

For the Software - Infrastructure subindustry, Priority Technology Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Priority Technology Holdings's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Priority Technology Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Priority Technology Holdings's Gross Margin % falls into.


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Priority Technology Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Priority Technology Holdings's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=328.1 / 879.702
=(Revenue - Cost of Goods Sold) / Revenue
=(879.702 - 551.621) / 879.702
=37.29 %

Priority Technology Holdings's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=83.9 / 227.067
=(Revenue - Cost of Goods Sold) / Revenue
=(227.067 - 143.135) / 227.067
=36.96 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Priority Technology Holdings  (NAS:PRTH) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Priority Technology Holdings had a gross margin of 36.96% for the quarter that ended in Dec. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Priority Technology Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Priority Technology Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Priority Technology Holdings Business Description

Traded in Other Exchanges
Address
2001 Westside Parkway, Suite 155, Alpharetta, GA, USA, 30004
Priority Technology Holdings Inc is a provider of merchant acquiring and commercial payment solutions to small and medium business enterprises in the United States. The company has three reportable segments which are SMB Payments, B2B Payments, and Enterprise Payments. SMB Payments segment which generates the majority of revenue provides full-service acquiring and payment-enabled solutions for B2C transactions, leveraging Priority's proprietary software platform, distributed through ISO; the B2B Payments segment provides AP automation solutions to corporations, software partners, & industry FIs: and Enterprise Payments segment provides embedded payment & treasury solutions to enterprise customers to modernize legacy platforms & accelerate software partners' strategies to monetize payments.
Executives
Ranjana Ram officer: Head of M&A Strategic Initiati C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, ALPHARETTA GA 30004
John Vito Priore director, 10 percent owner, officer: President and CEO 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Thomas Charles Priore director, 10 percent owner, officer: President, CEO and Chairman 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Sean Kiewiet officer: Chief Technology Officer 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Rajiv Kumar officer: Chief Accounting Officer C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Tim O'leary officer: Chief Financial Officer C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Stephen W Hipp director C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Marc A Crisafulli director C/O GTECH HOLDINGS CORPORATION, 55 TECHNOLOGY WAY, WEST GREENWICH RI 02817
David Faupel officer: Chief Marketing Officer C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Anthony Martin Bonventre officer: EVP Operations C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Marietta Davis director C/O SHARPSPRING, 550 SW 2ND AVENUE, GAINESVILLE FL 32601
Michael Passilla director 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Pamela A Tefft officer: Corporate Controller and Chief 11720 AMBER PARK DRIVE, SUITE 600, ALPHARETTA GA 30004
Bradley J Miller officer: General Counsel and CRO C/O UNITED COMMUNITY BANKS, INC., P.O. BOX 398, BLAIRSVILLE GA 30514
Priority Incentive Equity Holdings, Llc director, 10 percent owner, officer: President, CEO and Chairman 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004