Priority Technology beats Q2 revenue estimates, adjusted EPS more than doubles

Priority Technology Holdings

07/08/2025 13:03

Overview

Priority Technology Q2 revenue rises 9.1%, beating analysts' expectations

Adjusted EPS for Q2 increases 136.4%, surpassing estimates

Co raises lower end of full-year revenue guidance, narrows adjusted EBITDA range

Outlook

Priority raises low end of full-year revenue guidance to $970 mln

Company narrows full-year adjusted EBITDA guidance to $222.5-$227.5 mln

Priority anticipates organic growth acceleration in second half of 2025

Company positioned to benefit from embedded finance trend

Result Drivers

CONNECTED COMMERCE - Priority's Connected Commerce platform drove 9% revenue growth and 13% adjusted gross profit growth

SEGMENT GROWTH - B2B adjusted gross profit grew over 30%, Enterprise grew over 20%, per CEO Tom Priore

RECURRING REVENUE - Recurring revenue represents 62% of total adjusted gross profit

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$239.81 mln
$239.10 mln (5 Analysts)
Q2 Adjusted EPS
Beat
$0.26
$0.2 (4 Analysts)
Q2 Net Income
$10.88 mln
Q2 Adjusted EBITDA
Beat
$56.05 mln
$54.70 mln (5 Analysts)
Q2 Gross Margin
36.5%
Q2 EBITDA
$52.45 mln
Q2 Gross Profit
$87.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the financial technology (fintech) peer group is "buy"

Wall Street's median 12-month price target for Priority Technology Holdings Inc is $13.00, about 47.7% above its August 6 closing price of $6.80

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw19F9Zxa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)