Operating cash flow consistently exceeds net income, generating a 9.3% FCF margin in Q2 2026, though capital allocation has been heavily influenced by net acquisition spending of $38.1M in Q4 2025.
Priority Technology Holdings, Inc. (PRTH) cash flow statement — 11-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Cash from Operations | 134.87M | 100M | 85.61M | 81.26M | 70.52M | 9.38M | 12.2M | 12.08M | 31.35M | 36.87M | -150.27K | 25.31M |
| Operating CF Margin % | - | 10.49% | 9.73% | 10.75% | 10.63% | 1.82% | 3.02% | 3.25% | 7.39% | 8.66% | - | 8.84% |
| Operating CF Growth % | 296.81% | 16.82% | 5.36% | 15.23% | 652.03% | -23.15% | 1.01% | -61.46% | -14.97% | 24634.84% | -100.59% | - |
| Net Income | 40.79M | 55.68M | 24.02M | -1.31M | -2.15M | 1.39M | 71.06M | -33.59M | -15.04M | 4.59M | -108K | 9.27M |
| Depreciation & Amortization | 76.93M | 63.18M | 58.04M | 68.39M | 70.68M | 49.7M | 40.77M | 39.09M | 19.74M | 14.67M | 13.73M | 14.83M |
| Stock-Based Compensation | 9.71M | 10.81M | 6.12M | 6.77M | 6.23M | 3.21M | 2.43M | 3.65M | 1.65M | 1.02M | 2.31M | 0 |
| Deferred Taxes | 5.94M | -12.15M | -2.19M | -6.09M | -8.18M | -2.56M | 2.96M | 765K | -2.21M | 6.08M | 0 | 0 |
| Other Non-Cash Items | 1.48M | 12.72M | 15.8M | -1.71M | 5.65M | -26.01M | -98.29M | 5.37M | 7.32M | 6.05M | -16.11M | 11.9M |
| Working Capital Changes | 16K | -30.23M | -16.17M | 15.2M | -1.71M | -16.35M | -6.73M | -3.21M | 19.88M | 4.44M | 20.39K | -10.69M |
| Change in Receivables | 9.98M | -21.86M | -9.39M | 23.56M | -19.58M | -16.36M | -7.39M | -2.13M | 13.04M | -13.69M | 0 | -5M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.46M | 0 | 0 |
| Change in Payables | -6.21M | 5.74M | 9.56M | -3.22M | 19.79M | 7.02M | 1.34M | -1.06M | 1.53M | 12.32M | 111.01K | 0 |
| Cash from Investing | -563.33M | -174.04M | -35.55M | -55.75M | -36.5M | -451.03M | 166.4M | -97.75M | -108.93M | -9.04M | -54.69M | -31.89M |
| Capital Expenditures | -26.4M | -24.93M | -21.69M | -21.26M | -18.88M | -9.72M | -7.46M | -11.12M | -101.42M | -9.04M | 0 | -2.88M |
| CapEx % of Revenue | 2.57% | 2.62% | 2.47% | 2.81% | 2.85% | 1.89% | 1.85% | 2.99% | 23.9% | 2.12% | - | 1.01% |
| Acquisitions | 26.61M | -39.3M | 0 | -28.22M | -4.98M | -391.85M | 179.42M | -184K | -7.51M | 0 | 0 | -26.72M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -563.54M | -109.81M | -13.85M | -6.27M | -12.64M | -49.46M | -5.56M | -86.44M | 0 | 22.61K | 0 | -2.28M |
| Cash from Financing | 354.03M | 426.17M | 147.58M | 210.1M | 8.5M | 871.63M | -140.94M | 102.3M | 67.25M | -25.38M | 55.2M | 18.71M |
| Debt Issued (Net) | 38.83M | 100.8M | 286.29M | 30.92M | -8.7M | 260.89M | -122.01M | 77.32M | 123.98M | 0 | -131.72K | 22.7M |
| Equity Issued (Net) | -8.63M | -9.7M | -226.54M | -1.26M | -7.47M | 217.36M | 0 | -2.39M | -76.21M | -203M | 55.41M | 0 |
| Dividends Paid | 0 | 0 | -78.2M | -24.72M | -11.46M | -7.46M | 0 | 0 | -7.08M | -3.4M | -10.02M | -3.68M |
| Share Repurchases | -7.16M | -10.17M | -1.54M | -1.26M | -7.47M | -1.7M | 0 | -2.39M | -98.62M | -203M | 0 | 0 |
| Other Financing | 323.83M | 335.08M | 166.03M | 205.16M | 36.13M | 400.84M | -18.93M | 27.37M | 26.56M | 181.02M | 9.94M | -300K |
| Net Change in Cash | -202.98M | 23.96M | 197.64M | 235.61M | 42.52M | 429.97M | 37.66M | 16.63M | -10.33M | 2.46M | 357.54K | 12.13M |
| Free Cash Flow | 108.47M | 75.08M | 63.92M | 60M | 51.64M | -342K | 4.74M | -81.98M | -70.07M | 27.83M | -4.25M | 22.43M |
| FCF Margin % | 10.56% | 7.88% | 7.27% | 7.94% | 7.78% | -0.07% | 1.17% | -22.05% | -16.51% | 6.54% | - | 7.83% |
| FCF Growth % | 105.33% | 17.47% | 6.53% | 16.2% | 15198.25% | -107.21% | 105.78% | -17% | -351.77% | 755.14% | -118.94% | - |
| FCF per Share | 1.29 | 0.92 | 0.82 | 0.77 | 0.66 | -0.00 | 0.07 | -1.22 | -1.14 | 11.94 | -2.55 | 3.37 |
| FCF Conversion (FCF/Net Income) | 2.66x | 1.80x | 3.56x | -61.98x | -32.80x | 6.75x | 0.48x | -0.36x | -1.76x | 8.03x | 1.39x | -2474.87x |
| Interest Paid | 20.32M | 0 | 82.28M | 75.86M | 46.91M | 26.06M | 33.43M | 33.09M | 0 | 19.04M | 0 | 0 |
| Taxes Paid | 2.21M | 0 | 19.2M | 12.92M | 6.74M | 2.21M | 8.37M | 0 | 0 | 19.04M | 0 | 0 |
Quick answers to the most common questions about buying PRTH stock.
Priority Technology Holdings, Inc. (PRTH) generated $100.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Priority Technology Holdings, Inc. (PRTH) generated $75.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Priority Technology Holdings, Inc. (PRTH) spent $24.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Priority Technology Holdings, Inc. (PRTH) spent $10.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Cash flow quality volatile and acquisition-driven
Metrics are mathematically derived from official filings.
Operating Cash Flow Drives Quality Over Net Income
Operating cash flow consistently exceeds net income by a wide margin, with a trailing 4-quarter OCF/NI ratio of 2.73, indicating strong cash generation quality driven by non-cash items like depreciation.
The substantial spread between operating cash flow and net income, where OCF averaged $28.0M vs. net income of $14.1M over the last four quarters, suggests that non-cash charges like depreciation and amortization are the primary reconciling factors. This pattern implies the underlying business generates robust cash earnings that are masked by accounting charges, providing a healthier view of performance than the income statement alone. However, investors should note the wide swings in the OCF/NI ratio, from 30.66 in Q2 2024 to 1.31 in Q3 2025, which indicate volatility in working capital or non-cash items that can obscure the underlying trend.
FCF Margin Volatility Amidst Acquisition Activity
Free cash flow margin has been erratic, ranging from 2.2% in Q1 2025 to a high of 12.5% in Q4 2025, reflecting the mixed impact of large acquisition-related cash outflows on underlying cash generation.
The FCF trajectory shows a company with volatile but generally positive free cash flow generation, with the most recent two quarters (Q1 and Q2 2026) showing margins of 7.3% and 9.3% respectively. This recovery follows the significant drag from the $72.9M net acquisition payment in Q3 2025, which compressed FCF to $30.1M despite a strong $36.1M operating cash flow. The pattern suggests that while the core business is capable of generating healthy free cash, its FCF profile is heavily influenced by the timing and magnitude of strategic investments, making it a less predictable metric for valuation.
Consistent Low-Intensity Capital Spending
Capital expenditures have remained consistently low relative to revenue, averaging 2.5% of sales over the last ten quarters, indicating a business model with minimal ongoing asset replacement requirements.
The CapEx intensity, which ranged narrowly from 2.0% to 3.3% of revenue, suggests the company operates an asset-light model where growth and maintenance needs do not demand significant capital reinvestment. This low capital intensity supports the conversion of operating income into free cash flow and reduces balance sheet risk. However, it also implies that the company may be reliant on acquisitions or partnerships for scaling capabilities, rather than organic infrastructure investment, which aligns with the observed net acquisition cash outflows.
Cumulative Earnings Well Below Cumulative Cash Flow
Over the ten quarters shown, cumulative net income totals approximately $99.5M, while cumulative operating cash flow is approximately $240.9M, creating a $141.4M positive gap that underscores the reliability of cash generation.
This significant cumulative gap between cash flow and earnings is primarily driven by the steady add-back of depreciation and amortization, which averaged $16.5M per quarter. This structural divergence is a positive signal, indicating that the company's accounting earnings are conservative relative to its cash generation. The consistency of this gap suggests it is a feature of the business model rather than a one-time event, providing a sustainable cash flow cushion that can support debt service, investment, or returns to shareholders.
Acquisition Cash Drives Most Variability
The cash flow statement reveals that net acquisition spending, which totaled approximately $39.3M over the ten quarters, is the primary driver of free cash flow volatility, obscuring the core operational cash generation trend.
While operational cash flow is relatively stable, the company's discretionary deployment of capital for acquisitions creates significant quarter-to-quarter swings in free cash flow. For example, the $72.9M net acquisition payment in Q3 2025 consumed nearly two-thirds of that quarter's operating cash flow. This pattern means that investors cannot rely solely on FCF as a measure of recurring profitability; instead, they must separately assess operating cash flow to understand the core business. The variable acquisition spending also raises questions about capital discipline and the return on invested capital from these deals, which are not directly visible in the cash flow figures.