Free cash flow remains highly volatile, ranging from $2.6 million to $30.9 million, while the reliance on non-cash adjustments is underscored by an extreme OCF/NI ratio of 30.66 recorded in 2024Q2.
| Cash from Operations | 113.89M | 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% | -0.04% | 8.84% |
| Operating CF Growth % | 236.01% | 16.82% | 5.36% | 15.23% | 652.03% | -23.15% | 1.01% | -61.46% | -14.97% | 24634.84% | -100.59% | - |
| Net Income | 57.17M | 55.68M | 24.02M | -1.31M | -2.15M | 1.39M | 71.06M | -33.59M | -15.04M | 4.59M | -108K | 9.27M |
| Depreciation & Amortization | 67.02M | 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 | 11.31M | 10.81M | 6.12M | 6.77M | 6.23M | 3.21M | 2.43M | 3.65M | 1.65M | 1.02M | 2.31M | 0 |
| Deferred Taxes | -10.67M | -12.15M | -2.19M | -6.09M | -8.18M | -2.56M | 2.96M | 765K | -2.21M | 6.08M | 0 | 0 |
| Other Non-Cash Items | 11.96M | 12.72M | 15.8M | -1.71M | 5.65M | -26.01M | -98.29M | 5.37M | 10.85M | 6.05M | -62.66K | 11.9M |
| Working Capital Changes | -22.9M | -30.23M | -16.17M | 15.2M | -1.71M | -16.35M | -6.73M | -3.21M | 16.36M | 4.44M | 20.39K | -10.69M |
| Change in Receivables | -6.93M | -21.86M | -9.39M | 23.56M | -19.58M | -16.36M | -7.39M | -2.13M | 1.99M | -13.69M | 8.39M | -5M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.2M | 4.46M | 0 | 0 |
| Change in Payables | -204K | 5.74M | 9.56M | -3.22M | 19.79M | 7.02M | 1.34M | -1.06M | 2.47M | 12.32M | 111.01K | 0 |
| Cash from Investing | -146.91M | -174.04M | -35.55M | -55.75M | -36.5M | -451.03M | 166.4M | -97.75M | -108.93M | -9.04M | -54.69M | -31.89M |
| Capital Expenditures | -25.35M | -24.93M | -21.69M | -21.26M | -18.88M | -9.72M | -7.46M | -11.12M | -101.42M | -9.04M | -4.1M | -2.88M |
| CapEx % of Revenue | 2.59% | 2.62% | 2.47% | 2.81% | 2.85% | 1.89% | 1.85% | 2.99% | 23.9% | 2.12% | 1.19% | 1.01% |
| Acquisitions | -34.83M | -39.3M | 0 | -28.22M | -4.98M | -391.85M | 179.42M | -184K | -7.51M | 0 | 0 | -26.72M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -86.73M | -109.81M | -13.85M | -6.27M | -12.64M | -49.46M | -5.56M | -86.44M | -90.86M | 22.61K | -54.69M | -2.28M |
| Cash from Financing | 443.54M | 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) | 122.13M | 100.8M | 286.29M | 30.92M | -8.7M | 260.89M | -122.01M | 77.32M | 123.98M | 0 | -131.72K | 22.7M |
| Equity Issued (Net) | -9.3M | -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 | -9.58M | -10.17M | -1.54M | -1.26M | -7.47M | -1.7M | 0 | -2.39M | -98.62M | -203M | 0 | 0 |
| Other Financing | 330.71M | 335.08M | 166.03M | 205.16M | 36.13M | 400.84M | -18.93M | 27.37M | 26.56M | 181.02M | -80.04K | -300K |
| Net Change in Cash | 151.13M | 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 | 88.53M | 75.08M | 63.92M | 60M | 51.64M | -342K | 4.74M | -81.98M | -70.07M | 27.83M | -4.25M | 22.43M |
| FCF Margin % | 9.05% | 7.88% | 7.27% | 7.94% | 7.78% | -0.07% | 1.17% | -22.05% | -16.51% | 6.54% | -1.23% | 7.83% |
| FCF Growth % | 42.61% | 17.47% | 6.53% | 16.2% | 15198.25% | -107.21% | 105.78% | -17% | -351.77% | 755.14% | -118.94% | - |
| FCF per Share | 1.06 | 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) | 1.55x | 1.80x | 3.56x | -61.98x | -32.80x | 6.75x | 0.48x | -0.36x | -2.08x | 8.03x | 1.39x | -2474.87x |
| Interest Paid | 21.15M | 0 | 82.28M | 75.86M | 46.91M | 26.06M | 33.43M | 33.09M | 0 | 19.04M | 0 | 0 |
| Taxes Paid | 0 | 0 | 19.2M | 12.92M | 6.74M | 2.21M | 8.37M | 0 | 0 | 19.04M | 0 | 0 |
High Debt Service Burden
According to recent financial disclosures, PRTH consistently reports operating cash flow significantly higher than net income, with the OCF/NI ratio reaching an extreme 30.66 in 2024Q2, suggesting that non-cash charges and working capital adjustments are the primary drivers of reported cash generation rather than core profitability.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash items, likely amortization of acquired merchant portfolios. Investors should monitor this divergence, as it suggests that the company's ability to generate actual cash is less robust than the headline net income figures might imply.
As reported in quarterly filings, free cash flow has exhibited significant volatility, ranging from a low of $2.6 million in 2023Q4 to a peak of $30.9 million in 2025Q4, reflecting an inconsistent ability to convert operational gains into sustainable liquidity for debt reduction or strategic reinvestment.
The erratic nature of FCF margins suggests that the company's cash generation is highly sensitive to timing differences in working capital and the lumpy nature of its acquisition-related expenses. This inconsistency complicates the company's ability to deleverage, as cash flows are frequently diverted to cover operational requirements rather than strengthening the balance sheet.
Based on the provided cash flow statements, working capital changes have been a recurring drag on liquidity, with a notable $12.9 million outflow in 2025Q1, indicating that the company's cash conversion cycle is subject to significant pressure from timing differences in merchant settlements and operational payables.
The frequent negative working capital adjustments suggest that the company may be struggling to optimize its cash conversion cycle, potentially due to the complexities of its multi-segment payment architecture. This volatility in working capital necessitates a cautious view on the company's short-term liquidity, as cash availability can shift rapidly based on the timing of transaction settlements.
Data from recent cash flow statements reveals that PRTH has prioritized capital deployment toward acquisitions, such as the $72.9 million outflow in 2025Q3, which appears to be the primary mechanism for growth despite the company's constrained internal cash generation and high debt service requirements.
The reliance on external capital to fund acquisitions, coupled with periodic share repurchases, suggests a capital allocation strategy that prioritizes inorganic expansion over organic balance sheet strengthening. This approach warrants further investigation, as it may limit the company's financial flexibility if the current interest rate environment continues to pressure net margins.
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.