Revenue growth has decelerated to 11.1% in 2026Q1 from mid-2024 peaks of 20%, while thin net margins often falling below 5% highlight the company's struggle to convert top-line gains into bottom-line earnings.
| Sales/Revenue | 977.94M | 953.01M | 879.7M | 755.61M | 663.64M | 514.9M | 404.34M | 371.85M | 424.42M | 425.62M | 344.11M | 286.24M |
| Revenue Growth % | 8.83% | 8.33% | 16.42% | 13.86% | 28.89% | 27.34% | 8.74% | -12.38% | -0.28% | 23.69% | 20.22% | - |
| Cost of Goods Sold | 632.9M | 749.28M | 551.62M | 480.31M | 436.75M | 359.88M | 277.37M | 252.57M | 314.35M | 321.2M | 257.02M | 212.2M |
| COGS % of Revenue | - | 78.62% | 62.71% | 63.57% | 65.81% | 69.89% | 68.6% | 67.92% | 74.07% | 75.47% | 74.69% | 74.13% |
| Gross Profit | 345.04M | 203.72M | 328.08M | 275.31M | 226.89M | 155.02M | 126.97M | 119.28M | 110.06M | 104.42M | 87.09M | 74.04M |
| Gross Margin % | 35.28% | 21.38% | 37.29% | 36.43% | 34.19% | 30.11% | 31.4% | 32.08% | 25.93% | 24.53% | 25.31% | 25.87% |
| Gross Profit Growth % | - | -37.9% | 19.17% | 21.34% | 46.36% | 22.09% | 6.44% | 8.38% | 5.41% | 19.89% | 17.62% | - |
| Operating Expenses | 203.03M | 62.48M | 194.66M | 193.78M | 170.72M | 121.92M | 106.11M | 112.1M | 90.14M | 69.58M | 173.2K | 10.23K |
| OpEx % of Revenue | - | 6.56% | 22.13% | 25.65% | 25.73% | 23.68% | 26.24% | 30.15% | 21.24% | 16.35% | 0.05% | 0% |
| Selling, General & Admin | 148.63M | 170.27M | 136.62M | 125.39M | 100.04M | 72.23M | 65.33M | 73.01M | 70.41M | 41.45M | 173.2K | 10.23K |
| SG&A % of Revenue | - | 17.87% | 15.53% | 16.59% | 15.07% | 14.03% | 16.16% | 19.63% | 16.59% | 9.74% | 0.05% | 0% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 5.9M | 0 | 0 | 2.6M | 1.6M | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | 1.15% | - | - | 0.61% | 0.38% | - | - |
| Other Operating Expenses | 2M | -107.79M | 58.04M | 68.39M | 70.68M | 43.8M | 40.77M | 39.09M | -6.78M | 831.72K | 0 | 0 |
| Operating Income | 142.01M | 141.25M | 133.42M | 81.52M | 56.16M | 33.09M | 20.86M | 7.18M | 19.92M | 35.25M | -173.2K | -10.23K |
| Operating Margin % | 14.52% | 14.82% | 15.17% | 10.79% | 8.46% | 6.43% | 5.16% | 1.93% | 4.69% | 8.28% | -0.05% | -0% |
| Operating Income Growth % | - | 5.86% | 63.66% | 45.15% | 69.72% | 58.64% | 190.38% | -63.93% | -43.49% | 20452.09% | -1593.02% | - |
| EBITDA | 209.03M | 204.43M | 191.46M | 149.92M | 126.85M | 82.79M | 61.64M | 46.28M | 39.66M | 49.92M | 13.56M | 14.82M |
| EBITDA Margin % | 21.37% | 21.45% | 21.76% | 19.84% | 19.11% | 16.08% | 15.24% | 12.44% | 9.34% | 11.73% | 3.94% | 5.18% |
| EBITDA Growth % | 7.42% | 6.77% | 27.71% | 18.19% | 53.21% | 34.32% | 33.19% | 16.68% | -20.56% | 268.17% | -8.52% | - |
| D&A (Non-Cash Add-back) | 67.02M | 63.18M | 58.04M | 68.39M | 70.68M | 49.7M | 40.77M | 39.09M | 19.74M | 14.67M | 13.73M | 14.83M |
| EBIT | 138.6M | 141.25M | 126.23M | 83.26M | 56.75M | 32.62M | 126.8M | 7.89M | 9.61M | 29.65M | -108K | -10.23K |
| Net Interest Income | -48.43M | -87.96M | -88.95M | -76.11M | -53.55M | -36.48M | -44.84M | -40.65M | -29.93M | -30.52M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 637K | 37.7K | 3.53M |
| Interest Expense | 48.43M | 87.96M | 88.95M | 76.11M | 53.55M | 36.48M | 44.84M | 40.65M | 29.93M | 31.16M | 0 | 0 |
| Other Income/Expense | -92.84M | -94.97M | -96.14M | -74.37M | -52.97M | -36.96M | 61.1M | -39.94M | -36.72M | -30.66M | 2.67M | 0 |
| Pretax Income | 49.17M | 46.28M | 37.28M | 7.15M | 3.2M | -3.87M | 81.96M | -32.76M | -16.8M | 4.59M | -108K | -10.23K |
| Pretax Margin % | 5.03% | 4.86% | 4.24% | 0.95% | 0.48% | -0.75% | 20.27% | -8.81% | -3.96% | 1.08% | -0.03% | -0% |
| Income Tax | -8.01M | -9.4M | 13.27M | 8.46M | 5.35M | -5.26M | 10.9M | 830K | -1.76M | 0 | -37.7K | -14.83M |
| Effective Tax Rate % | -16.28% | -20.32% | 35.58% | 118.33% | 167.19% | 135.9% | 13.3% | -2.53% | 10.47% | 0% | 34.91% | 145051.83% |
| Net Income | 57.17M | 55.68M | 24.02M | -1.31M | -2.15M | 1.39M | 25.66M | -33.59M | -15.04M | 4.59M | -108K | -10.23K |
| Net Margin % | 5.85% | 5.84% | 2.73% | -0.17% | -0.32% | 0.27% | 6.35% | -9.03% | -3.54% | 1.08% | -0.03% | -0% |
| Net Income Growth % | 106.62% | 131.86% | 1931.81% | 39.02% | -254.79% | -94.59% | 176.4% | -123.32% | -427.41% | 4353.9% | -956.08% | - |
| Net Income (Continuing) | 57.17M | 55.68M | 24.02M | -1.31M | -2.15M | 1.39M | 71.06M | -33.59M | -17.84M | 4.59M | -108K | 9.27M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 8.08M | 8.04M | 1.81M | 1.65M | 1.25M | 0 | 0 | 5.65M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.68 | 0.68 | -0.31 | -0.63 | -0.50 | -0.34 | 1.06 | -0.50 | -0.24 | -0.19 | -0.06 | -0.00 |
| EPS Growth % | 738.1% | 319.35% | 50.79% | -26% | -47.06% | -132.08% | 312% | -108.33% | -26.32% | -192.76% | - | - |
| EPS (Basic) | - | 0.70 | -0.31 | -0.63 | -0.50 | -0.34 | 1.06 | -0.50 | -0.24 | -0.19 | -0.06 | -0.00 |
| Diluted Shares Outstanding | 83.65M | 81.47M | 77.99M | 78.33M | 78.23M | 71.9M | 67.26M | 67.09M | 61.61M | 2.33M | 1.66M | 6.65M |
| Basic Shares Outstanding | 81.37M | 79.8M | 77.99M | 78.33M | 78.23M | 71.9M | 67.16M | 67.09M | 61.61M | 2.33M | 1.66M | 6.65M |
| Dividend Payout Ratio | - | - | 227.18% | - | - | - | - | - | - | 73.99% | - | - |
High Debt Service Burden
According to the latest quarterly filings, PRTH's year-over-year revenue growth has decelerated to 11.1% in 2026Q1, down from the 20% peaks seen in mid-2024, suggesting that the company's reliance on organic merchant volume is facing headwinds in the current domestic macroeconomic environment.
The transition from double-digit growth to a more moderate pace indicates that the company's core SMB payment segment may be reaching a saturation point. Investors should monitor whether the shift toward higher-margin enterprise services can offset the slowing transaction volume growth in the broader merchant acquiring business.
As reported in financial statements, the company experienced a significant gross margin contraction to 21.4% in 2025Q2, which highlights the sensitivity of PRTH's profitability to the underlying mix of payment processing costs and the variable nature of interchange fees paid to card networks.
While gross margins generally hover near 37-40%, the sharp dip in 2025Q2 suggests that operational costs are not perfectly aligned with revenue recognition. This volatility implies that the company lacks the pricing power to fully insulate its bottom line from fluctuations in network-related pass-through expenses.
Based on PRTH's reported figures, operating income has remained relatively stagnant between $28M and $38M over the last ten quarters, indicating that the company is struggling to achieve meaningful operating leverage as SG&A expenses continue to scale alongside top-line revenue growth.
The inability to expand operating margins significantly despite revenue growth suggests that the company's cost structure is heavily weighted toward fixed operational and administrative requirements. This lack of scalability warrants further investigation into whether the current investment in technology platforms will eventually yield the expected efficiency gains.
Data from recent income statements reveals that net income margins remain thin, often falling below 5%, which suggests that non-operating items and debt-related expenses are significantly diluting the earnings generated from the company's core payment processing operations.
The disparity between operating income and net income indicates that interest expenses and other non-operating charges are a persistent drag on shareholder value. Investors should be cautious, as the reported EPS figures may not fully reflect the cash-generating capacity of the business due to these recurring financial burdens.
As indicated by the historical income statement data, the company's reliance on external financing to fuel its acquisition-heavy strategy has created a high-interest environment that may limit future flexibility, particularly if the current revenue growth trajectory continues to soften in the coming quarters.
Short-sellers may focus on the company's inability to consistently convert operating income into meaningful net income, pointing to the debt-heavy balance sheet as a primary risk. The potential for margin compression if competition for ISO distribution intensifies could further exacerbate these existing financial pressures.
Quick answers to the most common questions about buying PRTH stock.
For fiscal year 2025, Priority Technology Holdings, Inc. (PRTH) reported total revenue of $953.0M. This represents a 232.9% increase compared to $286.2M in 2015.
Priority Technology Holdings, Inc. (PRTH) is profitable, generating $55.7M in net income for the fiscal year ending 2025 with a net profit margin of 5.8%.
Priority Technology Holdings, Inc. (PRTH) reported an operating income of $141.2M, resulting in an operating profit margin of 14.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Priority Technology Holdings, Inc. (PRTH) generated $203.7M in gross profit for the year, representing a gross profit margin of 21.4%. This demonstrates the company's core pricing power and production efficiency.