Overview

* Priority Technology ( PRTH ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $239.81 $239.10

Revenue mln mln (5

Analysts

)

Q2 Beat $0.26 $0.2 (4

Adjusted Analysts

EPS )

Q2 Net $10.88

Income mln

Q2 Beat $56.05 $54.70

Adjusted mln mln (5

EBITDA Analysts

)

Q2 Gross 36.5%

Margin

Q2 $52.45

EBITDA mln

Q2 Gross $87.50

Profit 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 ( PRTH ) 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:

(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.)