Priority Technology (NASDAQ:PRTH) Issues Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Priority Technology (NASDAQ:PRTH) announced its quarterly earnings results on Tuesday. The company reported $0.27 EPS for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.02), FiscalAI reports. The business had revenue of $247.13 million for the quarter, compared to the consensus estimate of $247.92 million. Priority Technology had a negative return on equity of 61.14% and a net margin of 5.84%.

Here are the key takeaways from Priority Technology’s conference call:

• Priority delivered strong FY2025 results with net revenue up ~8%, adjusted gross profit +14%, adjusted EBITDA +10% and adjusted EPS doubling to $1.03, while customer accounts grew to 1.8 million and annual transaction volume rose to $150 billion.
• The company gave 2026 guidance calling for 6%–9% revenue growth to $1.01B–$1.04B, adjusted EBITDA of $230M–$245M, and 75–100 bps of gross margin expansion despite lower interest rates and continued investments in Priority Tech Ventures.
• Business mix is shifting toward higher-margin Payables and Treasury Solutions (driving ~60%+ of adjusted gross profit), with Payables showing strong operating leverage and Treasury enrollment growth, while Merchant Solutions’ core organic growth slowed in verticals like restaurants, construction and some retail segments.
• Priority is producing strong free cash flow (Q4 FCF $28M; ~ $112M run-rate, ≈ $1.34/sh) but finished Q4 with ~$1.02B of debt and net leverage of ~4.2x (3.9x pro forma), leaving material deleveraging on the agenda.
• The company announced remediation of the previously disclosed material weakness in internal controls as of December 31, 2025, and auditors confirmed effective internal controls, which should bolster investor confidence in financial reporting.

Priority Technology Trading Down 3.7%

NASDAQ:PRTH opened at $5.21 on Thursday. Priority Technology has a 1-year low of $4.44 and a 1-year high of $8.89. The firm has a market capitalization of $426.55 million, a price-to-earnings ratio of 7.55 and a beta of 1.39. The business’s 50-day moving average price is $5.65 and its two-hundred day moving average price is $6.27.

Institutional Trading of Priority Technology

A number of hedge funds have recently modified their holdings of the company. AQR Capital Management LLC bought a new position in Priority Technology during the 1st quarter worth approximately $2,292,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Priority Technology by 25.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,030 shares of the company’s stock valued at $89,000 after purchasing an additional 2,648 shares in the last quarter. NewEdge Advisors LLC raised its holdings in Priority Technology by 1,134.1% in the first quarter. NewEdge Advisors LLC now owns 15,759 shares of the company’s stock worth $107,000 after purchasing an additional 14,482 shares during the period. Strs Ohio acquired a new stake in Priority Technology in the first quarter worth $46,000. Finally, Rhumbline Advisers boosted its position in shares of Priority Technology by 10.2% during the first quarter. Rhumbline Advisers now owns 26,131 shares of the company’s stock worth $178,000 after purchasing an additional 2,425 shares in the last quarter. 11.52% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

PRTH has been the subject of a number of recent research reports. Weiss Ratings reissued a “hold (c)” rating on shares of Priority Technology in a report on Monday, December 29th. TD Securities cut their price objective on Priority Technology from $10.00 to $9.00 and set a “buy” rating for the company in a report on Wednesday. TD Cowen lowered their price objective on shares of Priority Technology from $10.00 to $9.00 and set a “buy” rating for the company in a research report on Wednesday. Zacks Research upgraded Priority Technology from a “strong sell” rating to a “hold” rating in a research report on Wednesday, January 7th. Finally, Wall Street Zen upgraded shares of Priority Technology from a “hold” rating to a “buy” rating in a research report on Saturday, February 28th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, Priority Technology has an average rating of “Moderate Buy” and an average target price of $8.75.

Key Headlines Impacting Priority Technology

Here are the key news stories impacting Priority Technology this week:

• Positive Sentiment: Company forecasted roughly $1.01B–$1.04B in 2026 revenue and highlighted continued platform expansion, which supports growth expectations. Priority Technology forecasts $1.01B–$1.04B 2026 revenue
• Positive Sentiment: Multiple outlets highlighted strong revenue growth and favorable takeaways from the Q4 earnings call, which can support investor confidence despite mixed GAAP figures. Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Analysts at TD Securities / TD Cowen lowered their price targets from $10.00 to $9.00 but maintained a “buy” rating — the cut reduces upside expectations modestly but keeps institutional support (the $9 PT still implies a large upside from current levels). Benzinga: Analyst Price Target TickerReport: TD Cowen note
• Neutral Sentiment: Full earnings call transcript, slide deck and press release are available for review — useful for digging into margin drivers, guidance detail, and management commentary. Press Release / Slide Deck Seeking Alpha: Transcript
• Negative Sentiment: Reported GAAP results were mixed: EPS of $0.27 missed the consensus ~$0.29 and revenue of $247.13M was slightly below estimates — these misses likely pressured sentiment. MarketBeat: Q4 results summary
• Negative Sentiment: Short interest jumped ~27% in February to ~2.02M shares (≈7.3% of float) with an ~8.6 days‑to‑cover — rising shorting increases downside pressure and could amplify volatility on further negative news.

Priority Technology Company Profile

Priority Technology Acquisition Corp is a special purpose acquisition company formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization or similar business combination with one or more businesses in the technology sector. As a blank-check company, it does not conduct any operations of its own and holds the proceeds from its initial public offering in a trust account pending the identification and completion of a business combination.

The company’s management team is focused on evaluating target businesses that offer scalable technology products or services, including software, digital platforms and related infrastructure.