Tue, May 6, 1:20 PM (7 days ago)
**Priority Technology Holdings, Inc. (PRTH) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $224.6 million, up 9.2% from $205.7 million in Q1 2024. - **Operating Income:** $32.6 million, up from $28.0 million in Q1 2024. - **Net Income:** $8.3 million, compared to a net loss of $8.1 million in Q1 2024. - **Profit Margins:** Improved profitability with a lower effective tax rate of 21.4% compared to 33.2% in Q1 2024. - **Cash Flow:** Positive net cash provided by operating activities at $9.96 million, down from $13.3 million in Q1 2024. - **Cash and Cash Equivalents:** Increased to $47.6 million, with restricted cash at $11.5 million. **Segment Performance:** - **SMB Payments:** Revenue up 5.3% to $151.7 million, Adjusted EBITDA up 2.7% to $25.7 million. - **B2B Payments:** Revenue up 12.1% to $23.9 million, Adjusted EBITDA up 101.3% to $3.5 million. - **Enterprise Payments:** Revenue up 22.2% to $50.1 million, Adjusted EBITDA up 22.2% to $42.4 million. **Key Trends and Uncertainties:** - **Acquisitions:** Acquired Payslate Inc. for $11.0 million, expanding services in Canada. - **Debt Obligations:** Outstanding debt of $935.5 million, with compliance with covenants in the 2024 Credit Agreement. - **Legal Proceedings:** Settlement agreement for $19.5 million in litigation, with minimal impact on financials. - **Market Risks:** Exposure to economic conditions, competition, and regulatory changes. **Future Operations Impact:** - **Growth Strategy:** Focus on expanding services, technology solutions, and acquisitions. - **Liquidity:** Sufficient cash on hand, operational cash flows, and revolving credit facility availability to meet working capital requirements. - **Capital Expenditures:** Investments in property, equipment, and software to support growth. **Conclusion:** Priority Technology Holdings, Inc. (PRTH) demonstrated strong financial performance in Q1 2025, with significant revenue growth, improved profitability, and strategic acquisitions. The company remains focused on expanding its services and technology solutions while managing debt and legal risks. The outlook is positive, with sufficient liquidity and a strong growth strategy in place.