Priority Technology (PRTH) investor relations material

Executive summary

• Q1 2026 revenue was $249.6 million, up 11.1% year-over-year, with strong growth across Merchant Solutions, Payables, and Treasury Solutions segments.

• Adjusted EBITDA rose 13% to $58.1 million, with margin expansion in Payables and Treasury Solutions.

• Adjusted EPS increased 27% to $0.28; net income attributable to common stockholders was $9.8 million, up 18%.

• Total customer accounts reached 1.8 million, with annual transaction volume at $153 billion and average account balances under administration at $1.8 billion.

• Affirmed full-year 2026 guidance, citing strong momentum and robust customer growth.

Financial highlights

• Adjusted gross profit grew 13% to $98.8 million, with margin improving to 39.6% from 38.9%.

• Free cash flow for the quarter was $28 million; cash and cash equivalents at quarter-end were $92.2 million.

• Operating income rose 2.3% to $33.4 million; basic and diluted EPS were $0.12, up from $0.10.

• Working capital was $122.9 million at March 31, 2026, up from $61.9 million a year earlier.

• Interest expense declined 9.3% to $21.0 million due to lower SOFR rates and refinancing.

Outlook and guidance

• Maintained full-year 2026 revenue guidance of $1.01–$1.04 billion and adjusted EBITDA of $230–$245 million.

• Adjusted gross profit expected between $405 million and $425 million.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, operations, and $100 million available under the revolving credit facility.