Priority Technology (PRTH) Oppenheimer 28th Annual Technology, Internet & Communications Conference summary

Business overview and strategy

• Operates as a payments and banking fintech with a 20-year history, serving merchant acquiring, B2B payables, and enterprise payments segments.

• Processes $140 billion in annual payments volume with 1.4 million customer accounts and $1.6 billion in daily customer deposits.

• Competes with major industry players across segments, leveraging a diversified, multi-line business model.

• Revenue is primarily transaction-based, with over 60% from recurring, non-transaction fees, providing high revenue visibility.

• Utilizes both reseller and direct sales channels, with a focus on software-led solutions to accelerate cash flow and optimize working capital.

Market position and growth

• Holds the position of fifth largest non-bank merchant acquirer in the U.S., with plans to expand internationally starting with Canada.

• B2C payments market TAM is $6 trillion domestically, while B2B is nearly $20 trillion and underpenetrated for digital payments.

• B2B segment gross profit grew 30% year-over-year, with EBITDA growth over 100%, indicating strong momentum.

• Consistently adds 2,500–3,000 new customers monthly, outpacing peers in growth.

• Focused on delivering integrated solutions for complex, multiparty environments like property management, construction, and healthcare.

Financial performance and outlook

• Q2 net revenue increased 9%, adjusted gross profit up 13%, and adjusted EBITDA up 9%.

• EPS reached $0.26, up $0.15 year-over-year, with guidance raised to $970–$990 million in revenue for the year (10–12.5% growth).

• Adjusted gross profit guidance set at $365–$380 million, and adjusted EBITDA at $222.5–$227.5 million.

• Achieved a 20% compound annual growth rate on the bottom line over the past five years.

• Raised and refinanced debt facility, reducing cost of capital by 100 basis points and targeting leverage reduction.