Priority Technology (PRTH) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 9.1% year-over-year to $239.8M, with adjusted gross profit up 13% and adjusted EBITDA up 9%, driven by strong B2B and Enterprise segment performance and over 1.6M customer accounts.

• Net income attributable to common stockholders was $10.9M for Q2 2025, reversing a net loss of $17.6M in Q2 2024.

• Recurring revenue represented 62% of total adjusted gross profit, driven by B2B and Enterprise segments.

• Raised full-year 2025 revenue guidance and narrowed adjusted EBITDA guidance, anticipating acceleration in H2 2025 as headwinds moderate.

• The acquisition of Payslate (Letus business) and new credit facilities supported segment growth and capital structure improvements.

Financial highlights

• Q2 2025 revenue: $239.8M, up 9.1% year-over-year; adjusted gross profit: $92.4M, up 13%; adjusted EBITDA: $56.0M, up 9%.

• Adjusted gross profit margin improved by 135 bps to 38.5%; operating income was $37.4M, up 12.6% year-over-year.

• Adjusted EPS for Q2 2025 was $0.26, up $0.15 year-over-year.

• Total payments volume reached $140B, with 1.6M customer accounts and $1.4B in account balances.

• Net income for Q2 2025 was $10.9M, compared to $1.0M in Q2 2024.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $970M–$990M, with adjusted EBITDA expected between $222.5M and $227.5M.

• Adjusted gross profit guidance for 2025: $365M–$380M.

• Acceleration in growth expected in H2 2025 due to moderating headwinds and new customer wins.

• Guidance assumes two interest rate cuts and continued growth in deposit balances.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, operations, and credit facility.