Priority Technology Holdings, Inc.

Priority reported Q1 2026 revenue of $249.6 million, up 11% year over year. Adjusted gross profit was $98.8 million, up 13%, adjusted EBITDA was $58.1 million, up 13%, and adjusted EPS increased 27% to $0.28. Adjusted gross profit margin was 39.6%, up 70 basis points year over year. For 2026, management maintained full-year guidance of revenue between $1.01 billion and $1.04 billion and adjusted EBITDA between $230 million and $245 million.

Tom Priore said the quarter showed strong performance across the company’s platform, with particular confidence in Merchant Solutions, payables, and Treasury Solutions. He emphasized Priority’s “collect, store, lend and send” model and said the mix shift toward payables and treasury is a differentiator as payments commoditize and AI increases demand for integrated commerce and finance tools. His tone was upbeat and focused on the strategic value of the platform and more room for growth, especially in larger customer relationships.

Tim O’Leary highlighted 11.1% reported revenue growth, including 9.1% organic growth, and said payables and Treasury Solutions made up 63% of adjusted gross profit in the quarter. He noted Merchant Solutions revenue of $161.8 million, payables revenue of $32.4 million, and Treasury Solutions revenue of $58.8 million, along with segment margin trends: Merchant gross margin of 22.7%, payables gross margin of 28.4%, and Treasury gross margin of 89.8%. He also cited debt of $1.02 billion, over $192 million of available liquidity, $92.2 million of cash, $28 million of free cash flow, and net leverage of 4.0x, down from 4.2x at Q4, with pro forma leverage at 3.8x including acquisition EBITDA.

Analysts pressed on why payables growth accelerated and whether any of it was one-time; management said it reflected the business moving upmarket into larger working-capital use cases, with both core growth and benefits from newly onboarded enterprise customers. Questions also focused on margin pressure from hardware and tariffs, and management said that was not a major issue because the company’s exposure is limited and most margin movement came from mix shift. On Merchant Solutions, management said restaurant, construction, and legal services remained softer, while real estate, auto, gas, and grocery were stronger; for card volume, they framed 2.5% growth as a normalized level and said low-single-digit organic growth is a reasonable expectation.