Priority Technology beats Q2 revenue estimates, adjusted EPS more than doubles
Overview
Priority Technology Q2 revenue rises 9.1%, beating analysts' expectations
Adjusted EPS for Q2 increases 136.4%, surpassing estimates
Co raises lower end of full-year revenue guidance, narrows adjusted EBITDA range
Outlook
Priority raises low end of full-year revenue guidance to $970 mln
Company narrows full-year adjusted EBITDA guidance to $222.5-$227.5 mln
Priority anticipates organic growth acceleration in second half of 2025
Company positioned to benefit from embedded finance trend
Result Drivers
CONNECTED COMMERCE - Priority's Connected Commerce platform drove 9% revenue growth and 13% adjusted gross profit growth
SEGMENT GROWTH - B2B adjusted gross profit grew over 30%, Enterprise grew over 20%, per CEO Tom Priore
RECURRING REVENUE - Recurring revenue represents 62% of total adjusted gross profit
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $239.81 mln | $239.10 mln (5 Analysts) |
Q2 Adjusted EPS | Beat | $0.26 | $0.2 (4 Analysts) |
Q2 Net Income | $10.88 mln | ||
Q2 Adjusted EBITDA | Beat | $56.05 mln | $54.70 mln (5 Analysts) |
Q2 Gross Margin | 36.5% | ||
Q2 EBITDA | $52.45 mln | ||
Q2 Gross Profit | $87.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the financial technology (fintech) peer group is "buy"
Wall Street's median 12-month price target for Priority Technology Holdings Inc is $13.00, about 47.7% above its August 6 closing price of $6.80
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release:
