Priority Technology Holdings Inc (NASDAQ:PRTH) saw its stock price plummet 5.92% in pre-market trading following the release of its third-quarter financial results. The fintech company's performance fell short of analyst expectations, particularly in terms of revenue.
Priority Technology reported Q3 revenue of $241.439 million, representing a 6.34% increase year-over-year but missing the analyst consensus estimate of $251.737 million by 4.09%. The company's adjusted EBITDA also fell short of expectations, coming in at $57.759 million compared to the estimated $58.7 million. Despite these misses, Priority Technology did manage to beat earnings per share (EPS) estimates, reporting adjusted EPS of $0.28, surpassing the analyst consensus of $0.26 by 6.87%.
While the company highlighted strong growth in its Treasury Solutions and Payables segments, with 18% and 14% revenue growth respectively, investors appear to be focusing on the overall revenue miss. Priority Technology's outlook for full-year 2025 revenue growth of 8-10% and adjusted EBITDA between $223 million and $228 million failed to offset concerns about the Q3 performance. The pre-market decline suggests that investors are recalibrating their expectations for the company's near-term growth prospects in light of these results.