Shares of Priority Technology Holdings Inc (PRTH) plunged 18.76% in pre-market trading on Tuesday following the release of its first-quarter earnings report. Despite beating earnings per share (EPS) expectations, the company's revenue fell short of analyst estimates, raising concerns about its growth trajectory.
Priority Technology reported Q1 revenue of $224.63 million, falling short of the $228.9 million expected by analysts. This miss on the top line appears to have overshadowed the company's better-than-expected earnings performance. The adjusted EPS came in at $0.22, surpassing the analysts' forecast of $0.18 per share. Additionally, the company's adjusted EBITDA of $51.294 million slightly missed the estimated $51.9 million.
While Priority Technology affirmed its full-year 2025 guidance, projecting revenue between $965 million and $1 billion with adjusted EBITDA of $220-230 million, investors seem to be focusing on the near-term revenue challenges. The significant stock drop suggests that market participants may be reassessing the company's growth prospects in the competitive financial technology sector. As trading continues, investors will likely scrutinize management's commentary on the revenue shortfall and their strategies to accelerate growth in the coming quarters.
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