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

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: ID:nBw19F9Zxa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)