Priority Technology Holdings Inc. Reports Strong Growth in 2025 Annual Report
Priority Technology Holdings Inc. has released its 2025 annual report, showcasing significant growth across its segments and strategic initiatives aimed at enhancing financial performance. The company, a key player in the Payments and Banking-as-a-Service (BaaS) sector, has positioned itself as the fifth largest non-bank merchant acquirer in the U.S., with an impressive annual transaction volume of approximately $120 billion.
1. Financial Overview
For the year ending December 31, 2025, Priority Technology Holdings reported consolidated revenue of $953.0 million, an increase of $73.3 million, or 8.3%, compared to $879.7 million in 2024. This growth can be attributed to heightened activity in its Merchant Solutions segment, along with increased interest income and transaction volumes in Treasury Solutions and Payables.
Revenue Breakdown by Segments
The revenue growth was driven by the following segments:
- Merchant Solutions: Revenue reached $639.6 million, a growth of 4.5% from $612.1 million in 2024.
- Treasury Solutions: Revenue surged to $213.9 million, up 19.1% from $179.6 million.
- Payables: This segment saw a revenue increase to $99.4 million, reflecting a 13.0% growth from $87.95 million.
Revenue Breakdown by Products or Services
The company’s revenue was also segmented by various products and services, which are as follows:
- Merchant Card Fees: $710.9 million, a 6.04% increase from $670.4 million.
- Money Transmission Services: Revenue climbed to $159.1 million, reflecting a 22.32% rise from $130.1 million.
- Outsourced Services and Other Services: Generated $70.7 million, up 5.51% from $67.01 million.
- Equipment Sales: Remained stable at $12.21 million, showing a slight increase of 0.55%.
2. Operating Expenses and Profitability
Operating expenses in 2025 totaled $578.3 million, which is a 4.8% increase from $551.6 million in 2024. Notably, the costs of services decreased as a percentage of total revenues, dropping to 60.7% from 62.7% in the prior year.
Key Expense Highlights
- Salary and Employee Benefits: Rose significantly to $107.8 million, a 20.8% increase driven by merit increases and new hires from acquisitions.
- Selling, General and Administrative Expenses: Increased to $62.5 million, up 31.8% due to higher marketing and operational costs.
Profitability Metrics
The company reported a net income of $55.68 million in 2025, a substantial turnaround from a loss of $23.96 million in 2024. This represents a significant recovery in profitability, aided by robust revenue growth and effective cost management.
| Mar 2025 | Mar 2026 | |
|---|---|---|
Net Income | 23.37M | 55.68M |
Net Income to Non-controlling Interest | 639K | 0 |
Profit | 24.01M | 55.68M |
Net Income Continuing | 24.01M | 55.68M |
Income Tax Expense | 13.26M | -9.40M |
Pretax Income | 37.28M | 46.27M |
Non-operating Income | -96.14M | -94.96M |
Operating Income | 133.4M | 141.2M |
Revenue | 879.7M | 953.0M |
Costs and Expenses | 746.2M | 811.7M |
Cost of Revenue | 551.6M | 578.3M |
Operating Expenses | 194.6M | 233.4M |
Depreciation, Depletion & Amortization | 58.04M | 63.18M |
Selling, General & Administrative | 47.40M | 62.47M |
Other Operating Expenses | 89.21M | 107.7M |
3. Balance Sheet and Liquidity Position
As of December 31, 2025, Priority Technology's total assets stood at $2.39 billion, with current assets comprising $1.51 billion. Cash and cash equivalents increased to $77.2 million, up from $58.6 million in 2024. The company has also improved its working capital position to $104.7 million, a considerable increase from $53.4 million in the previous year.
Debt Management
Total outstanding debt rose to $1.06 billion, up from $945.5 million in 2024. The company has undertaken proactive measures in its debt management strategy, including amendments to its credit agreements, which have extended maturity dates and enhanced liquidity.
| Mar 2025 | Mar 2026 | |
|---|---|---|
Total Assets | 1.82B | 2.39B |
Total Current Assets | 1.10B | 1.51B |
Cash and Equivalents | 58.6M | 77.19M |
Accounts Receivable | 67.96M | 91.3M |
Notes and Loans Receivable | 3.63M | 2.06M |
Restricted Cash and Investments | 11.09M | 16.45M |
Prepaid Expenses | 22.99M | 32.14M |
Other Current Assets | 940.7M | 1.29B |
Total Non-current Assets | 721.7M | 883.7M |
Intangible Assets | 616.9M | 731.8M |
Non-current Accounts and Financing Receivable | 4.91M | 17.62M |
Non-current Deferred Tax Assets | 24.69M | 46.35M |
Net PP&E | 52.47M | 58.63M |
Other Non-current Assets | 22.71M | 29.30M |
Total Liabilities and Equity | 1.82B | 2.39B |
Total Liabilities | 1.99B | 2.49B |
Total Current Liabilities | 1.05B | 1.41B |
Accounts Payable and Accrued Liabilities | 62.14M | 70.63M |
Current Debt | 9.50M | 0 |
Other Current Liabilities | 980.0M | 1.33B |
Total Non-current Liabilities | 940.2M | 1.08B |
Long-term Debt | 920.8M | 1.03B |
Other Non-current Liabilities | 19.32M | 41.48M |
Total Equity and Non-controlling Interests | -165.0M | -92.37M |
Total Equity | -166.8M | -100.4M |
Non-controlling Interests | 1.81M | 8.04M |
4. Strategic Initiatives and Outlook
In 2025, Priority Technology made significant strides, including the acquisition of Rollfi Payroll and Benefits Software and the launch of new products such as Ambient for ICHRA plan administration. The company was also recognized by CNBC as one of the world's top fintech companies for the third consecutive year, underscoring its market presence.
Looking Ahead
With a solid financial foundation and a commitment to innovation, Priority Technology Holdings Inc. is well-positioned for continued growth in the evolving financial technology landscape. The company’s emphasis on managing operating expenses and optimizing its capital structure bodes well for future profitability and expansion.
5. Conclusion
Priority Technology Holdings Inc. has reported a strong performance in 2025, characterized by impressive revenue growth and a rebound in profitability. The company’s strategic initiatives, coupled with its focus on enhancing customer engagement and operational efficiency, set the stage for continued success in the coming years.
