Priority Technology (PRTH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $249.6 million, up 11.1% year-over-year, with strong growth across Merchant Solutions, Payables, and Treasury Solutions segments and 9.1% organic growth.

• Adjusted EBITDA rose 13% to $58.1 million, with margin expansion in Payables and Treasury Solutions.

• Adjusted EPS increased 27% to $0.28; net income rose 18% to $9.8 million; diluted EPS was $0.12.

• Total customer accounts grew to 1.8 million, and annual transaction volume reached $153 billion.

• Affirmed full-year 2026 guidance, citing strong momentum and successful integration of recent acquisitions.

Financial highlights

• Adjusted gross profit grew 13.2% to $98.8 million, with margin up 70 bps to 39.6%.

• Q1 revenue was $249.6 million, and gross profit margin improved to 37.5%.

• Free cash flow for the quarter was $28 million; cash and equivalents at quarter-end were $92.2 million.

• Operating income rose 2.3% to $33.4 million; working capital was $122.9 million.

• Basic and diluted EPS were $0.12; adjusted diluted EPS was $0.28.

Outlook and guidance

• Full-year 2026 revenue forecast is $1.01–$1.04 billion, with adjusted EBITDA guidance of $230–$245 million.

• Adjusted gross profit expected between $405 million and $425 million.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, operations, and $100 million available under the revolving credit facility.

• Capital allocation strategy focused on continued debt repayment and de-leveraging throughout 2026.