Priority Technology (PRTH) investor relations material

Executive summary

• Achieved Q2 2026 revenue of $262.3 million, up 9–9.4% YoY, with adjusted gross profit up 8–8.1% and adjusted EBITDA up 6%.

• Ended Q2 with 1.8 million customer accounts and $151 billion in annual transaction volume, both up YoY.

• Year-to-date revenue reached $511.8 million, up 10%, and adjusted EBITDA $117.5 million, up 9%.

• Net income declined 9.3% to $9.9 million; adjusted EPS up 12% to $0.29.

• Full-year 2026 guidance maintained, expecting revenue at the high end and profits at the low end of ranges.

Financial highlights

• Q2 revenue: $262.3 million (+9% YoY); adjusted gross profit: $99.9 million (+8%); Adjusted EBITDA: $59.4 million (+6%).

• Adjusted EPS (diluted) for Q2: $0.29, up 12% YoY.

• Adjusted gross profit margin for Q2: 38.1%, down 40bps YoY; gross profit margin: 36.0%.

• Free cash flow for Q2: $27.4 million; net leverage at quarter end: 3.8x, pro forma 3.75x post-acquisitions.

• Available liquidity exceeds $220 million, including $120.3 million cash and $100 million undrawn revolver.

Outlook and guidance

• Full-year 2026 revenue guidance: $1.01–$1.04 billion, expecting to be at the higher end.

• Adjusted gross profit guidance: $405–$425 million; Adjusted EBITDA: $230–$245 million, expecting to be at the lower end.

• Margin pressures expected to persist due to business mix, higher residual expenses, card network/interchange costs, and ongoing investments.

• Capital allocation strategy focuses on deleveraging and selective tuck-in acquisitions through 2026.