Priority Technology Holdings Reports $224.6 Million Revenue in Q1 2025, Driven by Merchant Fees and Money Transmission Services

Priority Technology Holdings, Inc. reported a consolidated revenue of $224.6 million for the first quarter of 2025, marking a 9.2% increase from $205.7 million in the same period of 2024. The growth was primarily driven by a rise in merchant card fees, which reached $167.1 million, up 5.8% from $157.9 million year-over-year. Additionally, money transmission services saw a significant increase of 28.5%, totaling $37.4 million, attributed to higher customer enrollments and transaction volumes. The company also reported a net income of $8.3 million, compared to $5.2 million in the prior year, reflecting a positive shift in profitability.

Operating expenses for the quarter increased to $192.0 million from $177.7 million, largely due to higher costs associated with salaries and employee benefits, which rose by 16.4% to $25.8 million. Selling, general, and administrative expenses also saw a notable increase of 37.3%, totaling $15.1 million, driven by professional fees and marketing costs. Despite these rising costs, the company managed to achieve an operating income of $32.6 million, up from $28.0 million in the previous year.

In terms of strategic developments, Priority Technology completed the acquisition of Payslate Inc. on January 21, 2025, for a total consideration of $11 million. This acquisition is expected to enhance the company's Enterprise Payments segment by expanding its services in Canada and complementing its existing rent payment solutions. The newly acquired business contributed $0.4 million in revenue and incurred a net loss of $0.1 million for the quarter.

Operationally, Priority Technology reported a total of 940,463 average billed clients in its Enterprise Payments segment, an increase from 703,887 in the previous year. The company also noted a significant rise in the average number of new enrollments, which reached 55,946, up from 53,551. As of March 31, 2025, the company had cash and cash equivalents of $47.6 million, alongside restricted cash of $11.5 million, indicating a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, Priority Technology anticipates continued growth driven by increased transaction volumes and customer enrollments across its segments. The company remains focused on leveraging its innovative payment solutions to enhance operational efficiency and expand its market presence. However, management also acknowledged potential risks related to economic conditions and competition in the payment processing industry, which could impact future performance.