Priority Technology Holdings Reports 11.1% Revenue Growth to $249.6 Million in Q1 2026

Priority Technology Holdings, Inc. reported a consolidated revenue of $249.6 million for the three months ended March 31, 2026, marking an increase of 11.1% from $224.6 million in the same period of the previous year. The growth was primarily driven by a rise in merchant card fees, which reached $185.9 million, up from $167.1 million, reflecting an increase in total card processing dollar value and transaction counts. Additionally, money transmission services revenue increased by 11.5% to $41.7 million, while outsourced services and other services revenue rose by 16.6% to $19.8 million. However, equipment revenue decreased by 33.8% to $2.1 million due to lower demand for point-of-sale equipment.

Operating expenses for the first quarter of 2026 totaled $216.2 million, an increase of 12.6% from $192.0 million in the prior year. The cost of revenue, excluding depreciation and amortization, rose to $150.8 million, driven by the corresponding increase in revenues. Salary and employee benefits expenses also increased by 10.7% to $28.5 million, attributed to merit increases and a higher headcount following recent acquisitions. The company reported an operating income of $33.4 million, slightly up from $32.6 million in the previous year, while net income attributable to common stockholders was $9.8 million, compared to $8.3 million in the same quarter of 2025.

In terms of strategic developments, Priority Technology made several acquisitions in 2025, including Payslate, Sila, and DMS, which are expected to enhance its service offerings in the payments and banking fintech sector. The company also reported a significant increase in its cash and cash equivalents, totaling $92.2 million as of March 31, 2026, compared to $47.6 million a year earlier. This increase is indicative of improved cash flow management and operational efficiency, with net cash provided by operating activities rising to $23.8 million from $10.0 million in the prior year.

Operationally, Priority Technology's customer base expanded, with the average billed clients in its Treasury Solutions segment increasing to 1,128,935, up from 940,463 in the previous year. The company also reported a total card processing dollar value of $18.1 billion, reflecting a growth in transaction volume. The company’s total liabilities increased to $2.55 billion, up from $2.49 billion at the end of 2025, primarily due to increased borrowings under its credit facilities.

Looking ahead, Priority Technology anticipates continued growth driven by its strategic acquisitions and an expanding customer base. The company remains focused on enhancing its product offerings and operational capabilities to capture a larger share of the payments processing market. Management expressed confidence in the company's ability to generate sufficient cash flows to meet its working capital needs and support its growth initiatives over the next 12 months.