Priority Technology Holdings Reports 9.1% Revenue Growth to $239.8 Million in Q2 2025

Priority Technology Holdings, Inc. reported a consolidated revenue of $239.8 million for the three months ended June 30, 2025, marking a 9.1% increase from $219.9 million in the same period of the previous year. For the first half of 2025, revenue reached $464.4 million, up from $425.6 million in the prior year, driven primarily by growth in merchant card fees and money transmission services. The company achieved a net income of $10.9 million for the second quarter, a significant recovery from a net loss of $17.6 million in the same quarter of 2024. This positive shift in profitability is attributed to increased transaction volumes and improved operational efficiencies.

The company experienced notable changes in its operational metrics, with merchant card fees rising to $180.5 million in Q2 2025, up from $169.2 million in Q2 2024. Money transmission services also saw a substantial increase, generating $39.3 million in Q2 2025, a 25.3% rise compared to the previous year. The total number of merchant transactions processed increased, contributing to the overall revenue growth. Additionally, Priority Technology's employee headcount rose to support its expanding operations, reflecting the company's strategic focus on growth and service enhancement.

In terms of strategic developments, Priority Technology completed the acquisition of Payslate Inc. in January 2025, which is expected to enhance its enterprise payment solutions. The acquisition was valued at $9 million and is anticipated to create synergies within the company's existing payment processing services. The integration of Payslate is expected to bolster Priority's market position in Canada and the U.S. Furthermore, the company has amended its share repurchase program, increasing the authorization to buy back up to 5 million shares for a total of $40 million, demonstrating its commitment to returning value to shareholders.

Operationally, Priority Technology reported a significant increase in settlement assets, which rose to $1.13 billion as of June 30, 2025, compared to $940.8 million at the end of 2024. This increase reflects the company's growing customer base and transaction volumes. The company also reported a working capital of $76.7 million, up from $23.6 million a year earlier, indicating improved liquidity. The effective tax rate for the second quarter was 28.9%, a decrease from 71.7% in the prior year, primarily due to changes in the valuation allowance against deferred tax assets.

Looking ahead, Priority Technology Holdings, Inc. remains optimistic about its growth trajectory, driven by increased demand for its payment processing solutions and strategic acquisitions. The company anticipates continued revenue growth in its SMB, B2B, and Enterprise Payments segments, supported by ongoing investments in technology and customer service enhancements. The management is focused on leveraging its expanded capabilities to capture a larger market share and improve operational efficiencies, positioning the company for sustained success in the competitive fintech landscape.