Priority Technology Holdings, Inc.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
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15. Segment Information
- Segment Information
The Company'sthree reportable segments included SMB Payments, B2B Payments and Enterprise Payments:
SMB Payments: Provides full-service acquiring and payment-enabled solutions for B2C transactions, leveraging Priority's proprietary software platform, distributed through ISO, direct sales and vertically focused ISV channels.
B2B Payments: Provides market-leading AP automation solutions to corporations, software partners and industry leading FIs in addition to improving cash flows by providing instant access to working capital.
Enterprise Payments: Provides embedded finance and BaaS solutions to customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments.
Corporate includes costs of corporate functions and shared services not allocated to our reportable segments.
The Company's chief operating decision makers ("CODM") are our CEO and CFO. The CODM uses adjusted earnings before interest expense, income tax and depreciation and amortization expenses ("Adjusted EBITDA") as the measure of segment profit or loss to allocate resources. Adjusted EBITDA represents EBITDA (i.e. earnings before interest, income tax, and depreciation and amortization expenses) adjusted for certain non-cash costs, such as stock-based compensation and the write-off of the carrying value of investments or other assets, as well as debt extinguishment and modification expenses and other expenses and income items considered non-recurring, such as acquisition integration expenses, certain professional fees, and litigation settlements.
Segment level assets information is not provided or subject to review by the CODM and therefore not provided.
Information on reportable segments and reconciliations to income before income taxes are as follows:
| (in thousands) | SMB Payments | B2BPayments | Enterprise Payments | Total |
|---|---|---|---|---|
| Revenue from external customers | $162,788 | $24,668 | $52,356 | $239,812 |
| Intersegment revenues | 442 | 365 | 302 | 1,109 |
| 163,230 | 25,033 | 52,658 | 240,921 | |
| Elimination of intersegment revenues | (1,109) | |||
| Total consolidated revenues | 239,812 | |||
| Less: Cost of services (excludes depreciation and amortization)1 | (127,814) | (17,751) | (2,939) | |
| Less: Other operating expenses 1,2 | (8,367) | (3,606) | (4,457) | |
| Add: Other segment items3 | 700 | 94 | 296 | |
| Segment Adjusted EBITDA | $27,749 | $3,770 | $45,558 | $77,077 |
| Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes | ||||
| Segment Adjusted EBITDA | $77,077 | |||
| Adjustment for corporate items4 | (19,918) | |||
| Intersegment revenue elimination | (1,109) | |||
| Depreciation and amortization | (14,093) | |||
| Interest expense | (23,054) | |||
| Selling, general and administrative (non-recurring) | (395) | |||
| Non-cash stock based compensation | (3,206) | |||
| Income before income taxes | $15,302 | |||
| (in thousands) | Three Months Ended June 30, 2025 |
|---|---|
| Elimination of cost of services (excludes depreciation and amortization) | $1,105 |
| Other operating expenses2 | (24,541) |
| Other items5 | 3,518 |
| $(19,918) |
| (in thousands) | Other specified segment disclosure | |||
|---|---|---|---|---|
| Three Months Ended June 30, 2025 | ||||
| SMB Payments | B2BPayments | Enterprise Payments | Total | |
| Depreciation and amortization | $6,633 | $1,262 | $4,941 | $12,836 |
| (in thousands) | SMB Payments | B2BPayments | Enterprise Payments | Total |
|---|---|---|---|---|
| Revenue from external customers | $314,029 | $48,356 | $102,057 | $464,442 |
| Intersegment revenue | 891 | 595 | 689 | 2,175 |
| 314,920 | 48,951 | 102,746 | 466,617 | |
| Elimination of intersegment revenues | (2,175) | |||
| Total consolidated revenues | 464,442 | |||
| Less: Cost of services (excludes depreciation and amortization)1 | (246,386) | (34,376) | (6,160) | |
| Less: Other operating expenses1,2 | (16,580) | (7,534) | (9,066) | |
| Add: Other segment items3 | 1,500 | 245 | 481 | |
| Segment Adjusted EBITDA | $53,454 | $7,286 | $88,001 | $148,741 |
| Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes | ||||
| Segment Adjusted EBITDA | $148,741 | |||
| Adjustment for corporate items4 | (39,222) | |||
| Intersegment revenue elimination | (2,175) | |||
| Depreciation and amortization | (27,870) | |||
| Interest expense | (46,230) | |||
| Debt modification and extinguishment expenses | (38) | |||
| Selling, general and administrative (non-recurring) | (2,594) | |||
| Non-cash stock based compensation | (4,792) | |||
| Income before income taxes | $25,820 | |||
| (in thousands) | Six Months Ended June 30, 2025 |
|---|---|
| Elimination of cost of services (excludes depreciation and amortization) | $2,170 |
| Other operating expenses2 | (48,665) |
| Other items5 | 7,273 |
| $(39,222) |
| (in thousands) | Other specified segment disclosure | |||
|---|---|---|---|---|
| SMB Payments | B2BPayments | Enterprise Payments | Total | |
| Depreciation and amortization | $13,258 | $2,523 | $9,583 | $25,364 |
| (in thousands) | SMB Payments | B2BPayments | Enterprise Payments | Total |
|---|---|---|---|---|
| Revenue from external customers | $154,769 | $21,614 | $43,484 | $219,867 |
| Intersegment revenues | 332 | 267 | 186 | 785 |
| 155,101 | 21,881 | 43,670 | 220,652 | |
| Elimination of intersegment revenues | (785) | |||
| Total consolidated revenues | 219,867 | |||
| Less: Cost of services (excludes depreciation and amortization)1 | (119,466) | (16,316) | (3,118) | |
| Less: Other operating expenses 1,2 | (7,498) | (4,144) | (3,530) | |
| Add: Other segment items3 | 460 | 109 | 222 | |
| Segment Adjusted EBITDA | $28,597 | $1,530 | $37,244 | $67,371 |
| Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes | ||||
| Segment Adjusted EBITDA | $67,371 | |||
| Adjustment for corporate items4 | (15,035) | |||
| Intersegment revenue elimination | (785) | |||
| Depreciation and amortization | (15,244) | |||
| Interest expense | (21,710) | |||
| Debt modification and extinguishment expenses | (8,623) | |||
| Selling, general and administrative (non-recurring) | (636) | |||
| Non-cash stock based compensation | (1,829) | |||
| Income before income taxes | $3,509 | |||
| (in thousands) | Three Months Ended June 30, 2024 |
|---|---|
| Elimination of cost of services (excludes depreciation and amortization) | $783 |
| Other operating expenses2 | (18,159) |
| Other items5 | 2,341 |
| $(15,035) |
| (in thousands) | Other specified segment disclosure | |||
|---|---|---|---|---|
| SMB Payments | B2BPayments | Enterprise Payments | Total | |
| Depreciation and amortization | $8,541 | $1,261 | $4,087 | $13,889 |
| (in thousands) | SMB Payments | B2BPayments | Enterprise Payments | Total |
|---|---|---|---|---|
| Revenue from external customers | $298,516 | $42,729 | $84,341 | $425,586 |
| Intersegment revenue | 589 | 496 | 319 | 1,404 |
| 299,105 | 43,225 | 84,660 | 426,990 | |
| Elimination of intersegment revenues | (1,404) | |||
| Total consolidated revenues | 425,586 | |||
| Less: Cost of services (excludes depreciation and amortization)1 | (231,585) | (31,469) | (5,761) | |
| Less: Other operating expenses1,2 | (14,714) | (8,706) | (7,266) | |
| Add: Other segment items3 | 814 | 226 | 338 | |
| Segment Adjusted EBITDA | $53,620 | $3,276 | $71,971 | $128,867 |
| Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes | ||||
| Segment Adjusted EBITDA | $128,867 | |||
| Adjustment for corporate items4 | (29,572) | |||
| Intersegment revenue elimination | (1,404) | |||
| Depreciation and amortization | (30,497) | |||
| Interest expense | (42,590) | |||
| Debt modification and extinguishment expenses | (8,623) | |||
| Selling, general and administrative (non-recurring) | (1,435) | |||
| Non-cash stock based compensation | (3,462) | |||
| Income before income taxes | $11,284 | |||
| (in thousands) | Six Months Ended June 30, 2024 |
|---|---|
| Elimination of cost of services (excludes depreciation and amortization) | $1,400 |
| Other operating expenses2 | (35,791) |
| Other items5 | 4,819 |
| $(29,572) |
| (in thousands) | Other specified segment disclosure | |||
|---|---|---|---|---|
| SMB Payments | B2BPayments | Enterprise Payments | Total | |
| Depreciation and amortization | $17,127 | $2,731 | $8,126 | $27,984 |
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