Priority Technology Holdings, Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 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.
Sep 30, 2025 · Filed Nov 6, 2025
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15. Segment Information
- Segment Information
The Company'sthree reportable segments included Merchant Solutions, Payables and Treasury Solutions:
Merchant Solutions: 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.
Payables: 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.
Treasury Solutions: Provides embedded finance and treasury 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) | Merchant Solutions | Payables | Treasury Solutions | Total |
|---|---|---|---|---|
| Revenue from external customers | $161,307 | $24,698 | $55,434 | $241,439 |
| Intersegment revenues | 567 | 464 | 250 | 1,281 |
| 161,874 | 25,162 | 55,684 | 242,720 | |
| Elimination of intersegment revenues | (1,281) | |||
| Total consolidated revenues | 241,439 | |||
| Less: Cost of services (excludes depreciation and amortization)1 | (126,412) | (17,987) | (3,559) | |
| Less: Other operating expenses 1,2 | (8,406) | (3,874) | (5,764) | |
| Add: Other segment items3 | 671 | 154 | 315 | |
| Segment Adjusted EBITDA | $27,727 | $3,455 | $46,676 | $77,858 |
| Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes | ||||
| Segment Adjusted EBITDA | $77,858 | |||
| Adjustment for corporate items4 | (15,311) | |||
| Intersegment revenue elimination | (1,281) | |||
| Depreciation and amortization | (15,122) | |||
| Interest expense | (22,463) | |||
| Debt modification and extinguishment expenses | (12,476) | |||
| Selling, general and administrative (non-recurring) | (1,491) | |||
| Non-cash stock based compensation | (2,327) | |||
| Income before income taxes | $7,387 | |||
| (in thousands) | Three Months Ended September 30, 2025 |
|---|---|
| Elimination of cost of services (excludes depreciation and amortization) | $1,277 |
| Other operating expenses2 | (23,818) |
| Other items5 | 7,230 |
| $(15,311) |
| (in thousands) | Other specified segment disclosure | |||
|---|---|---|---|---|
| Three Months Ended September 30, 2025 | ||||
| Merchant Solutions | Payables | Treasury Solutions | Total | |
| Depreciation and amortization | $7,607 | $1,275 | $4,923 | $13,805 |
| (in thousands) | Merchant Solutions | Payables | Treasury Solutions | Total |
|---|---|---|---|---|
| Revenue from external customers | $475,336 | $73,054 | $157,491 | $705,881 |
| Intersegment revenue | 1,458 | 1,059 | 939 | 3,456 |
| 476,794 | 74,113 | 158,430 | 709,337 | |
| Elimination of intersegment revenues | (3,456) | |||
| Total consolidated revenues | 705,881 | |||
| Less: Cost of services (excludes depreciation and amortization)1 | (372,798) | (52,363) | (9,719) | |
| Less: Other operating expenses1,2 | (24,987) | (11,408) | (14,831) | |
| Add: Other segment items3 | 2,172 | 399 | 797 | |
| Segment Adjusted EBITDA | $81,181 | $10,741 | $134,677 | $226,599 |
| Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes | ||||
| Segment Adjusted EBITDA | $226,599 | |||
| Adjustment for corporate items4 | (54,533) | |||
| Intersegment revenue elimination | (3,456) | |||
| Depreciation and amortization | (42,992) | |||
| Interest expense | (68,693) | |||
| Debt modification and extinguishment expenses | (12,514) | |||
| Selling, general and administrative (non-recurring) | (4,085) | |||
| Non-cash stock based compensation | (7,119) | |||
| Income before income taxes | $33,207 | |||
| (in thousands) | Nine Months Ended September 30, 2025 |
|---|---|
| Elimination of cost of services (excludes depreciation and amortization) | $3,447 |
| Other operating expenses2 | (72,483) |
| Other items5 | 14,503 |
| $(54,533) |
| (in thousands) | Other specified segment disclosure | |||
|---|---|---|---|---|
| Merchant Solutions | Payables | Treasury Solutions | Total | |
| Depreciation and amortization | $20,865 | $3,798 | $14,507 | $39,170 |
| (in thousands) | Merchant Solutions | Payables | Treasury Solutions | Total |
|---|---|---|---|---|
| Revenue from external customers | $158,350 | $21,820 | $46,879 | $227,049 |
| Intersegment revenues | 420 | 323 | 220 | 963 |
| 158,770 | 22,143 | 47,099 | 228,012 | |
| Elimination of intersegment revenues | (963) | |||
| Total consolidated revenues | 227,049 | |||
| Less: Cost of services (excludes depreciation and amortization)1 | (123,184) | (15,827) | (3,021) | |
| Less: Other operating expenses 1,2 | (7,404) | (4,429) | (3,381) | |
| Add: Other segment items3 | 462 | 46 | 243 | |
| Segment Adjusted EBITDA | $28,644 | $1,933 | $40,940 | $71,517 |
| Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes | ||||
| Segment Adjusted EBITDA | $71,517 | |||
| Adjustment for corporate items4 | (15,913) | |||
| Intersegment revenue elimination | (963) | |||
| Depreciation and amortization | (13,733) | |||
| Interest expense | (23,246) | |||
| Debt modification and extinguishment expenses | (43) | |||
| Selling, general and administrative (non-recurring) | (696) | |||
| Non-cash stock based compensation | (1,416) | |||
| Income before income taxes | $15,507 | |||
| (in thousands) | Three Months Ended September 30, 2024 |
|---|---|
| Elimination of cost of services (excludes depreciation and amortization) | $961 |
| Other operating expenses2 | (18,945) |
| Other items5 | 2,071 |
| $(15,913) |
| (in thousands) | Other specified segment disclosure | |||
|---|---|---|---|---|
| Merchant Solutions | Payables | Treasury Solutions | Total | |
| Depreciation and amortization | $6,938 | $1,261 | $4,304 | $12,503 |
| (in thousands) | Merchant Solutions | Payables | Treasury Solutions | Total |
|---|---|---|---|---|
| Revenue from external customers | $456,865 | $64,556 | $131,214 | $652,635 |
| Intersegment revenue | 1,010 | 812 | 544 | 2,366 |
| 457,875 | 65,368 | 131,758 | 655,001 | |
| Elimination of intersegment revenues | (2,366) | |||
| Total consolidated revenues | 652,635 | |||
| Less: Cost of services (excludes depreciation and amortization)1 | (354,769) | (47,296) | (8,782) | |
| Less: Other operating expenses1,2 | (22,118) | (13,135) | (10,647) | |
| Add: Other segment items3 | 1,277 | 272 | 582 | |
| Segment Adjusted EBITDA | $82,265 | $5,209 | $112,911 | $200,385 |
| Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes | ||||
| Segment Adjusted EBITDA | $200,385 | |||
| Adjustment for corporate items4 | (45,487) | |||
| Intersegment revenue elimination | (2,366) | |||
| Depreciation and amortization | (44,230) | |||
| Interest expense | (65,836) | |||
| Debt modification and extinguishment expenses | (8,666) | |||
| Selling, general and administrative (non-recurring) | (2,131) | |||
| Non-cash stock based compensation | (4,878) | |||
| Income before income taxes | $26,791 | |||
| (in thousands) | Nine Months Ended September 30, 2024 |
|---|---|
| Elimination of cost of services (excludes depreciation and amortization) | $2,361 |
| Other operating expenses2 | (54,737) |
| Other items5 | 6,889 |
| $(45,487) |
| (in thousands) | Other specified segment disclosure | |||
|---|---|---|---|---|
| Merchant Solutions | Payables | Treasury Solutions | Total | |
| Depreciation and amortization | $24,065 | $3,992 | $12,431 | $40,488 |
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