Priority Technology Holdings reported third quarter 2026 results featuring 11.3% revenue growth, primarily driven by its Merchant Solutions and Payables segments. While revenue exceeded analyst estimates, adjusted diluted earnings per share fell slightly short of expectations as the company continues progress toward its previously announced take-private transaction.
Key Highlights
- Revenue rose 11.3% year-over-year to $268.6 million, including 9.2% organic growth, beating the $259.5 million estimate.
- Adjusted EBITDA increased 5.5% to $60.9 million, although adjusted gross profit margin contracted by 100 basis points to 38.2%.
- Merchant Solutions revenue grew 11.0% to $179.6 million, while Payables revenue surged 25.7% to $31.6 million on higher buyer-funded processing volumes.
- Management reaffirmed the definitive merger agreement to be taken private at $8.05 per share in cash, with completion expected in the first half of 2027.