# Priority Technology Holdings, Inc. (PRTH) Informational only - not investment advice. CIK: 0001653558 SIC: 7389 Services-Business Services, NEC SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7389 Services-Business Services, NEC](/industry/7389/) Latest 10-K filed: 2026-03-10 SEC page: https://www.sec.gov/edgar/browse/?CIK=1653558 Filing source: https://www.sec.gov/Archives/edgar/data/1653558/000165355826000066/prth-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-10 · accession 0001653558-26-000066 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001653558.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 953,009,000 USD | 2025 | verified | | Net income | 55,681,000 USD | 2025 | verified | | Assets | 2,398,804,000 USD | 2025 | verified | | Free cash flow | 75,079,000 USD | 2025 | computed | | Net margin | 5.84% | 2025 | computed | | Operating margin | 14.82% | 2025 | computed | | Revenue YoY | +8.33% | 2025 | computed | Stockholders' equity was not positive at FY2025 year-end (-100,415,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed. Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | PRTH | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 5.8% | 5.8% | 50 | 59 | | Operating margin | 14.8% | 9.2% | 67 | 56 | | Revenue growth | 8.3% | 8.4% | 49 | 58 | | FCF margin | 7.9% | 14.2% | 30 | 58 | | ROA | 2.3% | 2.9% | 43 | 59 | | Current ratio | 1.07 | 1.34 | 25 | 57 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7389 Services-Business Services, NEC, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 953009000 | USD | 2025 | 2026-03-10 | | Net income | 55681000 | USD | 2025 | 2026-03-10 | | Assets | 2398804000 | USD | 2025 | 2026-03-10 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001653558.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 344,114,000 | 382,167,000 | 375,822,000 | 371,854,000 | 404,342,000 | 514,901,000 | 663,641,000 | 755,612,000 | 879,702,000 | 953,009,000 | | Net income | | | | -17,836,000 | -33,589,000 | 71,059,000 | 1,389,000 | -2,150,000 | -1,311,000 | 24,015,000 | 55,681,000 | | Operating income | | 25,840,000 | 34,494,000 | 16,393,000 | 7,184,000 | 20,861,000 | 33,093,000 | 56,165,000 | 81,524,000 | 133,421,000 | 141,245,000 | | Diluted EPS | | | | -0.29 | -0.50 | 0.38 | -0.34 | -0.50 | -0.63 | -0.31 | 0.68 | | Operating cash flow | | 22,275,000 | 36,869,000 | 31,348,000 | 12,080,000 | 12,202,000 | 9,377,000 | 70,518,000 | 81,256,000 | 85,609,000 | 100,005,000 | | Capital expenditures | | 4,098,000 | 6,554,000 | 10,562,000 | 11,118,000 | 7,461,000 | 9,719,000 | 18,882,000 | 21,256,000 | 21,693,000 | 24,926,000 | | Dividends paid | | 10,019,000 | 3,399,000 | 7,075,000 | 0.00 | 0.00 | 7,460,000 | 11,459,000 | 24,718,000 | 23,646,000 | 0.00 | | Assets | | 55,150,604 | 266,707,000 | 379,296,000 | 464,505,000 | 417,829,000 | 1,351,942,000 | 1,373,363,000 | 1,615,337,000 | 1,826,860,000 | 2,398,804,000 | | Liabilities | | 1,212,149 | 356,862,000 | 473,314,000 | 585,194,000 | 516,393,000 | 1,206,021,000 | 1,240,570,000 | 1,502,796,000 | 1,991,885,000 | 2,491,176,000 | | Stockholders' equity | | 116,007,000 | -90,155,000 | -94,018,000 | -126,343,000 | -98,564,000 | -64,237,000 | -104,041,000 | -147,718,000 | -166,840,000 | -100,415,000 | | Cash and cash equivalents | 5,000 | 362,535 | 172,196 | | 3,234,000 | 9,241,000 | 20,300,000 | 18,454,000 | 39,604,000 | 58,600,000 | 77,192,000 | | Free cash flow | | 18,177,000 | 30,315,000 | 20,786,000 | 962,000 | 4,741,000 | -342,000 | 51,636,000 | 60,000,000 | 63,916,000 | 75,079,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | -4.75% | -9.03% | 17.57% | 0.27% | -0.32% | -0.17% | 2.73% | 5.84% | | Operating margin | | 7.51% | 9.03% | 4.36% | 1.93% | 5.16% | 6.43% | 8.46% | 10.79% | 15.17% | 14.82% | | Return on assets | | | | -4.70% | -7.23% | 17.01% | 0.10% | -0.16% | -0.08% | 1.31% | 2.32% | | Current ratio | | 2.79 | 1.59 | 1.19 | 1.01 | 0.91 | 1.03 | 1.04 | 1.03 | 1.05 | 1.07 | ## As-reported value updates 13 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/PRTH/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001653558.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 43465-Q3 | 2018-09-30 | | | -0.04 | reported discrete quarter | | 2019-Q3 | 2019-09-30 | 109,954,000 | | | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.15 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | -0.16 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | -612,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | | | -0.16 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | | -106,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | | 5,193,000 | -0.10 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 5,193,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | | | -0.23 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 994,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | | | 0.07 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | | 7,220,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | | 8,268,000 | 0.10 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | 8,268,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | | | 0.14 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | 10,879,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | | | 0.34 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | | 8,946,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | | 9,760,000 | 0.12 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | | 9,760,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | | | 0.12 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from PRTH's latest 10-K: [/company/PRTH/business/](/company/PRTH/business/). ## Risk Factors Verbatim Item 1A Risk Factors from PRTH's latest 10-K: [/company/PRTH/risk-factors/](/company/PRTH/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1653558/000165355826000130/prth-20260630.htm Extracted from a substantive MD&A body after the formal Item 2 span was a TOC or reference stub. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 Results of Operations This section includes certain components of our results of operations for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025. We have derived this data, except the key indicators, from our Unaudited Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q and our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. Revenues For the three months ended June 30, 2026, our consolidated revenue of $262.3 million increased by $22.4 million, or 9.4%, from $239.8 million for the three months ended June 30, 2025. This overall increase was mainly driven by increase in total card processing dollar value which was partially offset by lower total card transaction count in our Merchant Solutions segment, increases in buyer funded card processing dollar value, and supplier funded issuing dollar value which was partially offset by lower ACH transactions count in our Payables Segment, and, an increase in number of billed clients and higher interest income which is partially offset by lower new enrollments in our Treasury Solutions segment. For the six months ended June 30, 2026, our consolidated revenue of $511.8 million increased by $47.4 million, or 10.2%, from $464.4 million for the six months ended June 30, 2025. This overall increase was mainly driven by increase in total card processing dollar value in our Merchant Solutions segment, increases in buyer funded card processing dollar value, supplier funded issuing dollar value, incentive income, and ACH transactions count in our Payables Segment, and, an increase in number of billed clients and higher interest income which was partially offset by lower new enrollments in our Treasury Solutions segment. 32 The following table presents our revenues by type: [[GREPCENT_TABLE]] [["(in thousands)","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","$ Change","","2026","","2025","","$ Change"],["Revenue Type:"],["Merchant card fees","$","199,093","","$","180,483","","$","18,610","","$","385,026","","$","347,562","","$","37,464"],["Money transmission services","41,989","","39,273","","2,716","","83,737","","76,722","","7,015"],["Outsourced services and other services","18,855","","16,853","","2,002","","38,681","","33,855","","4,826"],["Equipment","2,319","","3,203","","(884)","","4,370","","6,303","","(1,933)"],["Total revenues","$","262,256","","$","239,812","","$","22,444","","$","511,814","","$","464,442","","$","47,372"]] [[/GREPCENT_TABLE]] Merchant card fees Merchant card fees revenue for the three months ended June 30, 2026, was $199.1 million an increase of $18.6 million or 10.3%, from $180.5 million for the three months ended June 30, 2025. The increase was primarily driven by an increase in total card dollar value which was partially offset by lower total card transaction count processed by the Company. Merchant card fees revenue for the six months ended June 30, 2026, was $385.0 million an increase of $37.5 million or 10.8%, from $347.6 million for the six months ended June 30, 2025. The increase was primarily driven by an increase in total card dollar value. Money transmission services Money transmission services for the three months ended June 30, 2026, was $42.0 million, an increase of $2.7 million, or 6.9%, from $39.3 million for the three months ended June 30, 2025. This increase was primarily driven by an increase in average billed clients which was partially offset by lower new customer enrollments. Money transmission services for the six months ended June 30, 2026, was $83.7 million, an increase of $7.0 million, or 9.1%, from $76.7 million for the six months ended June 30, 2025. This increase was primarily driven by an increase in average billed clients which was partially offset by lower new customer enrollments. Outsourced services and other services revenue Outsourced services and other services revenue of $18.9 million for the three months ended June 30, 2026, increased by $2.0 million, or 11.9%, from $16.9 million for the three months ended June 30, 2025, primarily due to growth in interest income from higher balances of permissible investments driven by higher account balances offset by reduction in interest rates. Outsourced services and other services revenue of $38.7 million for the six months ended June 30, 2026, increased by $4.8 million, or 14.3%, from $33.9 million for the six months ended June 30, 2025, primarily due to growth in interest income from higher balances of permissible investments driven by higher account balances offset by reduction in interest rates. Equipment Equipment revenue of $2.3 million for the three months ended June 30, 2026, decreased by $0.9 million, or 27.6% from $3.2 million for the three months ended June 30, 2025. The decrease was primarily due to lower point-of-sale equipment sales caused by a decrease in demand from merchants. Equipment revenue of $4.4 million for the six months ended June 30, 2026, decreased by $1.9 million, or 30.7% from $6.3 million for the six months ended June 30, 2025. The decrease was primarily due to lower point-of-sale equipment sales caused by a decrease in demand from merchants. 33 Operating expenses were as follows: [[GREPCENT_TABLE]] [["(in thousands)","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","$ Change","","2026","","2025","","$ Change"],["Operating expenses"],["Cost of revenue (excludes depreciation and amortization)","$","162,358","","$","147,399","","$","14,959","","$","313,145","","$","284,752","","$","28,393"],["Salary and employee benefits","29,153","","27,060","","2,093","","57,675","","52,835","","4,840"],["Depreciation and amortization","20,893","","14,093","","6,800","","38,508","","27,870","","10,638"],["Selling, general and administrative","16,808","","13,910","","2,898","","36,052","","29,010","","7,042"],["Total operating expenses","$","229,212","","$","202,462","","$","26,750","","$","445,380","","$","394,467","","$","50,913"]] [[/GREPCENT_TABLE]] Cost of revenue (excludes depreciation and amortization) Cost of revenue (excludes depreciation and amortization) of $162.4 million for the three months ended June 30, 2026, increased by $15.0 million, or 10.1%, from $147.4 million for the three months ended June 30, 2025, primarily due to the corresponding increase in revenues. Cost of revenue (excludes depreciation and amortization) of $313.1 million for the six months ended June 30, 2026, increased by $28.4 million, or 10.0%, from $284.8 million for the six months ended June 30, 2025, primarily due to the corresponding increase in revenues.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Salary and employee benefits Salary and employee benefits expense of $29.2 million for the three months ended June 30, 2026, increased by $2.1 million, or 7.7%, from $27.1 million for the three months ended June 30, 2025, primarily due to merit increases, and increased headcount to support overall growth of the Company and from the acquisition related activity. Salary and employee benefits expense of $57.7 million for the six months ended June 30, 2026, increased by $4.8 million, or 9.2%, from $52.8 million for the six months ended June 30, 2025, primarily due to merit increases, and increased headcount to support overall growth of the Company and from the acquisition related activity. Depreciation and amortization expense Depreciation and amortization expense of $20.9 million for the three months ended June 30, 2026, increased by $6.8 million, or 48.3%, from $14.1 million for the three months ended June 30, 2025, primarily due to the addition of intangible assets from the acquisition related activity and software capitalization. Depreciation and amortization expense of $38.5 million for the six months ended June 30, 2026, increased by $10.6 million, or 38.2%, from $27.9 million for the six months ended June 30, 2025, primarily due to the addition of intangible assets from the acquisition related activity and software capitalization. Selling, general and administrative Selling, general and administrative expenses of $16.8 million for the three months ended June 30, 2026, increased by $2.9 million, or 20.8%, from $13.9 million for the three months ended June 30, 2025, primarily due to increase in legal fees related to the Company's on-going special committee process, and increased marketing, telecommunications and software expenses to support overall growth and cloud migration, which was partially offset by decreased accounting expenses. Selling, general and administrative expenses of $36.1 million for the six months ended June 30, 2026, increased by $7.0 million, or 24.3%, from $29.0 million for the six months ended June 30, 2025, primarily due to increase in professional and legal charges related to the Company's on-going special committee process, increased marketing, telecommunications and 34 software expenses to support overall growth and cloud migration, expenses related to acquired businesses and assets, which was partially offset by decreased accounting expenses. Other Expense, net Other expense, net were as follows: [[GREPCENT_TABLE]] [["(in thousands)","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","$ Change","","2026","","2025","","$ Change"],["Other expense"],["Interest expense","$","(21,051)","","$","(23,054)","","$","2,003","","$","(42,067)","","$","(46,230)","","$","4,163"],["Debt extinguishment and modification costs","\u2014","","\u2014","","\u2014","","\u2014","","(38)","","38"],["Other income, net","1,644","","1,006","","638","","2,676","","2,113","","563"],["Total other expense, net","$","(19,407)","","$","(22,048)","","$","2,641","","$","(39,391)","","$","(44,155)","","$","4,764"]] [[/GREPCENT_TABLE]] Interest expense Interest expense of $21.1 million for the three months ended June 30, 2026, decreased by $2.0 million, or 8.7%, from $23.1 million for the three months ended June 30, 2025, due to decreased SOFR rates and beneficial changes in margin from the recent refinancing which was partially offset by increased outstanding balances of the 2024 Credit Agreement and the Residual Finance Credit Facility established during the quarter ended September 30, 2025. Interest expense of $42.1 million for the six months ended June 30, 2026, decreased by $4.2 million, or 9.0%, from $46.2 million for the six months ended June 30, 2025, due to decreased SOFR rates and beneficial changes in margin from the recent refinancing which was partially offset by increased outstanding balances of the 2024 Credit Agreement and the Residual Finance Credit Facility established during the quarter ended September 30, 2025. Income tax expense Income tax expense was as follows: [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1653558/000165355826000066/prth-20251231.htm Complete FY 2025 MD&A: /company/PRTH/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-03-10 Report date: 2025-12-31 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following management's discussion and analysis of financial condition and results of operations should be read together with our audited financial statements and the related notes included elsewhere in this Annual Report on Form 10-K. This section of this Form 10-K generally discusses 2025 and 2024 items and year-over-year comparisons between 2025 and 2024. Discussions of 2024 items and year-over-year comparisons between 2024 and 2023 are not included in this Form 10-K, and can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Certain amounts in this section may not add mathematically due to rounding. During 2025 the Company renamed its reportable segments, for a description and additional information see Note 18. Segment Information, contained in "Item 8 - Financial Statements and Supplementary Data" of this Annual Report on Form 10-K. Results of Operations  This section includes certain components of our results of operations for the years ended December 31, 2025 (or "2025"), and December 31, 2024 (or "2024"). We have derived this data, except key indicators including total card processing dollar value and transaction count (Merchant Solutions), buyer funded card processing dollar value, supplier funded issuing dollar value, and transaction count (Payables), and average billed clients, average monthly enrollments, and average total account balances (Treasury Solutions), from our audited Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K. Revenue For the year ended December 31, 2025, our consolidated revenue of $953.0 million increased by $73.3 million, or 8.3%, from $879.7 million for the year ended December 31, 2024. This overall increase was driven by increases in merchant bankcard processing dollar value, transaction count and acquisitions in our Merchant Solutions segment, an increase in new enrollments and higher interest income on permissible investments in our Treasury Solutions segment and an increase in revenue due to increase in volumes in Payables segment. Revenues by type for 2025 and 2024 were as follows: [[GREPCENT_TABLE]] [["(in thousands)","Years Ended December 31,","","2025 vs 2024"],["","2025","","2024","","","","$ Change"],["Revenue Type:"],["Merchant card fees","$","710,915","","$","670,411","","","","$","40,504"],["Money transmission services","159,169","","130,123","","","","29,046"],["Outsourced services and other services","70,708","","67,018","","","","3,690"],["Equipment","12,217","","12,150","","","","67"],["Total revenues","$","953,009","","$","879,702","","","","$","73,307"]] [[/GREPCENT_TABLE]] Merchant Card Fees For the year ended December 31, 2025, our merchant card fees revenue of $710.9 million increased by $40.5 million, or 6.0%, from $670.4 million for the year ended December 31, 2024. This increase was primarily driven by revenue from acquisitions in 2025 and increased bankcard processing dollar values and transaction counts in the Merchant Solutions segment. Money Transmission Services Money transmission services revenue of $159.2 million for the year ended December 31, 2025 increased by $29.0 million or 22.3%, from $130.1 million for the year ended December 31, 2024 and is primarily driven by increased customer enrollments, which resulted in a higher number of billed clients. 32 Table of Contents Outsourced Services and Other Services Outsourced services and other services revenue of $70.7 million for the year ended December 31, 2025 increased by $3.7 million, or 5.5%, from $67.0 million for the year ended December 31, 2024. This increase was primarily due to growth in interest income on permissible investments due to higher deposit balances and increased volume in ACH.com business partially offset by a decrease in interest rates and decreased issuing dollar volumes in CPX business. Equipment Equipment revenue of $12.2 million for the year ended December 31, 2025, remained consistent in comparison to $12.2 million for the year ended December 31, 2024, as equipment revenue is directly driven by merchant demand for certain equipment. No trends affecting equipment revenue were identified. Operating Expenses Operating expenses for 2025 and 2024 were as follows: [[GREPCENT_TABLE]] [["(in thousands)","Years Ended December 31,","","2025 vs 2024"],["","2025","","2024","","","","$ Change"],["Operating expenses"],["Cost of services (excludes depreciation and amortization)","$","578,315","","$","551,621","","","","$","26,694"],["Salary and employee benefits","107,787","","89,216","","","","18,571"],["Depreciation and amortization","63,183","","58,041","","","","5,142"],["Selling, general and administrative","62,479","","47,403","","","","15,076"],["Total operating expenses","$","811,764","","$","746,281","","","","$","65,483"]] [[/GREPCENT_TABLE]] Costs of Services (excludes depreciation and amortization) Costs of services (excludes depreciation and amortization) of $578.3 million for the year ended December 31, 2025 increased by $26.7 million, or 4.8%, from $551.6 million for the year ended December 31, 2024, primarily due to the corresponding increase in revenues. For the year ended December 31, 2025, costs of services (excluding depreciation and amortization) as a percentage of total revenues decreased to 60.7% as compared to 62.7% for the year ended December 31, 2024. This decrease was primarily due to increased interest income on permissible investments and money transmission revenues, which do not have significant costs of services, as well as lower credit losses, reduced inventory write-offs, and acquisitions, partially offset by mix-related margin compression. Salary and employee benefits Salary and employee benefits expense of $107.8 million for the year ended December 31, 2025 increased by $18.6 million, or 20.8%, from $89.2 million for the year ended December 31, 2024, primarily due to merit increases, increased stock based compensation and increased headcount from acquisitions and to support overall growth of the Company. The Company's employee headcount increased to 1,200 in 2025 from 1,019 in 2024. Depreciation and amortization expense Depreciation and amortization expense of $63.2 million for the year ended December 31, 2025 increased by $5.1 million, or 8.9%, from $58.0 million for the year ended December 31, 2024, primarily due to the amortization of intangibles acquired during the year, accelerated depreciation on certain assets and depreciation of new assets placed in service partially offset by the full depreciation/amortization of certain assets. 33 Table of Contents Selling, general and administrative Selling, general and administrative expenses of $62.5 million for the year ended December 31, 2025 increased by $15.1 million, or 31.8%, from $47.4 million for the year ended December 31, 2024, primarily due to increases in marketing expenses of $1.2 million, accounting expenses of $2.4 million (primarily for SOX compliance and audits), software expenses of $2.9 million, cloud hosting expenses of $2.5 million, travel expenses of $1.4 million, and other variances which are not individually material. Other Expenses, net [[GREPCENT_TABLE]] [["(in thousands)","Years Ended December 31,","","2025 vs 2024"],["","2025","","2024","","","","$ Change"],["Other expense"],["Interest expense","$","(90,654)","","$","(88,948)","","","","$","(1,706)"],["Debt extinguishment and modification costs","(12,514)","","(10,369)","","","","(2,145)"],["Other income, net","8,202","","3,177","","","","5,025"],["Total other expenses, net","$","(94,966)","","$","(96,140)","","","","$","1,174"]] [[/GREPCENT_TABLE]] Interest expense Interest expense of $90.7 million for the year ended December 31, 2025, increased by $1.7 million, or 1.9%, from $88.9 million for the year ended December 31, 2024, due to higher debt balances to fund acquisitions offset by decreases in interest rates due to debt refinancings and federal rate cuts during 2025. Debt extinguishment and modification costs Debt extinguishment and modification costs for the year ended December 31, 2025, increased by $2.1 million or 20.7%, from the year ended December 31, 2024, due to debt refinancings (see Note 10. Debt Obligations). Other income, net Other income, net of $8.2 million for the year ended December 31, 2025 increased by $5.0 million, or 158.2%, from $3.2 million for the year ended December 31, 2024, due to bargain purchase gain of $4.0 million from Sila acquisition (see Note 2. Acquisitions) and increased interest income from the Company's operating accounts. Income tax expense [[GREPCENT_TABLE]] [["(in thousands)","Years Ended December 31,","","2025 vs 2024"],["","2025","","2024","","","","$ Change"],["Income before income taxes","$","46,278","","","$","37,281","","","","","$","8,997"],["Income tax (benefit) expense","$","(9,402)","","","$","13,266","","","","","$","(22,668)"],["Effective tax rate","(20.3)","%","","35.6","%"]] [[/GREPCENT_TABLE]] The decrease in the effective tax rate from 2024 to 2025 is primarily due to a reduction in the valuation allowance recorded against certain business interest carryover deferred tax assets resulting from the enactment of the One Big Beautiful Bill Act (“OBBBA”) during the year ended December 31, 2025. Our consolidated effective income tax rates differ from the statutory rate due to timing and permanent differences between amounts calculated under GAAP and the U.S. tax code. The consolidated effective income tax rate for 2025 may not be indicative of our effective tax rate for future periods. 34 Table of Contents Earnings Attributable to Common Stockholders [[GREPCENT_TABLE]] [["(in thousands)","Years Ended December 31,","","2025 vs 2024"],["","2025","","2024","","","","$ Change"],["Net income (loss)","$","55,681","","$","24,015","","","","$","31,666"],["Less: Dividends, accretion and related excise tax attributable to redeemable senior preferred stockholders","\u2014","","(47,336)","","","","47,336"],["Less: NCI preferred unit redemptions, net of deferred tax benefit","\u2014","","(639)","","","","639"],["Net income (loss) attributable to common stockholders","$","55,681","","$","(23,960)","","","","$","79,641"]] [[/GREPCENT_TABLE]] The increase in net income (loss) attributable to common stockholders is attributable to an increase in operating income, an income tax benefit due to release of valuation allowance on deferred tax assets due to changes in the tax laws and the discontinuance of dividend obligations. Segment Results 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 and loss to allocate resources. Adjusted EBITDA represents, EBITDA, 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. Adjusted EBITDA is a non-GAAP measure and therefore, a reconciliation to net income (loss) (a GAAP measure) is included herein. Operating overhead and shared costs are managed centrally and included in corporate. This non-GAAP financial measure helps to understand the underlying financial and business trends relating to results of operations of the Company and therefore used as a measure of segment profit or loss for the purposes of evaluation of segment performance and allocation of resources. Merchant Solutions [[GREPCENT_TABLE [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/PRTH/mda/fy2025/ All MD&A years: /company/PRTH/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/PRTH/mda/fy2024/): filed 2025-03-06; accession 0001653558-25-000039 (https://www.sec.gov/Archives/edgar/data/1653558/000165355825000039/prth-20241231.htm) - [FY 2023 MD&A](/company/PRTH/mda/fy2023/): filed 2024-03-12; accession 0001653558-24-000039 (https://www.sec.gov/Archives/edgar/data/1653558/000165355824000039/prth-20231231.htm) - [FY 2022 MD&A](/company/PRTH/mda/fy2022/): filed 2023-03-23; accession 0001653558-23-000030 (https://www.sec.gov/Archives/edgar/data/1653558/000165355823000030/prth-20221231.htm) - [FY 2021 MD&A](/company/PRTH/mda/fy2021/): filed 2022-03-17; accession 0001653558-22-000028 (https://www.sec.gov/Archives/edgar/data/1653558/000165355822000028/prth-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7389 Services-Business Services, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/PRTH.md · JSON record: /company/PRTH.json · verified financials: /company/PRTH/financials.json / /company/PRTH/financials.csv · machine TOC for the whole site: /llms.txt