Priority Technology Holdings, Inc. (NASDAQ: PRTH) (“Priority” or “the Company”), a leading payments and banking fintech firm that provides innovative financial solutions to businesses, has announced its fourth quarter and full-year 2024 financial results. The company continues to experience strong year-over-year revenue and profit growth, reflecting the success of its Priority Commerce Engine (PCE).
The PCE is designed to simplify financial transactions by streamlining the processes of collecting, storing, lending, and sending money. This comprehensive commerce solution enables businesses to optimize revenue generation while improving operational efficiency. The latest financial results highlight the company’s robust performance and its commitment to delivering flexible financial solutions to its partners and customers.
Fourth Quarter 2024 Financial Highlights
Priority reported notable improvements in key financial metrics in the fourth quarter of 2024 compared to the same period in 2023:
- Revenue: The company recorded revenue of $227.1 million, marking an increase of 13.9% from $199.3 million in the fourth quarter of 2023.
- Adjusted Gross Profit (non-GAAP): The adjusted gross profit increased by 15.1%, reaching $83.9 million compared to $72.9 million in Q4 2023.
- Adjusted Gross Profit Margin (non-GAAP): The gross profit margin improved by 40 basis points, rising from 36.6% to 37.0%.
- Operating Income: The operating income surged by 54.9%, reaching $34.1 million from $22.0 million in the same quarter last year.
- Adjusted EBITDA (non-GAAP): Adjusted EBITDA grew by 16.0%, reaching $51.7 million compared to $44.6 million in Q4 2023.
- Adjusted Earnings Per Share (EPS) (non-GAAP): Adjusted EPS experienced an 800% increase, climbing from $0.02 to $0.18.
The company attributes this growth to the strong performance across all segments of its business. Furthermore, driven by its healthy cash flow generation Priority Technology Holdings in 2024, Priority made a $10.0 million voluntary prepayment on its term loan on February 28, 2025, showcasing its commitment to strengthening its financial position.
Full-Year 2024 Financial Highlights
For the full year of 2024, Priority Technology Holdings continued to deliver impressive financial performance:
- Revenue: Full-year revenue reached $879.7 million, an increase of 16.4% compared to $755.6 million in 2023.
- Adjusted Gross Profit (non-GAAP): The adjusted gross profit rose 19.2%, reaching $328.1 million from $275.3 million in the prior year.
- Adjusted Gross Profit Margin (non-GAAP): The gross profit margin improved by 90 basis points, increasing from 36.4% to 37.3%.
- Operating Income: The operating income saw a significant increase of 63.7%, rising from $81.5 million in 2023 to $133.4 million in 2024.
- Adjusted EBITDA (non-GAAP): Adjusted EBITDA climbed 21.3%, reaching $204.3 million compared to $168.3 million in the previous year.
- Adjusted EPS (non-GAAP): Adjusted EPS surged by 750%, increasing from $0.06 in 2023 to $0.51 in 2024.
The company’s strong financial performance underscores the effectiveness of the Priority Commerce Engine, which provides businesses with Priority Technology Holdings integrated financial solutions tailored to their operational needs.
Full-Year 2025 Financial Guidance
Looking ahead, Priority remains optimistic about its financial outlook for 2025. The company has issued the following guidance for the full year:
- Revenue: Expected to range between $965 million and $1 billion, reflecting a growth rate of 10% to 14% compared to fiscal year 2024.
- Adjusted Gross Profit (non-GAAP): Forecasted to be between $360 million and $385 million, marking a growth rate of 10% to 17% over the previous year.
- Adjusted EBITDA (non-GAAP): Projected to range from $220 million to $230 million, representing a growth rate of 8% to 13% compared to fiscal 2024 results.
This guidance indicates the company’s confidence in its ability to sustain growth and enhance profitability as it continues to expand its customer base and enhance its product offerings.
Strategic Growth and Market Expansion
Priority’s continued success is driven by its ability to innovate and adapt to the evolving financial landscape. The Priority Commerce Engine remains a key differentiator, enabling businesses to streamline their financial operations seamlessly. The company’s focus on digital transformation and automation positions it well for future growth.
Moreover, Priority’s emphasis on providing comprehensive payment solutions to businesses of all sizes enhances its market position. By leveraging technology and strategic partnerships, the company is poised to capture new opportunities in the fintech space.Priority Technology Holdings has demonstrated remarkable financial performance in 2024, with substantial Priority Technology Holdings growth across all key financial metrics. The company’s ability to deliver consistent revenue and profit growth underscores the effectiveness of its innovative financial solutions.
With strong momentum heading into 2025, Priority remains committed to enhancing its offerings, expanding its market presence, and Priority Technology Holdings delivering sustained Priority Technology Holdings value to its stakeholders. As the company continues to invest in its technology and service capabilities, it is well-positioned to achieve its financial targets and drive further growth in the coming year.
The continued success of the Priority Commerce Engine reflects the company’s mission to simplify financial transactions for businesses Priority Technology Holdings while unlocking new revenue opportunities. With a strong foundation and a clear strategic vision, Priority is set to build on its achievements and solidify its position as a leading fintech innovator in the payments and banking industry.
