Key Highlights

  • Third quarter Revenue was USD 268.6 million, up 11.3% from USD 241.4 million in the prior-year quarter.
  • Merchant card fees revenue was USD 204.3 million, up 14.4%, and money transmission services revenue was USD 42.3 million.
  • Net income attributable to common stockholders was USD 12.2 million versus USD 27.6 million a year earlier.
  • The September 18, 2026 Merger agreement provides USD 8.05 per share in cash for holders of eligible shares.

Priority Technology Holdings, Inc. (NASDAQ:PRTH) reported third quarter 2026 consolidated revenue of USD 268.6 million, an increase of USD 27.2 million, or 11.3%, from USD 241.4 million. Nine-month revenue was USD 780.4 million, up 10.6% from USD 705.9 million. Adjusted EPS was USD 0.30.

Net income attributable to common stockholders was USD 12.2 million versus USD 27.6 million in the prior-year quarter, and USD 31.8 million for nine months versus USD 46.7 million.

Revenue Lines and Costs

Merchant card fees revenue was USD 204.3 million, up USD 25.8 million, or 14.4%, and USD 589.3 million for nine months, up 12.0%. Money transmission services revenue was USD 42.3 million, up 3.2%, and USD 126.0 million for nine months, up 7.1%. Outsourced and other services revenue was USD 20.1 million, up 10.1%, primarily due to growth in interest income from higher balances of permissible investments. Equipment revenue was USD 1.9 million, down 47.4%.

Cost of revenue, which excludes Depreciation and amortization, was USD 165.9 million, up 13.1% primarily due to the corresponding increase in revenues, and USD 479.1 million for nine months, up 11.0%. Salary and employee benefits expense was USD 29.0 million, up 10.7%, primarily due to merit increases and increased headcount to support growth and from acquisition-related activity.

Merger Agreement

On September 18, 2026, the company entered into an agreement and plan of merger with WD Capital Partners Parent Inc., under which a merger Subsidiary merges into the company and the company becomes a Wholly Owned Subsidiary of the parent. Holders of common stock, other than holders of excluded shares including the rollover shares held by the company's Chairman and Chief Executive Officer and certain of his affiliates, would receive USD 8.05 per share in cash, without interest and less applicable Withholding taxes.

Under the merger agreement, no new offering periods under the employee stock purchase plan commence after September 18, 2026, and, subject to completion of the merger, the plan terminates immediately before the effective time.

Items Tied to the Agreement

The disclosed items tied to the transaction include the detailed treatment of excluded and rollover shares, the termination of the employee stock purchase plan at the effective time and the conditions described in the merger agreement.

Operating items disclosed in the company's Quarterly Report include the growth in merchant card fees, the interest income on permissible Investment balances, the decline in equipment revenue and cost of revenue growth that tracks revenue. Reported detail: Net Income attributable to common stockholders was USD 12.2 million versus USD 27.6 million a year earlier. The September 18, 2026 merger agreement provides USD 8.05 per share in cash for holders of eligible shares.