Priority Technology Holdings, Inc.PRTH
Priority Technology Holdings, Inc. Segments Disclosure
Segment Information
The Company's renamed its three reportable segments to align with the services offered. SMB Payments was renamed to Merchant Solutions, B2B Payments was renamed to Payables and Enterprise Payments was renamed to Treasury Solutions. There was no other change to the segments. Activities within the segment include the following:
•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:
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| (in thousands) | Merchant Solutions | Payables | Treasury Solutions | Total | ||||||||||||||||||||||
| Revenue from external customers | $ | 639,682 | $ | 99,407 | $ | 213,920 | $ | 953,009 | ||||||||||||||||||
| Intersegement revenues | 2,387 | 1,465 | 1,859 | 5,711 | ||||||||||||||||||||||
| 642,069 | 100,872 | 215,779 | 958,720 | |||||||||||||||||||||||
| Elimination of intersegment revenues | (5,711) | |||||||||||||||||||||||||
| Total consolidated revenues | $ | 953,009 | ||||||||||||||||||||||||
Less: Cost of services (excludes depreciation and amortization)(1) | (497,942) | (71,739) | (14,337) | |||||||||||||||||||||||
Less: Other operating expenses(1)(2) | (35,486) | (14,989) | (20,159) | |||||||||||||||||||||||
Add: Other segment items(3) | 3,152 | 447 | 948 | |||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 111,793 | $ | 14,591 | $ | 182,231 | $ | 308,615 | ||||||||||||||||||
| Reconciliation of Adjusted EBITDA to income (loss) before income taxes | ||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 308,615 | ||||||||||||||||||||||||
Adjustment for corporate items(4) | (73,749) | |||||||||||||||||||||||||
| Intersegment revenue elimination | (5,711) | |||||||||||||||||||||||||
| Depreciation and amortization | (63,183) | |||||||||||||||||||||||||
| Interest expense | (90,654) | |||||||||||||||||||||||||
| Debt modification and extinguishment expenses | (12,514) | |||||||||||||||||||||||||
| Selling, general and administrative (non-recurring) | (5,718) | |||||||||||||||||||||||||
| Salary and employee benefits (non-recurring) | (2,501) | |||||||||||||||||||||||||
Non-cash stock based compensation(6) | (8,306) | |||||||||||||||||||||||||
| Income before income taxes | $ | 46,279 | ||||||||||||||||||||||||
(1) The significant expense categories and amounts align with the segment level information regularly provided to the CODM.
(2) Other operating expenses include salary and employee benefits, and selling, general and administrative expenses.
(3) Other segment items for each reportable segment include other income, net of stock based compensation expense.
(4) Adjustment for corporate items include:
| (in thousands) | December 31, 2025 | ||||
| Elimination of cost of services (excludes depreciation and amortization) | $ | 5,703 | |||
Other operating expenses(2) | (99,632) | ||||
Other items(5) | 20,180 | ||||
| $ | (73,749) | ||||
(5) Other items include other income, net, stock based compensation expense, selling, general and administrative (non-recurring expenses) and salary and employee benefits (non-recurring expenses).
(6) Excludes stock based compensation settled in cash subsequent to December 31, 2025.
| (in thousands) | Other specified segment disclosure | ||||||||||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Merchant Solutions | Payables | Treasury Solutions | Total | ||||||||||||||||||||
| Depreciation and amortization | $ | 31,102 | $ | 5,081 | $ | 19,626 | $ | 55,809 | |||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| (in thousands) | Merchant Solutions | Payables | Treasury Solutions | Total | ||||||||||||||||||||||
| Revenue from external customers | $ | 612,116 | $ | 87,954 | $ | 179,632 | $ | 879,702 | ||||||||||||||||||
| Intersegement revenues | 1,431 | 1,149 | 816 | 3,396 | ||||||||||||||||||||||
| 613,547 | 89,103 | 180,448 | 883,098 | |||||||||||||||||||||||
| Elimination of intersegment revenues | (3,396) | |||||||||||||||||||||||||
| Total consolidated revenues | $ | 879,702 | ||||||||||||||||||||||||
Less: Cost of services (excludes depreciation and amortization)1 | (478,451) | (64,659) | (11,892) | |||||||||||||||||||||||
Less: Other operating expenses(1)(2) | (28,234) | (17,059) | (14,485) | |||||||||||||||||||||||
Add: Other segment items(3) | 2,051 | 220 | 865 | |||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 108,913 | $ | 7,605 | $ | 154,936 | $ | 271,454 | ||||||||||||||||||
| Reconciliation of Adjusted EBITDA to income (loss) before income taxes | ||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 271,454 | ||||||||||||||||||||||||
Adjustment for corporate items(4) | (63,791) | |||||||||||||||||||||||||
| Intersegment revenue elimination | (3,396) | |||||||||||||||||||||||||
| Depreciation and amortization | (58,041) | |||||||||||||||||||||||||
| Interest expense | (88,948) | |||||||||||||||||||||||||
| Debt modification and extinguishment expenses | (10,369) | |||||||||||||||||||||||||
| Selling, general and administrative (non-recurring) | (3,510) | |||||||||||||||||||||||||
| Non-cash stock based compensation | (6,118) | |||||||||||||||||||||||||
| Income before income taxes | $ | 37,281 | ||||||||||||||||||||||||
(1) The significant expense categories and amounts align with the segment level information regularly provided to the CODM.
(2) Other operating expenses include salary and employee benefits, and selling, general and administrative expenses.
(3) Other segment items for each reportable segment include other income, net of stock based compensation expense.
(4) Adjustment for corporate items include:
| (in thousands) | December 31, 2024 | ||||
| Elimination of cost of services (excludes depreciation and amortization) | $ | 3,382 | |||
Other operating expenses(2) | (76,842) | ||||
Other items(5) | 9,669 | ||||
| $ | (63,791) | ||||
(5) Other items include other income, net, stock based compensation expense, selling, general and administrative (non-recurring expenses).
| (in thousands) | Other specified segment disclosure | ||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Merchant Solutions | Payables | Treasury Solutions | Total | ||||||||||||||||||||
| Depreciation and amortization | $ | 30,865 | $ | 5,258 | $ | 16,928 | $ | 53,051 | |||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| (in thousands) | Merchant Solutions | Payables | Treasury Solutions | Total | ||||||||||||||||||||||
| Revenue from external customers | $ | 583,053 | $ | 40,530 | $ | 132,029 | $ | 755,612 | ||||||||||||||||||
| Intersegement revenues | 198 | 626 | 157 | 981 | ||||||||||||||||||||||
| 583,251 | 41,156 | 132,186 | 756,593 | |||||||||||||||||||||||
| Elimination of intersegment revenues | (981) | |||||||||||||||||||||||||
| Total consolidated revenues | $ | 755,612 | ||||||||||||||||||||||||
Less: Cost of services (excludes depreciation and amortization)1 | (446,188) | (26,607) | (8,456) | |||||||||||||||||||||||
Less: Other operating expenses(1)(2) | (29,165) | (12,853) | (13,389) | |||||||||||||||||||||||
Add: Other segment items(3) | 1,587 | 554 | 552 | |||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 109,485 | $ | 2,250 | $ | 110,893 | $ | 222,628 | ||||||||||||||||||
| Reconciliation of Adjusted EBITDA to income (loss) before income taxes | ||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 222,628 | ||||||||||||||||||||||||
Adjustment for corporate items(4) | (53,315) | |||||||||||||||||||||||||
| Intersegment revenue elimination | (981) | |||||||||||||||||||||||||
| Depreciation and amortization | (68,395) | |||||||||||||||||||||||||
| Interest expense | (76,108) | |||||||||||||||||||||||||
| Selling, general and administrative (non-recurring) | (9,825) | |||||||||||||||||||||||||
| Non-cash stock based compensation | (6,768) | |||||||||||||||||||||||||
| Non cash other losses | (84) | |||||||||||||||||||||||||
| Income before income taxes | $ | 7,152 | ||||||||||||||||||||||||
(1) The significant expense categories and amounts align with the segment level information regularly provided to the CODM.
(2) Other operating expenses include salary and employee benefits, and selling, general and administrative expenses.
(3) Other segment items for each reportable segment include other income, net of stock based compensation expense.
(4) Adjustment for corporate items include:
| (in thousands) | December 31, 2023 | ||||
| Elimination of cost of services (excludes depreciation and amortization) | $ | 944 | |||
Other operating expenses(2) | (69,979) | ||||
Other items(5) | 15,720 | ||||
| $ | (53,315) | ||||
(4) Other items include other income, net, stock based compensation expense, selling, general and administrative (non-recurring expenses) and non-cash other losses.
| (in thousands) | Other specified segment disclosure | ||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Merchant Solutions | Payables | Treasury Solutions | Total | ||||||||||||||||||||
| Depreciation and amortization | $ | 36,715 | $ | 1,831 | $ | 22,426 | $ | 60,972 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 12, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 17, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Mar 29, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.