CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

Priority Technology Q3 revenue rises 11%, beats estimates

By Reuters News


Overview

  • Payments platform's Q3 revenue rose 11%, beating analyst expectations

  • Adjusted EBITDA for Q3 beat analyst expectations

  • Company expects to go private in first half of 2027 under previously announced merger


Outlook

  • Company will not provide forward-looking guidance due to pending go-private transaction


Result Drivers

  • ORGANIC GROWTH - Co said Q3 revenue increase was driven by organic growth of 9.2%

  • MERCHANT SOLUTIONS - Higher card processing volumes contributed to revenue growth in Merchant Solutions segment

  • PAYABLES SEGMENT - Increased buyer funded card processing dollar value supported revenue growth in Payables segment


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$268.62 mln

$259.19 mln (4 Analysts)

Q3 Net Income

$12.22 mln

Q3 Adjusted EBITDA

Beat

$60.93 mln

$59.19 mln (4 Analysts)

Q3 Gross Margin

36.10%

Q3 EBITDA

$56.02 mln

Q3 Gross Profit

$97 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the financial technology (fintech) peer group is "buy."

  • Wall Street's median 12-month price target for Priority Technology Holdings Inc is $8.05, about 1.6% above its November 4 closing price of $7.92

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago


Reuters Recommended Reads

  • Nov 3 - Fiserv Q3 adjusted EPS beats, revenue slightly tops estimates

  • Nov 5 - Global Payments meets Q3 adjusted revenue, EPS estimates

  • Nov 2 - Paymentus Q3 revenue beats on higher billers and transaction volumes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.