v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company's three reportable segments included SMB Payments, B2B Payments and Enterprise Payments:
•SMB Payments: 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.
•B2B Payments: 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.
•Enterprise Payments: Provides embedded finance and BaaS 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:
Three Months Ended June 30, 2025
(in thousands)SMB PaymentsB2B
Payments		Enterprise PaymentsTotal
Revenue from external customers$162,788 $24,668 $52,356 $239,812 
Intersegment revenues442 365 302 1,109 
163,230 25,033 52,658 240,921 
Elimination of intersegment revenues(1,109)
Total consolidated revenues239,812 
Less: Cost of services (excludes depreciation and amortization)1
(127,814)(17,751)(2,939)
Less: Other operating expenses 1,2
(8,367)(3,606)(4,457)
Add: Other segment items3
700 94 296 
Segment Adjusted EBITDA$27,749 $3,770 $45,558 $77,077 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment Adjusted EBITDA$77,077 
Adjustment for corporate items4
(19,918)
Intersegment revenue elimination(1,109)
Depreciation and amortization(14,093)
Interest expense(23,054)
Selling, general and administrative (non-recurring)(395)
Non-cash stock based compensation(3,206)
Income before income taxes$15,302 
(1)The significant expense categories and amounts align with the segment level information regularly provided to the CODM.
(2)Other operating expenses including salary and employee benefits, and selling, general and administrative expenses.
(3)Other segment items for each reportable segment include other income, net, and stock based compensation expense.
(4)Adjustment for corporate items include:
(in thousands)Three Months Ended June 30, 2025
Elimination of cost of services (excludes depreciation and amortization)$1,105 
Other operating expenses2
(24,541)
Other items5
3,518 
$(19,918)
(5)Other items include other income net, stock based compensation expense, and selling general and administrative (non-recurring expense)
(in thousands)Other specified segment disclosure
Three Months Ended June 30, 2025
SMB PaymentsB2B
Payments		Enterprise PaymentsTotal
Depreciation and amortization$6,633 $1,262 $4,941 $12,836 
Six Months Ended June 30, 2025
(in thousands)SMB PaymentsB2B
Payments		Enterprise PaymentsTotal
Revenue from external customers$314,029 $48,356 $102,057 $464,442 
Intersegment revenue 891 595 689 2,175 
314,920 48,951 102,746 466,617 
Elimination of intersegment revenues(2,175)
Total consolidated revenues464,442 
Less: Cost of services (excludes depreciation and amortization)1
(246,386)(34,376)(6,160)
Less: Other operating expenses1,2
(16,580)(7,534)(9,066)
Add: Other segment items3
1,500 245 481 
Segment Adjusted EBITDA$53,454 $7,286 $88,001 $148,741 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment Adjusted EBITDA$148,741 
Adjustment for corporate items4
(39,222)
Intersegment revenue elimination (2,175)
Depreciation and amortization(27,870)
Interest expense(46,230)
Debt modification and extinguishment expenses(38)
Selling, general and administrative (non-recurring)(2,594)
Non-cash stock based compensation(4,792)
Income before income taxes$25,820 
(1)The significant expense categories and amounts align with the segment level information regularly provided to the CODM.
(2)Other operating expenses including salary and employee benefits, and selling, general and administrative expenses.
(3)Other segment items for each reportable segment include other income, net, and stock based compensation expense.
(4)Adjustment for corporate items include:
(in thousands)Six Months Ended June 30, 2025
Elimination of cost of services (excludes depreciation and amortization)$2,170 
Other operating expenses2
(48,665)
Other items5
7,273 
$(39,222)
(5)Other items include other income net, stock based compensation expense, and selling general and administrative (non-recurring expense)
(in thousands)Other specified segment disclosure
Six Months Ended June 30, 2025
SMB PaymentsB2B
Payments		Enterprise PaymentsTotal
Depreciation and amortization$13,258 $2,523 $9,583 $25,364 
Three Months Ended June 30, 2024
(in thousands)SMB PaymentsB2B
Payments		Enterprise PaymentsTotal
Revenue from external customers$154,769 $21,614 $43,484 $219,867 
Intersegment revenues332 267 186 785 
155,101 21,881 43,670 220,652 
Elimination of intersegment revenues (785)
Total consolidated revenues219,867 
Less: Cost of services (excludes depreciation and amortization)1
(119,466)(16,316)(3,118)
Less: Other operating expenses 1,2
(7,498)(4,144)(3,530)
Add: Other segment items3
460 109 222 
Segment Adjusted EBITDA$28,597 $1,530 $37,244 $67,371 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment Adjusted EBITDA$67,371 
Adjustment for corporate items4
(15,035)
Intersegment revenue elimination(785)
Depreciation and amortization(15,244)
Interest expense(21,710)
Debt modification and extinguishment expenses(8,623)
Selling, general and administrative (non-recurring)(636)
Non-cash stock based compensation(1,829)
Income before income taxes$3,509 
(1)The significant expense categories and amounts align with the segment level information regularly provided to the CODM.
(2)Other operating expenses including salary and employee benefits, and selling, general and administrative expenses.
(3)Other segment items for each reportable segment include other income, net, and stock based compensation expense.
(4)Adjustment for corporate items include:
(in thousands)Three Months Ended June 30, 2024
Elimination of cost of services (excludes depreciation and amortization)$783 
Other operating expenses2
(18,159)
Other items5
2,341 
$(15,035)
(5)Other items include other income net, stock based compensation expense, and selling general and administrative (non-recurring expense)
(in thousands)Other specified segment disclosure
Three Months Ended June 30, 2024
SMB PaymentsB2B
Payments		Enterprise PaymentsTotal
Depreciation and amortization$8,541 $1,261 $4,087 $13,889 
Six Months Ended June 30, 2024
(in thousands)SMB PaymentsB2B
Payments		Enterprise PaymentsTotal
Revenue from external customers$298,516 $42,729 $84,341 $425,586 
Intersegment revenue589 496 319 1,404 
299,105 43,225 84,660 426,990 
Elimination of intersegment revenues(1,404)
Total consolidated revenues425,586 
Less: Cost of services (excludes depreciation and amortization)1
(231,585)(31,469)(5,761)
Less: Other operating expenses1,2
(14,714)(8,706)(7,266)
Add: Other segment items3
814 226 338 
Segment Adjusted EBITDA$53,620 $3,276 $71,971 $128,867 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment Adjusted EBITDA$128,867 
Adjustment for corporate items4
(29,572)
Intersegment revenue elimination (1,404)
Depreciation and amortization(30,497)
Interest expense(42,590)
Debt modification and extinguishment expenses(8,623)
Selling, general and administrative (non-recurring)(1,435)
Non-cash stock based compensation(3,462)
Income before income taxes$11,284 
(1)The significant expense categories and amounts align with the segment level information regularly provided to the CODM.
(2)Other operating expenses including salary and employee benefits, and selling, general and administrative expenses.
(3)Other segment items for each reportable segment include other income, net, and stock based compensation expense.
(4)Adjustment for corporate items include:
(in thousands)Six Months Ended June 30, 2024
Elimination of cost of services (excludes depreciation and amortization)$1,400 
Other operating expenses2
(35,791)
Other items5
4,819 
$(29,572)
(5)Other items include other income net, stock based compensation expense, and selling general and administrative (non-recurring expense)
(in thousands)Other specified segment disclosure
Six Months Ended June 30, 2024
SMB PaymentsB2B
Payments		Enterprise PaymentsTotal
Depreciation and amortization$17,127 $2,731 $8,126 $27,984