v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company's three reportable segments included Merchant Solutions, Payables and Treasury Solutions:
•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:
Three Months Ended March 31, 2026
(in thousands)Merchant SolutionsPayablesTreasury SolutionsTotal
Revenue from external customers$160,278 $32,029 $57,251 $249,558 
Intersegment revenue 1,508 412 1,589 3,509 
161,786 32,441 58,840 253,067 
Elimination of intersegment revenues(3,509)
Total consolidated revenues249,558 
Less: Cost of revenue (excludes depreciation and amortization)(1)
(125,097)(23,218)(5,974)
Less: Other operating expenses(1)(2)
(9,830)(3,815)(6,273)
Add: Other segment items(3)
881 46 78 
Segment Adjusted EBITDA$27,740 $5,454 $46,671 $79,865 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA$79,865 
Adjustment for corporate items(4)
(18,262)
Intersegment revenue elimination (3,509)
Depreciation and amortization(17,615)
Interest expense(21,016)
Selling, general and administrative (non-recurring)(3,969)
Non-cash stock-based compensation(2,088)
Income before income taxes$13,406 
(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)March 31, 2026
Elimination of cost of services (excludes depreciation and amortization)$3,502 
Other operating expenses(2)
(27,847)
Other items(5)
6,083 
$(18,262)
(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 March 31, 2026
Merchant SolutionsPayablesTreasury SolutionsTotal
Depreciation and amortization$9,917 $1,288 $5,203 $16,408 
Three Months Ended March 31, 2025
(in thousands)Merchant SolutionsPayablesTreasury SolutionsTotal
Revenue from external customers$151,241 $23,594 $49,795 $224,630 
Intersegment revenue449 324 293 1,066 
151,690 23,918 50,088 225,696 
Elimination of intersegment revenues(1,066)
Total consolidated revenues224,630 
Less: Cost of revenue (excludes depreciation and amortization)(1)
(118,572)(16,624)(3,223)
Less: Other operating expenses(1)(2)
(8,213)(3,929)(4,609)
Add: Other segment items(3)
800 151 186 
Segment Adjusted EBITDA$25,705 $3,516 $42,442 $71,663 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA$71,663 
Adjustment for corporate items(4)
(19,303)
Intersegment revenue elimination (1,066)
Depreciation and amortization(13,777)
Interest expense(23,176)
Debt modification and extinguishment expenses(38)
Selling, general and administrative (non-recurring)(2,199)
Non-cash stock-based compensation(1,586)
Income before income taxes$10,518 
(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)March 31, 2025
Elimination of cost of services (excludes depreciation and amortization)$1,065 
Other operating expenses(2)
(24,125)
Other items(5)
3,757 
$(19,303)
(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 March 31, 2025
Merchant SolutionsPayablesTreasury SolutionsTotal
Depreciation and amortization$6,625 $1,261 $4,642 $12,528