v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 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 Commerce'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 items 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, income tax, 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, 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 September 30, 2026
(in thousands)Merchant SolutionsPayablesTreasury SolutionsTotal
Revenue from external customers$177,691 $31,257 $59,675 $268,623 
Intersegment revenue 1,954 369 592 2,915 
179,645 31,626 60,267 271,538 
Elimination of intersegment revenues(2,915)
Total consolidated revenues268,623 
Less: Cost of revenue (excludes depreciation and amortization)(1)
(138,321)(24,499)(5,781)
Less: Other operating expenses(1)(2)
(10,442)(3,578)(6,487)
Add: Other segment items(3)
1,745 376 86 
Segment Adjusted EBITDA$32,627 $3,925 $48,085 $84,637 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA$84,637 
Adjustment for corporate items(4)
(20,796)
Intersegment revenue elimination (2,915)
Depreciation and amortization(18,231)
Interest expense(21,190)
Selling, general and administrative (non-recurring)(3,259)
Non-cash stock-based compensation(1,652)
Income before income taxes$16,594 
(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)September 30, 2026
Elimination of cost of services (excludes depreciation and amortization)$2,693 
Other operating expenses(2)
(28,090)
Other items(5)
4,601 
$(20,796)
(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 September 30, 2026
Merchant SolutionsPayablesTreasury SolutionsTotal
Depreciation and amortization$10,245 $1,288 $5,396 $16,929 
Nine Months Ended September 30, 2026
(in thousands)Merchant SolutionsPayablesTreasury SolutionsTotal
Revenue from external customers$511,977 $93,343 $175,117 $780,437 
Intersegment revenue 5,232 1,154 4,509 10,895 
517,209 94,497 179,626 791,332 
Elimination of intersegment revenues(10,895)
Total consolidated revenues780,437 
Less: Cost of revenue (excludes depreciation and amortization)(1)
(399,373)(71,623)(18,709)
Less: Other operating expenses(1)(2)
(30,367)(10,854)(19,259)
Add: Other segment items(3)
3,785 469 611 
Segment Adjusted EBITDA$91,254 $12,489 $142,269 $246,012 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA$246,012 
Adjustment for corporate items(4)
(56,702)
Intersegment revenue elimination (10,895)
Depreciation and amortization(56,739)
Interest expense(63,257)
Selling, general and administrative (non-recurring)(8,759)
Non-cash stock-based compensation(6,023)
Income before income taxes$43,637 
(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)September 30, 2026
Elimination of cost of services (excludes depreciation and amortization)$10,652 
Other operating expenses(2)
(81,844)
Other items(5)
14,490 
$(56,702)
(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
Nine Months Ended September 30, 2026
Merchant SolutionsPayablesTreasury SolutionsTotal
Depreciation and amortization$33,256 $3,865 $15,896 $53,017 
Three Months Ended September 30, 2025
(in thousands)Merchant SolutionsPayablesTreasury SolutionsTotal
Revenue from external customers$161,307 $24,698 $55,434 $241,439 
Intersegment revenue567 464 250 1,281 
161,874 25,162 55,684 242,720 
Elimination of intersegment revenues(1,281)
Total consolidated revenues241,439 
Less: Cost of revenue (excludes depreciation and amortization)(1)
(126,412)(17,987)(3,559)
Less: Other operating expenses(1)(2)
(8,406)(3,874)(5,764)
Add: Other segment items(3)
671 154 315 
Segment Adjusted EBITDA$27,727 $3,455 $46,676 $77,858 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA$77,858 
Adjustment for corporate items(4)
(15,311)
Intersegment revenue elimination (1,281)
Depreciation and amortization(15,122)
Interest expense(22,463)
Debt modification and extinguishment expenses(12,476)
Selling, general and administrative (non-recurring)(1,491)
Non-cash stock-based compensation(2,327)
Income before income taxes$7,387 
(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)September 30, 2025
Elimination of cost of services (excludes depreciation and amortization)$1,277 
Other operating expenses(2)
(23,818)
Other items(5)
7,230 
$(15,311)
(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 September 30, 2025
Merchant SolutionsPayablesTreasury SolutionsTotal
Depreciation and amortization$7,607 $1,275 $4,923 $13,805 
Nine Months Ended September 30, 2025
(in thousands)Merchant SolutionsPayablesTreasury SolutionsTotal
Revenue from external customers$475,336 $73,054 $157,491 $705,881 
Intersegment revenue1,458 1,059 939 3,456 
476,794 74,113 158,430 709,337 
Elimination of intersegment revenues(3,456)
Total consolidated revenues705,881 
Less: Cost of revenue (excludes depreciation and amortization)(1)
(372,798)(52,363)(9,719)
Less: Other operating expenses(1)(2)
(24,987)(11,408)(14,831)
Add: Other segment items(3)
2,172 399 797 
Segment Adjusted EBITDA$81,181 $10,741 $134,677 $226,599 
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA$226,599 
Adjustment for corporate items(4)
(54,533)
Intersegment revenue elimination (3,456)
Depreciation and amortization(42,992)
Interest expense(68,693)
Debt modification and extinguishment expenses(12,514)
Selling, general and administrative (non-recurring)(4,085)
Non-cash stock-based compensation(7,119)
Income before income taxes$33,207 
(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)September 30, 2025
Elimination of cost of services (excludes depreciation and amortization)$3,447 
Other operating expenses(2)
(72,483)
Other items(5)
14,503 
$(54,533)
(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
Nine Months Ended September 30, 2025
Merchant SolutionsPayablesTreasury SolutionsTotal
Depreciation and amortization$20,865 $3,798 $14,507 $39,170