Priority Technology Holdings, Inc.

Good day and welcome to the Priority Technology Holdings fourth quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Meghna Mehra, Managing Director of Investor Relations. Please go ahead.

Good morning, and thank you for joining us. With me today are Tom Priori, Chairman and Chief Executive Officer of Priority Technology Holdings, and Tim O'Leary, Chief Financial Officer. Before giving our prepared remarks, I would like to remind all participants that our comments today will include forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise. We provide a detailed discussion of the various risk factors in our SEC filings, and we encourage you to review these filings. Additionally, we may refer to non-GAAP measures, including but not limited to EBITDA and adjusted EBITDA during the call. Reconciliations of our non-GAAP performance and liquidity measures to the appropriate GAAP measures can be found in our press release and SEC filings available in the investor section of our website. Before I turn the call over to Tom, I would like to say that on today's call, we will only be discussing priorities, financial and operational results and outlook. We will not be commenting or answering questions related to the special committee's ongoing evaluation of the TAKE private proposal. Please continue to refer to the company's prior press releases for the latest on that topic. With that, I would like to turn the call over to our Chairman and CEO, Tom Priore.

Thank you, Meghna. And thanks to everyone for joining us for our fourth quarter and full year 2025 earnings call. I'll begin today's call by highlighting our aggregate fourth quarter and full year 2025 performance, discuss full year financial guidance for 2026, and provide an overview of key strategic updates. I'll then hand the call over to Tim, who will provide segment level performance, key trends, and developments across our business segments and priority overall. As summarized on slide three, Priority grew net revenue for the year by 8%, generated adjusted gross profit and adjusted EBITDA growth of 14% and 10% respectively, and increased adjusted EPS by 52 cents or 102% year-over-year to $1.03 for fiscal 2025. We ended the year with 1.8 million total customer accounts operating on our commerce platform, up from 1.2 million at the end of last year. Annual transaction volume in 2025 increased by 20 billion to 150 billion, and average account balances under administration improved by 500 million from the prior year to 1.7 billion. Tim will provide more context on the full year 2026 guidance specifics later in the call, but I can reflect that the value our diverse partners and customers seeing our unified commerce platform and elegant product solutions provides confidence that we will sustain the momentum in our merchant solutions, payables, and treasury solution segments. We anticipate achieving 6% to 9% top-line revenue growth to a range of $1.1 billion to $1.4 billion and generating adjusted EBITDA of $230 to $245 million in 2026, despite headwinds related to lower interest rates, a challenging macroeconomic and consumer spending environment, and the continued investment in early stage growth opportunities within Priority Tech Ventures. Turning our attention to our aggregate Q4 results on slide four, revenue of $247.1 million increased 9% from the prior year. This led to a 19% increase in adjusted gross profit to 100.2 million and a 16% improvement in adjusted EBITDA to 60.1 million. Adjusted gross profit margin of 40.6% increased 360 basis points from the prior year's fourth quarter, reflecting the ongoing performance of our diverse high margin payables and treasury solution segments, combined with the accretive impact of acquisitions completed in the second half of 2025. Now for those of you who are new to Priority, slides six and seven highlight our vision for connected commerce. The Priority Commerce platform is purpose-built to streamline collecting, storing, lending, and sending money. It delivers a flexible financial tool set for merchant acquiring, payables, and treasury solutions designed to accelerate cash flow and optimize working capital for businesses. I would encourage you to play the short one to two minute videos embedded in the product links. to gain a deeper understanding and appreciation for why customers are consistently partnering with Priority to reach their commerce goals, and why we are emerging as a go-to solution provider for embedded commerce and finance solutions. Slide seven highlights a typical partner experience with our commerce APIs, orchestration capabilities for payments, and treasury solutions. This enables partners to use a single API tailored to their specific objectives. Customers connecting via our API can access all routes for digital payment acceptance, create traditional and virtual bank accounts, issue physical and virtual debit cards, enable lockbox for checks, configure single vendor and advanced bulk vendor payments, and many other commerce options at their own pace. Given our expanding customer base and segments, our commerce platform creates two important benefits for Priority's long-term success. First, it enables our partners to develop their offering to seize new opportunities and respond to emerging trends as they add features and embedded solutions. Both parties maintain clear visibility into quantifiable revenue growth opportunities, building customer confidence and driving mutual success. Second, by standardizing operational workflows across diverse industry segments where money movement and treasury tools are critical to the value chain, we can identify and refine key operational metrics in compliance, payment operations, risk, and application support. This enables us to scale efficiently, maintain cost discipline, and ultimately improve profitability. This vision explains why we've been able to evolve priority into a consistently high performing payments and banking financial technology company with strong recurring revenue prospects. Our customers and current market conditions, particularly the accelerating narrative of AI's impact on SaaS providers, reinforce our belief that systems connecting payments and treasury solutions to accept and distribute funds in multi-party environments will be critical as businesses put greater demands on software and payment solution providers to deliver a full suite of core business services in a single relationship. At this point, I'd like to hand it over to Tim, who'll provide further insights into the health of our business segments, along with current trends in each that factored into our fourth quarter results and our confidence for sustained performance in 2026.