Priority Technology Holdings, Inc.

Good morning and welcome to the Priority Commerce Second Quarter 2026 Earnings 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 remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Megan Mayra. Please go ahead.

Good morning and thank you for joining us. With me today are Tom Priore, Chairman and Chief Executive Officer of Priority Commerce, 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 findings and we encourage you to review these findings. Additionally, we may refer to non-GAAP measures, including but not limited to EBITDA and adjusted EBITDA during the course. 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 Investors 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 operating results in our case. We will not be commenting on 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 this morning for our second quarter 2026 earnings call. I'll begin today's call by highlighting our aggregate second quarter performance and outlook before handing the call over to Tim, who'll provide segment-level performance, key trends, and developments across our business segments and priority overall. This morning, we reported solid growth in both revenue and profits for the second quarter. As summarized on slide three, priority had a strong Q2 by every key financial metric, growing net revenue by over 9%, generating adjusted gross profit and adjusted EBITDA growth of 8% and 6%, respectively, and increasing adjusted EPS by 12% year-over-year to $0.29. We ended the quarter with 1.8 million total customer accounts operating on our commerce platform, which is up almost 13% from Q2 last year. Annual transaction volume of $151 billion increased by 8%, and average account balances under administration grew by 26% to $1.8 billion compared to last year's second quarter. Tim will provide more context on the full year outlook later in the call, but I can reflect that the value of our diverse partners and customer experience with our unified commerce platform provides continued confidence that we will sustain the momentum in our merchant solutions, payables and treasury solution segments. Based on this momentum, we are maintaining our full-year financial guidance, but expect to be at the higher end of our revenue range and lower end of our gross profit and adjusted EBITDA ranges, reflecting continued investment and mixed related margin pressure that Tim will detail. Turning our attention to aggregate Q2 results on slide four, revenue of 262.3 million increased 9% from the prior year. This led to an 8% increase in adjusted gross profit to 99.9 million and a 6% improvement in adjusted EBITDA to 59.4 million. Highlighted on slide five, Our steady Q2 performance contributed to year-to-date revenue growth of 10% to $511.8 million, fueling an 11% increase in adjusted gross profit to $198.7 million, and just over a 9% improvement in adjusted EBITDA to $117.5 million. For those of you who are new to Priority, slides 6 and 7 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 toolset 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 on the slide to get a deeper appreciation of why customers are consistently partnering with Priority to reach their commerce goals and why we're emerging as a go-to solution provider for embedded commerce and finance solutions. Slide seven highlights a typical partner experience with our commerce API's orchestration capabilities for payments and treasury solutions. They enable partners to use a commerce surface tailored to their specific needs. 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 to create new revenue and operating efficiency. We continue to standardize payment operations and key operational workflows across diverse industry segments where money movement and treasury tools are critical to the value chain to broaden and diversify our revenue sources while maintaining our cost discipline. Our focused execution explains why priority consistently performed across varying economic cycles. Our customers and current market conditions reinforce our belief in our mission to deliver single-point commerce solutions that provide businesses with one view and total command of their financial environment. At this point, I'd like to hand it over to Tim, who will provide further insights into the health of our business segments, along with current trends in each that factored into our second quarter results and our confidence for sustained performance in 2026.