Priority Technology Holdings, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $227.0 million for Q3 2024, marking a 20.1% increase from $189.0 million in Q3 2023. For the nine months ended September 30, 2024, revenues reached $652.6 million, up 17.3% from $556.3 million in the same period last year. The growth was driven primarily by increases in merchant card fees, which rose to $171.8 million in Q3 2024 from $147.0 million in Q3 2023, and money transmission services, which increased to $33.9 million from $25.8 million.
Operating expenses for Q3 2024 totaled $189.0 million, an increase of 14.2% from $165.5 million in Q3 2023. This rise was attributed to higher costs of revenue, which increased by 20.9% to $141.1 million. Despite the increase in expenses, the company reported operating income of $38.1 million for Q3 2024, compared to $23.5 million in Q3 2023. Net income for the quarter was $10.6 million, a turnaround from a net loss of $87,000 in the prior year.
The company’s total assets increased to $1.76 billion as of September 30, 2024, up from $1.62 billion at the end of 2023. Current assets also rose to $1.03 billion, compared to $881.3 million at the end of 2023. However, total current liabilities increased to $991.2 million from $852.1 million, and long-term debt rose significantly to $808.1 million from $632.0 million, reflecting the refinancing of the 2021 Credit Agreement in May 2024.
In terms of strategic developments, Priority Technology completed the acquisition of Plastiq, Inc. on July 31, 2023, for approximately $37.0 million, funded through borrowings from its revolving credit facility. The acquisition is expected to enhance the company’s service offerings in the payments sector.
The company’s accumulated deficit increased to $(146.6) million as of September 30, 2024, from $(134.9) million at the end of 2023. Total stockholders' deficit attributable to stockholders also rose to $(165.8) million from $(147.7) million. Despite these challenges, Priority Technology's liquidity position remains strong, with cash and cash equivalents of $41.1 million as of September 30, 2024, compared to $24.6 million a year earlier.
About Priority Technology Holdings, Inc.
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