PRTHPriority Technology Holdings, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.2×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PRTH?
Priority Technology Holdings, Inc. earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.8 points above what the capital costs: growth creates value
- Operating margin
- 14%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
- Cash conversion
- 1.18×
Cash conversion · 0.70× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +5.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 5.2% |
| FY2021 | 6.4% |
| FY2022 | 8.5% |
| FY2023 | 11% |
| FY2024 | 15% |
| FY2025 | 15% |
Details›
- Gross margin12 months to Q2 2026
- 39%
- Operating margin12 months to Q2 2026
- 14%
- Net margin12 months to Q2 2026
- 5.6%
- Free cash flow margin
- 10%
- Revenue, trailing twelve months
- $1.00B
- Free cash flow, trailing twelve months
- $104M
- Net income, trailing twelve months
- $56M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #22 of 80 by RyuScore