Priority Payables Growth Signals Upmarket B2B Push

Priority Technology Holdings saw growth across all three segments of its connected commerce engine in the first quarter, with Payables leading the way as it gained larger customers and larger volumes.

Overall, during the first quarter, Priority saw its revenue increase 11.1% year over year to reach $249.6 million, according to a Monday (May 11) earnings release.

The firm’s Payables segment saw the fastest growth, with a 36% year-over-year increase boosting its revenue to $32.4 million, according to supplemental slides released Monday. The Payables segment offers payables and financing solutions, automates reconciliation and provides ways to optimize working capital and earn cash back. Priority attributed this segment’s growth to a 37% increase in buyer-funded revenues and a 31% increase in supplier-funded revenues.

Priority Chairman and CEO Tom Priore said during a Monday earnings call that Payables is gaining larger customers and larger volumes.

“We have had the view when we acquired the business that this was really well situation to move upmarket towards really marketing more as a working capital solution for larger organizations, and that is just starting,” Priore said. “What the numbers you are seeing is that manifesting.”

Priority’s Treasury Solutions segment saw 17% year over year growth and reached $58.8 million. This segment’s Passport solution automates reconciliation, streamlines financial operations and provides users with full transparency into their liquidity. Priority said in the presentation that Treasury Solutions saw a 20% increase in billed clients, bringing the total to 1.1 million.

Priority’s largest segment, Merchant Solutions, saw its revenue increase 7% year over year and reach $161.8 million. This segment offers point-of-sale and merchant acquiring solutions. In the presentation, the company attributed Merchant Solution’s growth to a combination of 4% organic growth and its acquisitions of Boom Commerce and Dealer Merchant Solutions in the second half of 2025.

Priority Chief Financial Officer Tim O’Leary said during the call that Merchant Solutions continued to see softness in some industry sectors it flagged in past earnings calls, including restaurants, construction and legal services.

“Where we saw strength was real estate,” O’Leary said. “As we continue to expand some of our property management solutions and real estate tech, we continue to see growth there, which I would argue is more us taking share than it is the market necessarily continuing to grow in real estate, so I think that is a positive for us.”

This segment also saw growth in retail trade as well as food stores and grocery, in part due to rising prices in those sectors.

Priority expects its first-quarter growth to continue throughout the year. The company affirmed its full-year 2026 guidance, which forecasts revenue to grow between 6% and 9% compared to 2025, per the earnings release.

O’Leary said the company’s forecast is based on “strong momentum across our business segments, combined with high visibility into continued performance for the remainder of the year.”