Paysafe (NYSE:PSFE) Issues Quarterly Earnings Results

Paysafe (NYSE:PSFE) released its earnings results on Thursday. The company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.11), FiscalAI reports. Paysafe had a positive return on equity of 10.31% and a negative net margin of 11.82%. The business had revenue of $439.57 million for the quarter, compared to analysts’ expectations of $448.53 million. Paysafe updated its FY 2026 guidance to 1.450-1.540 EPS.

Here are the key takeaways from Paysafe’s conference call:

• Q3 revenue rose just 1% year over year, while Adjusted EBITDA fell 17% and margin declined to 24%. The company cited tougher regulatory and market conditions, unfavorable foreign exchange, weaker-than-expected sales ramp-up, and higher expenses; a $203 million goodwill impairment contributed to a GAAP net loss but was non-cash.
• Paysafe lowered its full-year outlook to approximately 4% revenue growth, with management expecting headwinds to weigh more heavily in Q4, particularly in digital wallets, crypto, and financial trading. Executives said it remains unclear how much of the pressure will extend into 2027.
• Three-month active users grew 14% to 8.1 million, and newer products showed strong growth: PaysafeWallet rose more than 30%, PagoEfectivo’s wallet user base grew more than 40%, and video gaming grew over 20%. Management cautioned that these initiatives are not yet large enough to offset headwinds, and digital-wallet ARPU declined 10% amid mix shifts.
• Merchant Solutions revenue increased 2%, with double-digit growth in iGaming and direct SMB sales; combined direct and agent-channel revenue grew 8%, supported by a 17% year-to-date increase in active agents. Management expects SMB to maintain a mid-single-digit growth profile, while non-gaming e-commerce remains more challenged.
• Net leverage was 5.5x at quarter-end and is expected to remain around that level at year-end, partly reflecting refinancing costs and a $39 million litigation payment. Management said it is targeting roughly half a turn of deleveraging annually over the next two to three years, supported by free cash flow and efforts to release cash tied up in working capital and banking arrangements.

Paysafe Trading Down 43.2%

NYSE PSFE traded down $2.94 on Thursday, reaching $3.88. 3,170,031 shares of the company were exchanged, compared to its average volume of 406,000. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 4.38. The business’s fifty day moving average price is $6.06 and its 200 day moving average price is $7.09. The stock has a market capitalization of $200.26 million, a P/E ratio of 5.78 and a beta of 1.80. Paysafe has a fifty-two week low of $3.81 and a fifty-two week high of $10.04.

Insider Activity

In other Paysafe news, insider Richard Swales sold 10,000 shares of the firm’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $6.58, for a total value of $65,800.00. Following the completion of the sale, the insider directly owned 34,456 shares of the company’s stock, valued at $226,720.48. This trade represents a 22.49% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on PSFE shares. Susquehanna set a $7.00 price target on shares of Paysafe and gave the stock a “neutral” rating in a research note on Wednesday, August 12th. Wall Street Zen cut shares of Paysafe from a “buy” rating to a “hold” rating in a research note on Monday, August 3rd. BTIG Research dropped their price objective on shares of Paysafe from $12.00 to $11.00 and set a “buy” rating for the company in a research note on Wednesday, July 29th. Royal Bank Of Canada set a $9.00 price objective on shares of Paysafe and gave the company a “sector perform” rating in a report on Friday, August 14th. Finally, UBS Group set a $7.00 target price on shares of Paysafe and gave the stock a “sell” rating in a research note on Friday, August 14th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $8.50.

About Paysafe

Paysafe Limited is a payments technology company that provides services to businesses and consumers. Its offerings include payment processing and merchant solutions, digital wallets, and prepaid payment products designed for online and in-person transactions. The company’s consumer brands include Skrill and NETELLER digital wallets and paysafecard, a prepaid option that lets customers pay online without using a traditional payment card. Paysafe also supports merchants with tools for accepting and managing payments across digital channels.