Paysafe (NYSE:PSFE) Releases Earnings Results, Beats Expectations By $0.04 EPS

Paysafe (NYSE:PSFE) posted its quarterly earnings data on Thursday. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.39 by $0.04, FiscalAI reports. The company had revenue of $447.44 million during the quarter, compared to analysts’ expectations of $446.85 million. Paysafe had a positive return on equity of 11.32% and a negative net margin of 11.44%. Paysafe updated its FY 2026 guidance to 1.900-2.030 EPS.

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

• Revenue grew 4% in Q2 and 7% in the first half year over year, supported by momentum in Latin America, European PaysafeWallet adoption, North American iGaming, and data-licensing deals.
• Adjusted EBITDA declined 2% to $102.8 million, with margin falling to 23% as Paysafe increased marketing and IT investment; digital-wallet EBITDA fell 9%, partly due to a VAT accrual and higher consumer marketing costs.
• Paysafe reaffirmed its full-year revenue and adjusted EBITDA guidance and expects second-half operating expenses to fall by approximately $25 million-$30 million, aided by lower fraud losses, reduced investment spending, and operational efficiencies.
• The company completed a major refinancing that extends maturities to 2030, increases revolver capacity, and reduces near-term balance-sheet pressure. Net leverage was 5.3x at quarter-end, with year-end leverage expected at 5.1x-5.2x and a midterm goal of 3.5x.
• Paysafe reached a preliminary settlement in the Farzad litigation, removing a significant legacy legal and restructuring overhang, although it expects a $39 million cash payment in the second half.

Paysafe Stock Down 16.4%

Shares of PSFE traded down $1.29 during midday trading on Friday, reaching $6.62. 1,639,942 shares of the stock were exchanged, compared to its average volume of 383,774. The company has a market capitalization of $341.86 million, a P/E ratio of -1.87 and a beta of 1.74. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 4.03. Paysafe has a 52 week low of $5.95 and a 52 week high of $15.02. The company’s 50 day moving average is $7.63 and its two-hundred day moving average is $7.50.

Institutional Trading of Paysafe

A number of hedge funds have recently added to or reduced their stakes in PSFE. Tower Research Capital LLC TRC grew its holdings in Paysafe by 143.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,548 shares of the company’s stock worth $70,000 after acquiring an additional 3,266 shares in the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in shares of Paysafe in the 4th quarter valued at about $93,000. Quantbot Technologies LP bought a new stake in shares of Paysafe in the 2nd quarter valued at about $106,000. Engineers Gate Manager LP purchased a new stake in shares of Paysafe in the 2nd quarter worth approximately $143,000. Finally, Campbell & CO Investment Adviser LLC boosted its stake in shares of Paysafe by 23.2% during the fourth quarter. Campbell & CO Investment Adviser LLC now owns 24,440 shares of the company’s stock valued at $198,000 after purchasing an additional 4,606 shares in the last quarter. 54.39% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

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

About Paysafe

Paysafe is a global payments provider that delivers a comprehensive suite of online and offline payment solutions. The company operates a diverse portfolio of products, including digital wallets under the Skrill and Neteller brands, prepaid voucher services through paysafecard, and integrated payment processing solutions for merchants. Paysafe’s platform is designed to serve a wide range of industries, from e-commerce and digital goods to gaming, financial services, and regulated verticals, offering tailored risk and compliance management alongside its core transaction capabilities.

Founded through a series of mergers and strategic acquisitions, Paysafe traces its origins to the launch of paysafecard in 2000 and the establishment of Optimal Payments in 1996.