Paysafe (NYSE:PSFE) Posts Quarterly Earnings Results

Paysafe (NYSE:PSFE) posted its quarterly earnings results on Tuesday. The company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.10, FiscalAI reports. The business had revenue of $438.36 million for the quarter, compared to analysts’ expectations of $441.07 million. Paysafe had a negative net margin of 10.73% and a positive return on equity of 11.04%. Paysafe updated its FY 2026 guidance to 2.120-2.32 EPS.

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

• Paidafe delivered its third consecutive year of organic growth with 2025 revenue of $1.7 billion and issued 2026 guidance targeting $1.79–$1.83 billion revenue and $449–$464 million adjusted EBITDA, implying continued top-line growth and double-digit adjusted EPS potential.
• The company generated strong cash flow—$298 million unlevered free cash flow in 2025—and returned more than $90 million to shareholders, while stating a clear priority to reduce net leverage below 5.0x in 2026.
• Adjusted EBITDA fell ~5% to $429 million with margin pressure (25.2% full-year) driven by a gross-margin headwind from mix shifts and lower interest revenue, and Merchant Solutions margins were hurt by a shift toward lower‑margin ISO channels.
• Product-led momentum is visible: the Vitality Index reached $270 million (16% of revenue), digital wallets hit 7.8 million active users and Paysafe Wallet exceeded 500k sign-ups across 18 countries, supporting future cross‑sell and monetization opportunities.
• SMB results were soft (1% full‑year growth, -3% in Q4) and margin‑challenged, but management expects a recovery in 2026 driven by new SMB leadership, Clover partnership traction and expanded agent programs—outcome remains execution‑dependent.

Paysafe Trading Down 0.7%

Shares of PSFE opened at $7.41 on Thursday. The company has a debt-to-equity ratio of 3.50, a current ratio of 1.18 and a quick ratio of 1.18. Paysafe has a 1-year low of $5.95 and a 1-year high of $18.15. The stock has a market cap of $443.78 million, a price-to-earnings ratio of -2.35, a price-to-earnings-growth ratio of 0.38 and a beta of 1.75. The firm has a 50 day simple moving average of $7.20 and a 200-day simple moving average of $9.76.

Institutional Trading of Paysafe

Institutional investors and hedge funds have recently made changes to their positions in the stock. Tower Research Capital LLC TRC boosted its stake in shares of Paysafe by 143.1% during the second quarter. Tower Research Capital LLC TRC now owns 5,548 shares of the company’s stock valued at $70,000 after acquiring an additional 3,266 shares during the last quarter. Mercer Global Advisors Inc. ADV purchased a new position in Paysafe in the 4th quarter valued at about $93,000. Quantbot Technologies LP purchased a new position in Paysafe in the 2nd quarter valued at about $106,000. Engineers Gate Manager LP acquired a new stake in shares of Paysafe during the 2nd quarter worth about $143,000. Finally, Campbell & CO Investment Adviser LLC grew its holdings 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 worth $198,000 after buying an additional 4,606 shares in the last quarter. 54.39% of the stock is currently owned by hedge funds and other institutional investors.

More Paysafe News

Here are the key news stories impacting Paysafe this week:

• Positive Sentiment: Q4 EPS topped expectations (reported $0.46 vs. $0.36 consensus) and management delivered a FY‑2026 EPS guide above consensus, reassuring investors on growth and deleveraging prospects. Paysafe Beats Earnings
• Positive Sentiment: Paysafe provided FY‑2026 EPS guidance of 2.120–2.32 and reiterated revenue targets; management emphasized EBITDA growth and reduced net leverage expectations, which supports the company’s path to improved credit metrics. 2026 Outlook – Seeking Alpha
• Positive Sentiment: Digital wallet momentum: users grew ~6% to 7.8 million in 4Q, driven by eCommerce and iGaming, offering a growth offset to SMB softness. Wallet Users Growth – PYMNTS
• Positive Sentiment: BTIG lowered its price target to $10 but maintained a buy stance, implying meaningful upside versus current levels. BTIG Lowers PT to $10
• Neutral Sentiment: Royal Bank of Canada trimmed its PT to $9 and set a “sector perform” rating — less bullish than before but not a sell. RBC PT Cut (Benzinga)
• Neutral Sentiment: Full earnings call/transcript available for detail on margins, channel dynamics and management commentary for those modeling forward performance. Earnings Call Transcript
• Negative Sentiment: UBS cut its PT to $6.75 and moved to a “sell” rating, signaling downside risk from some analysts. UBS Lowers PT to $6.75 (Benzinga)
• Negative Sentiment: Multiple law firms (Rosen, Pomerantz, Levi & Korsinsky, Schall, Gross, Bernstein Liebhard and others) have issued securities‑fraud notices and encouraged investors to join class actions over disclosures tied to the March–Nov 2025 period; legal exposure and potential settlement costs are a clear overhang. Rosen Law Firm Notice Levi & Korsinsky Alert

Wall Street Analyst Weigh In

Several brokerages have weighed in on PSFE. Zacks Research upgraded shares of Paysafe from a “strong sell” rating to a “hold” rating in a research report on Friday, January 23rd. UBS Group reduced their price target on shares of Paysafe from $7.00 to $6.75 and set a “sell” rating for the company in a research report on Wednesday. Weiss Ratings restated a “sell (d-)” rating on shares of Paysafe in a report on Thursday, January 22nd. BTIG Research dropped their price objective on Paysafe from $11.00 to $10.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Susquehanna reduced their price objective on Paysafe from $15.00 to $9.00 and set a “neutral” rating for the company in a report on Friday, November 14th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Paysafe has an average rating of “Reduce” and a consensus price target of $9.81.

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.