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Paysafe Reports First Quarter 2025 Results; Reaffirms Full Year Outlook

1. Q1 2025 revenue of $401M, down 4% year-over-year. 2. Net loss of $19.5M, contrasting with Q1 2024's income of $3.1M. 3. Adjusted EBITDA decreased 15% to $95.2M, affecting profitability. 4. Organic revenue growth of 5% signifies positive long-term trends. 5. Share buyback of 612.6k shares may signal confidence in recovery.

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Why Bearish?

The net loss and decreased EBITDA show weakened financial performance, concerning investors.

How important is it?

Current financial results indicate challenges, but organic growth suggests potential stabilization.

Why Short Term?

Immediate financial results may affect market perception and stock price quickly.

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LONDON--(BUSINESS WIRE)--

Paysafe Limited (“Paysafe” or the “Company”) (NYSE: PSFE), a leading payments platform, today announced its financial results for the first quarter of 2025.

First Quarter 2025 Summary
(Metrics compared to the first quarter of 2024, unless otherwise noted)

  • Revenue of $401.0 million, decreased 4%; organic revenue growth of 5%
  • Net loss of $19.5 million, or ($0.33) per diluted share, compared to net income of $3.1 million, or $0.05 per diluted share
  • Adjusted net income of $20.9 million, or $0.34 per diluted share, compared to $35.3 million, or $0.57 per diluted share
  • Adjusted EBITDA of $95.2 million, decreased 15%; decreased 14% on a constant currency basis
  • Net leverage1 of 4.9x as of March 31, 2025

Bruce Lowthers, CEO of Paysafe, commented: "We kicked off the year with strong momentum, exceeding our expectations for organic growth and adjusted EBITDA margin. I’m proud of the team for staying focused and executing our strategy for sustainable growth while successfully completing the sale of our direct marketing business. We also secured new partnerships, launched innovative products through our wallet platform, and continued enhancing its functionality to better connect our 18 million consumers with over 1 million retailers—turning everyday transactions into exceptional experiences. With the second quarter underway, we’re operating with a leaner, lower-risk model, a strengthened sales organization, traction with new collaborations, and a robust product pipeline that positions us for accelerated growth in the second half of the year."

Recent Strategic and Operational Highlights

  • Organic revenue growth of 5% led by robust volumes in e-commerce
  • Progress across the enterprise-level sales strategy, including continued double-digit bookings growth in the first quarter while accelerating productivity per sales representative
  • Expanded Paysafe's long-term partnership with Fiserv, including several key initiatives focused on empowering small and medium-sized businesses (SMBs)
  • Expanded Paysafe's partnership with Tilled to offer frictionless payments and PayFac-as-a-Service solutions for independent software vendors (ISVs) across the U.S. and Canada
  • Closed on the Company's previously announced agreement to sell its direct marketing payment processing business line ("the business disposal")
  • Repurchased 612.6 thousand shares for $10.0 million in the first quarter of 2025
  • Published Paysafe's second annual sustainability report

(1)

Paysafe defines net leverage as net debt (total debt less cash and cash equivalents) divided by the sum of the last twelve months (LTM) Adjusted EBITDA. For the period ended March 31, 2025, total debt was $2,384.6 million and cash and cash equivalents was $234.3 million, and LTM Adjusted EBITDA was $435.3 million. For the period ended December 31, 2024, total debt was $2,363.5 million and cash and cash equivalents was $216.7 million, and LTM Adjusted EBITDA was $452.1 million.

First Quarter of 2025 Summary of Consolidated Results

($ in thousands) (unaudited)

 

2025

 

 

2024

 

Revenue

 

$

401,000

 

 

$

417,738

 

Gross Profit (excluding depreciation and amortization)

 

$

226,819

 

 

$

247,365

 

Balance Sheet

($ in thousands)

 

March 31, 2025

 

 

December 31, 2024

 

Total assets

 

$

4,713,432

 

 

$

4,809,334

 
Total liabilities     3,851,547       3,930,073  
Total shareholders' equity   861,885       879,261  
Total liabilities and shareholders' equity   $ 4,713,432     4,809,334  

Paysafe Limited Condensed Consolidated Statements of Operations (unaudited)

 

 

Three Months Ended

 

 

 

March 31,

 

Cash and cash equivalents

 

$

234,339

 

 

$

216,683

 

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