Shares of Paysafe Ltd (PSFE) plummeted 6.92% in pre-market trading on Tuesday following the release of its disappointing first-quarter 2025 financial results. The online payment company reported lower-than-expected earnings and revenue, causing investor concern and triggering a sell-off.

Paysafe's Q1 adjusted earnings per share (EPS) came in at $0.34, missing the analyst consensus estimate of $0.41 by 17.07%. This represents a significant 40.35% decrease from the $0.57 per share reported in the same period last year. The company's quarterly revenue also fell short of expectations, reaching $401 million compared to the estimated $404.56 million, marking a 4.01% year-over-year decline.

Despite the weak quarterly performance, Paysafe reaffirmed its full-year 2025 outlook, projecting revenue between $1.71 billion and $1.734 billion, and adjusted EPS in the range of $2.21 to $2.51. CEO Bruce Lowthers emphasized the company's strong momentum and successful execution of its strategy for sustainable growth, including the completion of the sale of its direct marketing business and new partnerships through its wallet platform. However, the market's negative reaction suggests investors remain cautious about Paysafe's near-term prospects in light of the earnings miss and revenue decline.