Paysafe Reports First Quarter 2025 Results; Reaffirms Full Year Outlook
LONDON--(BUSINESS WIRE)--May 13, 2025--
Paysafe Limited ("Paysafe" or the "Company") $(PSFE)$, 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 $452.1 million.
First Quarter of 2025 Summary of Consolidated Results
Three Months Ended
March 31,
----------------------
($ in thousands) (unaudited) 2025 2024
----------- --------
Revenue $ 401,000 $417,738
Gross Profit (excluding depreciation and
amortization) $ 226,819 $247,365
Net (loss) / income $ (19,472) $ 3,056
Adjusted EBITDA $ 95,170 $111,916
Adjusted net income $ 20,913 $ 35,306
Reported revenue for the first quarter of 2025 was $401.0 million, a decrease of 4%, compared to $417.7 million in the prior year period, reflecting a decrease of 6% from the Merchant Solutions segment driven by the business disposal, as well as a 2% decline from the Digital Wallets segment driven by a decrease in interest revenue on consumer deposits and unfavorable foreign exchange rates. Organic revenue growth was 5%, reflecting 6% organic growth from Merchant Solutions and 3% organic growth from Digital Wallets.
Net loss for the first quarter was $19.5 million, compared to net income of $3.1 million in the prior year period, largely driven by a decrease in revenue, a decrease in other income related to lower gains on foreign exchange, and an increase in restructuring and legal costs. This was partially offset by the recognition of an income tax benefit in the current period as well as a decrease in selling, general and administrative expenses, including lower credit losses.
Adjusted net income for the first quarter decreased to $20.9 million, compared to $35.3 million in the prior year period, mainly reflecting the decline in Adjusted EBITDA and an increase in the adjusted effective tax rate resulting from the inclusion of the base erosion and anti-abuse tax ("BEAT") provision in the current period.
Adjusted EBITDA for the first quarter decreased to $95.2 million, compared to $111.9 million in the prior year period, reflecting the business disposal in addition to business mix and lower interest revenue, which were unfavorable to gross profit margin.
The combined headwinds from movement in foreign exchange rates and interest revenue on consumer deposits to first quarter revenue and Adjusted EBITDA were $9.3 million (2 percentage-points) and $5.4 million (5 percentage-points), respectively.
First quarter operating cash flow was $52.5 million, compared to $58.8 million in the prior year period. Unlevered free cash flow was $57.3 million, compared to $69.2 million in the prior year period.
Balance Sheet
As of March 31, 2025, total cash and cash equivalents were $234.3 million, total debt was $2.4 billion and net debt was $2.2 billion. Compared to December 31, 2024, total debt increased by $21.1 million, reflecting net repayments of $26.8 million as well as movement in foreign exchange rates.
Summary of Segment Results
Three Months Ended
March 31, YoY
----------------------
($ in thousands)
(unaudited) 2025 2024 change
----------- -------- ------
Revenue:
Merchant Solutions $ 217,786 $231,398 -6%
Digital Wallets $ 187,567 $190,457 -2%
Intersegment $ (4,353) $ (4,117) 6%
------- -------
Total Revenue $ 401,000 $417,738 -4%
------- -------
Adjusted EBITDA:
Merchant Solutions $ 29,446 $ 49,178 -40%
Digital Wallets $ 82,544 $ 83,274 -1%
Corporate $ (16,820) $(20,536) -18%
------- -------
Total Adjusted EBITDA $ 95,170 $111,916 -15%
======= =======
Full Year 2025 Financial Guidance
($ in millions, except per share amounts) (unaudited) Full Year 2025
---------------
Revenue $1,710 - $1,734
Adjusted EBITDA $463 - $478
Adjusted EPS $2.21 - $2.51
Webcast and Conference Call
Paysafe will host a live webcast to discuss the results today at 8:30 a.m. $(ET)$. The webcast and supplemental information can be accessed on the investor relations section of the Paysafe website at ir.paysafe.com. An archive will be available after the conclusion of the live event and will remain available via the same link for one year.
Time Tuesday, May 13 2025, at 8:30 a.m. ET
Webcast Go to the Investor Relations section of the Paysafe website to listen
and view slides
Dial in 877-407-0752 (U.S. toll-free); 201-389-0912 (International)
2024 Sustainability Report
Today Paysafe published its second annual sustainability report, following through on its commitment to Paysafe's sustainability strategy. This latest report provides detailed insights into the Company's progress and demonstrates significant strides in advancing governance and policies as well as more sustainable operations across the key pillars of Paysafe's sustainability framework--Trusted Technology, Engaged Employees, and Thriving Society-- underpinned by Paysafe's Responsible Business Principles.
Key highlights for the year included:
-- Established Paysafe's AI governance framework and an internal AI policy
to guide ethical and responsible use of AI
-- Formalized Paysafe's responsible technology principles
-- Awarded EcoVadis sustainability rating of 'Good'
-- Supported 49 individual community initiatives and partnered with over 60
non-profit organizations around the world
-- Achieved a 10% decrease in Scope 1 greenhouse gas emissions and continued
the Company's alignment with the Task Force on Climate-Related Financial
Disclosures (TCFD)
The sustainability report can be accessed on Paysafe's website at https://www.paysafe.com/en/about/sustainability/.
About Paysafe
Paysafe is a leading payments platform with an extensive track record of serving merchants and consumers in the global entertainment sectors. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions. With 29 years of online payment experience, an annualized transactional volume of $152 billion in 2024, and approximately 3,300 employees located in 12+ countries, Paysafe connects businesses and consumers across 260 payment types in 48 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Further information is available at www.paysafe.com.
Forward-looking Statements
This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Paysafe Limited's ("Paysafe," "PSFE," the "Company," "we, " "us," or "our") actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "anticipate," "appear," "approximate," "believe," "budget," "continue," "could," "estimate," "expect," "forecast," "foresee," "guidance," "intends," "likely," "may," "might," "plan," "possible," "potential," "predict," "project," "seek," "should," "will," "would" and variations of such words and similar expressions (or the negative version of such words or expressions) may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, Paysafe's expectations with respect to future performance.
These forward-looking statements involve significant risks, uncertainties, and events that may cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially from those projected, including, but not limited to: cyberattacks and security vulnerabilities; complying with and changes in money laundering regulations, financial services regulations, cryptocurrency regulations, consumer and business privacy and data use regulations or other regulations in Bermuda, the UK, Ireland, Switzerland, the United States, Canada and elsewhere; risks related to our focus on specialized and high-risk verticals; geopolitical events and the economic and other impacts of such geopolitical events and the responses of governments around the world; acts of war and terrorism; the effects of global economic uncertainties, including inflationary pressure and rising interest rates, on consumer and business spending; risks associated with foreign currency exchange rate fluctuations; changes in our relationships with banks, payment card networks, issuers and financial institutions; risk related to processing online payments for merchants and customers engaged in the online gambling and foreign exchange trading sectors; risks related to becoming an unwitting party to fraud or being deemed to be handling proceeds resulting from the criminal activity by customers; the effects of chargebacks, merchant insolvency and consumer deposit settlement risk; changes to our continued financial institution sponsorships; failure to hold, safeguard or account accurately for merchant or customer funds; risks related to the availability, integrity and security of internal and external IT transaction processing systems and services; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; failure of fourth parties to comply with contractual obligations; changes and compliance with payment card network operating rules; substantial and increasingly intense competition worldwide in the global payments industry; risks related to developing and maintaining effective internal controls over financial reporting; managing our growth effectively, including growing our revenue pipeline; any difficulties maintaining a strong and trusted brand; keeping pace with rapid technological developments; risks associated with the significant influence of our principal shareholders; the effect of regional epidemics or a global pandemic on our business; and other factors included in the "Risk Factors" in our Form 20-F and in other filings we make with the SEC, which are available at https://www.sec.gov. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.
The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events.
Paysafe Limited Condensed Consolidated Statements of Operations (unaudited)
Three Months Ended
March 31,
----------------------
($ in thousands) 2025 2024
----------- --------
Revenue $ 401,000 $417,738
Cost of services (excluding depreciation
and amortization) 174,181 170,373
Selling, general and administrative 139,790 144,808
Depreciation and amortization 68,269 68,310
Impairment expense on goodwill and other
assets 1,282 653
Restructuring and other costs 7,785 452
(Gain) / loss on disposal of subsidiaries
and other assets, net (626) 177
------- -------
Operating income 10,319 32,965
Other income, net 823 12,355
Interest expense, net (33,673) (34,965)
------- -------
(Loss) / income before taxes (22,531) 10,355
Income tax (benefit) / expense (3,059) 7,299
------- -------
Net (loss) / income $ (19,472) $ 3,056
======= =======
Net (loss) / income per share -- basic $ (0.33) $ 0.05
Net (loss) / income per share -- diluted $ (0.33) $ 0.05
Net (loss) / income $ (19,472) $ 3,056
Other comprehensive income / (loss), net
of tax of $0:
Gain / (loss) on foreign currency
translation 4,076 (7,612)
------- -------
Total comprehensive loss $ (15,396) $ (4,556)
------- -------
Paysafe Limited Consolidated Net Loss per share
Three Months Ended
March 31,
----------------------
2025 2024
------------ -------
Numerator ($ in thousands)
Net (loss) / income - basic $ (19,472) $ 3,056
Net (loss) / income - diluted $ (19,472) $ 3,056
Denominator (in millions)
Weighted average shares -- basic 59.8 61.6
Weighted average shares -- diluted 59.8 62.0
Net (loss) / income per share
Basic $ (0.33) $ 0.05
Diluted $ (0.33) $ 0.05
Paysafe Limited Condensed Consolidated Balance Sheets (unaudited)
($ in thousands) March 31, 2025 December 31, 2024
---------------- -------------------
Assets
Current assets
Cash and cash equivalents $ 234,339 $ 216,683
Customer accounts and other
restricted cash 954,896 1,081,896
Accounts receivable, net of
allowance for credit losses of
$4,435 and $7,994,
respectively 155,357 158,197
Settlement receivables, net of
allowance for credit losses of
$4,820 and $4,082,
respectively 145,182 138,565
Prepaid expenses and other
current assets 89,798 81,298
Derivative assets 3,413 --
Contingent consideration
receivable -- current 826 --
------------ ---------------
Total current assets 1,583,811 1,676,639
Deferred tax assets 91,304 91,304
Property, plant and equipment,
net 26,013 24,297
Operating lease right-of-use
assets 39,604 40,620
Derivative asset 150 5,502
Intangible assets, net 950,350 981,315
Goodwill 2,007,076 1,976,851
Contingent consideration
receivable -- non-current 3,312 --
Other assets -- non-current 11,812 12,806
------------ ---------------
Total non-current assets 3,129,621 3,132,695
------------ ---------------
Total assets $ 4,713,432 $ 4,809,334
============ ===============
Liabilities and equity
Current liabilities
Accounts payable and other
liabilities $ 193,164 $ 176,940
Short-term debt 10,190 10,190
Funds payable and amounts due
to customers 1,139,759 1,235,104
Operating lease liabilities --
current 8,060 7,653
Income taxes payable 3,269 5,495
Warrant liabilities 835 --
Contingent consideration
payable -- current 1,856 8,070
Liability for share-based
compensation -- current 2,638 2,126
------------ ---------------
Total current liabilities 1,359,771 1,445,578
Non-current debt 2,374,425 2,353,358
Operating lease liabilities --
non-current 34,833 35,573
Deferred tax liabilities 80,238 91,570
Warrant liabilities -- 1,401
Derivative financial
liabilities -- non-current 224 --
Liability for share-based
compensation -- non-current 2,031 2,268
Contingent consideration
payable -- non-current 25 325
------------ ---------------
Total non-current liabilities 2,491,776 2,484,495
------------ ---------------
Total liabilities 3,851,547 3,930,073
Commitments and contingent
liabilities
---------------- -------------------
Total shareholders' equity 861,885 879,261
------------ ---------------
Total liabilities and
shareholders' equity $ 4,713,432 $ 4,809,334
============ ===============
Paysafe Limited Condensed Consolidated Statements of Cash Flow (unaudited)
Three Months Ended
March 31,
-----------------------
($ in thousands) 2025 2024
---------- ----------
Cash flows from operating activities
Net (loss) / income $ (19,472) $ 3,056
Adjustments for non-cash items:
Depreciation and amortization 68,665 68,581
Unrealized foreign exchange gain (5,169) (2,519)
Deferred tax benefit (12,129) (1,767)
Interest expense, net 7,767 3,634
Share-based compensation 8,141 9,359
Other income, net (809) (7,162)
Impairment expense on goodwill and
other assets 1,282 653
Allowance for credit losses and other 7,571 11,739
(Gain) / loss on disposal of
subsidiary and other assets, net (626) 177
Non-cash lease expense 2,336 2,232
Movements in working capital:
Accounts receivable, net (4,232) (24,222)
Prepaid expenses, other current
assets, and related party
receivables (9,186) (1,788)
Accounts payable, other liabilities,
and related party payables 5,809 (3,792)
Income tax (receivable) / payable 2,531 654
--------- ---------
Net cash flows from operating activities 52,479 58,835
--------- ---------
Cash flows in investing activities
Purchase of property, plant & equipment (4,329) (3,719)
Other intangible asset expenditures (22,892) (20,706)
Disposal of subsidiary 1,948 --
Receipts under derivative financial
instruments 1,312 2,531
Cash inflow from merchant reserves -- 6,510
Other investing activities, net 68 1,559
--------- ---------
Net cash flows used in investing
activities (23,893) (13,825)
--------- ---------
Cash flows from financing activities
Repurchases of shares withheld for taxes (560) (257)
Proceeds from employee share purchase
plan 540 --
Purchase of treasury shares (9,998) (12,000)
Settlement funds - merchants and
customers, net (134,041) (108,302)
Repurchase of borrowings -- (30,545)
Proceeds from loans and borrowings -- 50,242
Repayments of loans and borrowings (22,839) (33,759)
Proceeds under line of credit 197,000 225,000
Repayments under line of credit (201,000) (225,000)
Contingent consideration paid (6,476) (7,755)
Other financing activities 300 --
--------- ---------
Net cash flows used in financing
activities (177,074) (142,376)
Effect of foreign exchange rate changes 39,144 (25,951)
--------- ---------
Decrease in cash and cash equivalents,
including customer accounts and other
restricted cash during the period $ (109,344) $ (123,317)
Cash and cash equivalents, including
customer accounts and other restricted
cash at beginning of the period 1,298,579 1,498,269
--------- ---------
Cash and cash equivalents at end of the
period, including customer accounts and
other restricted cash $1,189,235 $1,374,952
========= =========
Three Months Ended
March 31,
2025 2024
---------- ----------
Cash and cash equivalents $ 234,339 $ 202,134
Customer accounts and other restricted
cash 954,896 1,172,818
--------- ---------
Total cash and cash equivalents, including
customer accounts and other restricted
cash $1,189,235 $1,374,952
========= =========
Non-GAAP Financial Measures
To supplement the Company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. This includes organic revenue growth, Gross Profit (excluding depreciation and amortization), Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage which are supplemental measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("U.S. GAAP").
Organic revenue growth is defined as growth excluding the impact of foreign currency fluctuations, revenue from interest on consumer deposits, acquisitions, and dispositions. Management believes organic revenue growth to be useful to users of our financial data because it enables them to better understand underlying revenue growth from period to period excluding the impact of these non-organic items.
Gross Profit (excluding depreciation and amortization) is defined as revenue less cost of services (excluding depreciation and amortization). Management believes Gross Profit to be a useful profitability measure to assess the performance of our businesses and ability to manage cost.
Adjusted EBITDA is defined as net income/(loss) before the impact of income tax (benefit)/expense, interest expense, net, depreciation and amortization, share-based compensation, impairment expense on goodwill and other assets, restructuring and other costs, loss/(gain) on disposal of a subsidiaries and other assets, net, and other income/(expense), net. These adjustments also include certain costs and transaction items that are not reflective of the underlying operating performance of the Company. Management believes Adjusted EBITDA to be a useful profitability measure to assess the performance of our businesses and improves the comparability of operating results across reporting periods.
Adjusted net income excludes the impact of certain non-operational and non-cash items. Adjusted net income is defined as net income/(loss) attributable to the Company before the impact of other non-operating income / (expense), net, impairment expense on goodwill and other assets, restructuring and other costs, accelerated amortization of debt fees, amortization of acquired assets, loss/(gain) on disposal of subsidiaries and other assets, share-based compensation, discrete tax items and the income tax (benefit)/expense on these non-GAAP adjustments. Adjusted net income per share is adjusted net income as defined above divided by adjusted weighted average dilutive shares outstanding. Management believes the removal of certain non-operational and non-cash items from net income enhances shareholders' ability to evaluate the Company's business performance and profitability by improving comparability of operating results across reporting periods.
Unlevered free cash flow is defined as net cash flows provided by/used in operating activities, adjusted for the impact of capital expenditure, payments relating to restructuring and other costs and cash paid for interest. Capital expenditure includes purchases of property plant & equipment and purchases of other intangible assets, including software development costs. Capital expenditure does not include purchases of merchant portfolios. Management believes unlevered free cash flow to be a liquidity measure that provides useful information about the amount of cash generated by the business.
Net leverage is defined as net debt (gross debt less cash and cash equivalents) divided by the last twelve months Adjusted EBITDA. Management believes net leverage is a useful measure of the Company's credit position and progress towards leverage targets.
Management believes the presentation of these non-GAAP financial measures, including Gross Profit, Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage when considered together with the Company's results presented in accordance with GAAP, provide users with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of Paysafe's core operating performance. In addition, management believes the presentation of these non-GAAP financial measures provides useful supplemental information in assessing the Company's results on a basis that fosters comparability across periods by excluding the impact on the Company's reported GAAP results of acquisitions and dispositions that have occurred in such periods. However, these non-GAAP measures exclude items that are significant in understanding and assessing Paysafe's financial results or position.
Therefore, these measures should not be considered in isolation or as alternatives to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP.
You should be aware that Paysafe's presentation of these measures may not be comparable to similarly titled measures used by other companies. In addition, the forward-looking non-GAAP financial measure of Adjusted EBITDA provided herein have not been reconciled to the comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. We have reconciled the historical non-GAAP financial measures presented herein to their most directly comparable GAAP financial measures. A reconciliation of our forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.
Reconciliation of GAAP Net (Loss) / Income to Adjusted EBITDA
Three Months Ended
March 31,
----------------------
($ in thousands) 2025 2024
----------- --------
Net (loss) / income $ (19,472) $ 3,056
Income tax (benefit) / expense (3,059) 7,299
Interest expense, net 33,673 34,965
Depreciation and amortization 68,269 68,310
Share-based compensation expense 8,141 9,359
Impairment expense on goodwill and other
assets 1,282 653
Restructuring and other costs 7,785 452
(Gain) / loss on disposal of subsidiaries
and other assets, net (626) 177
Other income, net (823) (12,355)
------- -------
Adjusted EBITDA $ 95,170 $111,916
======= =======
Reconciliation of Revenue to Non-GAAP Organic Revenue
Three Months Ended
March 31,
----------------------
($ in thousands) 2025 2024
----------- --------
Revenue $ 401,000 $417,738
Currency adjustment (1) 5,430 --
Interest revenue adjustment (2) (5,647) (9,475)
Disposal adjustments (3) (5,213) (30,665)
------- -------
Organic revenue (4) $ 395,570 $377,598
======= =======
(1) This adjustment eliminates the impact of foreign exchange on revenue.
(2) This adjustment eliminates the impact of revenue from interest on
consumer deposits adjusted to exclude the effect of any fluctuations in
foreign exchange rates.
(3) This adjustment eliminates all revenue generated from the direct
marketing payments processing business line that was disposed of during
the three months ended March 31, 2025.
(4) Organic revenue is defined as revenues in the stated period excluding
the impact from acquisitions, dispositions, foreign currency
fluctuations and interest revenue on consumer deposits. For
dispositions in the current year, the pre-disposition results are
excluded from the organic revenue calculations. There were no
acquisitions requiring adjustments in the stated periods. Reported
revenue growth and organic revenue growth for the three months ended
March 31, 2025 was -4% and 5%, respectively. Organic revenue growth is
measured as the change in organic revenue for the current period,
divided by organic revenue from the prior period.
Reconciliation of Revenue to Non-GAAP Organic Revenue by Segment
Merchant Solutions
Three Months Ended
March 31,
----------------------
($ in thousands) 2025 2024
----------- --------
Revenue $ 217,786 $231,398
Currency adjustment (1) 148 --
Interest revenue adjustment (2) (460) (618)
Disposal adjustments (3) (5,213) (30,665)
------- -------
Organic revenue (4) $ 212,261 $200,115
======= =======
Digital Wallets
Three Months Ended
March 31,
----------------------
($ in thousands) 2025 2024
----------- --------
Revenue $ 187,567 $190,457
Currency adjustment (1) 5,282 --
Interest revenue adjustment (2) (5,187) (8,857)
------- -------
Organic revenue (4) $ 187,662 $181,600
======= =======
(1) This adjustment eliminates the impact of foreign exchange on revenue.
(2) This adjustment eliminates the impact of revenue from interest on
consumer deposits adjusted to exclude the effect of any fluctuations in
foreign exchange rates.
(3) This adjustment eliminates all revenue generated from the direct
marketing payments processing business line that was disposed of during
the three months ended March 31, 2025.
(4) Organic revenue is defined as revenues in the stated period excluding
the impact from acquisitions, dispositions, foreign currency
fluctuations and interest revenue on consumer deposits. For
dispositions in the current year, the pre-disposition results are
excluded from the organic revenue calculations. There were no
acquisitions requiring adjustments in the stated periods. Reported
revenue growth and organic revenue growth for the three months ended
March 31, 2025 was -2% and 3%, respectively, for the Digital Wallets
segment and was -6% and 6%, respectively, for the Merchant Solutions
segment. Organic revenue growth is measured as the change in organic
revenue for the current period, divided by organic revenue from the
prior period.
Reconciliation of Operating Cash Flow to Non-GAAP Unlevered Free Cash Flow
Three Months Ended
March 31,
----------------------
($ in thousands) 2025 2024
----------- --------
Net cash inflows from operating activities $ 52,479 $ 58,835
Capital expenditure (27,221) (24,425)
Cash paid for interest 25,906 31,331
Payments relating to Restructuring and
other costs 6,181 3,453
------- -------
Unlevered Free Cash Flow $ 57,345 $ 69,194
======= =======
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (excluding depreciation and amortization)
Three Months Ended
March 31,
----------------------
($ in thousands) 2025 2024
------------ --------
Revenue $ 401,000 $417,738
Cost of services (excluding depreciation and
amortization) 174,181 170,373
Depreciation and amortization 68,269 68,310
-------- -------
Gross Profit (1) $ 158,550 $179,055
======== =======
Depreciation and amortization 68,269 68,310
-------- -------
Gross Profit (excluding depreciation and
amortization) $ 226,819 $247,365
======== =======
(1) Gross Profit has been calculated as revenue, less cost of services and
depreciation and amortization. Gross profit is not presented within the
Company's consolidated financial statements.
Reconciliation of GAAP Net (Loss) / Income to Adjusted Net Income
Three Months Ended
March 31,
----------------------
($ in thousands) 2025 2024
------------ -------
Net (loss) / income $ (19,472) $ 3,056
Other non operating expense / (income), net
(1) 564 (9,774)
Impairment expense on goodwill and other
assets 1,282 653
Amortization of acquired assets (2) 33,268 33,603
Restructuring and other costs 7,785 452
(Gain) / loss on disposal of subsidiaries
and other assets, net (626) 177
Share-based compensation expense 8,141 9,359
Discrete tax items (3) 3,430 5,465
Income tax expense on non-GAAP adjustments
(4) (13,459) (7,685)
-------- ------
Adjusted net income $ 20,913 $35,306
======== ======
(in millions)
Weighted average shares - diluted 59.8 62.0
Adjusted diluted impact 1.5 0.0
Adjusted weighted average shares - diluted 61.3 62.0
(1) Other non-operating expense / (income), net primarily consists of
income and expenses outside of the Company's operating activities,
including, fair value gain / loss on warrant liabilities and
derivatives, gain / loss on repurchases of debt, gain / loss on foreign
exchange and the release of certain provisions.
(2) Amortization of acquired asset represents amortization expense on the
fair value of intangible assets acquired through various Company
acquisitions, including brands, customer relationships, software and
merchant portfolios.
(3) Discrete tax items mainly represent (a) valuation allowance benefit
recorded on deferred tax assets representing $3,801 and $5,502 for the
three months ended March 31, 2025 and 2024, respectively (b)
measurement period adjustments which were $0 and ($57) for the three
months ended March 31, 2025 and 2024, respectively, and (c) discrete
tax expense on share-based compensation, which would not have been
incurred as share-based compensation expense is removed from adjusted
net income, of $0 and $182 for the three months ended March 31, 2025
and 2024, respectively. The remaining discrete tax items mainly relate
to the movement in uncertain tax provisions relating to prior years.
(4) Income tax expense on non-GAAP adjustments reflects the tax expense on
each taxable adjustment using the current statutory tax rate of the
applicable jurisdiction specific to that adjustment.
Adjusted Net Income per Share
Three Months Ended
March 31,
----------------------
2025 2024
------------ --------
Numerator ($ in thousands)
Adjusted net income - basic $ 20,913 $ 35,306
Adjusted net income - diluted $ 20,913 $ 35,306
Denominator (in millions)
Weighted average shares -- basic 59.8 61.6
Adjusted weighted average shares -- diluted
(1) 61.3 62.0
Adjusted net income per share
Basic $ 0.35 $ 0.57
Diluted $ 0.34 $ 0.57
(1) The denominator used in the calculation of diluted adjusted net income
per share for the three months ended March 31, 2024 and 2025 includes
the dilutive effect of the Company's restricted stock units.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250513128103/en/
CONTACT: Media
Crystal Wright
Paysafe
+1 (904) 328-7740
crystal.wright@paysafe.com
Investors
Kirsten Nielsen
Paysafe
+1 (646) 901-3140
kirsten.nielsen@paysafe.com
(END) Dow Jones Newswires
May 13, 2025 06:55 ET (10:55 GMT)
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