Shares of Paysafe Ltd (NYSE: PSFE) plummeted 22.44% in intraday trading on Thursday following the release of disappointing third-quarter 2025 financial results and a reduced full-year outlook. The significant drop highlights investors' concerns about the payment platform provider's performance and future prospects.

Paysafe reported quarterly adjusted earnings of $0.70 per share, missing the analyst consensus estimate of $0.73 by 4.76%. Despite the miss, this figure represents a 37.25% increase from the same period last year. Revenue for the quarter came in at $433.8 million, falling short of the expected $439.5 million and showing only a modest 1.57% year-over-year growth.

The company's stock was further pressured by a substantial downward revision to its full-year 2025 guidance. Paysafe now expects adjusted earnings of $1.83 to $1.88 per share, down from the previous forecast of $2.21 to $2.51. Revenue projections were also lowered to between $1.7 billion and $1.71 billion, compared to earlier estimates of $1.71 billion to $1.73 billion. Management cited slower growth in high-margin areas like digital wallets and e-commerce, coupled with stronger growth in low-margin segments such as the ISO channel, as reasons for the reduced outlook.

Adding to investor concerns, Paysafe reported a widened net loss of $87.7 million, or $1.52 per share, compared to a loss of $13 million, or $0.21 per share, in the same quarter last year. The company attributed this increase to an $81.2 million income tax expense resulting from recent tax law changes, as well as higher restructuring and legal costs totaling $12.4 million. These factors have raised questions about Paysafe's profitability and its ability to navigate the competitive payments industry landscape.