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

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May 13, 2025 06:55 ET (10:55 GMT)