Paysafe 2025 Q2 Earnings Worsening Losses Amid Revenue Decline

Paysafe (PSFE) reported its fiscal 2025 Q2 earnings on August 12th, 2025. The company posted a revenue decline and significantly widened losses, with CEO Bruce F. Lowthers emphasizing expectations of improved organic growth and margin expansion in the second half of 2025.

Paysafe reported total revenue of $428.22 million in Q2 2025, a 2.7% decline from $439.92 million in the same period in 2024. The revenue was driven by its Merchant Solutions and Digital Wallets segments, with intersegment adjustments reflecting internal dynamics.

Paysafe recorded a net loss of $50.13 million in Q2 2025, significantly wider than the $1.43 million loss in Q2 2024. The company's losses per share also deepened to $0.85 in Q2 2025 from $0.02 in Q2 2024, representing a 4150.0% increase in per-share loss, underscoring the worsening financial situation.

Paysafe's stock saw a notable rise of 13.01% during the latest trading day and 19.98% for the week. However, a post-earnings investment strategy over the past three years—buying shares after a revenue raise quarter-over-quarter and holding for 30 days—yielded a -33.36% return, far underperforming the 46.32% benchmark. The strategy experienced a maximum drawdown of 0.00% and a negative CAGR of -13.07%, indicating significant erosion of value over time.

Bruce F. Lowthers, CEO & Executive Director, emphasized Paysafe’s Q2 2025 performance, highlighting 5% organic revenue growth and 12% adjusted EBITDA growth excluding the divested direct marketing business. He noted strong enterprise-level deals and product innovations like PagoEfectivo in Peru. Lowthers expressed optimism about the second half of 2025, forecasting improved growth and margin performance.

Paysafe expects organic growth to accelerate to 8% to 10% in the second half of 2025, with Q4 as the strongest quarter for both revenue and margin performance. The company anticipates existing customer growth of approximately 9% while maintaining attrition at 12%. New customer and product initiatives are expected to contribute roughly 10% to growth, with adjusted EBITDA projected to grow in the low to mid-teens when normalized for the divestiture. Margin improvement is anticipated due to operating leverage and growth in digital wallets.

Over the past three weeks, several developments emerged that could impact Paysafe's strategic direction and shareholder value. One of the most notable was the ongoing restructuring of the Merchant Solutions segment, where the company has been divesting parts of its legacy direct marketing business to focus on higher-margin digital payment solutions. This strategic shift aligns with the CEO’s emphasis on organic growth and margin expansion in the latter part of the year.

Additionally, Paysafe announced the appointment of a new CFO, bringing in fresh leadership to support financial strategy and execution. The new CFO has a strong track record in managing high-growth fintech companies and is expected to play a pivotal role in optimizing the company’s capital structure and improving operational efficiency.

Finally, Paysafe revealed its decision to expand its digital wallet offerings in emerging markets, particularly in Latin America and Southeast Asia. These regions have shown strong growth potential for digital financial services, and Paysafe is positioning itself to capitalize on this trend by enhancing its product suite and partnerships with local financial institutions.