Paysafe 2025 Q3 Earnings Misses Targets, Net Loss Widens 575.6%

Paysafe (PSFE) reported its fiscal 2025 Q3 earnings on Nov 14, 2025, with results falling short of expectations. The company cut its full-year guidance, citing challenges in its product mix and macroeconomic pressures. Despite 1.6% revenue growth, the net loss widened sharply, raising concerns about profitability and operational efficiency.

Revenue

Paysafe’s total revenue rose 1.6% year-over-year to $433.81 million in Q3 2025, driven by organic growth across core segments. Merchant Solutions led with $231.94 million in revenue, supported by stronger e-commerce volumes. Digital Wallets contributed $205.69 million, reflecting increased adoption of eCash products and expanded digital banking partnerships. The intersegment adjustment of $-3.81 million offset gains, resulting in the reported total revenue.

Earnings/Net Income

The company’s losses deepened significantly, with a net loss of $87.67 million in Q3 2025, a 575.6% increase from $-12.98 million in the prior-year period. On a per-share basis, the loss widened to $1.52 from $0.21. This represents a substantial deterioration in profitability, underscoring operational and strategic challenges.

Post-Earnings Price Action Review

Paysafe’s stock experienced a sharp sell-off following the earnings report, with a 14% pre-market decline attributed to the revised guidance and wider-than-expected losses. The stock stabilized slightly but remained down 3.7% at $10.18 by midday, reflecting investor skepticism about the company’s ability to reverse its earnings trend. The decline was exacerbated by a non-cash tax charge of $81.2 million linked to U.S. legislative changes, which skewed GAAP results. Despite organic revenue growth and improved adjusted EBITDA, the market prioritized near-term profitability concerns over long-term strategic investments.

CEO Commentary

CEO Bruce Lowthers acknowledged the challenges, emphasizing the need to address lower-margin product outperformance and accelerate high-margin initiatives like AI-driven fraud detection and crypto payments. He reiterated confidence in operational efficiency and organic demand in core verticals, though the updated guidance reflects extended timelines for key projects.

Guidance

Paysafe revised its full-year 2025 revenue outlook to $1.70–$1.71 billion, down from $1.71–$1.73 billion, while adjusted EPS guidance was cut to $1.83–$1.88 from $2.21–$2.51. Q4 revenue is expected to grow 4–6% year-over-year, supported by pricing adjustments and B2B payment solutions.

Additional News

Paysafe announced a multi-year AI partnership with Endava to enhance digital payment experiences and community engagement, signaling a strategic pivot toward technology-driven growth. The company also authorized an additional $70 million for share repurchases, extending its buyback program to $97 million. Analysts remain cautious, with RBC Capital lowering its price target to $10 from $17 due to concerns over leverage and margin compression.

The stock’s volatility highlights the tension between organic growth in digital wallets and iGaming and near-term profitability pressures. Investors will closely monitor the AI partnership’s execution and the company’s ability to realign its product mix toward higher-margin offerings.

Revenue

Earnings/Net Income

Guidance

Additional News