Paysafe 2025 Q3 Earnings Sharp Net Loss Expansion and Revised Guidance

Paysafe (PSFE) reported mixed results for Q3 2025, missing both revenue and EPS estimates while slashing full-year guidance. The company cited lower-margin product outperformance and a $81M non-cash tax charge as key headwinds. Despite 6% organic revenue growth, net losses widened significantly, and shares tumbled 14% pre-market amid revised profit expectations.

Revenue

Paysafe’s total revenue rose 1.6% to $433.81 million in Q3 2025, with organic growth of 6% driven by core operations. Merchant Solutions revenue climbed to $231.94 million, while Digital Wallets contributed $205.69 million. The intersegment adjustment of -$3.81 million offset some growth, but combined segment performance underscored resilience in transaction volumes and e-commerce demand.

Earnings/Net Income

Paysafe’s losses deepened to $1.52 per share in Q3 2025, a 623.8% increase from $0.21 per share a year earlier. Net losses surged to $87.67 million, a 575.6% year-over-year rise, driven by a $81.2M tax charge from U.S. legislative changes and higher restructuring costs. Adjusted net income improved to $40.3 million, but GAAP results were severely impacted by non-operational headwinds.

Post-Earnings Price Action Review

Paysafe’s stock price plummeted 14–15% in pre-market trading following the earnings miss and revised guidance, with shares trading near $10.16 by midday after an intraday low of $7.88. The sell-off reflected investor concern over compressed margins and delayed high-margin product rollouts. While the stock partially recovered, volatility persisted amid skepticism about the pace of margin normalization and the AI partnership’s near-term impact.

CEO Commentary

CEO Bruce Lowthers emphasized progress in cost optimization and operational efficiency but acknowledged challenges in shifting toward higher-margin offerings. He highlighted strategic investments in AI-driven fraud detection and partnerships, including a multi-year collaboration with Endava to enhance digital payment solutions. The leadership team remains focused on long-term scalability and regulatory adaptability.

Guidance

Paysafe revised full-year 2025 revenue guidance to $1.70–$1.71 billion (from $1.71–$1.73 billion) and adjusted EPS to $1.83–$1.88 (from $2.21–$2.51). The company expects modest Q4 sequential growth driven by seasonal demand and Asia-Pacific expansion but provided no specific EPS targets. Capital expenditures remain capped at $150–$170 million to prioritize innovation in real-time payments.

Additional News

Paysafe announced a multi-year AI partnership with Endava to accelerate digital payment innovations and community engagement, leveraging Endava’s engineering expertise. The board also authorized an additional $70 million for share repurchases, boosting buyback capacity to $97 million. These moves aim to offset margin pressures and demonstrate confidence in long-term strategic positioning.