Paysafe Forecasts 2025 EPS of $2.21-$2.51, Revenue of $1.71B-$1.73B

Paysafe has forecast 2025 adjusted EPS of $2.21-$2.51, below consensus of $2.39, and 2025 revenue of $1.71B-$1.73B, in line with consensus of $1.73B. The company is focusing on its core business and reducing costs to achieve its targets.

Paysafe (NYSE:PSFE) reported its second quarter 2025 earnings on August 12, 2025, showcasing a mixed financial performance characterized by organic growth despite overall revenue decline. The payment solutions provider reported 5% organic revenue growth, a notable achievement amidst a 3% decrease in total revenue, primarily due to business disposals. The company maintained its full-year guidance while highlighting strategic initiatives in product innovation and partnerships.

Key Highlights

Revenue and Organic Growth:
Paysafe reported Q2 2025 revenue of $428.2 million, a 3% year-over-year decrease from $439.9 million in Q2 2024. However, when excluding disposed business units, the company achieved 5% organic growth. Transaction volume increased by 10%, demonstrating continued momentum in payment processing activity [1].

Financial Performance:
Adjusted EBITDA declined 12% to $105.0 million, with margins contracting from 27.1% to 24.5%. The company attributed this decline partially to a $25 million headwind from business disposal. Adjusted net income fell 24% to $27.6 million, with adjusted EPS decreasing from $0.59 to $0.46. Unlevered free cash flow decreased 23% to $53.9 million, with conversion rates dropping from 59% to 51% [1].

Segment Performance:
The Merchant Solutions segment experienced a 9% reported revenue decline to $232.2 million, though organic growth reached 6% when excluding disposed businesses. The Digital Wallets segment demonstrated stronger performance with 6% reported revenue growth to $201.2 million (3% organic growth) [1].

Balance Sheet and Leverage:
Despite stating a continued focus on reducing leverage, Paysafe’s net leverage ratio increased to 5.4x from 4.9x in March 2025. The company attributed this partly to foreign exchange impacts. Total debt stood at $2.55 billion, with cash and cash equivalents of $266 million resulting in net debt of $2.29 billion [1].

Strategic Initiatives:
Paysafe highlighted several strategic priorities for 2025, including product innovation, sales efficiency, new partnerships, and network leverage. The company is expanding its geographic footprint with local wallet use cases in Peru and enhancing user engagement through features like "Sports Corner" with live odds. The company’s eCash business showed strong momentum with 37% revenue growth year-to-date from the online store. Paysafe also announced new partnerships with mobile and retail banks including BBVA (BME:BBVA), Revolut, and Deutsche Bank to broaden its reach [1].

Forward-Looking Statements:
Paysafe reaffirmed its full-year 2025 guidance, expecting revenue between $1,710 million and $1,734 million, representing 0% to 2% reported growth and 6.5% to 8.0% organic growth. Adjusted EBITDA is projected between $463 million and $478 million, with margins of 27.1% to 27.6%. Adjusted EPS guidance remains at $2.21 to $2.51 [1].

Conclusion

Paysafe’s Q2 2025 results present a mixed picture of organic growth amid overall revenue decline and profitability challenges. While the company demonstrated strength in digital wallets and e-commerce, it faces headwinds from business disposals and segment margin compression. The increase in net leverage ratio contradicts the stated focus on debt reduction, though some of this was attributed to currency fluctuations. As Paysafe maintains its full-year guidance and continues to invest in strategic initiatives, investors will likely monitor whether the company can accelerate organic growth while improving profitability and making meaningful progress on leverage reduction in the second half of 2025 [1].

References

[1] https://www.investing.com/news/company-news/paysafe-q2-2025-slides-organic-growth-of-5-amid-revenue-decline-and-rising-leverage-93CH-4184763