Paysafe's Q1 2025 Earnings Call: Unpacking Contradictions in Sales Strategies, Merchant Retention, and Financial Outlook

Sales productivity and growth in SMB channel, merchant attrition and revenue retention, direct marketing business sale and impact on financials, sales performance and visibility, merchant sales strategies are the key contradictions discussed in Paysafe's latest 2025Q1 earnings call.



Revenue and Growth Trends:
- Paysafe reported organic revenue growth of 5% for Q1 2025, with enterprise-level contracts supporting strong growth.
- The growth was driven by strong performance from existing customers and new product and sales initiatives.

Adjusted EBITDA and Margin Impacts:
- Adjusted EBITDA for Q1 2025 was $95 million, flat year-over-year when normalizing for inorganic impacts.
- A decline in gross margin was primarily due to lower interest revenue and unfavorable business mix within the merchant solution segment.

Merchant Solutions and Digital Wallets:
- Merchant solutions volume increased by 11% to $34.3 billion, with digital wallet volume up 5% to $5.9 billion.
- Growth was driven by strong e-commerce performance, particularly in iGaming and digital wallets, although mitigated by flat SMB performance.

Sales and Product Initiatives:
- Paysafe signed over 100 enterprise-level contracts in Q1, with a strong sales pipeline expected to accelerate growth in the second half of the year.
- These initiatives were supported by new partnerships, product launches, and strategic focus on expanding the wallet platform in regions like Latin America.