Paysafe Q4 Revenue Falls Short Despite 12% Payment Volume Growth, Issues Weak 2025 Outlook

On Tuesday, Paysafe Limited PSFE stock fell after its fourth-quarter report.

The company reported quarterly adjusted earnings per share of 48 cents, beating the street view of 24 cents. Quarterly sales of $420.1 million, an increase of 1% year over year, beat the analyst consensus of $429.9 million.

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Total Payment Volume (TPV) reached $40.0 billion, a 12% increase.

Adjusted EBITDA declined by 15%, or 14% on a constant currency basis, to $103.3 million. Net leverage decreased to 4.7x as of December 31, 2024, compared to 5.0x at year-end 2023.

Revenue from Merchant Solutions rose 1%, reflecting double-digit growth in e-commerce and modest growth from SMBs. This was largely offset by a $10.7 million headwind from the disposed business.

Revenue from Digital Wallets grew 2%, supported by product initiatives that more than offset lower revenue from interest on consumer deposits.

As of December 31, total cash and cash equivalents were $216.7 million, total debt was $2.4 billion, and net debt was $2.1 billion.

FY25 Outlook: Paysafe expects sales of $1.710 billion–$1.734 billion, compared with the $1.804 billion estimate. It expects adjusted EPS of $2.21-$2.51 against a consensus estimate of $3.04. The company expects an adjusted EBITDA of $463 million-$478 million.

Price Action: PSFE stock is down 8.79% to $17.53 premarket at last check Tuesday.

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