PSFE Paysafe Limited

Paysafe Limited (“Paysafe” or the “Company”) (NYSE: PSFE), a leading payments platform, today announced its financial results for the first quarter of 2025.

First Quarter 2025 Summary (Metrics compared to the first quarter of 2024, unless otherwise noted)

• Revenue of $401.0 million, decreased 4%; organic revenue growth of 5%
• Net loss of $19.5 million, or ($0.33) per diluted share, compared to net income of $3.1 million, or $0.05 per diluted share
• Adjusted net income of $20.9 million, or $0.34 per diluted share, compared to $35.3 million, or $0.57 per diluted share
• Adjusted EBITDA of $95.2 million, decreased 15%; decreased 14% on a constant currency basis
• Net leverage1 of 4.9x as of March 31, 2025

Bruce Lowthers, CEO of Paysafe, commented: "We kicked off the year with strong momentum, exceeding our expectations for organic growth and adjusted EBITDA margin. I’m proud of the team for staying focused and executing our strategy for sustainable growth while successfully completing the sale of our direct marketing business. We also secured new partnerships, launched innovative products through our wallet platform, and continued enhancing its functionality to better connect our 18 million consumers with over 1 million retailers—turning everyday transactions into exceptional experiences. With the second quarter underway, we’re operating with a leaner, lower-risk model, a strengthened sales organization, traction with new collaborations, and a robust product pipeline that positions us for accelerated growth in the second half of the year."

Recent Strategic and Operational Highlights

• Organic revenue growth of 5% led by robust volumes in e-commerce
• Progress across the enterprise-level sales strategy, including continued double-digit bookings growth in the first quarter while accelerating productivity per sales representative
• Expanded Paysafe's long-term partnership with Fiserv, including several key initiatives focused on empowering small and medium-sized businesses (SMBs)
• Expanded Paysafe's partnership with Tilled to offer frictionless payments and PayFac-as-a-Service solutions for independent software vendors (ISVs) across the U.S. and Canada
• Closed on the Company's previously announced agreement to sell its direct marketing payment processing business line ("the business disposal")
• Repurchased 612.6 thousand shares for $10.0 million in the first quarter of 2025
• Published Paysafe's second annual sustainability report

(1)

 

Paysafe defines net leverage as net debt (total debt less cash and cash equivalents) divided by the sum of the last twelve months (LTM) Adjusted EBITDA. For the period ended March 31, 2025, total debt was $2,384.6 million and cash and cash equivalents was $234.3 million, and LTM Adjusted EBITDA was $435.3 million. For the period ended December 31, 2024, total debt was $2,363.5 million and cash and cash equivalents was $216.7 million, and LTM Adjusted EBITDA was $452.1 million.

First Quarter of 2025 Summary of Consolidated Results

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands) (unaudited)

 

2025

 

 

2024

 

Revenue

 

$

401,000

 

 

$

417,738

 

Gross Profit (excluding depreciation and amortization)

 

$

226,819

 

 

$

247,365

 

Net (loss) / income

 

$

(19,472

)

 

$

3,056

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

95,170

 

 

$

111,916

 

Adjusted net income

 

$

20,913

 

 

$

35,306

 

Reported revenue for the first quarter of 2025 was $401.0 million, a decrease of 4%, compared to $417.7 million in the prior year period, reflecting a decrease of 6% from the Merchant Solutions segment driven by the business disposal, as well as a 2% decline from the Digital Wallets segment driven by a decrease in interest revenue on consumer deposits and unfavorable foreign exchange rates. Organic revenue growth was 5%, reflecting 6% organic growth from Merchant Solutions and 3% organic growth from Digital Wallets.

Net loss for the first quarter was $19.5 million, compared to net income of $3.1 million in the prior year period, largely driven by a decrease in revenue, a decrease in other income related to lower gains on foreign exchange, and an increase in restructuring and legal costs. This was partially offset by the recognition of an income tax benefit in the current period as well as a decrease in selling, general and administrative expenses, including lower credit losses.

Adjusted net income for the first quarter decreased to $20.9 million, compared to $35.3 million in the prior year period, mainly reflecting the decline in Adjusted EBITDA and an increase in the adjusted effective tax rate resulting from the inclusion of the base erosion and anti-abuse tax ("BEAT") provision in the current period.

Adjusted EBITDA for the first quarter decreased to $95.2 million, compared to $111.9 million in the prior year period, reflecting the business disposal in addition to business mix and lower interest revenue, which were unfavorable to gross profit margin.

The combined headwinds from movement in foreign exchange rates and interest revenue on consumer deposits to first quarter revenue and Adjusted EBITDA were $9.3 million (2 percentage-points) and $5.4 million (5 percentage-points), respectively.

First quarter operating cash flow was $52.5 million, compared to $58.8 million in the prior year period. Unlevered free cash flow was $57.3 million, compared to $69.2 million in the prior year period.

Balance Sheet

As of March 31, 2025, total cash and cash equivalents were $234.3 million, total debt was $2.4 billion and net debt was $2.2 billion. Compared to December 31, 2024, total debt increased by $21.1 million, reflecting net repayments of $26.8 million as well as movement in foreign exchange rates.

Summary of Segment Results

 

 

Three Months Ended

 

 

 

 

 

 

March 31,

 

 

YoY

 

($ in thousands) (unaudited)

 

2025

 

 

2024

 

 

change

 

Revenue:

 

 

 

 

 

 

 

 

 

Merchant Solutions

 

$

217,786

 

 

$

231,398

 

 

 

-6

%

Digital Wallets

 

$

187,567

 

 

$

190,457

 

 

 

-2

%

Intersegment

 

$

(4,353

)

 

$

(4,117

)

 

 

6

%

Total Revenue

 

$

401,000

 

 

$

417,738

 

 

 

-4

%

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Merchant Solutions

 

$

29,446

 

 

$

49,178

 

 

 

-40

%

Digital Wallets

 

$

82,544

 

 

$

83,274

 

 

 

-1

%

Corporate

 

$

(16,820

)

 

$

(20,536

)

 

 

-18

%

Total Adjusted EBITDA

 

$

95,170

 

 

$

111,916

 

 

 

-15

%

Full Year 2025 Financial Guidance

($ in millions, except per share amounts) (unaudited)

 

Full Year 2025

Revenue

 

$1,710 - $1,734

Adjusted EBITDA

 

$463 - $478

Adjusted EPS

 

$2.21 - $2.51

Webcast and Conference Call

Paysafe will host a live webcast to discuss the results today at 8:30 a.m. (ET). The webcast and supplemental information can be accessed on the investor relations section of the Paysafe website at ir.paysafe.com. An archive will be available after the conclusion of the live event and will remain available via the same link for one year.

Time

Tuesday, May 13 2025, at 8:30 a.m. ET

Webcast

Go to the Investor Relations section of the Paysafe website to listen and view slides

Dial in

877-407-0752 (U.S. toll-free); 201-389-0912 (International)

2024 Sustainability Report

Today Paysafe published its second annual sustainability report, following through on its commitment to Paysafe's sustainability strategy. This latest report provides detailed insights into the Company's progress and demonstrates significant strides in advancing governance and policies as well as more sustainable operations across the key pillars of Paysafe's sustainability framework—Trusted Technology, Engaged Employees, and Thriving Society— underpinned by Paysafe's Responsible Business Principles.

Key highlights for the year included:

• Established Paysafe’s AI governance framework and an internal AI policy to guide ethical and responsible use of AI
• Formalized Paysafe’s responsible technology principles
• Awarded EcoVadis sustainability rating of ‘Good’
• Supported 49 individual community initiatives and partnered with over 60 non-profit organizations around the world
• Achieved a 10% decrease in Scope 1 greenhouse gas emissions and continued the Company's alignment with the Task Force on Climate-Related Financial Disclosures (TCFD)

The sustainability report can be accessed on Paysafe’s website at https://www.paysafe.com/en/about/sustainability/.

About Paysafe

Paysafe is a leading payments platform with an extensive track record of serving merchants and consumers in the global entertainment sectors. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions. With 29 years of online payment experience, an annualized transactional volume of $152 billion in 2024, and approximately 3,300 employees located in 12+ countries, Paysafe connects businesses and consumers across 260 payment types in 48 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Further information is available at www.paysafe.com.

Forward-looking Statements

This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Paysafe Limited’s (“Paysafe,” “PSFE,” the “Company,” “we,” “us,” or “our”) actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “anticipate,” “appear,” “approximate,” “believe,” “budget,” “continue,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “guidance,” “intends,” “likely,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” "will," “would” and variations of such words and similar expressions (or the negative version of such words or expressions) may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, Paysafe’s expectations with respect to future performance.

These forward-looking statements involve significant risks, uncertainties, and events that may cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially from those projected, including, but not limited to: cyberattacks and security vulnerabilities; complying with and changes in money laundering regulations, financial services regulations, cryptocurrency regulations, consumer and business privacy and data use regulations or other regulations in Bermuda, the UK, Ireland, Switzerland, the United States, Canada and elsewhere; risks related to our focus on specialized and high-risk verticals; geopolitical events and the economic and other impacts of such geopolitical events and the responses of governments around the world; acts of war and terrorism; the effects of global economic uncertainties, including inflationary pressure and rising interest rates, on consumer and business spending; risks associated with foreign currency exchange rate fluctuations; changes in our relationships with banks, payment card networks, issuers and financial institutions; risk related to processing online payments for merchants and customers engaged in the online gambling and foreign exchange trading sectors; risks related to becoming an unwitting party to fraud or being deemed to be handling proceeds resulting from the criminal activity by customers; the effects of chargebacks, merchant insolvency and consumer deposit settlement risk; changes to our continued financial institution sponsorships; failure to hold, safeguard or account accurately for merchant or customer funds; risks related to the availability, integrity and security of internal and external IT transaction processing systems and services; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; failure of fourth parties to comply with contractual obligations; changes and compliance with payment card network operating rules; substantial and increasingly intense competition worldwide in the global payments industry; risks related to developing and maintaining effective internal controls over financial reporting; managing our growth effectively, including growing our revenue pipeline; any difficulties maintaining a strong and trusted brand; keeping pace with rapid technological developments; risks associated with the significant influence of our principal shareholders; the effect of regional epidemics or a global pandemic on our business; and other factors included in the “Risk Factors” in our Form 20-F and in other filings we make with the SEC, which are available at https://www.sec.gov. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.

The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events.

Paysafe Limited Condensed Consolidated Statements of Operations (unaudited)

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Revenue

 

$

401,000

 

 

$

417,738

 

Cost of services (excluding depreciation and amortization)

 

 

174,181

 

 

 

170,373

 

Selling, general and administrative

 

 

139,790

 

 

 

144,808

 

Depreciation and amortization

 

 

68,269

 

 

 

68,310

 

Impairment expense on goodwill and other assets

 

 

1,282

 

 

 

653

 

Restructuring and other costs

 

 

7,785

 

 

 

452

 

(Gain) / loss on disposal of subsidiaries and other assets, net

 

 

(626

)

 

 

177

 

Operating income

 

 

10,319

 

 

 

32,965

 

Other income, net

 

 

823

 

 

 

12,355

 

Interest expense, net

 

 

(33,673

)

 

 

(34,965

)

(Loss) / income before taxes

 

 

(22,531

)

 

 

10,355

 

Income tax (benefit) / expense

 

 

(3,059

)

 

 

7,299

 

Net (loss) / income

 

$

(19,472

)

 

$

3,056

 

 

 

 

 

 

 

 

Net (loss) / income per share – basic

 

$

(0.33

)

 

$

0.05

 

Net (loss) / income per share – diluted

 

$

(0.33

)

 

$

0.05

 

 

 

 

 

 

 

 

Net (loss) / income

 

$

(19,472

)

 

$

3,056

 

Other comprehensive income / (loss), net of tax of $0:

 

 

 

 

 

 

Gain / (loss) on foreign currency translation

 

 

4,076

 

 

 

(7,612

)

Total comprehensive loss

 

$

(15,396

)

 

$

(4,556

)

Paysafe Limited Consolidated Net Loss per share

 

Three Months Ended

 

 

March 31,

 

 

2025

 

 

2024

 

Numerator ($ in thousands)

 

 

 

 

 

Net (loss) / income - basic

$

(19,472

)

 

$

3,056

 

Net (loss) / income - diluted

$

(19,472

)

 

$

3,056

 

Denominator (in millions)

 

 

 

 

 

Weighted average shares – basic

 

59.8

 

 

 

61.6

 

Weighted average shares – diluted

 

59.8

 

 

 

62.0

 

Net (loss) / income per share

 

 

 

 

 

Basic

$

(0.33

)

 

$

0.05

 

Diluted

$

(0.33

)

 

$

0.05

 

Paysafe Limited Condensed Consolidated Balance Sheets (unaudited)

($ in thousands)

 

March 31, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

234,339

 

 

$

216,683

 

Customer accounts and other restricted cash

 

 

954,896

 

 

 

1,081,896

 

Accounts receivable, net of allowance for credit losses of $4,435 and $7,994, respectively

 

 

155,357

 

 

 

158,197

 

Settlement receivables, net of allowance for credit losses of $4,820 and $4,082, respectively

 

 

145,182

 

 

 

138,565

 

Prepaid expenses and other current assets

 

 

89,798

 

 

 

81,298

 

Derivative assets

 

 

3,413

 

 

 

—

 

Contingent consideration receivable – current

 

 

826

 

 

 

—

 

Total current assets

 

 

1,583,811

 

 

 

1,676,639

 

Deferred tax assets

 

 

91,304

 

 

 

91,304

 

Property, plant and equipment, net

 

 

26,013

 

 

 

24,297

 

Operating lease right-of-use assets

 

 

39,604

 

 

 

40,620

 

Derivative asset

 

 

150

 

 

 

5,502

 

Intangible assets, net

 

 

950,350

 

 

 

981,315

 

Goodwill

 

 

2,007,076

 

 

 

1,976,851

 

Contingent consideration receivable – non-current

 

 

3,312

 

 

 

—

 

Other assets – non-current

 

 

11,812

 

 

 

12,806

 

Total non-current assets

 

 

3,129,621

 

 

 

3,132,695

 

Total assets

 

$

4,713,432

 

 

$

4,809,334

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable and other liabilities

 

$

193,164

 

 

$

176,940

 

Short-term debt

 

 

10,190

 

 

 

10,190

 

Funds payable and amounts due to customers

 

 

1,139,759

 

 

 

1,235,104

 

Operating lease liabilities – current

 

 

8,060

 

 

 

7,653

 

Income taxes payable

 

 

3,269

 

 

 

5,495

 

Warrant liabilities

 

 

835

 

 

 

—

 

Contingent consideration payable – current

 

 

1,856

 

 

 

8,070

 

Liability for share-based compensation – current

 

 

2,638

 

 

 

2,126

 

Total current liabilities

 

 

1,359,771

 

 

 

1,445,578

 

Non-current debt

 

 

2,374,425

 

 

 

2,353,358

 

Operating lease liabilities – non-current

 

 

34,833

 

 

 

35,573

 

Deferred tax liabilities

 

 

80,238

 

 

 

91,570

 

Warrant liabilities

 

 

—

 

 

 

1,401

 

Derivative financial liabilities – non-current

 

 

224

 

 

 

—

 

Liability for share-based compensation – non-current

 

 

2,031

 

 

 

2,268

 

Contingent consideration payable – non-current

 

 

25

 

 

 

325

 

Total non-current liabilities

 

 

2,491,776

 

 

 

2,484,495

 

Total liabilities

 

 

3,851,547

 

 

 

3,930,073

 

Commitments and contingent liabilities

 

 

 

 

 

 

Total shareholders' equity

 

 

861,885

 

 

 

879,261

 

Total liabilities and shareholders' equity

 

$

4,713,432

 

 

$

4,809,334

 

Paysafe Limited Condensed Consolidated Statements of Cash Flow (unaudited)

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Cash flows from operating activities

 

 

 

 

 

 

Net (loss) / income

 

$

(19,472

)

 

$

3,056

 

Adjustments for non-cash items:

 

 

 

 

 

 

Depreciation and amortization

 

 

68,665

 

 

 

68,581

 

Unrealized foreign exchange gain

 

 

(5,169

)

 

 

(2,519

)

Deferred tax benefit

 

 

(12,129

)

 

 

(1,767

)

Interest expense, net

 

 

7,767

 

 

 

3,634

 

Share-based compensation

 

 

8,141

 

 

 

9,359

 

Other income, net

 

 

(809

)

 

 

(7,162

)

Impairment expense on goodwill and other assets

 

 

1,282

 

 

 

653

 

Allowance for credit losses and other

 

 

7,571

 

 

 

11,739

 

(Gain) / loss on disposal of subsidiary and other assets, net

 

 

(626

)

 

 

177

 

Non-cash lease expense

 

 

2,336

 

 

 

2,232

 

Movements in working capital:

 

 

 

 

 

 

Accounts receivable, net

 

 

(4,232

)

 

 

(24,222

)

Prepaid expenses, other current assets, and related party receivables

 

 

(9,186

)

 

 

(1,788

)

Accounts payable, other liabilities, and related party payables

 

 

5,809

 

 

 

(3,792

)

Income tax (receivable) / payable

 

 

2,531

 

 

 

654

 

Net cash flows from operating activities

 

 

52,479

 

 

 

58,835

 

Cash flows in investing activities

 

 

 

 

 

 

Purchase of property, plant & equipment

 

 

(4,329

)

 

 

(3,719

)

Other intangible asset expenditures

 

 

(22,892

)

 

 

(20,706

)

Disposal of subsidiary

 

 

1,948

 

 

 

—

 

Receipts under derivative financial instruments

 

 

1,312

 

 

 

2,531

 

Cash inflow from merchant reserves

 

 

—

 

 

 

6,510

 

Other investing activities, net

 

 

68

 

 

 

1,559

 

Net cash flows used in investing activities

 

 

(23,893

)

 

 

(13,825

)

Cash flows from financing activities

 

 

 

 

 

 

Repurchases of shares withheld for taxes

 

 

(560

)

 

 

(257

)

Proceeds from employee share purchase plan

 

 

540

 

 

 

—

 

Purchase of treasury shares

 

 

(9,998

)

 

 

(12,000

)

Settlement funds - merchants and customers, net

 

 

(134,041

)

 

 

(108,302

)

Repurchase of borrowings

 

 

—

 

 

 

(30,545

)

Proceeds from loans and borrowings

 

 

—

 

 

 

50,242

 

Repayments of loans and borrowings

 

 

(22,839

)

 

 

(33,759

)

Proceeds under line of credit

 

 

197,000

 

 

 

225,000

 

Repayments under line of credit

 

 

(201,000

)

 

 

(225,000

)

Contingent consideration paid

 

 

(6,476

)

 

 

(7,755

)

Other financing activities

 

 

300

 

 

 

—

 

Net cash flows used in financing activities

 

 

(177,074

)

 

 

(142,376

)

Effect of foreign exchange rate changes

 

 

39,144

 

 

 

(25,951

)

Decrease in cash and cash equivalents, including customer accounts and other restricted cash during the period

 

$

(109,344

)

 

$

(123,317

)

Cash and cash equivalents, including customer accounts and other restricted cash at beginning of the period

 

 

1,298,579

 

 

 

1,498,269

 

Cash and cash equivalents at end of the period, including customer accounts and other restricted cash

 

$

1,189,235

 

 

$

1,374,952

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2025

 

 

2024

 

Cash and cash equivalents

 

$

234,339

 

 

$

202,134

 

Customer accounts and other restricted cash

 

 

954,896

 

 

 

1,172,818

 

Total cash and cash equivalents, including customer accounts and other restricted cash

 

$

1,189,235

 

 

$

1,374,952

 

Non-GAAP Financial Measures

To supplement the Company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. This includes organic revenue growth, Gross Profit (excluding depreciation and amortization), Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage which are supplemental measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“U.S. GAAP”).

Organic revenue growth is defined as growth excluding the impact of foreign currency fluctuations, revenue from interest on consumer deposits, acquisitions, and dispositions. Management believes organic revenue growth to be useful to users of our financial data because it enables them to better understand underlying revenue growth from period to period excluding the impact of these non-organic items.

Gross Profit (excluding depreciation and amortization) is defined as revenue less cost of services (excluding depreciation and amortization). Management believes Gross Profit to be a useful profitability measure to assess the performance of our businesses and ability to manage cost.

Adjusted EBITDA is defined as net income/(loss) before the impact of income tax (benefit)/expense, interest expense, net, depreciation and amortization, share-based compensation, impairment expense on goodwill and other assets, restructuring and other costs, loss/(gain) on disposal of a subsidiaries and other assets, net, and other income/(expense), net. These adjustments also include certain costs and transaction items that are not reflective of the underlying operating performance of the Company. Management believes Adjusted EBITDA to be a useful profitability measure to assess the performance of our businesses and improves the comparability of operating results across reporting periods.

Adjusted net income excludes the impact of certain non-operational and non-cash items. Adjusted net income is defined as net income/(loss) attributable to the Company before the impact of other non-operating income / (expense), net, impairment expense on goodwill and other assets, restructuring and other costs, accelerated amortization of debt fees, amortization of acquired assets, loss/(gain) on disposal of subsidiaries and other assets, share-based compensation, discrete tax items and the income tax (benefit)/expense on these non-GAAP adjustments. Adjusted net income per share is adjusted net income as defined above divided by adjusted weighted average dilutive shares outstanding. Management believes the removal of certain non-operational and non-cash items from net income enhances shareholders' ability to evaluate the Company’s business performance and profitability by improving comparability of operating results across reporting periods.

Unlevered free cash flow is defined as net cash flows provided by/used in operating activities, adjusted for the impact of capital expenditure, payments relating to restructuring and other costs and cash paid for interest. Capital expenditure includes purchases of property plant & equipment and purchases of other intangible assets, including software development costs. Capital expenditure does not include purchases of merchant portfolios. Management believes unlevered free cash flow to be a liquidity measure that provides useful information about the amount of cash generated by the business.

Net leverage is defined as net debt (gross debt less cash and cash equivalents) divided by the last twelve months Adjusted EBITDA. Management believes net leverage is a useful measure of the Company's credit position and progress towards leverage targets.

Management believes the presentation of these non-GAAP financial measures, including Gross Profit, Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage when considered together with the Company’s results presented in accordance with GAAP, provide users with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of Paysafe’s core operating performance. In addition, management believes the presentation of these non-GAAP financial measures provides useful supplemental information in assessing the Company’s results on a basis that fosters comparability across periods by excluding the impact on the Company’s reported GAAP results of acquisitions and dispositions that have occurred in such periods. However, these non-GAAP measures exclude items that are significant in understanding and assessing Paysafe’s financial results or position.

Therefore, these measures should not be considered in isolation or as alternatives to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP.

You should be aware that Paysafe’s presentation of these measures may not be comparable to similarly titled measures used by other companies. In addition, the forward-looking non-GAAP financial measure of Adjusted EBITDA provided herein have not been reconciled to the comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. We have reconciled the historical non-GAAP financial measures presented herein to their most directly comparable GAAP financial measures. A reconciliation of our forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.

Reconciliation of GAAP Net (Loss) / Income to Adjusted EBITDA

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Net (loss) / income

 

$

(19,472

)

 

$

3,056

 

Income tax (benefit) / expense

 

 

(3,059

)

 

 

7,299

 

Interest expense, net

 

 

33,673

 

 

 

34,965

 

Depreciation and amortization

 

 

68,269

 

 

 

68,310

 

Share-based compensation expense

 

 

8,141

 

 

 

9,359

 

Impairment expense on goodwill and other assets

 

 

1,282

 

 

 

653

 

Restructuring and other costs

 

 

7,785

 

 

 

452

 

(Gain) / loss on disposal of subsidiaries and other assets, net

 

 

(626

)

 

 

177

 

Other income, net

 

 

(823

)

 

 

(12,355

)

Adjusted EBITDA

 

$

95,170

 

 

$

111,916

 

Reconciliation of Revenue to Non-GAAP Organic Revenue

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Revenue

 

$

401,000

 

 

$

417,738

 

Currency adjustment (1)

 

 

5,430

 

 

 

—

 

Interest revenue adjustment (2)

 

 

(5,647

)

 

 

(9,475

)

Disposal adjustments (3)

 

 

(5,213

)

 

 

(30,665

)

Organic revenue (4)

 

$

395,570

 

 

$

377,598

 

(1)

This adjustment eliminates the impact of foreign exchange on revenue.

(2)

This adjustment eliminates the impact of revenue from interest on consumer deposits adjusted to exclude the effect of any fluctuations in foreign exchange rates.

(3)

This adjustment eliminates all revenue generated from the direct marketing payments processing business line that was disposed of during the three months ended March 31, 2025.

(4)

Organic revenue is defined as revenues in the stated period excluding the impact from acquisitions, dispositions, foreign currency fluctuations and interest revenue on consumer deposits. For dispositions in the current year, the pre-disposition results are excluded from the organic revenue calculations. There were no acquisitions requiring adjustments in the stated periods. Reported revenue growth and organic revenue growth for the three months ended March 31, 2025 was -4% and 5%, respectively. Organic revenue growth is measured as the change in organic revenue for the current period, divided by organic revenue from the prior period.

Reconciliation of Revenue to Non-GAAP Organic Revenue by Segment

Merchant Solutions

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Revenue

 

$

217,786

 

 

$

231,398

 

Currency adjustment (1)

 

 

148

 

 

 

—

 

Interest revenue adjustment (2)

 

 

(460

)

 

 

(618

)

Disposal adjustments (3)

 

 

(5,213

)

 

 

(30,665

)

Organic revenue (4)

 

$

212,261

 

 

$

200,115

 

Digital Wallets

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Revenue

 

$

187,567

 

 

$

190,457

 

Currency adjustment (1)

 

 

5,282

 

 

 

—

 

Interest revenue adjustment (2)

 

 

(5,187

)

 

 

(8,857

)

Organic revenue (4)

 

$

187,662

 

 

$

181,600

 

(1)

This adjustment eliminates the impact of foreign exchange on revenue.

(2)

This adjustment eliminates the impact of revenue from interest on consumer deposits adjusted to exclude the effect of any fluctuations in foreign exchange rates.

(3)

This adjustment eliminates all revenue generated from the direct marketing payments processing business line that was disposed of during the three months ended March 31, 2025.

(4)

Organic revenue is defined as revenues in the stated period excluding the impact from acquisitions, dispositions, foreign currency fluctuations and interest revenue on consumer deposits. For dispositions in the current year, the pre-disposition results are excluded from the organic revenue calculations. There were no acquisitions requiring adjustments in the stated periods. Reported revenue growth and organic revenue growth for the three months ended March 31, 2025 was -2% and 3%, respectively, for the Digital Wallets segment and was -6% and 6%, respectively, for the Merchant Solutions segment. Organic revenue growth is measured as the change in organic revenue for the current period, divided by organic revenue from the prior period.

Reconciliation of Operating Cash Flow to Non-GAAP Unlevered Free Cash Flow

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Net cash inflows from operating activities

 

$

52,479

 

 

$

58,835

 

Capital expenditure

 

 

(27,221

)

 

 

(24,425

)

Cash paid for interest

 

 

25,906

 

 

 

31,331

 

Payments relating to Restructuring and other costs

 

 

6,181

 

 

 

3,453

 

Unlevered Free Cash Flow

 

$

57,345

 

 

$

69,194

 

Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (excluding depreciation and amortization)

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Revenue

 

$

401,000

 

 

$

417,738

 

Cost of services (excluding depreciation and amortization)

 

 

174,181

 

 

 

170,373

 

Depreciation and amortization

 

 

68,269

 

 

 

68,310

 

Gross Profit (1)

 

$

158,550

 

 

$

179,055

 

Depreciation and amortization

 

 

68,269

 

 

 

68,310

 

Gross Profit (excluding depreciation and amortization)

 

$

226,819

 

 

$

247,365

 

(1)

Gross Profit has been calculated as revenue, less cost of services and depreciation and amortization. Gross profit is not presented within the Company's consolidated financial statements.

Reconciliation of GAAP Net (Loss) / Income to Adjusted Net Income

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Net (loss) / income

 

$

(19,472

)

 

$

3,056

 

Other non operating expense / (income), net (1)

 

 

564

 

 

 

(9,774

)

Impairment expense on goodwill and other assets

 

 

1,282

 

 

 

653

 

Amortization of acquired assets (2)

 

 

33,268

 

 

 

33,603

 

Restructuring and other costs

 

 

7,785

 

 

 

452

 

(Gain) / loss on disposal of subsidiaries and other assets, net

 

 

(626

)

 

 

177

 

Share-based compensation expense

 

 

8,141

 

 

 

9,359

 

Discrete tax items (3)

 

 

3,430

 

 

 

5,465

 

Income tax expense on non-GAAP adjustments (4)

 

 

(13,459

)

 

 

(7,685

)

Adjusted net income

 

$

20,913

 

 

$

35,306

 

(in millions)

 

 

 

 

 

 

Weighted average shares - diluted

 

 

59.8

 

 

 

62.0

 

Adjusted diluted impact

 

 

1.5

 

 

 

0.0

 

Adjusted weighted average shares - diluted

 

 

61.3

 

 

 

62.0

 

(1)

Other non-operating expense / (income), net primarily consists of income and expenses outside of the Company's operating activities, including, fair value gain / loss on warrant liabilities and derivatives, gain / loss on repurchases of debt, gain / loss on foreign exchange and the release of certain provisions.

(2)

Amortization of acquired asset represents amortization expense on the fair value of intangible assets acquired through various Company acquisitions, including brands, customer relationships, software and merchant portfolios.

(3)

Discrete tax items mainly represent (a) valuation allowance benefit recorded on deferred tax assets representing $3,801 and $5,502 for the three months ended March 31, 2025 and 2024, respectively (b) measurement period adjustments which were $0 and ($57) for the three months ended March 31, 2025 and 2024, respectively, and (c) discrete tax expense on share-based compensation, which would not have been incurred as share-based compensation expense is removed from adjusted net income, of $0 and $182 for the three months ended March 31, 2025 and 2024, respectively. The remaining discrete tax items mainly relate to the movement in uncertain tax provisions relating to prior years.

(4)

Income tax expense on non-GAAP adjustments reflects the tax expense on each taxable adjustment using the current statutory tax rate of the applicable jurisdiction specific to that adjustment.

Adjusted Net Income per Share

 

Three Months Ended

 

 

March 31,

 

 

2025

 

 

2024

 

Numerator ($ in thousands)

 

 

 

 

 

Adjusted net income - basic

$

20,913

 

 

$

35,306

 

Adjusted net income - diluted

$

20,913

 

 

$

35,306

 

Denominator (in millions)

 

 

 

 

 

Weighted average shares – basic

 

59.8

 

 

 

61.6

 

Adjusted weighted average shares – diluted (1)

 

61.3

 

 

 

62.0

 

Adjusted net income per share

 

 

 

 

 

Basic

$

0.35

 

 

$

0.57

 

Diluted

$

0.34

 

 

$

0.57

 

(1)

The denominator used in the calculation of diluted adjusted net income per share for the three months ended March 31, 2024 and 2025 includes the dilutive effect of the Company's restricted stock units.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250513128103/en/

Media Crystal Wright Paysafe +1 (904) 328-7740 crystal.wright@paysafe.com

Investors Kirsten Nielsen Paysafe +1 (646) 901-3140 kirsten.nielsen@paysafe.com