Paysafe Q4 Earnings Call Highlights

Paysafe (NYSE:PSFE) executives highlighted a third consecutive year of organic revenue growth and ongoing platform modernization during the company’s fourth-quarter and full-year 2025 earnings call, while acknowledging that business mix dynamics weighed on margins versus earlier expectations.

Full-year 2025 results and business mix

For 2025, Paysafe reported $1.7 billion in revenue, which management said represented 6% growth excluding the impact of a business disposition. CEO Bruce Lowthers said softer results in the SMB business were offset by double-digit growth from e-commerce, including “record iGaming volumes across the U.S. football season.” Lowthers also pointed to strong demand for local payment solutions in Latin America and increased consumer engagement from product initiatives in Europe.

The company generated $298 million in unlevered free cash flow in 2025, which Lowthers said came “despite divesting a business line that generated $40 million in EBITDA the prior year.” Paysafe returned more than $90 million to shareholders in 2025 through share repurchases, though management emphasized that deleveraging will take priority in 2026.

Lowthers described revenue growth as balanced between the existing client base and new sales and product initiatives, contributing 8% and 10% to revenue growth, respectively. Revenue attrition was 12% for the year (11% in Q4), slightly above the company’s original expectation, with improvement over the course of the year.

Segment performance: e-commerce strength, SMB softer, wallets grew

CFO John Crawford said Q4 revenue was $438.4 million, up 4% on a reported and organic basis. Organic growth in the quarter included 6% growth from digital wallets (led by Latin America) and 2% organic growth in merchant solutions, driven by e-commerce volumes that offset a decline in SMB.

For the full year, Crawford said reported revenue was flat year over year at $1.7 billion, while organic revenue growth was 5% excluding foreign exchange, interest revenue, and the disposed business. Adjusted EBITDA declined 5% to $429 million and adjusted EBITDA margin was 25.2%. Crawford said that excluding the disposed business (a $41 million headwind), adjusted EBITDA margin would have declined only 40 basis points, with gross margin pressure driven by mix and lower interest revenue, partially offset by cost management.

• Merchant Solutions: Q4 revenue was $222.7 million and full-year revenue was $904.7 million. Organic growth was 2% in Q4 and 5% for the year. E-commerce grew 24% in Q4 and 27% for the year, while SMB declined 3% in Q4 and grew 1% for the year. Segment Q4 adjusted EBITDA was $28.8 million (12.9% margin) and full-year adjusted EBITDA was $145.7 million (16.1% margin). Crawford attributed margin pressure mainly to channel mix, as growth in the third-party ISO channel outpaced higher-margin direct sales.
• Digital Wallets: Q4 revenue rose 13% to $220.2 million (6% organic), with full-year revenue of $815 million (6% reported growth and 4% organic). Q4 adjusted EBITDA grew 4% to $93.1 million (42.3% margin), and full-year adjusted EBITDA was $352 million (43.2% margin). Crawford said wallet margins were pressured by lower interest revenue and product mix, including higher growth in eCash products.

Lowthers said digital wallet active users reached 7.8 million at quarter-end, the highest level in three years, representing 6% year-over-year growth. Transactions per user increased 6%, while ARPU was described as relatively stable. He also noted that Skrill maintained a stable base above 900,000 active users for five consecutive quarters, though it did not accelerate to the level the company had planned in 2025.

Product innovation and the “Vitality Index”

Management repeatedly emphasized product innovation as a key part of Paysafe’s strategy. Lowthers said the company’s “Vitality Index”—revenue from new product initiatives—reached $270 million in 2025, representing 16% of total company revenue, up from less than 2% in 2022. He described this as enabling Paysafe to reduce higher-risk, non-core revenue streams while improving the overall growth profile.

Lowthers also discussed the company’s recently rebranded “Paysafe Wallet” (formerly described as an eCash business account and card product). He said the product includes a personal bank account and debit card functionality and has been launched in 18 countries. Sign-ups surpassed 500,000 by October 2025, and Lowthers said customer acquisition costs were about $21, aided by Paysafe’s ability to market to its existing base of roughly 8 million active users. For 2026, management said it expects Paysafe Wallet growth to be primarily driven within Europe rather than through aggressive expansion outside the region.

Costs, cash flow, leverage, and capital allocation

In Q4, adjusted EBITDA declined 1% to $102.1 million, and adjusted EBITDA margin fell 130 basis points, which Crawford attributed mainly to higher marketing investment and operating expense timing items. Paysafe generated $103 million in unlevered free cash flow in the quarter, with a cash flow conversion rate of 101%, benefiting from a license deal completed in Q3 and timing-related working capital flows. Full-year cash conversion was 69%, which management said was at the high end of its targeted range.

On leverage, Crawford said total debt was $2.6 billion at year-end, up $252 million, largely due to euro-U.S. dollar exchange-rate effects and net withdrawals. Net leverage rose to 5.5x from 4.7x at the end of 2024, driven by FX and the business disposal. Management said it repaid $64 million of its revolver in January and expects to reduce net leverage to below 5x by the end of 2026, while continuing to view the shares as materially undervalued but prioritizing debt repayment this year.

2026 outlook and key priorities

Paysafe’s 2026 guidance was reiterated as consistent with commentary provided in November. The company expects revenue of $1.79 billion to $1.83 billion, representing 5% to 8% growth (roughly 5% to 7% organic growth), with organic growth in the first half expected to be mid-single digits and the second half improving toward higher single digits. Adjusted EBITDA is expected to range from $449 million to $464 million, also 5% to 8% growth, with first-half adjusted EBITDA margins around 24% and second-half margins averaging above 25%, resulting in a flat full-year margin versus 2025. Adjusted EPS is expected to be $2.12 to $2.32, which management characterized as aiming for double-digit growth versus 2025.

During Q&A, Lowthers addressed SMB re-acceleration efforts, citing a new leadership team, tighter marketing focus, strength in the direct channel, and momentum from Clover sales in Q4. He said Paysafe saw significant lift with Clover and described new MID growth “north of 30%” year-over-year in Q4 with Clover. He also discussed a new agent program, positioning it as a hybrid approach between ISO and direct channels.

On enterprise, management said total deal count rose 38% versus 2024, with 10% growth in larger-sized deals. Cross-selling was highlighted as 40% of total bookings coming from existing clients, which Lowthers contrasted with minimal cross-sell activity several years ago. Paysafe also disclosed that its enterprise sales team count was about 132 and that headcount was relatively consistent year over year.

Lowthers also discussed the company’s focus on AI and “agentic commerce,” describing it as a potential total addressable market expansion and an area requiring extensive governance and industry standards development, particularly around liability management. He said Paysafe has been engaging with major technology players and protocols as the space evolves.

In closing remarks, Lowthers said Paysafe is entering 2026 from what management views as a “clean year” following the divestiture-related comparisons. He also noted that the company added four new board members—Rupert Keeley, Pete Thompson, Karin Timpone, and Eliot Wiseman—and thanked departing board members Peter Rutland and Matthew Bryant.

About Paysafe (NYSE:PSFE)

Paysafe is a global payments provider that delivers a comprehensive suite of online and offline payment solutions. The company operates a diverse portfolio of products, including digital wallets under the Skrill and Neteller brands, prepaid voucher services through paysafecard, and integrated payment processing solutions for merchants. Paysafe’s platform is designed to serve a wide range of industries, from e-commerce and digital goods to gaming, financial services, and regulated verticals, offering tailored risk and compliance management alongside its core transaction capabilities.

Founded through a series of mergers and strategic acquisitions, Paysafe traces its origins to the launch of paysafecard in 2000 and the establishment of Optimal Payments in 1996.