Paysafe (NYSE:PSFE) Releases Quarterly Earnings Results

Paysafe (NYSE:PSFE) announced its quarterly earnings data on Thursday. The company reported $0.44 EPS for the quarter, missing the consensus estimate of $0.55 by ($0.11), FiscalAI reports. The business had revenue of $439.57 million during the quarter, compared to the consensus estimate of $448.53 million. Paysafe had a negative net margin of 11.82% and a positive return on equity of 10.31%. Paysafe updated its FY 2026 guidance to 1.450-1.540 EPS.

Here are the key takeaways from Paysafe’s conference call:

• Q3 revenue rose just 1% year over year, while Adjusted EBITDA fell 17% and margin declined to 24%. The company cited tougher regulatory and market conditions, unfavorable foreign exchange, weaker-than-expected sales ramp-up, and higher expenses; a $203 million goodwill impairment contributed to a GAAP net loss but was non-cash.
• Paysafe lowered its full-year outlook to approximately 4% revenue growth, with management expecting headwinds to weigh more heavily in Q4, particularly in digital wallets, crypto, and financial trading. Executives said it remains unclear how much of the pressure will extend into 2027.
• Three-month active users grew 14% to 8.1 million, and newer products showed strong growth: PaysafeWallet rose more than 30%, PagoEfectivo’s wallet user base grew more than 40%, and video gaming grew over 20%. Management cautioned that these initiatives are not yet large enough to offset headwinds, and digital-wallet ARPU declined 10% amid mix shifts.
• Merchant Solutions revenue increased 2%, with double-digit growth in iGaming and direct SMB sales; combined direct and agent-channel revenue grew 8%, supported by a 17% year-to-date increase in active agents. Management expects SMB to maintain a mid-single-digit growth profile, while non-gaming e-commerce remains more challenged.
• Net leverage was 5.5x at quarter-end and is expected to remain around that level at year-end, partly reflecting refinancing costs and a $39 million litigation payment. Management said it is targeting roughly half a turn of deleveraging annually over the next two to three years, supported by free cash flow and efforts to release cash tied up in working capital and banking arrangements.

Paysafe Trading Down 43.2%

Shares of NYSE PSFE traded down $2.94 during midday trading on Thursday, reaching $3.88. 3,170,031 shares of the stock were exchanged, compared to its average volume of 406,000. The stock has a market capitalization of $200.26 million, a P/E ratio of -1.02 and a beta of 1.80. The company has a debt-to-equity ratio of 4.38, a quick ratio of 1.17 and a current ratio of 1.17. Paysafe has a twelve month low of $3.81 and a twelve month high of $10.04. The company has a 50 day simple moving average of $6.01 and a 200 day simple moving average of $7.08.

Insider Activity

In other news, insider Richard Swales sold 10,000 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $6.58, for a total transaction of $65,800.00. Following the sale, the insider owned 34,456 shares of the company’s stock, valued at approximately $226,720.48. This represents a 22.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analyst Weigh In

PSFE has been the subject of several recent analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Paysafe in a research note on Wednesday, November 4th. Wall Street Zen cut shares of Paysafe from a “buy” rating to a “hold” rating in a report on Monday, August 3rd. BTIG Research dropped their price objective on shares of Paysafe from $12.00 to $11.00 and set a “buy” rating on the stock in a report on Wednesday, July 29th. Susquehanna set a $7.00 target price on Paysafe and gave the company a “neutral” rating in a research report on Wednesday, August 12th. Finally, Royal Bank Of Canada set a $9.00 target price on Paysafe and gave the stock a “sector perform” rating in a research note on Friday, August 14th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus price target of $8.50.

Key Headlines Impacting Paysafe

These are some of the PSFE headlines that stood out recently:

• Neutral Sentiment: Paysafe forecast 2026 revenue of about $1.8 billion, matching analyst expectations. Its Nov. 12 Form 6-K also included unaudited financial statements for the quarter ended Sept. 30. Paysafe’s Nov. 12 Form 6-K Includes Sept. 30 Financial Statements
• Negative Sentiment: Q3 adjusted EPS was $0.44, short of the $0.55 consensus, while revenue of $439.57 million also missed expectations of $448.53 million. The earnings and revenue shortfalls contributed to a sharp decline in PSFE shares. Paysafe tumbles 30% on earnings miss and weak guidance
• Negative Sentiment: Paysafe set 2026 EPS guidance at $1.45–$1.54, well below the $1.92 analyst consensus. This outlook suggests earnings may be weaker than investors had anticipated. Paysafe Reports Third Quarter 2026 Results

Paysafe Company Profile

Paysafe Limited is a payments technology company that provides services to businesses and consumers. Its offerings include payment processing and merchant solutions, digital wallets, and prepaid payment products designed for online and in-person transactions. The company’s consumer brands include Skrill and NETELLER digital wallets and paysafecard, a prepaid option that lets customers pay online without using a traditional payment card. Paysafe also supports merchants with tools for accepting and managing payments across digital channels.