Paysafe Ltd (PSFE)
NYSE:PSFE
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Paysafe
(NYSE:PSFE)
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Rating:50Neutral
Price Target:
$9.00
▲(26.58% Upside)
Action:ReiteratedDate:03/05/26
The score is held back primarily by pressured and volatile profitability and high leverage despite solid free cash flow generation. Technicals are mixed with negative MACD and the stock still below longer-term moving averages. Offsetting factors include constructive 2026 guidance and a stated plan to deleverage, but valuation remains unattractive/unclear given the negative P/E.
Positive Factors
Strong free cash flow generation
Paysafe's robust free cash flow generation is a durable strength: $298M unlevered FCF in 2025 and 101% Q4 cash conversion provide steady internal funding to pay down debt, support strategic investments, and optionally return capital, improving financial flexibility over the medium term.
Negative Factors
Elevated leverage and debt burden
High absolute debt and elevated net leverage materially constrain financial flexibility. With ~$2.66B of debt and net leverage around 5.5x, Paysafe faces refinancing and interest‑cost risk, limiting the pace of organic investment or M&A and making sustained deleveraging critical to reduce credit and cyclical vulnerabilities.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Paysafe's robust free cash flow generation is a durable strength: $298M unlevered FCF in 2025 and 101% Q4 cash conversion provide steady internal funding to pay down debt, support strategic investments, and optionally return capital, improving financial flexibility over the medium term.
Read all positive factors
Paysafe (PSFE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$459.74M
Dividend YieldN/A
Average Volume (3M)361.49K
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth-0.20%
EPS Growth-958.94%
CountryUS
Employees3,300
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.46
Shares Outstanding51,252,865
10 Day Avg. Volume433,596
30 Day Avg. Volume361,493
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.72
Price to Sales (P/S)0.28
P/FCF Ratio2.10
Enterprise Value/Market Cap3.86
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit1.99
Enterprise Value/Ebitda4.55
Forecast
1Y Price Target
$8.79Price Target Upside23.59% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.19
Revenue Forecast (FY)$1.80B
Paysafe Business Overview & Revenue Model
Company Description
Paysafe Limited provides digital commerce solutions to online businesses, small and medium-sized business merchants, and consumers through its Paysafe Network worldwide. The company operates in two segments, US Acquiring and Digital Commerce. It p...
How the Company Makes Money
Paysafe primarily makes money by charging fees for enabling payments across its product suite. (1) Merchant acquiring/payment processing: Paysafe earns revenue by processing card and alternative-payment transactions for merchants; economics are ty...
Paysafe Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and product momentum (notably in e-commerce, digital wallets, Paysafe wallet adoption, vitality-driven revenues, strong free cash flow, and a constructive FY2026 guide) against near-term margin pressure, EPS decline, SMB softness, and an elevated leverage ratio driven partly by FX and a prior-year divestiture. Management emphasized modernization, AI-driven efficiency, and a path to de-leveraging in 2026, positioning the company for potential reacceleration while acknowledging short-term mix and timing headwinds.Positive Updates
Consistent Organic Revenue Growth
Full-year revenue of $1.7 billion with organic revenue growth of roughly 5%–6% (company reported 6% excluding disposition; CFO noted ~5% organic including FX/interest/disposition adjustments). Q4 revenue was $438.4 million, up 4% year-over-year (reported and organic).
Negative Updates
Adjusted EBITDA and EPS Pressure
Full-year adjusted EBITDA declined 5% to $429 million with adjusted EBITDA margin at 25.2%. Adjusted EPS declined 9% to $1.95 for the full year; Q4 adjusted EBITDA fell 1% to $102.1 million and Q4 adjusted EPS declined 4% to $0.46.
Read all updates
Q4-2025 Updates
Positive
Negative
Consistent Organic Revenue Growth
Full-year revenue of $1.7 billion with organic revenue growth of roughly 5%–6% (company reported 6% excluding disposition; CFO noted ~5% organic including FX/interest/disposition adjustments). Q4 revenue was $438.4 million, up 4% year-over-year (reported and organic).
Read all positive updates
Company Guidance
Paysafe guided 2026 revenue of $1.79–$1.83 billion (5%–8% reported growth, roughly 5%–7% organic growth with a modest FX uplift mainly in H1), with Q1 and H1 organic growth expected in the mid‑single digits and the second half improving toward the high single digits; adjusted EBITDA is forecast at $449–$464 million (5%–8% growth) with first‑half margins around 24% and second‑half margins above 25%, leaving full‑year adjusted EBITDA margin roughly flat versus 2025 (25.2%); adjusted EPS is guided to $2.12–$2.32 (aiming for double‑digit growth from $1.95 in 2025). Management emphasized continued strong free cash flow and deleveraging—having generated $298 million of unlevered FCF in 2025 (101% cash conversion in Q4) and ending 2025 with net leverage of 5.5x—and expects to reduce net leverage below 5.0x by year‑end (they repaid $64 million of the revolver in January), while still returning capital opportunistically after allocating >$90 million to buybacks in 2025.Paysafe Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.70B | 1.70B | 1.60B | 1.50B | 1.49B |
| Gross Profit | 686.08M | 989.07M | 937.93M | 882.11M | 887.24M |
| EBITDA | 396.54M | 412.35M | 427.61M | 292.78M | 342.13M |
| Net Income | -182.51M | 22.16M | -20.25M | -1.86B | -110.95M |
Balance Sheet | |||||
| Total Assets | 4.80B | 4.81B | 5.23B | 5.96B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 1.35B | 216.68M | 202.32M | 260.22M | 313.44M |
| Total Debt | 2.66B | 2.41B | 2.53B | 2.68B | 2.80B |
| Total Liabilities | 4.15B | 3.93B | 4.34B | 5.10B | 4.56B |
| Stockholders Equity | 655.04M | 879.26M | 883.31M | 859.64M | 2.57B |
Cash Flow | |||||
| Free Cash Flow | 223.58M | 133.31M | 101.12M | 912.75M | 113.71M |
| Operating Cash Flow | 236.16M | 253.80M | 234.02M | 917.30M | 261.46M |
| Investing Cash Flow | -140.41M | -108.38M | -135.24M | -575.59M | -411.27M |
| Financing Cash Flow | -163.38M | -280.80M | -771.03M | -73.76M | 446.29M |
Paysafe Technical Analysis
Positive
7.11
Price Trends
7.01
Positive
7.38
Positive
9.93
Negative
Market Momentum
0.41
Negative
76.05
Negative
93.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSFE, the sentiment is Positive. The current price of 7.11 is below the 20-day moving average (MA) of 7.29, above the 50-day MA of 7.01, and below the 200-day MA of 9.93, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 76.05 is Negative, neither overbought nor oversold. The STOCH value of 93.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSFE.
Paysafe Risk Analysis
Paysafe disclosed 50 risk factors in its most recent earnings report. Paysafe reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Paysafe Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $49.85B | 14.68 | 31.77% | 2.58% | 4.85% | 6.19% | |
70 Outperform | $3.52B | 61.03 | 12.67% | ― | 37.25% | 50.54% | |
66 Neutral | $22.14B | 15.72 | 15.03% | 2.78% | -0.55% | -3.97% | |
66 Neutral | $1.66B | 128.39 | 1.67% | ― | 26.59% | 404.59% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $459.74M | -2.58 | -24.06% | ― | -0.20% | -958.94% | |
50 Neutral | $9.98B | -8.65 | -39.77% | ― | ― | 3.79% |
* Technology Sector Average
PSFE
Paysafe
8.97
-6.40
-41.64%
INFY
Infosys
12.34
-4.83
-28.13%
WIT
Wipro
2.02
-0.73
-26.44%
AUR
Aurora Innovation
5.09
-1.79
-26.02%
FLYW
Flywire
13.68
4.11
42.95%
PAY
Paymentus Holdings
27.97
-5.48
-16.38%
Paysafe Corporate Events
Paysafe Sets May 26, 2026 Virtual AGM to Re-elect Directors and Confirm Auditor
Apr 10, 2026
Paysafe Limited has scheduled its 2026 Annual General Meeting of Shareholders for May 26, 2026, to be held virtually via video conference at 10:30 a.m. Eastern Time, with April 1, 2026 set as the record date for shareholders eligible to vote. The ...
Paysafe Posts 2025 Loss Despite Organic Growth and Stable Cash Flow
Mar 3, 2026
Paysafe reported its fourth-quarter and full-year 2025 results on March 3, 2026, showing modest organic revenue growth but weaker profitability. Quarterly revenue rose 4% year on year to $438.4 million, driven by double-digit e-commerce growth in ...
Paysafe Overhauls Board, Adds Four Non‑Executive Directors to Support Growth Strategy
Feb 27, 2026
Paysafe announced that on February 26, 2026 it expanded its board of directors from ten to twelve members and appointed four new non-executive directors with deep expertise in global payments, technology, product innovation and marketing. The new ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.