Paysafe (PSFE) AI Stock Analysis

• Market Cap: $723.23M
• Dividend Yield: N/A
• Average Volume (3M): 243.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 0.47%
• EPS Growth: -292.07%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.46
• Shares Outstanding: 58,846,733
• 10 Day Avg. Volume: 223,916
• 30 Day Avg. Volume: 242,997
• PEG Ratio: -0.22
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 7.81
• Enterprise Value/Market Cap: 4.26
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 8.37
• 1Y Price Target: $17.03
• Price Target Upside: 38.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 46 Neutral
• Price Target: $11.50 ▼(-6.43% Downside)

Paysafe's overall stock score reflects significant financial challenges, with declining revenues and high leverage being major concerns. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to negative earnings. Despite these issues, the earnings call provided some optimism with strong organic growth and strategic initiatives, slightly offsetting the negative aspects.

Positive Factors

Strategic Partnerships

The partnership with CMC Markets expands Paysafe's reach in the European Economic Area, south-east Asia, and the Middle East, enhancing its market position and offering new growth opportunities in these regions.

Product Innovations

The launch of new products like PagoEfectivo and enhancements to existing ones like the Skrill wallet demonstrate Paysafe's commitment to innovation, which can drive user engagement and revenue growth.

E-commerce Growth

Strong e-commerce growth, particularly in iGaming and other verticals, indicates a robust demand for Paysafe's services and positions the company well in the growing digital economy.

Negative Factors

Revenue Decline

A decline in revenue, despite organic growth, suggests challenges in maintaining overall sales momentum, which could impact long-term financial stability if not addressed.

High Leverage

Increased leverage can strain financial resources and limit flexibility, posing risks to Paysafe's ability to invest in growth and manage economic downturns effectively.

Gross Margin Decline

A decline in gross margin indicates potential challenges in cost management and pricing power, which could affect profitability if not mitigated through strategic adjustments.

Paysafe Business Overview & Revenue Model

Company Description

Paysafe (PSFE) is a leading global payment solutions provider that specializes in digital payments and online cash solutions. The company operates in various sectors, including e-commerce, gaming, and financial services, offering a range of products and services such as payment processing, digital wallets, and prepaid card solutions. Paysafe aims to facilitate seamless and secure transactions for businesses and consumers across multiple channels and platforms, thereby enhancing the customer experience in the evolving digital economy.

How the Company Makes Money

Paysafe generates revenue through multiple streams, primarily from transaction processing fees, which are charged to merchants for processing payments made through its payment platforms. The company also earns money from fees associated with its digital wallet services, such as Skrill and Neteller, which include currency conversion fees and withdrawal charges. Additionally, Paysafe profits from its prepaid card services, where it charges fees for card issuance and reloads. Significant partnerships with various online merchants and platforms, particularly in the gaming and online gambling sectors, contribute to its earnings by driving transaction volumes. Moreover, Paysafe's focus on expanding its technological capabilities and enhancing its product offerings plays a crucial role in attracting new clients and retaining existing ones, thereby bolstering its overall revenue.

Paysafe Financial Statement Overview

Summary

Paysafe demonstrates steady revenue growth and improved profitability over recent years. However, the company faces challenges with its high leverage, which could impact financial stability. Cash flow generation is adequate, though growth in free cash flow is limited. Overall, while Paysafe shows positive trends, it must manage its debt levels to ensure long-term financial health.

Income Statement

Paysafe's revenue has shown a steady growth trajectory, increasing from $1.42 billion in 2020 to $1.70 billion in 2024. The gross profit margin remains strong at 58%, while the net profit margin improved to 1.3% in 2024 from negative values in previous years. Despite this, EBIT and EBITDA margins reveal moderate profitability. The revenue growth rate between 2023 and 2024 was approximately 6.5%, reflecting stable growth.

Balance Sheet

Paysafe's balance sheet reveals a high debt-to-equity ratio of 2.74, suggesting significant leverage, which poses financial risks. The equity ratio is relatively low at 18.3%, indicating a higher dependence on liabilities. However, the return on equity (ROE) improved to 2.52% in 2024, showing a positive yet modest return on shareholders' capital.

Cash Flow

The cash flow statement indicates a stable operating cash flow, with a free cash flow growth rate of 1.1% from 2023 to 2024. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio is lower, reflecting reduced cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.68B	1.70B	1.60B	1.50B	1.49B	1.43B
Gross Profit	950.47M	989.07M	673.78M	882.11M	887.24M	891.67M
EBITDA	367.63M	429.58M	435.88M	-1.52B	241.28M	257.60M
Net Income	-49.07M	22.16M	-20.25M	-1.86B	-110.33M	-126.71M
Balance Sheet
Total Assets	4.91B	4.81B	5.23B	5.96B	7.27B	7.41B
Cash, Cash Equivalents and Short-Term Investments	266.08M	216.68M	202.32M	260.22M	313.44M	387.62M
Total Debt	2.60B	2.41B	2.53B	2.68B	2.80B	3.31B
Total Liabilities	4.10B	3.93B	4.34B	5.10B	4.56B	5.48B
Stockholders Equity	806.92M	879.26M	883.31M	859.64M	2.57B	1.92B
Cash Flow
Free Cash Flow	104.65M	133.31M	131.85M	774.03M	76.72M	322.19M
Operating Cash Flow	232.89M	253.80M	234.02M	924.08M	224.47M	409.11M
Investing Cash Flow	-128.83M	-108.38M	-135.24M	-575.59M	-411.27M	-51.22M
Financing Cash Flow	-200.98M	-280.80M	-771.03M	-80.54M	483.28M	-75.47M

Paysafe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSFE, the sentiment is Negative. The current price of 12.29 is below the 20-day moving average (MA) of 12.36, below the 50-day MA of 13.16, and below the 200-day MA of 14.66, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 34.53 is Neutral, neither overbought nor oversold. The STOCH value of 38.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSFE.

Paysafe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	―	$70.63B	21.40	29.15%	3.08%	4.62%	1.06%
WIT	―	$28.73B	17.85	16.39%	3.09%	-1.97%	48.61%
PAY	―	$3.84B	70.22	11.59%	―	49.35%	72.05%
FLYW	―	$1.67B	331.75	0.86%	―	22.20%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AUR	―	$9.60B	―	-37.27%	―	―	5.46%
PSFE	―	$723.23M	―	-5.88%	―	0.47%	-292.07%

Paysafe Corporate Events

Paysafe Reports Financial Results for June 2025

Paysafe Limited released its unaudited condensed consolidated financial statements for the period ending June 30, 2025. The report highlights a decrease in revenue compared to the previous year, with the company experiencing a net loss for the period. This financial performance may impact Paysafe’s market positioning and stakeholder confidence as it navigates the challenges in the digital payment sector.

Paysafe Reports Q2 2025 Results with Revenue Decline but Strong Organic Growth

Paysafe Limited announced its financial results for the second quarter of 2025, reporting a revenue of $428.2 million, a 3% decrease from the previous year due to the disposal of its direct marketing business line. Despite the decline in revenue, the company achieved a 5% organic revenue growth driven by strong performance in e-commerce and digital wallets. The net loss for the quarter was $50.1 million, influenced by a non-cash tax expense and increased non-operating expenses. Adjusted EBITDA decreased by 12% to $105.0 million, reflecting the impact of the disposed business, but the company maintained cost discipline and reaffirmed its full-year outlook, indicating continued strategic execution and growth potential.