Paysafe Ltd (PSFE)
NYSE:PSFE
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Paysafe
(NYSE:PSFE)
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Rating:50Neutral
Price Target:
$6.50
▼(-8.58% Downside)
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
Consistent, high free cash flow gives Paysafe durable financial flexibility to fund operations, invest in product development, and accelerate deleveraging without relying solely on equity markets. Strong cash conversion supports disciplined capital returns and absorption of cyclical shocks over months.
Negative Factors
High leverage
Elevated gross and net leverage materially constrain financial flexibility, increase refinancing and interest‑rate exposure, and limit the pace of strategic investments or inorganic M&A. Deleveraging targets exist but meaningful balance‑sheet risk remains until leverage falls closer to investment‑grade ranges.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent, high free cash flow gives Paysafe durable financial flexibility to fund operations, invest in product development, and accelerate deleveraging without relying solely on equity markets. Strong cash conversion supports disciplined capital returns and absorption of cyclical shocks over months.
Read all positive factors
Paysafe (PSFE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$291.22M
Dividend YieldN/A
Average Volume (3M)408.67K
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth-0.95%
EPS Growth-456.64%
CountryUS
Employees3,300
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.46
Shares Outstanding51,676,353
10 Day Avg. Volume321,064
30 Day Avg. Volume408,672
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 Cap5.96
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit1.95
Enterprise Value/Ebitda4.44
Forecast
1Y Price Target
$8.79Price Target Upside23.63% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.19
Revenue Forecast (FY)$1.81B
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 facilitating payment transactions and providing payment-related services through three main lines of business: (1) Merchant Solutions (card acquiring and integrated eCommerce payments): Paysafe ea...
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
6.84
Positive
7.30
Positive
10.07
Negative
Market Momentum
<0.01
Negative
58.32
Neutral
61.58
Neutral
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 above the 20-day moving average (MA) of 6.92, above the 50-day MA of 6.84, and below the 200-day MA of 10.07, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.32 is Neutral, neither overbought nor oversold. The STOCH value of 61.58 is Neutral, 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 | $58.40B | 24.55 | 29.68% | 2.58% | 4.62% | 1.06% | |
70 Outperform | $3.14B | 61.03 | 12.67% | ― | 44.34% | 45.96% | |
67 Neutral | $22.99B | 21.25 | 15.49% | 2.78% | -1.97% | 48.61% | |
66 Neutral | $1.42B | 128.39 | 1.67% | ― | 22.71% | -111.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $291.22M | -2.58 | -24.06% | ― | -0.95% | -456.64% | |
50 Neutral | $7.85B | -8.65 | -39.77% | ― | ― | 5.46% |
* Technology Sector Average
PSFE
Paysafe
7.34
-6.85
-48.27%
INFY
Infosys
13.76
-2.80
-16.93%
WIT
Wipro
2.26
-0.47
-17.13%
AUR
Aurora Innovation
4.03
-2.36
-36.93%
FLYW
Flywire
11.71
3.29
39.07%
PAY
Paymentus Holdings
24.96
-1.51
-5.70%
Paysafe Corporate Events
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.