Paysafe Ltd (PSFE)
NYSE:PSFE
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Paysafe
(NYSE:PSFE)
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Rating:52Neutral
Price Target:
$8.00
▲(12.52% Upside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by financial risk from high leverage, shrinking equity, and continued net losses, despite positive operating profit and improving free cash flow. The earnings call adds support through reaffirmed guidance, solid Q1 growth, and ongoing deleveraging, while technicals are mixed and valuation is constrained by a negative P/E and no dividend yield.
Positive Factors
Strong free cash flow generation
Sustained high unlevered free cash flow and strong conversion support operational resilience and financing options. Over the next 2–6 months, robust FCF enables continued debt paydowns, targeted reinvestment in growth initiatives, and reduces reliance on external capital if profitability stabilizes.
Negative Factors
Elevated leverage
Leverage remains materially elevated relative to earnings, constraining financial flexibility. High debt amplifies interest and refinancing risk, limits capital allocation choices, and necessitates continued strong cash generation and deleveraging execution to materially reduce balance sheet risk over 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained high unlevered free cash flow and strong conversion support operational resilience and financing options. Over the next 2–6 months, robust FCF enables continued debt paydowns, targeted reinvestment in growth initiatives, and reduces reliance on external capital if profitability stabilizes.
Read all positive factors
Paysafe (PSFE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$363.38M
Dividend YieldN/A
Average Volume (3M)344.30K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth3.26%
EPS Growth-39594.38%
CountryUS
Employees3,300
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-3.53
Shares Outstanding51,252,865
10 Day Avg. Volume354,073
30 Day Avg. Volume344,295
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 Cap7.27
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit3.13
Enterprise Value/Ebitda6.97
Forecast
1Y Price Target
$10.13Price Target Upside42.41% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.17
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 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:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone driven by solid top-line growth (+10%), improving cash flow (+17% unlevered FCF) and earnings per share (+21%), strong performance from Digital Wallets, iGaming and Latin America, and concrete progress on deleveraging. Offsetting risks include margin compression (‑130 bps), a $10M increase in credit losses tied to a platform transition, weaker Merchant profitability due to mix, and a back‑loaded cadence with Q2 expected below full‑year growth rates. Management reaffirmed full‑year guidance (5–8% revenue and adjusted EBITDA growth) and emphasized deleveraging and execution, suggesting confidence that near‑term headwinds are manageable.Positive Updates
Top-Line Growth
Q1 revenue of $442.7M, up 10% year-over-year (8% organic); underlying organic growth approximately 6% after a $7M data licensing benefit.
Negative Updates
Margin Compression
Overall adjusted EBITDA margin declined ~130 basis points YoY despite EBITDA growth; margin pressure driven by higher marketing and IT investments and increased credit loss expense.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Growth
Q1 revenue of $442.7M, up 10% year-over-year (8% organic); underlying organic growth approximately 6% after a $7M data licensing benefit.
Read all positive updates
Company Guidance
Paysafe reaffirmed 2026 guidance, targeting full‑year revenue and adjusted EBITDA growth of 5–8% and double‑digit adjusted EPS growth, while outlining a front‑loaded cadence: Q2 growth ~4%, first‑half growth ~7% and a seasonally strong Q4; management expects first‑half adjusted EBITDA to be roughly flat year‑over‑year (driven by a $10M increase in credit losses and ~$14M of incremental marketing/IT spend weighted to H1) with the second half ahead of consensus. In Q1 the company reported revenue of $442.7M (+10% reported, +8% organic; underlying organic ~6% after a $7M data licensing benefit), adjusted EBITDA of $99.2M (+4%, margin down 130 bps), adjusted net income of $21M and adjusted EPS of $0.41 (+21%), unlevered free cash flow of $67M (+17%) with 67% conversion (LTM UFCF $307M, 71% conversion), net leverage of 5.2x (down from 5.5x in Q4) and total debt just under $2.5B after >$100M of repayments; management reiterated priority on deleveraging and strong cash‑flow conversion to drive valuation over the next 24 months.Paysafe Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
35
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.74B | 1.70B | 1.70B | 1.60B | 1.50B | 1.49B |
| Gross Profit | 843.58M | 686.08M | 989.07M | 937.93M | 882.11M | 887.24M |
| EBITDA | 379.13M | 396.54M | 412.35M | 427.61M | 292.78M | 342.13M |
| Net Income | -199.49M | -182.51M | 22.16M | -20.25M | -1.86B | -110.95M |
Balance Sheet | ||||||
| Total Assets | 4.66B | 4.80B | 4.81B | 5.23B | 5.96B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 257.21M | 1.35B | 216.68M | 202.32M | 260.22M | 313.44M |
| Total Debt | 2.53B | 2.66B | 2.41B | 2.53B | 2.68B | 2.80B |
| Total Liabilities | 4.04B | 4.15B | 3.93B | 4.34B | 5.10B | 4.56B |
| Stockholders Equity | 616.23M | 655.04M | 879.26M | 883.31M | 859.64M | 2.57B |
Cash Flow | ||||||
| Free Cash Flow | 174.30M | 223.58M | 133.31M | 101.12M | 912.75M | 113.71M |
| Operating Cash Flow | 247.54M | 236.16M | 253.80M | 234.02M | 917.30M | 261.46M |
| Investing Cash Flow | -141.15M | -140.41M | -108.38M | -135.24M | -575.59M | -411.27M |
| Financing Cash Flow | -112.99M | -163.38M | -280.80M | -771.03M | -73.76M | 446.29M |
Paysafe Technical Analysis
Negative
7.11
Price Trends
7.91
Negative
7.56
Negative
9.42
Negative
Market Momentum
-0.18
Positive
35.96
Neutral
3.35
Positive
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 7.11 is below the 20-day moving average (MA) of 8.64, below the 50-day MA of 7.91, and below the 200-day MA of 9.42, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 35.96 is Neutral, neither overbought nor oversold. The STOCH value of 3.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.96B | 28.40 | 0.01% | ― | 32.49% | 539.48% | |
75 Outperform | $3.07B | 38.22 | 13.47% | ― | 33.01% | 44.89% | |
73 Outperform | $50.23B | 14.68 | 31.77% | 2.58% | 4.85% | 6.19% | |
66 Neutral | $21.39B | 14.82 | 15.03% | 2.78% | -0.55% | -3.97% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $363.38M | -2.39 | -28.61% | ― | 3.26% | -39594.38% | |
52 Neutral | $13.96B | -9.00 | -39.64% | ― | ― | 7.22% |
* Technology Sector Average
PSFE
Paysafe
7.09
-4.66
-39.66%
INFY
Infosys
12.77
-4.95
-27.91%
WIT
Wipro
1.97
-0.82
-29.26%
AUR
Aurora Innovation
7.12
1.06
17.49%
FLYW
Flywire
15.91
4.43
38.59%
PAY
Paymentus Holdings
24.43
-14.23
-36.81%
Paysafe Corporate Events
Paysafe Posts Higher Q1 2026 Revenue but Deeper Net Loss in Latest SEC Filing
May 13, 2026
Paysafe on May 13, 2026 filed unaudited condensed consolidated financial statements for the quarter ended March 31, 2026, alongside management’s discussion and analysis of its financial condition and results. The March quarter showed revenue...
Paysafe Posts Q1 2026 Revenue Growth, Widens Net Loss and Adds New Director
May 13, 2026
Paysafe reported first‑quarter 2026 results on May 13, posting revenue of $442.7 million, up 10% year on year, driven by 8% organic growth split between stronger digital wallets and merchant solutions, notably in Latin America, Europe and No...
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.