Paysafe (PSFE) AI Stock Analysis

• Market Cap: $597.88M
• Dividend Yield: N/A
• Average Volume (3M): 285.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -0.95%
• EPS Growth: -456.64%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.70
• Shares Outstanding: 58,846,733
• 10 Day Avg. Volume: 390,023
• 30 Day Avg. Volume: 285,282
• 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: 5.15
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 7.81
• 1Y Price Target: $14.10
• Price Target Upside: 38.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $7.00 ▼(-31.10% Downside)

Paysafe's overall stock score is primarily impacted by its financial performance and technical analysis. Despite revenue growth, the company faces significant profitability and leverage challenges. Technical indicators suggest bearish momentum, further weighing on the score. While the earnings call provided some positive insights, such as revenue growth and strategic initiatives, these are overshadowed by ongoing financial risks and valuation concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Strong Regional Performance

Robust regional growth highlights Paysafe's competitive positioning and ability to capitalize on market opportunities across geographies.

Growth in E-commerce

Strong e-commerce growth, particularly in iGaming, underscores Paysafe's adaptability and potential for sustained revenue streams.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial health and investment capacity.

Profitability Challenges

Ongoing profitability issues, despite revenue growth, highlight operational cost challenges that may hinder sustainable financial performance.

Digital Wallet Growth Challenges

Challenges in digital wallet growth could impact Paysafe's competitive edge in fintech, affecting future revenue and market share.

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 revenue growth but faces challenges in profitability and financial stability. High leverage and negative returns on equity highlight financial risks. Cash flow management is moderate, but declining free cash flow growth raises concerns. The company needs to focus on improving profitability and reducing leverage to enhance financial health.

Income Statement

Paysafe's income statement reveals a mixed performance. The company has experienced revenue growth, with a notable 40% increase in TTM. However, profitability remains a concern, as evidenced by the negative net profit margin of -2.93% in TTM. The gross profit margin is relatively healthy at 56.70%, but the EBIT and EBITDA margins are modest at 5.58% and 21.93%, respectively. Overall, while revenue is growing, the company struggles with profitability.

Balance Sheet

The balance sheet shows high leverage, with a debt-to-equity ratio of 3.22 in TTM, indicating significant reliance on debt financing. The return on equity is negative at -5.73%, reflecting challenges in generating returns for shareholders. The equity ratio is not directly provided, but the high debt levels suggest potential financial risk. Overall, the balance sheet indicates financial instability and high leverage.

Cash Flow

Paysafe's cash flow statement shows a decline in free cash flow growth by -8.88% in TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.16, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.45, indicating some ability to convert earnings into cash. Overall, cash flow management appears moderate, with room for improvement.

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	952.23M	989.07M	937.93M	882.11M	887.24M	891.67M
EBITDA	394.26M	412.35M	427.61M	292.78M	342.13M	425.77M
Net Income	-123.77M	22.16M	-20.25M	-1.86B	-110.95M	-126.72M
Balance Sheet
Total Assets	4.69B	4.81B	5.23B	5.96B	7.27B	7.41B
Cash, Cash Equivalents and Short-Term Investments	248.56M	216.68M	202.32M	260.22M	313.44M	387.62M
Total Debt	2.54B	2.41B	2.53B	2.68B	2.80B	3.31B
Total Liabilities	3.98B	3.93B	4.34B	5.10B	4.56B	5.48B
Stockholders Equity	710.41M	879.26M	883.31M	859.64M	2.57B	1.92B
Cash Flow
Free Cash Flow	89.89M	133.31M	101.12M	912.75M	113.71M	322.19M
Operating Cash Flow	220.14M	253.80M	234.02M	917.30M	261.46M	409.11M
Investing Cash Flow	-138.56M	-108.38M	-135.24M	-575.59M	-411.27M	-51.22M
Financing Cash Flow	-234.23M	-280.80M	-771.03M	-73.76M	446.29M	-75.47M

Paysafe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 10.16 is above the 20-day moving average (MA) of 9.45, below the 50-day MA of 11.48, and below the 200-day MA of 13.81, indicating a bearish trend. The MACD of -1.46 indicates Positive momentum. The RSI at 26.67 is Positive, neither overbought nor oversold. The STOCH value of 6.63 is Positive, 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	74 Outperform	$71.59B	22.43	29.15%	2.94%	4.62%	1.06%
PAY	74 Outperform	$4.35B	70.87	11.81%	―	44.34%	45.96%
WIT	73 Outperform	$28.58B	17.99	16.39%	3.06%	-1.97%	48.61%
FLYW	69 Neutral	$1.63B	―	-0.29%	―	22.71%	-111.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AUR	55 Neutral	$7.41B	―	-37.27%	―	―	5.46%
PSFE	44 Neutral	$597.88M	―	-15.59%	―	-0.95%	-456.64%

Paysafe Corporate Events

Paysafe Reports Increased Net Loss in Q3 2025 Despite Revenue Growth

Paysafe Limited has released its unaudited condensed consolidated financial statements for the period ending September 30, 2025. The report highlights a net loss of $87.7 million for the third quarter of 2025, compared to a net loss of $13 million in the same period in 2024. Despite an increase in revenue to $433.8 million from $427.1 million, the company faced higher costs and expenses, impacting its profitability. The financial results underscore the challenges Paysafe faces in managing operational costs and achieving profitability in a competitive digital payments market.

Paysafe Reports Q3 2025 Financial Results with Revenue Growth Amid Challenges

On November 13, 2025, Paysafe Limited announced its financial results for the third quarter of 2025, reporting a revenue of $433.8 million, a 2% increase from the previous year despite challenges from the disposed direct marketing payments processing business line. The company experienced a net loss of $87.7 million, largely due to a non-cash tax expense related to new legislation, but saw a 37% increase in adjusted net income and a 7% rise in adjusted EBITDA. Paysafe’s growth was driven by strong performance in e-commerce and digital wallets, particularly in the U.S. and Latin America, and the company continues to focus on expanding its digital banking partnerships and innovative product offerings.