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Paysafe
(NYSE:PSFE)
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Rating:53Neutral
Price Target:
$7.00
▼(-11.95% Downside)
Action:Reiterated
Date:08/18/26
The score is supported by improving revenue momentum and strong free cash flow generation, reinforced by constructive earnings-call guidance and a clear deleveraging plan. It is held back most by balance-sheet leverage and ongoing net losses, while technicals remain weak with the stock trading below major moving averages and bearish MACD.
Positive Factors
Merchant Solutions Growth
Merchant Solutions is showing strong operating momentum, with faster EBITDA growth than revenue and expanding margins. Sustained volume growth and traction in value-added services can strengthen Paysafe’s core earnings base and diversify performance beyond digital wallets.
Negative Factors
Elevated Leverage
Paysafe remains highly leveraged relative to its equity and cash generation. Although debt is declining, reaching management’s 3.5x mid-term target will require sustained free cash flow, leaving limited room for execution setbacks or weaker payment volumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Merchant Solutions Growth
Merchant Solutions is showing strong operating momentum, with faster EBITDA growth than revenue and expanding margins. Sustained volume growth and traction in value-added services can strengthen Paysafe’s core earnings base and diversify performance beyond digital wallets.
Read all positive factors
Paysafe (PSFE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$345.44M
Dividend YieldN/A
Average Volume (3M)260.78K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth5.13%
EPS Growth-359.12%
CountryUS
Employees3,300
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-3.81
Shares Outstanding51,252,865
10 Day Avg. Volume204,510
30 Day Avg. Volume260,780
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$8.50Price Target Upside6.92% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.08
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 makes money primarily by charging fees for enabling and processing payments across its platforms and payment methods. Its key revenue streams generally include: (1) Merchant acquiring and payment processing: Paysafe earns revenue by provid...
Paysafe Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call communicated meaningful strategic progress: consistent revenue growth (Q2 +4%, H1 +7%), active user momentum (3-month actives 7.8M, +8% YoY), strong Merchant segment profitability (+28% EBITDA) and important balance sheet actions (refinancing, settlement resolving SPAC-era litigation). Management reiterated full-year revenue and adjusted EBITDA guidance and outlined clear deleveraging priorities (midterm net leverage target 3.5x). Offsetting these positives are margin pressure (overall adjusted EBITDA down 2% and margin decline to 23%), a decline in Digital Wallet EBITDA and ARPU, an expected H2 cash settlement (~$39M), and a higher cash interest burden from the refinancing (~$25M–$35M incremental). Overall the call projects a constructive path forward with material strategic improvements and manageable near-term headwinds.Positive Updates
Top-line Growth and Quarterly Revenue
Q2 revenue of $447.4M, up 4% year-over-year (reported and organic); first half 2026 revenue growth of 7% (reported) and 6% organic, reaffirming full-year revenue guidance.
Negative Updates
Adjusted EBITDA and Margin Pressure
Company-wide adjusted EBITDA decreased 2% to $102.8M in Q2 and adjusted EBITDA margin declined to 23.0% from 24.5% in the prior period, impacted by higher marketing and IT investment (+$7M in Q2, +$16M in H1) and other timing items.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Growth and Quarterly Revenue
Q2 revenue of $447.4M, up 4% year-over-year (reported and organic); first half 2026 revenue growth of 7% (reported) and 6% organic, reaffirming full-year revenue guidance.
Read all positive updates
Company Guidance
Paysafe reaffirmed 2026 revenue and adjusted EBITDA guidance while updating adjusted EPS to reflect higher interest from the refinancing (cash interest step‑up roughly $25–35M), expects net leverage to finish 2026 around 5.1x–5.2x (5.3x at quarter end, down from 5.5x at Q4) and targets a mid‑term leverage of ~3.5x; management said Q4 should be the strongest quarter supported by product launches, client ramps and July trends (including double‑digit 3‑month active user growth). They expect $25–30M of SG&A savings in H2 versus H1, will prioritize using free cash flow to deleverage (Q2 unlevered free cash flow $45M, LTM unlevered FCF $298M with 69% LTM conversion and 44% Q2 conversion), and flagged a $39M H2 cash payment for the preliminary legal settlement. For context, Q2 results were revenue $447.4M (+4% reported/organic), adjusted EBITDA $102.8M (−2%, margin 23%), adjusted EPS $0.43 (−7%); Digital Wallets: $6.6B volume, $206.6M revenue (+3%), 3‑month actives 7.8M, adj EBITDA $74.9M (−9%, 36.2% margin or ~40% ex‑VAT/marketing); Merchant: $37.3B volume, $246.1M revenue (+6%), adj EBITDA $50.6M (+28%, 20.6% margin or ~18% ex‑$6M accrual release); total debt $2.5B (down $106M vs Q4).Paysafe Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
33
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.76B | 1.70B | 1.70B | 1.60B | 1.50B | 1.49B |
| Gross Profit | 780.89M | 686.08M | 989.07M | 937.93M | 882.11M | 887.24M |
| EBITDA | 334.62M | 338.46M | 412.35M | 427.61M | 292.78M | 342.13M |
| Net Income | -208.30M | -182.51M | 22.16M | -20.25M | -1.86B | -110.95M |
Balance Sheet | ||||||
| Total Assets | 4.57B | 4.80B | 4.81B | 5.23B | 5.96B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 226.16M | 1.35B | 216.68M | 202.32M | 260.22M | 313.44M |
| Total Debt | 2.55B | 2.66B | 2.41B | 2.53B | 2.68B | 2.80B |
| Total Liabilities | 4.00B | 4.15B | 3.93B | 4.34B | 5.10B | 4.56B |
| Stockholders Equity | 570.22M | 655.04M | 879.26M | 883.31M | 859.64M | 2.57B |
Cash Flow | ||||||
| Free Cash Flow | 194.67M | 223.58M | 133.31M | 101.12M | 912.75M | 113.71M |
| Operating Cash Flow | 233.26M | 236.16M | 253.80M | 234.02M | 917.30M | 261.46M |
| Investing Cash Flow | -137.31M | -140.41M | -108.38M | -135.24M | -575.59M | -411.27M |
| Financing Cash Flow | -138.03M | -163.38M | -280.80M | -771.03M | -73.76M | 446.29M |
Paysafe Technical Analysis
Negative
7.95
Price Trends
7.57
Negative
7.80
Negative
7.69
Negative
Market Momentum
-0.34
Positive
39.68
Neutral
16.14
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 7.95 is above the 20-day moving average (MA) of 7.57, above the 50-day MA of 7.57, and above the 200-day MA of 7.69, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 39.68 is Neutral, neither overbought nor oversold. The STOCH value of 16.14 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.98B | 57.34 | 14.80% | ― | 30.21% | 50.31% | |
78 Outperform | $2.29B | 69.37 | 4.08% | ― | 32.21% | 441.25% | |
75 Outperform | $47.35B | 14.38 | 33.03% | 4.71% | -0.64% | 5.69% | |
70 Outperform | $18.55B | 14.33 | 15.58% | 1.11% | -0.12% | -7.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $345.44M | -1.73 | -32.65% | ― | 5.13% | -359.12% | |
50 Neutral | $12.42B | -13.02 | -43.12% | ― | 400.00% | 1.19% |
* Technology Sector Average
PSFE
Paysafe
6.59
-6.67
-50.30%
INFY
Infosys
11.83
-4.70
-28.44%
WIT
Wipro
1.91
-0.80
-29.49%
AUR
Aurora Innovation
6.12
0.27
4.62%
FLYW
Flywire
18.75
6.47
52.69%
PAY
Paymentus Holdings
38.42
1.27
3.42%
Paysafe Corporate Events
Paysafe Posts Higher Revenue But Deeper Losses in H1 2026 SEC Filing
Aug 13, 2026
Paysafe Limited has filed a Form 6-K with the U.S. Securities and Exchange Commission for August 2026, furnishing unaudited condensed consolidated financial statements as of June 30, 2026, along with management’s discussion and analysis of f...
Paysafe Posts Q2 2026 Revenue Growth but Wider Loss as Costs Rise
Aug 13, 2026
Paysafe Limited reported its second-quarter 2026 results on August 13, 2026, posting revenue of $447.4 million, up 4% year on year, driven by 3% growth in Digital Wallets and 6% in Merchant Solutions, particularly from Latin American and European ...
Paysafe Launches Major Debt Refinancing as Q2 2026 Preliminary Results Show Modest Revenue Growth
Jul 29, 2026
On July 29, 2026, Paysafe launched a refinancing transaction to amend and extend to 2030 its existing $814 million first lien term loan in U.S. dollars and €586 million first lien term loan in euros, both currently maturing in 2028. At the s...
Paysafe Confirms Board Elections and Auditor at 2026 AGM
May 27, 2026
On May 26, 2026, Paysafe Limited held its Annual General Meeting of shareholders, where investors elected Mark Brooker, Dagmar Kollmann, Marianne Heiss and Edward Wertheim as Class II directors to serve until the 2029 AGM. Shareholders also approv...
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.