Paysafe (PSFE) Jefferies Fintech Conference summary

Business overview and market positioning

• Operates in over 100 countries with two main segments: merchant and digital wallet.

• Retail hospitality represents 40% of the portfolio, gaming 34%, and digital assets 16%.

• E-commerce within merchant is a key growth driver, especially in iGaming, which grew over 50% year-over-year.

• Strong heritage in gaming, especially in Europe, provides a competitive advantage in the US.

• Partnerships and expanded distribution channels are now a strategic focus.

Financial performance and growth outlook

• Achieved mid-single-digit organic growth in the first half of the year, with EBITDA expansion expected in the second half.

• Targeting 8%-10% organic growth in the second half, driven by improved attrition, new client ramp, and product launches.

• E-commerce business is growing at 30%+, with SMB segment showing mid-single-digit growth.

• Medium-term guidance remains high single-digit to low double-digit revenue growth, with double-digit EBITDA growth.

• Q2 saw 12% EBITDA growth net of divestiture, supporting cost control and margin expansion.

Segment and product developments

• Indirect SMB channel is acquiring new MIDs at record rates; direct channel has returned to historical levels.

• Cost of acquisition per MID reduced by 30% through salesforce investments and process improvements.

• E-commerce segment delivers gross margins in the low 60% range, supporting overall margin improvement.

• New partnerships (e.g., Clover, Tilled, Fiserv) are expanding reach and driving cost-effective growth.

• Direct sales force productivity is strong, with ongoing efforts to expand and optimize.