Paysafe (PSFE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $401 million, down 4% year-over-year, but organic revenue grew 5% driven by e-commerce volumes and new enterprise contracts, despite FX and divestiture impacts.

• Adjusted EBITDA was $95.2 million (23.7% margin), down from $112 million last year, reflecting business mix, divestitures, and lower interest revenue.

• Adjusted net income was $20.9 million ($0.34 per share), down from $0.57 per share last year, impacted by a higher effective tax rate and lower interest revenue.

• Net loss was $19.5 million versus net income of $3.1 million last year, due to lower revenue, reduced other income, and higher restructuring/legal costs.

• Over 100 enterprise-level contracts were signed in Q1, with strong performance in gaming, Latin America, and e-commerce.

Financial highlights

• Reported revenue declined 4% to $401 million; organic revenue increased 5% year-over-year.

• Adjusted EBITDA was $95.2 million with a margin of 23.7%, slightly ahead of expectations due to timing of cost items.

• Adjusted net income was $20.9 million, down 41% year-over-year.

• Unlevered free cash flow was $57.3 million for the quarter, with a 60% conversion of adjusted EBITDA.

• Take rate declined to 1.0% from 1.2% in Q1 2024.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: revenue of $1.71–$1.734 billion, Adjusted EBITDA of $463–$478 million, and Adjusted EPS of $2.21–$2.51.

• Organic revenue growth and margin acceleration expected in the second half of 2025, with Q4 being the strongest quarter.

• Q2 organic revenue growth expected to be similar to Q1, with adjusted EBITDA margins around 24% in the first half.

• H1 2025 expected to see softer gross margins and lower reported revenue; H2 2025 to benefit from improved mix and margin expansion.