Paysafe (PSFE) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 10% year-over-year to $442.7 million, with organic revenue up 8%, driven by strong performance in LatAm, North America iGaming, and digital wallets.

• Adjusted EBITDA grew 4% to $99.2 million, and adjusted EPS increased 21% to $0.41, supported by robust cash conversion and reduced share count.

• Active users grew 9% to 7.9 million, reflecting successful product and network expansion.

• Net loss widened to $36.5 million, mainly due to higher SG&A expenses and a one-time share award.

• Board changes increased independence, with a new director bringing LatAm expertise.

Financial highlights

• Total payment volume reached $43.9 billion, up 10% year-over-year.

• Gross profit (excluding D&A) was $250.0 million, up from $226.8 million.

• Unlevered free cash flow was $66.9 million, up 17%, with conversion rate at 67%.

• Adjusted net income was $21 million; adjusted EBITDA margin at 22.4%.

• Total debt fell to just under $2.5 billion, down $122 million from Q4.

Outlook and guidance

• 2026 guidance reaffirmed: revenue $1,790–$1,830 million, adjusted EBITDA $449–$464 million, adjusted EPS $2.12–$2.32, with 5–8% revenue and EBITDA growth and double-digit adjusted EPS growth expected.

• Q2 growth expected to be ~4%, below full-year range due to Q1's licensing deal, FX tailwind, and seasonal sports volumes.

• Operating expenses weighted to H1, with $14 million YoY increase in marketing and IT investments.