Paysafe (PSFE) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $428.2 million, down 3% year-over-year, but organic revenue grew 5% due to strong performance in core business lines and the exclusion of the disposed direct marketing business.

• Adjusted EBITDA was $105 million (24.5% margin), up 12% excluding divestiture, with sequential margin improvement of 80 bps; adjusted net income was $27.6 million or $0.46 per share, down from $0.59 last year due to divestiture impact.

• GAAP net loss was $50.1 million, impacted by a $30.6 million non-cash tax charge and higher non-operating expenses.

• Share repurchases totaled 1.5 million shares for $20 million during the quarter, with continued buybacks into Q3.

• Recognized as a top fintech company for 2025 by CNBC and Statista for the third consecutive year.

Financial highlights

• Total payment volume grew 10% year-over-year to $35.7 billion in Merchant Solutions and $6.6 billion in Digital Wallets; take rate declined to 1.0% from 1.2%.

• Gross profit (excluding depreciation and amortization) was $238 million, down from $256.1 million in Q2 2024.

• Unlevered free cash flow was $54 million (51% conversion), with LTM free cash flow at $272 million (64% conversion).

• Adjusted net income was $27.6 million, down from $36.3 million year-over-year.

• Total cash and cash equivalents at June 30, 2025, were $266 million; net debt was $2.3 billion.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $1,710–$1,734 million (0–2% reported, 6.5–8.0% organic growth), with adjusted EBITDA expected between $463–$478 million and adjusted EPS of $2.21–$2.51.

• Management expects organic growth to accelerate to 8%-10% in H2, with Q4 as the strongest quarter for growth and margin.

• Margin profile expected to improve in H2, driven by digital wallet and merchant segment mix.

• Guidance assumes interest expense ~$135 million, D&A ~$140 million, and 26–27% adjusted ETR.

• Adjusted EBITDA growth expected in low to mid-teens (normalized for divestiture).