Paysafe (PSFE) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $434 million, up 2% year-over-year and 6% organically, with strong e-commerce, iGaming, and digital wallet growth, and a 10% increase in volume.

• Adjusted EBITDA was $127 million, up 7% year-over-year, with margin expansion to 29.2%, aided by a $10 million licensing deal.

• Adjusted EPS increased 37% year-over-year to $0.70; adjusted net income was $40.3 million.

• Net loss was $87.7 million, primarily due to an $81.2 million non-cash tax charge from new U.S. legislation.

• Board authorized an additional $70 million for share repurchases, with $50 million repurchased year-to-date.

Financial highlights

• Q3 2025 volume was $37.5 billion, up 10% year-over-year; merchant solutions volume up 9% to $34.9 billion.

• Adjusted EBITDA rose 7% to $126.6 million, with a margin of 29.2%, up 160 bps year-over-year.

• Adjusted net income was $40.3 million ($0.70/share), up from $0.51/share last year; GAAP net loss was $87.7 million due to a non-cash tax expense.

• Unlevered free cash flow was $83.6 million, with a 66% conversion rate; LTM free cash flow at $265 million.

• Gross profit (excl. D&A) was $250.8 million, up from $249.0 million year-over-year.

Outlook and guidance

• Full-year 2025 revenue guidance updated to $1,700–$1,710 million, with 5%-6% organic growth expected.

• Adjusted EBITDA guidance lowered to $425–$430 million (~25% margin); adjusted EPS now $1.83–$1.88.

• 2026 preliminary outlook: mid to high single-digit organic revenue growth and high single-digit adjusted EBITDA growth.

• Outlook reflects a longer timeline for new product initiatives and a business mix shift toward lower-margin channels.