Paysafe (PSFE) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 1% YoY to $439.6M, or 2% in constant currency; payment volume grew 3% to $42.4B. 9M revenue increased 5% to $1.330B.

• Greater regulatory, market, banking and FX headwinds, along with lower data-licensing revenue, weighed on results; three-month active consumers rose 14% to 8.1M.

• LTM unlevered free cash flow was $265M with 65% conversion; debt and net leverage reduction remain priorities.

Financial highlights

• Q3 Adjusted EBITDA fell 17% to $105.7M; margin declined to 24.0% from 29.2%. Adjusted EPS was $0.44 versus $0.70.

• Adjusted net income was $23.8M versus $40.3M; GAAP net loss was $247.5M versus $87.7M, including a $203.4M non-cash impairment.

• Q3 unlevered free cash flow was $50.2M versus $83.6M; conversion was 48% versus 66%.

• 9M Adjusted EBITDA was $307.7M versus $326.8M; 9M net loss was $342.9M versus $157.3M.

• Q3 gross profit excluding D&A was $245.6M versus $250.8M; operating cash flow was $30.3M versus $69.2M.

Outlook and guidance

• FY2026 revenue guidance was reduced to $1.761B–$1.771B, Adjusted EBITDA to $415M–$422M and Adjusted EPS to $1.45–$1.54; expected revenue growth is ~4%.

• Year-end net leverage is expected at ~5.5x; cash assumptions include 65%–70% unlevered FCF conversion, $165M–$175M cash interest and ~$70M long-term debt repayment.

• Q4 is expected to face greater wallet pressure from regulatory, crypto, financial-trading and FX headwinds; 2027 impact remains uncertain.

• Second-half operating expenses are on track to decline $25M versus H1, with most improvement expected in Q4; outlook includes $5M unplanned severance expense.