Paysafe (PSFE) Q4 2024 earnings summary

Executive summary

• Achieved 7% organic revenue growth in 2024, supported by all key regions and product lines, with portfolio rationalization completed through the divestiture of the direct marketing payment processing business.

• Returned over $40 million to shareholders via share repurchases and reduced net leverage to 4.7x from 5x at the end of 2023.

• Achieved positive GAAP Net Income of $22 million for 2024, compared to a net loss of $20 million in 2023, marking the first positive result since IPO.

• Expanded sales capabilities by hiring 170 new quota-carrying reps, driving double-digit growth in enterprise accounts and e-commerce.

• Enhanced consumer acquisition and product innovation, with classic wallet users surpassing 1 million and e-cash online distribution revenue nearly doubling.

Financial highlights

• Q4 revenue increased 1% year-over-year to $420.1 million; full-year revenue rose 6% to $1.7 billion, with 7% organic growth.

• Adjusted EBITDA was $103 million for Q4 and $452 million for the full year, down 1% year-over-year due to merchant exits and increased credit losses.

• Unlevered free cash flow reached $300 million in 2024, with a 66% conversion of adjusted EBITDA.

• Adjusted net income and EPS declined 8% to $132.5 million and $2.14 per share, respectively.

• Total Payment Volume for 2024 was $151.7 billion, up 8% year-over-year.

Outlook and guidance

• 2025 reported revenue expected to be flat to up 2% ($1.71B–$1.734B); organic revenue growth (excluding disposed business) projected at 6.5%–8%.

• Merchant solutions segment to grow high single to low double digits; digital wallets to grow low single digits, with 3–4% FX and interest headwind.

• Adjusted EBITDA margin guidance: 27.1%–27.6% ($463M–$478M), representing 13%–17% growth versus prior year.

• Adjusted EPS guidance for 2025: $2.21–$2.51 per share.

• Second half of 2025 expected to be stronger, with organic revenue growth accelerating to 8%–10%.