Paysafe (PSFE) Q4 2024 earnings summary

Executive summary

• Achieved 7% organic revenue growth in 2024, driven by turnaround strategy, portfolio rationalization, and investments in sales and innovation.

• Completed divestiture of direct marketing payment processing business, finalizing portfolio optimization and reducing exposure to higher-risk merchants.

• Returned over $40 million to shareholders via share repurchases, with $77 million remaining authorization.

• Achieved positive GAAP net income of $22 million for the first time since going public, compared to a $20 million net loss last year.

• Reduced net leverage to 4.7x at year-end, meeting 2024 target.

Financial highlights

• Q4 2024 revenue increased 1% year-over-year to $420.1 million; full year revenue up 6% to $1.7 billion.

• Organic revenue growth (excluding disposed business, FX, and interest) was 6% in Q4 and 7% for the full year.

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

• Adjusted net income for the year was $132.5 million, or $2.14 per share, down 8% year-over-year.

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

Outlook and guidance

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

• Adjusted EBITDA margin guidance of 27.1%–27.6%, with EBITDA of $463M–$478M, up 13%–17% year-over-year.

• Adjusted EPS guidance of $2.21–$2.51 for 2025.

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

• Targeting net leverage reduction to 3.5x by end of 2026.