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Paysafe (PSFE)
NYSE:PSFE
US Market
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Paysafe (PSFE) AI Stock Analysis

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Paysafe

(NYSE:PSFE)

Rating:58Neutral
Price Target:
$13.50
▲(1.50%Upside)
Paysafe's overall score is driven by a strong earnings call performance, highlighting organic growth and strategic initiatives, despite challenges in valuation and high leverage. Technical analysis indicates mixed market sentiment, with bearish trends in moving averages but neutral RSI levels. The company's financial performance shows steady growth but is hampered by significant debt levels.
Positive Factors
Growth Potential
Paysafe's new sales pipeline remains promising with new product initiatives showing early signs of traction.
Valuation
Paysafe is trading at a significant discount to its peers, with an 18% FY1 EV/EBITDA discount compared to a 4% median discount over the last four years.
Negative Factors
Debt Levels
The net debt to equity ratio is notably high at 244.2%.
Financial Performance
Paysafe shares are down approximately 23% since Q1 results, likely due to concerns around the H2 acceleration embedded in FY guidance amidst an uncertain macro environment.
Volatility
The stock's 52-week range shows significant volatility between $12.02 and $26.25.

Paysafe (PSFE) vs. SPDR S&P 500 ETF (SPY)

Paysafe Business Overview & Revenue Model

Company DescriptionPaysafe (PSFE) is a leading specialized payments platform operating in the financial technology sector. The company offers a comprehensive suite of digital payment solutions, enabling businesses and consumers to connect and transact seamlessly through various channels. Its core services include payment processing, digital wallet solutions, and online cash solutions, catering to industries such as online gaming, e-commerce, and financial services.
How the Company Makes MoneyPaysafe generates revenue through a diversified model primarily based on transaction fees, service charges, and subscription-based models. A significant portion of its income comes from fees charged for processing payments and transactions across its platform, including credit card and direct debit transactions. Additionally, Paysafe earns money through its digital wallet solutions like Skrill and Neteller, which offer convenient ways for users to store, send, and receive money online, often charging small fees for transactions and currency exchanges. The company also benefits from partnerships with businesses in high-growth sectors such as iGaming and digital marketplaces, where it provides tailored payment solutions. These partnerships help expand its market reach and drive transaction volume, further boosting its revenue.

Paysafe Financial Statement Overview

Summary
Paysafe demonstrates steady revenue growth and improved profitability over recent years. However, the company faces challenges with its high leverage, which could impact financial stability. Cash flow generation is adequate, though growth in free cash flow is limited. Overall, while Paysafe shows positive trends, it must manage its debt levels to ensure long-term financial health.
Income Statement
65
Positive
Paysafe's revenue has shown a steady growth trajectory, increasing from $1.42 billion in 2020 to $1.70 billion in 2024. The gross profit margin remains strong at 58%, while the net profit margin improved to 1.3% in 2024 from negative values in previous years. Despite this, EBIT and EBITDA margins reveal moderate profitability. The revenue growth rate between 2023 and 2024 was approximately 6.5%, reflecting stable growth.
Balance Sheet
55
Neutral
Paysafe's balance sheet reveals a high debt-to-equity ratio of 2.74, suggesting significant leverage, which poses financial risks. The equity ratio is relatively low at 18.3%, indicating a higher dependence on liabilities. However, the return on equity (ROE) improved to 2.52% in 2024, showing a positive yet modest return on shareholders' capital.
Cash Flow
60
Neutral
The cash flow statement indicates a stable operating cash flow, with a free cash flow growth rate of 1.1% from 2023 to 2024. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio is lower, reflecting reduced cash available after capital expenditures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.70B1.60B1.50B1.49B1.43B
Gross Profit989.07M673.78M882.11M887.24M891.67M
EBITDA429.58M435.88M-1.52B241.28M257.60M
Net Income22.16M-20.25M-1.86B-110.33M-126.71M
Balance Sheet
Total Assets4.81B5.23B5.96B7.27B7.41B
Cash, Cash Equivalents and Short-Term Investments216.68M202.32M260.22M313.44M387.62M
Total Debt2.41B2.53B2.68B2.80B3.31B
Total Liabilities3.93B4.34B5.10B4.56B5.48B
Stockholders Equity879.26M883.31M859.64M2.57B1.92B
Cash Flow
Free Cash Flow133.31M131.85M774.03M76.72M322.19M
Operating Cash Flow253.80M234.02M924.08M224.47M409.11M
Investing Cash Flow-108.38M-135.24M-575.59M-411.27M-51.22M
Financing Cash Flow-280.80M-771.03M-80.54M483.28M-75.47M

Paysafe Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price13.30
Price Trends
50DMA
13.15
Positive
100DMA
14.69
Negative
200DMA
17.32
Negative
Market Momentum
MACD
0.14
Negative
RSI
53.27
Neutral
STOCH
50.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSFE, the sentiment is Neutral. The current price of 13.3 is above the 20-day moving average (MA) of 12.85, above the 50-day MA of 13.15, and below the 200-day MA of 17.32, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 50.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PSFE.

Paysafe Risk Analysis

Paysafe disclosed 49 risk factors in its most recent earnings report. Paysafe reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We rely on our operating subsidiaries to provide us with funds necessary to meet our financial obligations and our ability to pay dividends may be constrained. Q4, 2024

Paysafe Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$3.69B16.095.59%2.27%11.31%-16.02%
72
Outperform
$1.35B399.650.63%20.97%
PAPAY
67
Neutral
$3.56B75.8610.80%47.78%74.61%
63
Neutral
$33.85B5.90-11.67%1.83%5.25%-18.21%
AIAI
60
Neutral
$3.53B-33.73%25.27%4.68%
58
Neutral
$776.67M39.11-0.04%3.50%95.90%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSFE
Paysafe
13.30
-7.22
-35.19%
CNXC
Concentrix
56.45
-14.05
-19.93%
AI
C3ai
26.80
-3.64
-11.96%
FLYW
Flywire
11.27
-7.64
-40.40%
PAY
Paymentus Holdings
30.05
9.40
45.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025