Paysafe AI Stock Analysis
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Paysafe (PSFE) AI Stock Analysis
Paysafe
(NYSE:PSFE)
The score is supported by improving revenue momentum and strong free cash flow generation, reinforced by constructive earnings-call guidance and a clear deleveraging plan. It is held back most by balance-sheet leverage and ongoing net losses, while technicals remain weak with the stock trading below major moving averages and bearish MACD.
Paysafe (PSFE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $356.11M
- Dividend Yield
- ―
- Average Volume (3M)
- 385.01K
- Price to Earnings (P/E)
- -1.8
- Beta (1Y)
- 1.24
- Revenue Growth
- 5.13%
- EPS Growth
- -359.12%
- Country
- US
- Employees
- 3,300
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
Paysafe Business Overview & Revenue Model
Company Description
Paysafe Limited provides digital commerce solutions to online businesses, small and medium-sized business merchants, and consumers through its Paysafe Network worldwide. The company operates in two segments, US Acquiring and Digital Commerce. It prov...
Paysafe Earnings Call Summary
The call communicated meaningful strategic progress: consistent revenue growth (Q2 +4%, H1 +7%), active user momentum (3-month actives 7.8M, +8% YoY), strong Merchant segment profitability (+28% EBITDA) and important balance sheet actions (refinancing, settlement resolving SPAC-era litigation). Management reiterated full-year revenue and adjusted EBITDA guidance and outlined clear deleveraging priorities (midterm net leverage target 3.5x). Offsetting these positives are margin pressure (overall adjusted EBITDA down 2% and margin decline to 23%), a decline in Digital Wallet EBITDA and ARPU, an expected H2 cash settlement (~$39M), and a higher cash interest burden from the refinancing (~$25M–$35M incremental). Overall the call projects a constructive path forward with material strategic improvements and manageable near-term headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Paysafe reaffirmed 2026 revenue and adjusted EBITDA guidance while updating adjusted EPS to reflect higher interest from the refinancing (cash interest step‑up roughly $25–35M), expects net leverage to finish 2026 around 5.1x–5.2x (5.3x at quarter end, down from 5.5x at Q4) and targets a mid‑term leverage of ~3.5x; management said Q4 should be the strongest quarter supported by product launches, client ramps and July trends (including double‑digit 3‑month active user growth). They expect $25–30M of SG&A savings in H2 versus H1, will prioritize using free cash flow to deleverage (Q2 unlevered free cash flow $45M, LTM unlevered FCF $298M with 69% LTM conversion and 44% Q2 conversion), and flagged a $39M H2 cash payment for the preliminary legal settlement. For context, Q2 results were revenue $447.4M (+4% reported/organic), adjusted EBITDA $102.8M (−2%, margin 23%), adjusted EPS $0.43 (−7%); Digital Wallets: $6.6B volume, $206.6M revenue (+3%), 3‑month actives 7.8M, adj EBITDA $74.9M (−9%, 36.2% margin or ~40% ex‑VAT/marketing); Merchant: $37.3B volume, $246.1M revenue (+6%), adj EBITDA $50.6M (+28%, 20.6% margin or ~18% ex‑$6M accrual release); total debt $2.5B (down $106M vs Q4).
Paysafe Financial Statement Overview
Summary
Revenue growth improved to ~10% in TTM and EBITDA remains positive (~19% margin), supported by solid operating and free cash flow (FCF score 71). Offsetting this, the balance sheet is highly leveraged (debt-to-equity ~4.5x; balance sheet score 33) and the company is still posting net losses, limiting overall financial strength.
Income Statement
54NeutralBalance Sheet
33NegativeCash Flow
71Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.76B | 1.70B | 1.70B | 1.60B | 1.50B | 1.49B |
| Gross Profit | 780.89M | 686.08M | 989.07M | 937.93M | 882.11M | 887.24M |
| EBITDA | 335.36M | 340.72M | 412.35M | 427.61M | 292.78M | 342.13M |
| Net Income | -208.30M | -182.51M | 22.16M | -20.25M | -1.86B | -110.95M |
Balance Sheet | ||||||
| Total Assets | 4.57B | 4.80B | 4.81B | 5.23B | 5.96B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 226.16M | 1.35B | 216.68M | 202.32M | 260.22M | 313.44M |
| Total Debt | 2.55B | 2.66B | 2.41B | 2.53B | 2.68B | 2.80B |
| Total Liabilities | 4.00B | 4.15B | 3.93B | 4.34B | 5.10B | 4.56B |
| Stockholders Equity | 570.22M | 655.04M | 879.26M | 883.31M | 859.64M | 2.57B |
Cash Flow | ||||||
| Free Cash Flow | 194.67M | 223.58M | 133.31M | 101.12M | 912.75M | 113.71M |
| Operating Cash Flow | 233.26M | 236.16M | 253.80M | 234.02M | 917.30M | 261.46M |
| Investing Cash Flow | -137.31M | -140.41M | -108.38M | -135.24M | -575.59M | -411.27M |
| Financing Cash Flow | -138.03M | -163.38M | -280.80M | -771.03M | -73.76M | 446.29M |
Paysafe Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSFE, the sentiment is Positive. The current price of 6.82 is above the 20-day moving average (MA) of 6.00, above the 50-day MA of 6.07, and below the 200-day MA of 7.12, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 90.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSFE.
Paysafe Risk Analysis
Paysafe disclosed 50 risk factors in its most recent earnings report. Paysafe reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
2 New RisksPaysafe Peers Comparison
Overall Rating
JKHY79Outperform
WSE74Outperform
FIS68Neutral
VYX63Neutral
FISV58Neutral- PSFE53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JKHY | 79Outperform | $12.20B | 24.16 | 24.46% | 1.37% | 6.28% | 10.71% |
| WSE | 74Outperform | $13.06B | 22.58 | 26.12% | ― | ― | ― |
| FIS | 68Neutral | $14.59B | 4.50 | 22.30% | 5.69% | 23.64% | 1970.94% |
| VYX | 63Neutral | $1.36B | 14.41 | 10.39% | ― | -9.85% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| FISV | 58Neutral | $33.69B | -8.61 | -15.73% | ― | -1.71% | -213.86% |
| PSFE | 53Neutral | $371.77M | -1.79 | -32.65% | ― | 5.13% | -359.12% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PSFE | Paysafe Ltd | 6.82 | -0.54 | -7.34% | |
| FIS | Fidelity National Information Services | 30.21 | -33.61 | -52.66% | |
| FISV | Fiserv, Inc. | 63.90 | -0.63 | -0.98% | |
| JKHY | Jack Henry & Associates | 175.90 | 13.10 | 8.05% | |
| VYX | Ncr Voyix Corporation | 10.45 | -0.34 | -3.15% | |
| WSE | Wise PLC Class A | 11.15 | -1.25 | -10.08% |
Paysafe Corporate Events
Paysafe Posts Higher Revenue But Deeper Losses in H1 2026 SEC Filing
Paysafe Limited has filed a Form 6-K with the U.S. Securities and Exchange Commission for August 2026, furnishing unaudited condensed consolidated financial statements as of June 30, 2026, along with management’s discussion and analysis of financial...
Paysafe Posts Q2 2026 Revenue Growth but Wider Loss as Costs Rise
Paysafe Limited reported its second-quarter 2026 results on August 13, 2026, posting revenue of $447.4 million, up 4% year on year, driven by 3% growth in Digital Wallets and 6% in Merchant Solutions, particularly from Latin American and European wal...
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: Aug 18, 2026