Paysafe (NYSE:PSFE) reported first-quarter results on Wednesday that came in ahead of Wall Street forecasts, while the company also reaffirmed its full-year outlook.
Despite the earnings beat, shares slipped 0.46% in premarket trading following the announcement.
Revenue and adjusted earnings exceed forecasts
Paysafe posted adjusted earnings per share of $0.41 for the quarter, outperforming analyst expectations of $0.37 per share.
Quarterly revenue reached $442.7 million, above the consensus estimate of $424.86 million and up 10% from $401.0 million in the same period last year.
Organic revenue increased 8% year-on-year, supported by 7% growth in the Digital Wallets business and 9% growth in Merchant Solutions.
Company maintains full-year outlook
Paysafe reiterated its guidance for 2026, continuing to forecast annual revenue between $1.79 billion and $1.83 billion, representing expected growth of 5% to 8%.
The midpoint of the guidance range, at $1.81 billion, remained consistent with the company’s previous outlook.
The company also maintained expectations for adjusted EBITDA of between $449 million and $464 million, alongside adjusted earnings per share guidance of $2.12 to $2.32, implying double-digit annual growth.
“We are pleased with our strong start to the year, delivering 10% revenue growth, 21% growth in adjusted EPS, and a reduction in our net leverage ratio to 5.2x in the first quarter,” said Bruce Lowthers, chief executive officer of Paysafe.
Net loss widens despite EBITDA growth
Paysafe reported a net loss of $36.5 million, or -$0.71 per diluted share, compared with a loss of $19.5 million, or -$0.33 per diluted share, in the prior-year quarter.
The company said the increase in losses was mainly linked to higher selling, general and administrative expenses.
Adjusted EBITDA rose 4% year-on-year to $99.2 million from $95.2 million in the same period last year.
Debt repayments improve leverage position
During the quarter, Paysafe repaid $104.3 million of net debt.
The repayments reduced the company’s net leverage ratio to 5.2x by the end of the quarter.