Paysafe Limited (NYSE:PSFE) saw its stock tumble 15.3% on Thursday after the payments firm posted weaker-than-expected third-quarter results and slashed its full-year forecast, unsettling investors already cautious about margins and product mix.
Adjusted earnings for the quarter came in at $0.70 per share, missing the consensus view of $0.73. Revenue reached $433.8 million, short of analysts’ $439.51 million estimate, though it still marked a 2% improvement from the same period a year ago.
On an organic basis, revenue climbed 6%, supported by 7% growth in Merchant Solutions and 4% growth in Digital Wallets.
The steep selloff was largely tied to Paysafe’s reduced outlook for fiscal 2025. The company now expects earnings between $1.83 and $1.88 per share, well below its previous range of $2.21–$2.51 and under the Street’s $2.41 forecast. Revenue projections were also trimmed to $1.7–$1.71 billion from the earlier $1.71–$1.73 billion range.
CEO Bruce Lowthers acknowledged the shifting dynamics affecting the updated forecast.
“While we are pleased with this quarter and year-to-date results, we continue to see outperformance in lower-margin products and sales channels,” Lowthers said. “Our updated 2025 outlook reflects these current business dynamics and a longer timeline for the delivery and growth of new products, such as our wallet platform initiatives.”
Paysafe posted a net loss of $87.7 million, widening from a $13 million loss in the prior year. The bulk of the deficit came from an $81.2 million charge tied to U.S. deferred tax assets following July’s enactment of the One Big Beautiful Bill Act.
Despite the softer quarter, the company’s board authorized an additional $70 million for its share repurchase plan, bringing the total buyback capacity to roughly $97 million.
Adjusted EBITDA rose 7% to $126.6 million, even with a $10.3 million drag related to a previously divested business line.