In This Article:
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Revenue: Declined by 4% to $401 million; increased 5% organically.
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Adjusted EBITDA: $95.2 million with a margin of 23.7%.
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Unlevered Free Cash Flow: $57 million with a 60% conversion of adjusted EBITDA.
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Adjusted Net Income: $20.9 million or $0.34 per share.
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Merchant Solutions Volume: Increased by 11% to $34.3 billion.
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Digital Wallet Volume: Increased by 5% to $5.9 billion.
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Net Leverage: Increased to 4.9 times.
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Share Repurchase: 613,000 shares in Q1 and 693,000 shares in April, totaling approximately $20 million returned to shareholders year-to-date.
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Paysafe Ltd (NYSE:PSFE) reported a 5% organic revenue growth in Q1 2025, driven by strong growth from existing customers and new sales initiatives.
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The company signed over 100 enterprise-level contracts in Q1, expanding its reach across gaming, Latin America, and broader e-commerce verticals.
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The launch of the PagoEfectivo wallet in Peru is expected to capitalize on the high-growth payments landscape, enhancing Paysafe's market presence in Latin America.
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Paysafe Ltd (NYSE:PSFE) expanded its partnership with Fiserv, integrating Clover Capital Solution to provide SMBs with improved access to capital.
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The company reported a 31% growth in e-commerce and over 50% growth in iGaming year-over-year, indicating strong performance in key verticals.
Negative Points
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Paysafe Ltd (NYSE:PSFE) reported a 4% decline in reported revenue to $401 million, impacted by inorganic headwinds from FX, interest, and divestiture.
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Adjusted EBITDA decreased to $95 million from $112 million in the previous year, with a margin decline due to lower interest revenue and business mix.
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The SMB segment experienced flat performance, with higher attrition rates and slower ramp-up in direct sales impacting growth.
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Net leverage increased to 4.9 times, driven by the divestiture of the direct marketing business and the strengthening of the euro.
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The company faces challenges in optimizing the SMB team and go-to-market channels, with ongoing efforts needed to improve resource allocation and lead generation.
Q & A Highlights
Q: Can you frame up how much of the sales pipeline is booked but yet to go live, and how much visibility do you have in achieving the second half acceleration embedded in guidance? A: Bruce Lowthers, CEO: We have good visibility with a strong quarter in Q1, particularly in enterprise sales. As we onboard merchants and ramp up production, we see existing customers performing better than anticipated, which is a positive sign for the second half. We feel confident about our strong pipeline heading into Q2.