Paysafe Stock Plunges Post Q3 Report CEO Says Market Headwinds Exceeded Expectations

(MENAFN- AsiaNet News)

• Paysafe reported Q3 revenue of $439.6 million, up 1% year-over-year but below analyst estimates of $448.53 million, according to Fiscal.
• Adjusted EPS fell to $0.44 from $0.70 a year earlier, missing expectations of approximately $0.55. 
• Paysafe lowered its FY2026 revenue guidance to $1.761 billion to $1.771 billion.

Paysafe (PSFE) shares were on track to hit all-time lows on Thursday, falling approximately 30% in premarket trading after the payments company reported weaker-than-expected third-quarter results and lowered its full-year 2026 outlook. 

“Market and currency headwinds in the second half have been greater than we anticipated, but we continue to expect mid-single-digit revenue growth for 2026, and our view of the long-term opportunity hasn't changed,” said CEO Bruce Lowthers.

The company reported revenue of $439.6 million, up 1% year-over-year, missing analyst estimates of $448.53 million, according to Fiscal. Organic revenue increased 2%, with foreign exchange movements creating a modest headwind.

Adjusted earnings per share (EPS) declined to $0.44 from $0.70 in the year-ago quarter, falling short of analyst estimates of approximately $0.55 per share, according to estimates compiled by Investing. Adjusted net income decreased to $23.8 million from $40.3 million.

Adjusted EBITDA And Cash Flow Decline

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 17% year-over-year to $105.7 million from $126.6 million. The company attributed the decline largely to business mix, continued investment, and severance-related costs.

Operating cash flow decreased to $30.3 million from $69.2 million in the year-ago quarter. Paysafe attributed the decline to lower Adjusted EBITDA, third-party fees associated with refinancing activities and higher working capital outflows related to the timing of receivables.

Unlevered free cash flow also fell to $50.2 million from $83.6 million.

Paysafe Cuts 2026 Financial Outlook

Paysafe lowered its full-year 2026 revenue outlook to $1.761 billion to $1.771 billion from $1.790 billion to $1.830 billion.

The company also reduced its adjusted EBITDA guidance to $415 million to $422 million from $449 million to $464 million, and its adjusted EPS outlook to $1.45-$1.54 from $1.90 to $2.03.

How Retail Views PSFE

Retail sentiment around the stock turned 'extremely bullish' from 'neutral', amid 'extremely high' message volumes over the past 24 hours.

PSFE shares have dropped over 15% year-to-date.

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