Paysafe Limited announced its financial results for the second quarter of 2025, reporting revenue of $428.2 million, a 2.7% decrease year-over-year. The company recorded a net loss of $50.1 million for the quarter, a significant increase from $1.4 million in the prior year, primarily due to decreased revenue, increased restructuring costs, and higher other expense income from foreign exchange. Adjusted EBITDA for the quarter decreased by 11.8% to $105.0 million.
Excluding the divested direct marketing business, Paysafe achieved organic revenue growth of 5% and adjusted EBITDA growth of 12%. The GAAP net loss included a $31 million non-cash valuation allowance on U.K. deferred tax assets, with a full valuation allowance against U.S. deferred tax assets anticipated in Q3 2025 due to the One Big Beautiful Bill Act (OBBBA). Adjusted earnings per share for Q2 were 46 cents, beating the analyst consensus of 45 cents, and sales of $428.218 million outpaced the Street view of $424.749 million.
Paysafe reaffirmed its 2025 outlook, expecting organic revenue growth to accelerate to 8-10% in the second half of the year, with Q4 projected to be the strongest quarter for reported growth, organic growth, and margin performance. Net leverage increased to 5.4x at the end of Q2 2025, primarily due to the stronger Euro impacting Euro-denominated debt balances and the divestiture. The company aims to reduce net leverage to 4.4x or lower by the end of 2025.
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