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Investing.com -- Paysafe Limited saw its shares surge 10.5% premarket on Tuesday after reporting second-quarter earnings that exceeded analyst expectations, despite a year-over-year revenue decline due to a business divestiture.
The payment solutions provider reported adjusted earnings per share of $0.46 for the second quarter of 2025, slightly above the analyst consensus of $0.45. Revenue came in at $428.2 million, surpassing the analyst estimate of $424.8 million, though representing a 3% decrease from the $439.9 million reported in the same quarter last year.
The revenue decline was attributed to the disposal of the company’s direct marketing payments processing business, which contributed $36.7 million in the prior-year period.
On an organic basis, Paysafe (NYSE:PSFE) achieved 5% revenue growth, with Merchant Solutions growing 6% organically and Digital Wallets up 3%. The company reported a net loss of $50.1 million, or -$0.85 per diluted share, compared to a net loss of $1.4 million in the second quarter of 2024.
"A very solid quarter with revenue, adjusted EBITDA, and adjusted EPS all in line with our expectations," said Bruce Lowthers, CEO of Paysafe. "In Europe, for the first time in years, we had double-digit growth led by our consumer business, coupled with overall strong performance from existing customers."
Adjusted EBITDA for the quarter was $105 million, down 12% year-over-year, but the company noted this included a $25.4 million headwind related to the disposed direct marketing business.
Paysafe reaffirmed its full-year 2025 guidance, projecting revenue between $1.71 billion and $1.73 billion and adjusted EBITDA between $463 million and $478 million. The company also repurchased 1.5 million shares for $20 million during the quarter.