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Investing.com - Paysafe Limited (NYSE:PSFE) shares plunged 15.3% on Thursday after the payments platform reported third-quarter earnings that missed analyst expectations and significantly lowered its full-year outlook.
The company reported adjusted earnings of $0.70 per share for the third quarter, falling short of the $0.73 analyst consensus. Revenue came in at $433.8 million, below the expected $439.51 million, though it represented a 2% increase from the year-ago period.
Organic revenue growth was 6%, driven by 7% organic growth in Merchant Solutions and 4% in Digital Wallets.
The substantial stock decline followed Paysafe ’s reduced full-year guidance. The company now expects fiscal 2025 earnings of $1.83-$1.88 per share, well below the previous forecast of $2.21-$2.51 and analyst consensus of $2.41.
Revenue guidance was also cut to $1.7-$1.71 billion from the earlier $1.71-$1.73 billion range.
"While we are pleased with this quarter and year-to-date results, we continue to see outperformance in lower-margin products and sales channels," said Bruce Lowthers, CEO of Paysafe. "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."
The company reported a net loss of $87.7 million for the quarter, compared to a $13 million loss in the prior year period. This was primarily due to an $81.2 million charge related to U.S. deferred tax assets following the enactment of the One Big Beautiful Bill Act in July 2025.
Despite the disappointing results, Paysafe’s board authorized an additional $70 million for its share repurchase program, bringing the total available to approximately $97 million.
Adjusted EBITDA for the quarter increased 7% to $126.6 million, despite a $10.3 million headwind related to a disposed business line.
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