CEO Bruce Lowthers said second-half market and currency headwinds were greater than anticipated but reaffirmed the company’s expectation of mid-single-digit revenue growth in 2026.
- Paysafe reported Q3 revenue of $439.6 million, up 1% year-over-year but below analyst estimates of $448.53 million, according to Fiscal.ai.
- 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.ai. 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.com. 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.
Also read: Nvidia’s Jensen Huang Resigns As CEO, CFO Colette Kress To Step In
For updates and corrections, email newsroom[at]stocktwits[dot]com.<