Paysafe Cuts Profit Outlook as EBITDA Margin Drops Five Points

Paysafe has lowered its full-year earnings guidance after third-quarter revenue growth failed to translate into stronger profitability, with its adjusted EBITDA margin falling by roughly five percentage points and operating cash flow more than halving.

The revised forecast reduces expected adjusted EBITDA by about 8% and adjusted earnings per share by 24%, measured at the midpoints of the previous and new ranges.

For the third quarter of 2026, Paysafe reported revenue of $439.6 million, up from $433.8 million a year earlier. Adjusted EBITDA fell to $105.7 million from $126.6 million, and the adjusted EBITDA margin declined to 24.0% from 29.2%. Operating cash flow dropped to $30.3 million from $69.2 million.

Paysafe attributed the EBITDA decline to business mix, continued investment and severance costs. Its Digital Wallets business also faced market softness and regulatory pressure in areas including cryptocurrency and financial trading.

Paysafe: Goodwill write-down deepens reported loss

The company reported a net loss of $247.5 million, including a $203.3 million non-cash goodwill impairment. The write-down widened the accounting loss but did not consume cash and was excluded from adjusted EBITDA.

The cash-flow deterioration was caused by lower adjusted EBITDA, refinancing fees and working-capital outflows linked to the timing of receivables, according to the results.

Refinancing extends maturities at a higher cost

Paysafe’s August refinancing gave it more time to repay part of its borrowings. Replacement dollar and euro term loans mature in June 2030, while the new revolving credit facility runs to August 2031. At the time, management described the transaction as extending debt maturities and supporting investment and deleveraging.

However, higher effective rates following the transaction increased third-quarter interest expense by $7.5 million year on year, adding pressure on adjusted earnings.

For full-year 2026, Paysafe now expects revenue of $1,761 million to $1,771 million, compared with previous guidance of $1,790 million to $1,830 million. Adjusted EBITDA is forecast at $415 million to $422 million, down from $449 million to $464 million, and adjusted EPS at $1.45 to $1.54, down from $1.90 to $2.03.

The previous EPS forecast already incorporated the refinancing’s effect on interest expense. November’s reduction therefore represents a further downgrade to an earnings outlook that had already been revised for the higher financing cost.