Paysafe Cuts Adjusted EBITDA Outlook as Adjusted EBITDA Margin Falls 5.1 Percentage Points

Paysafe cut its 2026 adjusted earnings outlook on Nov. 12 after third-quarter adjusted EBITDA fell despite higher revenue, with the margin contracting about 5.1 percentage points based on unrounded figures.

The revised 2026 adjusted EBITDA range is $415 million to $422 million, down from $449 million to $464 million. Comparing the midpoints, the reduction is about 8.3%. Paysafe lowered its adjusted earnings per share (EPS) outlook to $1.45 to $1.54 from $1.90 to $2.03, a 23.9% midpoint cut.

The revenue forecast also moved lower, to $1.761 billion to $1.771 billion from $1.790 billion to $1.830 billion. Its midpoint is down about 2.4%. The lower outlook followed a quarter of modest sales growth and weaker adjusted profitability.

For the three months ended Sept. 30, revenue rose 1% year over year to $439.6 million. Adjusted EBITDA fell 17% to $105.7 million from $126.6 million. The resulting margin was 24.0%, versus 29.2% a year earlier. Those margins are calculated by dividing adjusted EBITDA by revenue.

Operating cash flow dropped to $30.3 million from $69.2 million, a decline of about 56%. Paysafe attributed the decrease to lower adjusted EBITDA, refinancing fees and increased working-capital outflows tied to receivables timing. Adjusted EPS for the quarter was $0.44, down from $0.70 a year earlier. The company attributed a $7.5 million year-over-year rise in interest expense to higher effective rates after refinancing.

Paysafe attributed the adjusted EBITDA decline to business mix, continued investment and severance-related costs. It also cited market softness and regulatory pressure in some regions and business sub-verticals as headwinds for its Digital Wallets business, including cryptocurrency and financial trading.

The quarter ended with a net loss of $247.5 million, including a noncash goodwill impairment charge of $203.4 million. Adjusted EBITDA and adjusted EPS are non-GAAP measures that Paysafe presents alongside results prepared under U.S. generally accepted accounting principles.

CEO Bruce Lowthers said, “Market and currency headwinds in the second half have been greater than we anticipated.” He said Paysafe continues to expect mid-single-digit revenue growth for 2026 and that its view of the long-term opportunity is unchanged.