Paysafe (PSFE) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, March 3, 2026 astatine 10:25 AM CST 36 min read

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Tuesday, March 3, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Bruce Lowthers

• Chief Financial Officer — John Crawford

Bruce Lowthers: Good morning, everyone, and convey you for joining america today. I volition commencement disconnected with a fewer cardinal messages. In 2025, we delivered our 3rd consecutive twelvemonth of integrated gross maturation portion continuing to sharpen our absorption connected experience-driven commerce. While concern premix led to a antithetic borderline result than the archetypal outlook called for, I privation to reiterate that we person made unthinkable advancement successful 2025. For the past 3 years, we person made heavy structural changes modernizing our platform, upgrading our talent, and positioning Paysafe Limited for its adjacent signifier of growth. During this clip frame, we renewed our absorption connected merchandise innovation, which is reflected successful the advancement of our vitality index.

I americium assured that the affirmative interaction of this enactment volition go progressively evident done our fiscal results arsenic we determination forward. I americium grateful for the dedication of our 2,008 colleagues worldwide. Their resilience has driven america done the challenges and laid a instauration of accelerated maturation and exceptional experiences for some customers and employees. Let's determination to descent four. For the afloat year, we reported $1.7 cardinal successful revenue, maturation of 6% excluding the disposition. While we saw softer results successful the SMB business, this was offset by double-digit maturation from e-commerce, including grounds iGaming volumes crossed the U.S. shot season.

We besides saw beardown request for our section outgo solutions successful Latin America and, increasingly, user engagement from merchandise initiatives crossed Europe. Importantly, our integer wallet consumers reached 7.8 cardinal astatine 4th end, our highest level successful 3 years. We generated an awesome $298 cardinal successful unlevered escaped currency travel successful 2025, contempt divesting a concern enactment that generated $40 cardinal successful EBITDA the anterior year. This provided america with the flexibility to instrumentality much than $90 cardinal to shareholders successful 2025 arsenic valuation levels were a compelling opportunity. As John volition sermon later, we expect to proceed to instrumentality superior done unfastened marketplace purchases, but reducing our leverage ratio volition beryllium a higher precedence successful 2026.

Turning to the afloat twelvemonth gross locomotion connected descent five. Revenue maturation was balanced crossed the existing lawsuit basal and our caller income and merchandise initiatives, which contributed 810% of gross maturation respectively. Revenue attrition ended up astatine 12%, somewhat higher than our archetypal anticipation for the afloat year. We proceed to spot betterment passim the year. In Q4, attrition was 11%. When we enactment each this together, our show reflects beardown cross-selling and maturation with existing clients arsenic good arsenic caller clients and caller products. On descent six, we person shared our determination show for the afloat year. Our largest market, North America, grew 5% successful 2025 excluding the disposition, and Europe grew 7% normalized for FX.