Paysafe $247.5m Q3 Loss on Goodwill Charge

Paysafe Limited reported a third-quarter net loss of $247.5m today, up from $87.7m a year earlier, driven mainly by a $203.3m goodwill impairment. That is a non-cash charge, booked when an acquired business is judged to be worth less than its recorded value.

The payments group, listed on the New York Stock Exchange (NYSE: PSFE), serves iGaming, e-commerce and online trading clients through Skrill, PaysafeWallet and PaysafeCard. It published the results in a release issued as Exhibit 99.1 to a Form 6-K, the form foreign private issuers use to give the US Securities and Exchange Commission material information.

Underneath the charge, revenue rose 1% to $439.6m, or 2% in organic terms, meaning growth stripped of currency and deal effects. Adjusted EBITDA, a profit measure before interest, tax, depreciation, amortisation and certain adjusted items, fell 17% to $105.7m. Paysafe attributed that largely to business mix, continued investment and severance-related costs.

Corporate costs, the central expenses outside the two business units, rose 68% to $24.5m from $14.6m.

Digital Wallets, the consumer e-wallet unit covering Skrill and PaysafeWallet, grew revenue 1% to $208.1m, or 2% organically. Its segment Adjusted EBITDA fell 9% to $85.0m. Paysafe said strength in Latin America and PaysafeWallet in Europe offset market softness and regulatory pressure in some regions and sub-verticals, including cryptocurrency and financial trading.

For brokers, this is inference rather than anything Paysafe stated: firms taking client deposits through Skrill or other Paysafe wallets may want to check how much of their funding flow depends on them, and ask about pricing or product changes. The release does not say any service is changing.

In August Paysafe refinanced, replacing existing borrowing with a $650.9m term loan and a €478.4m term loan, both maturing in June 2030, plus a $372.5m revolving credit facility maturing in August 2031. Interest expense rose $7.5m on higher effective rates, and other expense rose $13.6m, mainly third-party refinancing fees. Total debt stood at $2.5bn on 30 September.

Paysafe updated its 2026 guidance to revenue of $1,761m to $1,771m and Adjusted EBITDA of $415m to $422m. Chief executive Bruce Lowthers said:

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.

Bruce Lowthers, chief executive, Paysafe