Paysafe Limited (PSFE) AI Stock Analysis
PSFE AI stock analysis summary
AI ResearchPaysafe Limited is a digital commerce solutions provider operating across US Acquiring and Digital Commerce segments. In FY2025, the company generated $1.70B in revenue with net income of -$182.5M, following a brief return to profitability in FY2024. Paysafe maintains substantial leverage, with total debt reaching $2.55B against a market cap of $295.5M as of June 30, 2026.
- Market cap
- $295.5M
- Revenue (TTM)
- $1.76B
- P/E
- — fwd 3.1x
- 1Y return
- -52.1% S&P 500 16.8%
- Avg. target
- $8.50 50.2% vs last close
Bull case
- Analysts project EPS growth of 2.3% to $2.00 in FY2026 and 7.9% to $2.15 in FY2027.
- The company generated solid cash generation in FY2025, delivering $223.6M in free cash flow.
- The stock trades at a forward P/E multiple of 3.1x compared to the US-listed Technology peer median of 18.8x.
Bear case
- Balance sheet leverage is substantial, characterized by $2.55B in total debt and a debt-to-equity ratio of 4.47.
- Net income fell to -$182.5M in FY2025 as gross margin contracted significantly to 40.3% from 58.0% in FY2024.
- The stock has underperformed broader indices, declining 52.1% over the past year and 94.0% over five years.
What Paysafe does
Paysafe Limited provides digital commerce solutions to online businesses, small to medium-sized merchants, and consumers across the Paysafe Network. It operates two main segments: US Acquiring and Digital Commerce. Under the Paysafe and Petroleum Card Services brands, it delivers PCI-compliant merchant acquiring, transaction processing, point-of-sale systems, and fraud prevention tools. It also offers digital wallet services through its Skrill and NETELLER brands, pay-by-bank features via Rapid Transfer, and eCash options including Paysafecash and paysafecard. In addition, Paysafe provides integrated ecommerce gateways with tokenization and encryption support for online merchants and software vendors.
Growth and profitability
Paysafe recorded a 5-year revenue CAGR of 3.6% from FY2020 to FY2025. Annual revenue expanded from $1.49B in FY2021 to $1.70B in FY2024, before revenue fell 0.2% to $1.70B in FY2025. Net income dropped from $22.2M in FY2024 to -$182.5M in FY2025, alongside gross margin compressing from 58.0% to 40.3%. Operating margin decreased slightly to 7.2% in FY2025 from 7.8% in FY2024. For the trailing twelve months ended June 30, 2026, revenue stood at $1.76B with a profit margin of -11.8% and EPS of -$3.83, while latest quarterly revenue rose 4.5% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Paysafe held $226.2M in cash and short-term investments against total debt of $2.55B, resulting in net debt of $2.32B. The balance sheet reflects a debt-to-equity ratio of 4.47, with shareholders' equity at $570.2M, total assets of $4.57B, and a current ratio of 1.17. In FY2025, the company generated $236.2M in operating cash flow and $223.6M in free cash flow. Capital expenditures totaled $12.6M, while share buybacks absorbed $101.4M.
Valuation and performance
PSFE trades at a forward P/E of 3.1x, below the median of its US-listed Technology peers of 18.8x. Its enterprise value of $2.66B corresponds to an EV/EBITDA of 8.7x, compared to the peer median of 16.6x, and a price-to-sales ratio of 0.2x versus the peer median of 2.8x. The stock closed at $5.66 on October 16, 2026, down 52.1% over the past year and down 94.0% over five years. Over the same periods, the S&P 500 gained 16.8% and 83.0%, respectively.
What analysts expect
Wall Street sentiment is divided, with 1 Strong Buy, 2 Hold, and 1 Strong Sell rating. The mean price target is $8.50, representing an upside of 50.2% from the last close of $5.66. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $1.81B and EPS of $2.00, representing 2.3% EPS growth. Over the last four quarters, Paysafe beat EPS estimates twice. The next earnings date is November 12, 2026.
Key risks and what to watch
- High leverage is evidenced by net debt of $2.32B relative to a market cap of $295.5M as of June 30, 2026.
- Gross margin dropped steeply from 58.0% in FY2024 to 40.3% in FY2025.
- PSFE exhibits elevated volatility with a beta of 1.78 and short interest representing 11.5% of float.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this PSFE AI stock analysis
This page is an AI-written research summary of Paysafe Limited (PSFE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: PSFE income statement, PSFE balance sheet, PSFE key metrics, PSFE analyst forecast, PSFE chart. See the PSFE stock overview for the latest quote and news.
PSFE AI stock analysis FAQ
Does Paysafe Limited pay a dividend?
No, Paysafe Limited does not currently pay a dividend. Cash usage in FY2025 was directed toward $12.6M in capital expenditures and $101.4M in share buybacks.
What are Paysafe's revenue and earnings expectations?
For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.81B and EPS of $2.00. For the following fiscal year, 4 analysts forecast revenue of $1.91B and EPS of $2.15.
How much debt does Paysafe carry?
As of June 30, 2026, Paysafe reported total debt of $2.55B and net debt of $2.32B, compared to $226.2M in cash and short-term investments.
What is the analyst consensus price target for PSFE stock?
Analysts have set a mean price target of $8.50, which stands 50.2% above its October 16, 2026 close of $5.66.