One-glance verdict
Within fair range
$10.35 our estimate vs market $5.66
Wall Street consensus: $8.50 (-17.9% lower than our fair-value estimate)
45% below our estimate
Fundamentals snapshot
Paysafe Limited
PSFE · NYQ · Technology · Software - Infrastructure
Current price
$5.66
52-week range
$5.35 - $12.95
Market cap
$295.54M
Balance sheet
Distressed
0.90x Concerning
Net debt $2.32B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -30.3% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 5.4% to 2.7% over 3 years.
What this company does
Paysafe Limited
Paysafe acts like a digital cash register, providing the technology for businesses to accept payments online and offering digital wallets (online accounts for holding and spending money) to individuals. It makes money by taking a small cut of each transaction, focusing heavily on specialized industries like online sports betting and video games. Because these fast-growing areas have unique payment needs, Paysafe's specialized services are often in demand.
How the company got here
Paysafe's story is one of combining different payment companies over many years. Its roots go back to the mid-1990s with the founding of companies like Netbanx and Neteller. A major step was in 2015 when Optimal Payments, as it was then known, bought Skrill, a major competitor, and rebranded the whole group as Paysafe. In 2017, it was purchased by the private equity firms Blackstone and CVC and taken off the London Stock Exchange. The company returned to the public market in 2021 by merging with a special-purpose acquisition company (a faster way to go public than a traditional IPO) and is now traded on the New York Stock Exchange.
What it actually does
Paysafe provides the technology for businesses and people to pay for things, both online and in person. Think of it as a digital toolkit for money that includes everything from processing credit card payments for a small online shop to offering digital wallets for online gaming customers. For businesses, Paysafe helps them accept a wide variety of payment types from customers around the world. For individuals, it offers ways to pay online without a bank account or to manage money digitally through its well-known brands like Skrill and Neteller.
Merchant Solutions
This is the larger part of Paysafe's business, which focuses on helping businesses (the 'merchants') accept payments from their customers. It provides the technology for online stores and physical shops to process credit and debit card payments, whether through a website, an app, or a point-of-sale (the checkout counter) system. This segment earns money by charging fees for each transaction it processes. It's particularly focused on small and medium-sized businesses and those in specialized online industries like travel and iGaming (online betting).
Digital Wallets
This segment provides online accounts for consumers to store and spend money digitally. You might recognize its main brands, Skrill and Neteller, which act like a virtual wallet where you can load money and then use it to pay for things online or send money to others. This part of the business also includes eCash solutions like paysafecard, which allows people to buy a voucher with cash at a physical store and then use a code to spend that money online, offering a way to participate in e-commerce without a bank account. Paysafe makes money here from fees on transactions and currency conversions.
What management is betting on now
The company is focused on making its different payment services work better together, so a business might use both its payment processing and its digital wallet services. They are concentrating on specific industries where payments can be more complex, such as online gaming and travel, where they believe their specialized services can stand out. Another key priority is to make its digital wallets, like the recently introduced PaysafeWallet, more central to how customers manage their money, connecting cash users to the digital economy. Finally, the company is investing in new technologies like Artificial Intelligence (AI) to improve efficiency and create more personalized payment experiences for customers.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$237.87M
FY2025 Q4
$223.58M
Revenue
$1.70B
Net income
—
Diluted EPS
-3.14
Operating cash flow
$236.16M
Free cash flow
$223.58M
Fetching…
Sources
Revenue
$1.70B
Net income
$22.16M
Diluted EPS
0.36
Operating cash flow
$253.80M
Free cash flow
$237.87M
Fetching…
Sources
Is it cheap or expensive?
Fair value $10.35 vs current price $5.66
Wall Street consensus is the average analyst price target: $8.50 (-17.9% lower than our fair-value estimate).
Our most-likely fair value is $10.35 a share — about 82.9% away from today's price of $5.66, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $2.3B. Interest coverage 0.9x.
Net debt
$2.32B
Interest coverage
0.90x
Paysafe Limited's profit covers its interest bill about 0.9 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
PSFE
BASELINE
Paysafe Limited
Total debt $2.55B Interest coverage 0.90x This is the baseline the peer rows are being compared against.
Total debt $5.71M Interest coverage 2.76x +207% vs PSFE Carries about 3.1x more debt cushion than PSFE.
Total debt $1.05B Interest coverage 1.56x +74% vs PSFE Carries about 1.7x more debt cushion than PSFE.
Total debt $86.16M Interest coverage -11.78x -100% vs PSFE This peer has almost no interest-payment cushion compared with PSFE.
Total debt $1.47M Interest coverage 5.67x +531% vs PSFE Carries about 6.3x more debt cushion than PSFE.
Total debt $10.39M Interest coverage 12,590.00x +1,402,623% vs PSFE Carries about 14027.2x more debt cushion than PSFE.
What you should know
The case for and against PSFE
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -30.3% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 5.4% to 2.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
2.63x
P/B
0.52x
P/S
0.17x
EV/EBITDA
6.77x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
56.1%
Operating margin
2.7%
Net margin
-11.8%
ROE
-30.3%
ROA
1.4%
Health
Liquidity and balance-sheet strength
Debt / equity
4.47x
Current ratio
1.17x
Quick ratio
0.28x
Total debt
$2.55B
Total cash
$226.16M
Growth
How the business has been compounding
Revenue TTM
$6.50B
Revenue 5Y CAGR
3.4%
EPS TTM
-3.83
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$1.65B
Free CF TTM
$223.58M
FCF margin
3.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
—