One-glance verdict
Within fair range
$9.34 our estimate vs market $7.88
Wall Street consensus: $10.04 (7.5% higher than our fair-value estimate)
16% below our estimate
Fundamentals snapshot
Paysafe Limited
PSFE · NYQ · Technology · Software - Infrastructure
Current price
$7.88
52-week range
$5.95 - $15.02
Market cap
$407.21M
Balance sheet
Distressed
0.90x Concerning
Net debt $2.28B. 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 -27.0% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 5.4% to 2.4% over 3 years.
What this company does
Paysafe Limited
Paysafe helps businesses get paid online and offers people digital wallets (an online purse for storing and spending money), particularly for things like online gaming. The company makes money by taking a small fee from each transaction it processes for these businesses and individuals. This means its success is often tied to the growth of e-commerce and specialized online markets like sports betting.
How the company got here
Paysafe's story begins in 1996 with the founding of Neteller, one of the first digital wallets designed to help people pay for things online without sharing their credit card details. Over the years, the company grew by acquiring other payment companies, including Skrill in 2015 and paysafecard in 2013, combining them into a single group. After being a private company for a few years, Paysafe returned to the stock market in 2021. This history of combining different payment services has shaped it into a company that offers a wide range of ways for businesses and people to handle money digitally.
What it actually does
Think of Paysafe as a company that builds different kinds of digital cash registers and wallets for the internet. For businesses, it provides the tools to accept online payments from customers using credit cards, debit cards, or other methods. For individuals, it offers digital wallets (like Skrill and Neteller) that let you store money online to pay for things or send money to others. It also has a service called paysafecard, which lets you use physical cash to buy a voucher with a code that you can then use to pay for things online, which is helpful for people who don't have or don't want to use a bank account online.
Merchant Solutions
This is the larger part of Paysafe's business, making up over half of its revenue. It focuses on helping businesses, both small and large, accept payments from customers. This includes everything from processing credit and debit card transactions on a website to providing the software for a checkout page and tools to prevent fraud. So, when you buy something from an online store or pay for a service, there's a good chance a company like Paysafe is working behind the scenes to make sure the money gets from your bank to the seller's bank safely.
Digital Wallets
This part of the company provides online accounts for individuals, representing a little under half of the company's business. Its main products are digital wallets, primarily known by the brand names Skrill and Neteller. You can think of a digital wallet as an online version of a physical wallet where you can load money from your bank account and then use it to pay for things on different websites without having to enter your card details every time. These services are especially popular in the online gaming and entertainment industries for moving money quickly and securely.
What management is betting on now
The company is heavily focused on growing in specific areas where payments can be complex, like online gaming (or 'iGaming'). They are putting a lot of effort into expanding in North America, particularly as more states legalize online sports betting. Another key priority is to get more businesses that use their payment processing services to also offer Paysafe's digital wallets and other payment options to their customers. Finally, the company is investing in new technology, including artificial intelligence (AI), to improve its services, make them more secure, and operate more efficiently.
Price history
How the share price has moved
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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 $9.34 vs current price $7.88
Wall Street consensus is the average analyst price target: $10.04 (7.5% higher than our fair-value estimate).
Our most-likely fair value is $9.34 a share — about 18.5% away from today's price of $7.88, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $2.3B. Interest coverage 0.9x.
Net debt
$2.28B
Interest coverage
0.90x
Paysafe Limited's profit covers its interest bill about 0.9 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
PSFE
BASELINE
Paysafe Limited
Total debt $2.53B Interest coverage 0.90x This is the baseline the peer rows are being compared against.
Total debt $4.58B Interest coverage 1.77x +98% vs PSFE Carries about 2.0x more debt cushion than PSFE.
Total debt $23.59B Interest coverage 2.27x +152% vs PSFE Carries about 2.5x more debt cushion than PSFE.
Total debt — Interest coverage 3.72x +315% vs PSFE Carries about 4.1x 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 -27.0% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 5.4% to 2.4% 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
3.06x
P/B
0.66x
P/S
0.23x
EV/EBITDA
6.79x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
56.4%
Operating margin
2.4%
Net margin
-11.4%
ROE
-27.0%
ROA
1.6%
Health
Liquidity and balance-sheet strength
Debt / equity
4.11x
Current ratio
1.16x
Quick ratio
0.29x
Total debt
$2.53B
Total cash
$257.21M
Growth
How the business has been compounding
Revenue TTM
$6.50B
Revenue 5Y CAGR
3.4%
EPS TTM
-3.52
EPS 5Y CAGR
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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
—
Payout ratio
0.0%
Last ex-div date
—