Q2 2026 Paysafe Ltd Earnings Call Transcript
Key Points
- Paysafe Ltd (PSFE) resolved the final legacy SPAC-related litigation, removing a significant overhang and associated cash and P&L drain.
- The company successfully refinanced a significant portion of its debt, extending maturities to 2030 and increasing financial flexibility.
- First-half 2026 revenue grew 7%, with strong performance in priority markets and products, including double-digit user growth in Latin America.
- The Product Vitality Index is tracking towards 20% for 2026, up from less than 2% three years ago, indicating successful product innovation.
- The company generated strong unlevered free cash flow of $298 million on an LTM basis, a 10% increase year-over-year, supporting deleveraging efforts.
- Adjusted EBITDA decreased 2% in Q2 2026, with margins declining to 23% from 24.5%, due to increased marketing and IT investments.
- Digital wallets segment revenue growth was modest at 1% organic, with a 5% decline in average revenue per user due to regional and product mix.
- The company expects a $39 million cash payment in the second half related to the legal settlement, impacting cash flow.
- Net leverage remains high at 5.3 times, with expectations to end the year at 5.1-5.2 times, still above the mid-term target of 3.5 times.
- The refinancing will result in approximately $25 million of incremental interest expense in the second half, partially offsetting cash flow benefits.
Greetings. Welcome to the Paysafe second quarter 2026 earnings conference call.
(Operator Instructions)
Please note this conference is being recorded.
I will now turn the conference over to Kirsten Nielsen, Head of Investor Relations.
Thank you, Kirsten. You may begin.
Thank you, and welcome to Paysafe's earnings conference call for the second quarter of 2026.
Joining me today are Bruce Lowthers, Chief Executive Officer and John Crawford, Chief Financial Officer.
Before we begin, a reminder that this call will contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release. And the company's most recent SEC reports. These statements reflect management's current assumptions and expectations and are subject to factors that may cause actual results to differ materially from those forward-looking statements. You should not place undue reliance on these statements.
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