Q4 2025 Paysafe Ltd Earnings Call Transcript
Key Points
- Paysafe Ltd (PSFE) achieved its third consecutive year of organic revenue growth, with a reported $1.7 billion in revenue for 2025, marking a 6% growth excluding dispositions.
- The company saw double-digit growth in e-commerce, particularly in iGaming volumes across the US football season, and strong demand for local payment solutions in Latin America.
- Paysafe Ltd (PSFE) generated $298 million in unlevered free cash flow in 2025, providing flexibility to return over $90 million to shareholders.
- The digital wallet consumer base reached 7.8 million, the highest level in three years, with notable growth in Latin America and Europe.
- The company's Vitality Index, which measures revenue from new product initiatives, reached $270 million, representing 16% of total company revenue, indicating strong innovation momentum.
- The SMB business experienced softer results, with a modest 1% revenue growth for the year and a margin headwind due to a mix shift to lower-margin ISO channels.
- Adjusted EBITDA declined by 5% to $429 million, with a margin decline of 130 basis points due to higher marketing investments and operational expenses.
- The net leverage ratio increased to 5.5 times at year-end, up from 4.7 times the previous year, partly due to FX fluctuations and business disposals.
- Revenue attrition ended at 12%, slightly higher than the original expectation for the full year, indicating challenges in retaining existing revenue streams.
- The digital wallet segment faced margin declines driven by lower interest revenue and business mix dynamics, impacting overall profitability.
Greetings, and welcome to the Paysafe Fourth Quarter 2025 Earnings Conference Call and Webcast. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Kirsten Nielsen, Head of Investor Relations. Please go ahead.
Thank you, and welcome to Paysafe's earnings conference call for the fourth quarter and full-year 2025. 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.
Forward-looking statements
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