Revenue growth remains volatile at 10.4% in 2026Q1, while gross margins have compressed significantly to 40.6% from historical levels near 58%.
| Sales/Revenue | 1.74B | 1.7B | 1.7B | 1.6B | 1.5B | 1.49B | 1.43B | 1.42B | 1.14B |
| Revenue Growth % | 3.26% | -0.2% | 6.48% | 7.02% | 0.61% | 4.24% | 0.59% | 24.33% | - |
| Cost of Goods Sold | 899.53M | 1.02B | 715.76M | 663.21M | 614.02M | 599.78M | 534.82M | 508.74M | 390.71M |
| COGS % of Revenue | - | 59.67% | 41.98% | 41.42% | 41.04% | 40.33% | 37.49% | 35.87% | 34.25% |
| Gross Profit | 843.58M | 686.08M | 989.07M | 937.93M | 882.11M | 887.24M | 891.67M | 909.4M | 749.95M |
| Gross Margin % | 48.4% | 40.33% | 58.02% | 58.58% | 58.96% | 59.67% | 62.51% | 64.13% | 65.75% |
| Gross Profit Growth % | - | -30.63% | 5.45% | 6.33% | -0.58% | -0.5% | -1.95% | 21.26% | - |
| Operating Expenses | 748.09M | 563.65M | 855.72M | 779.27M | 2.75B | 1.16B | 871.99M | 857.59M | 576.22M |
| OpEx % of Revenue | - | 33.13% | 50.19% | 48.67% | 184.08% | 77.77% | 61.13% | 60.47% | 50.52% |
| Selling, General & Admin | 318.84M | 563.65M | 0 | 0 | 0 | 0 | 0 | 443.06M | 341.96M |
| SG&A % of Revenue | - | 33.13% | - | - | - | - | - | 31.24% | 29.98% |
| Research & Development | 13K | 0 | 8.09M | 8.53M | 12.41M | 8.57M | 7.95M | 0 | 4.99M |
| R&D % of Revenue | - | - | 0.47% | 0.53% | 0.83% | 0.58% | 0.56% | - | 0.44% |
| Other Operating Expenses | 2M | 0 | 847.63M | 770.74M | 2.74B | 1.15B | 864.03M | 414.53M | 234.26M |
| Operating Income | 95.49M | 122.44M | 133.35M | 158.66M | -1.87B | -269.27M | 19.68M | 51.81M | 115.94M |
| Operating Margin % | 5.48% | 7.2% | 7.82% | 9.91% | -125.12% | -18.11% | 1.38% | 3.65% | 10.16% |
| Operating Income Growth % | - | -8.19% | -15.95% | 108.48% | -595.18% | -1468.25% | -62.02% | -55.31% | - |
| EBITDA | 372.8M | 396.54M | 408.11M | 422.8M | -1.61B | -7.9M | 287.85M | 331.64M | 350.2M |
| EBITDA Margin % | 21.39% | 23.31% | 23.94% | 26.41% | -107.28% | -0.53% | 20.18% | 23.39% | 30.7% |
| EBITDA Growth % | -3.31% | -2.83% | -3.47% | 126.34% | -20217.94% | -102.74% | -13.21% | -5.3% | - |
| D&A (Non-Cash Add-back) | 277.31M | 274.11M | 274.75M | 264.14M | 266.82M | 261.37M | 268.17M | 279.83M | 234.26M |
| EBIT | 101.82M | 122.44M | 137.59M | 163.46M | 25.96M | 80.76M | 157.6M | 46.35M | 130.04M |
| Net Interest Income | -136.59M | -136.41M | -140.81M | -151.15M | -126.63M | -165.83M | -166.34M | -173.02M | -164.13M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 136.59M | 136.41M | 140.81M | 151.15M | 126.63M | 165.83M | 166.34M | 173.02M | 164.13M |
| Other Income/Expense | -173.49M | -194.5M | -119.33M | -138.07M | -42.85M | 73.83M | -205.59M | -178.47M | -150.03M |
| Pretax Income | -78M | -72.06M | 14.02M | 20.59M | -1.91B | -195.44M | -185.91M | -126.66M | -34.09M |
| Pretax Margin % | -4.47% | -4.24% | 0.82% | 1.29% | -127.98% | -13.14% | -13.03% | -8.93% | -2.99% |
| Income Tax | 121.49M | 110.45M | -8.14M | 40.84M | -52.5M | -85.11M | -59.2M | -16.52M | 5.62M |
| Effective Tax Rate % | -155.75% | -153.27% | -58.01% | 198.36% | 2.74% | 43.55% | 31.84% | 13.05% | -16.49% |
| Net Income | -199.49M | -182.51M | 22.16M | -20.25M | -1.86B | -110.95M | -126.72M | -110.2M | -39.71M |
| Net Margin % | -11.44% | -10.73% | 1.3% | -1.26% | -124.5% | -7.46% | -8.88% | -7.77% | -3.48% |
| Net Income Growth % | -54108.42% | -923.59% | 209.43% | 98.91% | -1578.76% | 12.44% | -14.99% | -177.5% | - |
| Net Income (Continuing) | -199.49M | -182.51M | 22.16M | -20.25M | -1.86B | -110.33M | -126.71M | -110.14M | -39.71M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 138M | 11.3M | 5.96M | 5.9M |
| EPS (Diluted) | -3.90 | -3.14 | 0.36 | -0.33 | -30.77 | -1.83 | -2.10 | -1.83 | -0.66 |
| EPS Growth % | -14857.63% | -972.22% | 209.09% | 98.93% | -1581.42% | 12.86% | -14.75% | -177.27% | - |
| EPS (Basic) | - | -3.14 | 0.36 | -0.33 | -30.77 | -1.83 | -2.10 | -1.83 | -0.66 |
| Diluted Shares Outstanding | 51.19M | 58.1M | 61.9M | 61.43M | 60.52M | 60.31M | 60.31M | 60.31M | 60.31M |
| Basic Shares Outstanding | 51.19M | 58.1M | 60.88M | 61.43M | 60.52M | 60.31M | 60.31M | 60.31M | 60.31M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
High debt leverage vulnerability
According to the latest quarterly data, PSFE's revenue growth has fluctuated significantly, reaching 10.4% in 2026Q1 after periods of contraction, suggesting that the company struggles to maintain a steady organic expansion trajectory within its core digital commerce and US acquiring segments despite broader market tailwinds.
The volatility in top-line performance indicates that the company's transactional revenue model remains highly sensitive to external volume shifts rather than predictable recurring streams. Investors should monitor whether the recent uptick in growth is sustainable or merely a reflection of seasonal variations in iGaming activity.
As reported in recent financial statements, PSFE's gross margin experienced a notable contraction to 40.6% in 2026Q1, down from historical levels near 58%, which may indicate rising interchange costs or a shift in product mix toward lower-margin merchant acquiring services over higher-margin digital wallet fees.
This significant degradation in gross profitability suggests that the company's pricing power may be under pressure from intensifying competition in the payments space. The inability to maintain historical margin levels implies that the cost of acquiring and processing transactions is outpacing the company's ability to extract value from its merchant base.
Based on the provided income statement data, PSFE's operating margin has dwindled to 2.4% in 2026Q1, highlighting a persistent inability to scale operating income effectively as revenue grows, likely due to the heavy burden of fixed corporate overhead and amortization costs inherent in its current structure.
The lack of meaningful operating leverage suggests that the company's cost base is not sufficiently flexible to accommodate revenue fluctuations. This structural inefficiency forces the firm to rely on high transaction volumes just to maintain marginal profitability, leaving little room for error in a competitive market.
Analysis of the reported figures reveals that PSFE's net income remains consistently negative, with a net margin of -8.2% in 2026Q1, indicating that non-operating items and interest expenses continue to overwhelm the company's operational output, thereby undermining the quality of its bottom-line earnings performance.
The persistent gap between gross profit and net income suggests that the company's capital structure is a primary drag on shareholder value. Investors should be wary of the recurring net losses, which appear to be exacerbated by the significant debt load and the associated interest burden that characterizes the firm's financial profile.
Evidence from the income statement suggests that PSFE's reliance on high-risk verticals and its substantial debt-to-equity ratio of 4.06% create a precarious financial position, where any regulatory shift or increase in interest rates could further jeopardize the company's ability to achieve sustainable GAAP profitability.
Short-term improvements in revenue may be insufficient to offset the long-term risks posed by the company's leveraged balance sheet and thin operating margins. The market may be underestimating the potential for further margin erosion if the company is forced to increase spending to defend its market share against more agile, less-indebted competitors.
Quick answers to the most common questions about buying PSFE stock.
For fiscal year 2025, Paysafe Limited (PSFE) reported total revenue of $1.70B. This represents a 49.2% increase compared to $1.14B in 2018.
Paysafe Limited (PSFE) reported a net loss of $182.5M for the fiscal year ending 2025.
Paysafe Limited (PSFE) reported an operating income of $122.4M, resulting in an operating profit margin of 7.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Paysafe Limited (PSFE) generated $686.1M in gross profit for the year, representing a gross profit margin of 40.3%. This demonstrates the company's core pricing power and production efficiency.