Revenue grew 4.5% to $447.4M in 2026Q2, yet operating margin fell to 2.7%—its weakest in the ten-quarter series—and reported gross margin reset to 39.2% from 57.8% following a cost reclassification, while losses appeared in eight of the last ten quarters.
Paysafe Limited (PSFE) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 1.76B | 1.7B | 1.7B | 1.6B | 1.5B | 1.49B | 1.43B | 1.42B | 1.14B |
| Revenue Growth % | 5.13% | -0.2% | 6.48% | 7.02% | 0.61% | 4.24% | 0.59% | 24.33% | - |
| Cost of Goods Sold | 981.45M | 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 | 780.89M | 686.08M | 989.07M | 937.93M | 882.11M | 887.24M | 891.67M | 909.4M | 749.95M |
| Gross Margin % | 44.31% | 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 | 693.73M | 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 | 481.96M | 563.65M | 0 | 0 | 0 | 0 | 0 | 443.06M | 341.96M |
| SG&A % of Revenue | - | 33.13% | - | - | - | - | - | 31.24% | 29.98% |
| Research & Development | 0 | 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 | 1000K | 0 | 847.63M | 770.74M | 2.74B | 1.15B | 864.03M | 414.53M | 234.26M |
| Operating Income | 87.16M | 122.44M | 133.35M | 158.66M | -1.87B | -269.27M | 19.68M | 51.81M | 115.94M |
| Operating Margin % | 4.95% | 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 | 365.55M | 398.8M | 408.11M | 422.8M | -1.61B | -7.9M | 287.85M | 331.64M | 350.2M |
| EBITDA Margin % | 20.74% | 23.44% | 23.94% | 26.41% | -107.28% | -0.53% | 20.18% | 23.39% | 30.7% |
| EBITDA Growth % | -0.88% | -2.28% | -3.47% | 126.34% | -20217.94% | -102.74% | -13.21% | -5.3% | - |
| D&A (Non-Cash Add-back) | 278.39M | 276.37M | 274.75M | 264.14M | 266.82M | 261.37M | 268.17M | 279.83M | 234.26M |
| EBIT | 56.97M | 64.35M | 137.59M | 163.46M | 25.96M | 80.76M | 157.6M | 46.35M | 130.04M |
| Net Interest Income | -137.6M | -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 | 137.6M | 136.41M | 140.81M | 151.15M | 126.63M | 165.83M | 166.34M | 173.02M | 164.13M |
| Other Income/Expense | -196.51M | -194.5M | -119.33M | -138.07M | -42.85M | 73.83M | -205.59M | -178.47M | -150.03M |
| Pretax Income | -109.35M | -72.06M | 14.02M | 20.59M | -1.91B | -195.44M | -185.91M | -126.66M | -34.09M |
| Pretax Margin % | -6.2% | -4.24% | 0.82% | 1.29% | -127.98% | -13.14% | -13.03% | -8.93% | -2.99% |
| Income Tax | 98.95M | 110.45M | -8.14M | 40.84M | -52.5M | -85.11M | -59.2M | -16.52M | 5.62M |
| Effective Tax Rate % | -90.49% | -153.27% | -58.01% | 198.36% | 2.74% | 43.55% | 31.84% | 13.05% | -16.49% |
| Net Income | -208.3M | -182.51M | 22.16M | -20.25M | -1.86B | -110.95M | -126.72M | -110.2M | -39.71M |
| Net Margin % | -11.82% | -10.73% | 1.3% | -1.26% | -124.5% | -7.46% | -8.88% | -7.77% | -3.48% |
| Net Income Growth % | -324.5% | -923.59% | 209.43% | 98.91% | -1578.76% | 12.44% | -14.99% | -177.5% | - |
| Net Income (Continuing) | -208.3M | -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) | -3.98 | -3.14 | 0.36 | -0.33 | -30.77 | -1.83 | -2.10 | -1.83 | -0.66 |
| EPS Growth % | -348.24% | -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 | 52.3M | 58.1M | 61.9M | 61.43M | 60.52M | 60.31M | 60.31M | 60.31M | 60.31M |
| Basic Shares Outstanding | 52.3M | 58.1M | 60.88M | 61.43M | 60.52M | 60.31M | 60.31M | 60.31M | 60.31M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Persistent net losses and margin erosion
Revenue Stabilizes After Prior Contraction
After four consecutive quarters of year-over-year revenue declines through 2025Q1, Paysafe delivered 10.4% growth in 2026Q1 before decelerating to 4.5% in 2026Q2, as reported in its quarterly income statements, indicating demand has stabilized but growth durability remains unproven at this scale.
Revenue of $447.4M in 2026Q2 sits only 1.6% above the $439.9M booked in 2024Q2, implying the top line has been essentially range-bound for two years rather than compounding. The growth trajectory is also volatile — swinging from -4.0% in 2025Q1 to +10.4% in 2026Q1 back to 4.5% — which suggests no sustained demand trend is yet visible. Against peer 1-year growth of 10.2% at EVERTEC and 8.3% at Priority Technology, Paysafe's latest 4.5% appears to be lagging the sector rather than keeping pace with it.
Gross Margin Reset Obscures Economics
Paysafe's reported gross margin fell from 57.8% in 2025Q3 to 39.9% in 2025Q4 and 39.2% in 2026Q2, per its quarterly filings, as COGS jumped to roughly $263-272M from $183M, suggesting a cost reclassification rather than a sudden deterioration in unit economics.
The reclassification hypothesis is supported by SG&A simultaneously moving from $0 in 2025Q3 to $150.0M in 2025Q4, which implies expense categories were reorganized rather than newly incurred. However, investors should not conclude economics are unchanged: even on a like-for-like view, operating income fell from $39.0M in 2025Q3 to $12.2M in 2026Q2, so genuine pressure exists beneath the presentation change. Until the reporting boundary is clarified, the 39.2% figure is not directly comparable with EVERTEC's 49.7%, and any peer margin ranking drawn from these numbers warrants caution.
SG&A Base Erodes Operating Leverage
Operating income fell from $39.0M in 2025Q3 to $12.2M in 2026Q2 even as revenue grew 3.2% over the same span, based on Paysafe's reported figures, implying the $163.1M SG&A base now consumes 36.5% of sales and leaves little fixed-cost cushion.
The step-up appears driven by expense recognition rather than revenue shortfalls: SG&A rose $18.9M sequentially into 2026Q1 while revenue increased only $4.3M, an unfavorable ratio that compressed operating margin from 5.7% to 2.4% in a single quarter. This pattern indicates negative operating leverage at current scale — each incremental revenue dollar is being outpaced by overhead absorption. Investors should monitor whether the recent SG&A base of $150-169M per quarter is a stable run-rate or a one-time reset, as the answer determines whether the 2.7% operating margin is the new floor.
Non-Operating Charges Deepen Net Losses
Paysafe reported a $58.9M net loss in 2026Q2 on $12.2M of operating income, and losses have appeared in eight of the last ten quarters, according to its income statements, suggesting substantial below-the-line charges are absorbing the modest operating profit.
The gap between operating and net income reached roughly $71M in 2026Q2 and $47M in 2026Q1, far exceeding the operating profit itself, which implies interest, tax, or one-off items — not disclosed in the supplied data — are the dominant driver of shareholder losses. Diluted EPS of -1.13 in 2026Q2 versus -0.45 in 2025Q4 shows this drag is accelerating, a trend that would erode any valuation support from the top line. Stock-based compensation is reported at $18.1M in 2026Q1 but $0 in 2026Q2, an inconsistency in the data that warrants verification before being used to assess true economic earnings.
Growth Bought With Margin Compression
Paysafe's revenue grew 4.5% in 2026Q2 yet operating margin fell to 2.7%, its weakest in the ten-quarter series, from 8.3% in 2024Q2, per reported results, implying recent growth may be purchased with heavier spending rather than generating incremental operating returns.
A short-seller would focus on the combination of decelerating growth, eight loss-making quarters in ten, and a below-the-line drag that turns positive operating income into a $58.9M net loss — a structure where no level of revenue growth currently translates into earnings. Peer comparison sharpens the challenge: EVERTEC converts its comparable revenue base into a 20.0% operating margin and 15.2% net margin, versus Paysafe's 2.7% and -13.2%, suggesting the issue is structural rather than cyclical. The counter-narrative would weaken if SG&A normalizes and the non-operating charges prove transient, but based on reported figures that has not yet been demonstrated.