LONDON: Paysafe Limited (“Paysafe” or the “Company”) (NYSE: PSFE), a leading payments platform, today announced its financial results for the third quarter of 2024.

Third Quarter 2024 Financial Highlights
(Metrics compared to third quarter of 2023, unless otherwise noted)

• Revenue of $427.1 million, increased 8%; increased 7% on a constant currency basis
• Total Payment Volume of $37.5 billion, increased 7%
• Net loss of $13.0 million, or ($0.21) per diluted share, compared to net loss of $2.5 million, or ($0.04) per diluted share
• Adjusted net income of $31.4 million, or $0.51 per diluted share, compared to $35.3 million, or $0.57 per diluted share
• Adjusted EBITDA of $117.8 million, increased 1%; increased 1% on a constant currency basis
• Net leverage1 decreased to 4.7x as of September 30, 2024, compared to 5.0x as of December 31, 2023

Bruce Lowthers, CEO of Paysafe, commented: “I am happy to report on behalf of our team another healthy quarter for Paysafe. Revenue growth continues to be strong this year, reaching 8% for the third quarter and year-to-date, demonstrating execution on our strategic priorities and our focus on delivering higher quality, sustainable revenue growth, while investing in the business and progressively reducing net leverage. We are pleased to reaffirm our full year financial outlook for 2024 and we remain confident that we are taking the right actions to drive continued momentum in 2025 and beyond.”

Full Year 2024 Financial Guidance

Recent Strategic and Operational Highlights

• Welcomed John Crawford as our new Chief Financial Officer who brings more than 25 years of financial leadership experience with a strong background in the payments industry
• 2024 initiatives remain on track or ahead of schedule; welcomed 170 new hires to Paysafe's sales team year-to-date, expanding Paysafe's go-to-market capabilities
• Paysafe's eCommerce channel continues to grow double-digits driven by strong demand within our iGaming vertical in North America
• Launched a partnership with Revolut to offer cash deposits for Revolut's UK customers with plans to expand to other markets in EEA

Third Quarter of 2024 Summary of Consolidated Results

Total revenue for the third quarter of 2024 was $427.1 million, an increase of 8%, compared to $396.4 million in the prior year period, reflecting 7% growth in total payment volume. Excluding a $1.4 million favorable impact from changes in foreign exchange rates, total revenue increased 7%. Revenue from the Merchant Solutions segment increased 11%, reflecting double-digit growth in e-commerce as well as growth from small and medium-sized businesses ("SMBs") driven by initiatives to expand our sales capabilities and optimize the portfolio. Revenue from the Digital Wallets segment increased 4% both as reported and in constant currency, supported by ongoing initiatives related to product and consumer engagement as well as growth from merchants onboarded in 2023.

Net loss for the third quarter increased to $13.0 million, compared to $2.5 million in the prior year period, largely reflecting an increase in other expenses due to a loss on foreign exchange.

Adjusted net income for the third quarter decreased 11% to $31.4 million, compared to $35.3 million in the prior year period, reflecting an increase in depreciation and amortization expense as well as an increase in the adjusted effective tax rate.

Adjusted EBITDA for the third quarter was $117.8 million, an increase of 1%, compared to $116.1 million in the prior year period, primarily reflecting revenue growth, partially offset by incremental expenses related to previously announced initiatives to expand the sales team and optimize the portfolio.

Third quarter operating cash flow was $81.9 million, compared to $102.2 million in the prior year period, which was mainly driven by movements in working capital. Unlevered free cash flow was $89.9 million, compared to $110.3 million in the prior year period.

Balance Sheet

As of September 30, 2024, total cash and cash equivalents were $241.4 million, total debt was $2.4 billion and net debt was $2.2 billion. Compared to December 31, 2023, total debt decreased by $70.4 million, reflecting net repayments of $72.5 million as well as movement in foreign exchange rates.

Summary of Segment Results

Webcast and Conference Call

Paysafe will host a live webcast to discuss the results today at 8:30 a.m. (ET). The webcast and supplemental information can be accessed on the investor relations section of the Paysafe website at ir.paysafe.com. An archive will be available after the conclusion of the live event and will remain available via the same link for one year.

About Paysafe

Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading payments platform with an extensive track record of serving merchants and consumers in the global entertainment sectors. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions. With over 25 years of online payment experience, an annualized transactional volume of $140 billion in 2023, and approximately 3,200 employees located in 12+ countries, Paysafe connects businesses and consumers across 260 payment types in over 40 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Further information is available at www.paysafe.com.

Forward-looking Statements

This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Paysafe Limited’s (“Paysafe,” “PSFE,” the “Company,” “we,” “us,” or “our”) actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “anticipate,” “appear,” “approximate,” “believe,” “budget,” “continue,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “guidance,” “intends,” “likely,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” "will," “would” and variations of such words and similar expressions (or the negative version of such words or expressions) may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, Paysafe’s expectations with respect to future performance.

These forward-looking statements involve significant risks, uncertainties, and events that may cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially from those projected, including, but not limited to: cyberattacks and security vulnerabilities; complying with and changes in money laundering regulations, financial services regulations, cryptocurrency regulations, consumer and business privacy and data use regulations or other regulations in Bermuda, the UK, Ireland, Switzerland, the United States, Canada and elsewhere; risks related to our focus on specialized and high-risk verticals; geopolitical events and the economic and other impacts of such geopolitical events and the responses of governments around the world; acts of war and terrorism; the effects of global economic uncertainties, including inflationary pressure and rising interest rates, on consumer and business spending; risks associated with foreign currency exchange rate fluctuations; changes in our relationships with banks, payment card netwo