Paysafe (NYSE:PSFE) Issues Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Paysafe reported quarterly earnings of $0.70 per share, missing the consensus estimate by $0.03. Revenue was $433.82 million, slightly below expectations. The stock fell 4.6% to $7.02. Institutional investors adjusted their stakes, with significant inflows and outflows. Analysts have mixed ratings, with a consensus rating of "Reduce" and an average target price of $10.26. Paysafe provides payment solutions globally, focusing on entertainment and digital assets.

Paysafe (NYSE:PSFE - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.73 by ($0.03), Briefing.com reports. Paysafe had a positive return on equity of 11.20% and a negative net margin of 7.35%.The firm had revenue of $433.82 million for the quarter, compared to analysts' expectations of $438.59 million. During the same period in the prior year, the company earned $0.51 earnings per share. The company's revenue for the quarter was up 1.6% on a year-over-year basis. Paysafe updated its FY 2025 guidance to 1.830-1.880 EPS.

Paysafe Stock Down 4.6%

PaySafe Stock is an iGaming Growth Play After the SPAC Sell-Off

Shares of PSFE stock traded down $0.34 during mid-day trading on Friday, hitting $7.02. The company's stock had a trading volume of 2,407,939 shares, compared to its average volume of 460,308. Paysafe has a 52-week low of $6.66 and a 52-week high of $24.11. The stock has a market cap of $420.31 million, a price-to-earnings ratio of -3.25, a PEG ratio of 0.21 and a beta of 1.76. The company has a debt-to-equity ratio of 3.15, a quick ratio of 1.20 and a current ratio of 1.20. The business has a 50-day moving average price of $12.23 and a 200 day moving average price of $12.88.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC lifted its holdings in Paysafe by 143.1% during the second quarter. Tower Research Capital LLC TRC now owns 5,548 shares of the company's stock valued at $70,000 after purchasing an additional 3,266 shares in the last quarter. Quantbot Technologies LP purchased a new stake in Paysafe during the 2nd quarter worth about $106,000. Engineers Gate Manager LP acquired a new position in Paysafe in the second quarter valued at $143,000. BNP Paribas Financial Markets increased its stake in Paysafe by 585.8% in the third quarter. BNP Paribas Financial Markets now owns 21,047 shares of the company's stock valued at $272,000 after purchasing an additional 17,978 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its holdings in shares of Paysafe by 24.2% in the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 44,872 shares of the company's stock valued at $566,000 after acquiring an additional 8,729 shares in the last quarter. 54.39% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

PSFE has been the subject of a number of recent analyst reports. BTIG Research reaffirmed a "buy" rating and set a $11.00 price target (down from $22.00) on shares of Paysafe in a report on Friday. Zacks Research raised shares of Paysafe to a "hold" rating in a research report on Thursday, October 23rd. Weiss Ratings reissued a "sell (d-)" rating on shares of Paysafe in a research report on Wednesday, October 8th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $10.00 price target (down from $17.00) on shares of Paysafe in a research report on Friday. Finally, Susquehanna cut their price target on Paysafe from $15.00 to $9.00 and set a "neutral" rating for the company in a report on Friday. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Paysafe presently has a consensus rating of "Reduce" and an average target price of $10.26.

View Our Latest Analysis on PSFE

Paysafe Company Profile

(Get Free Report)

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets.

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