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

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

• Revenue of $439.9 million, increased 9%; increased 10% on a constant currency basis
• Total Payment Volume of $38.1 billion, increased 7%
• Net loss of $1.4 million, or ($0.02) per diluted share, compared to net loss of $1.8 million, or ($0.03) per diluted share
• Adjusted net income of $36.3 million, or $0.59 per diluted share, compared to $34.7 million, or $0.56 per diluted share
• Adjusted EBITDA of $119.0 million, increased 5%; increased 6% on a constant currency basis
• Net leverage1 decreased to 4.8x as of June 30, 2024, compared to 5.0x as of December 31, 2023

Bruce Lowthers, CEO of Paysafe, commented: “Paysafe’s momentum continues with higher quality revenue growth accelerating to 9% in the second quarter, driven by strong performance across all major product lines and execution on our 2024 strategic initiatives and investments. These efforts continue to strengthen our foundation and position us for sustainable long-term success. Given our robust performance in the first half of the year, we are raising our revenue guidance for 2024 to a growth range of 7% to 8%, 125 basis point increase at the mid-point from our original 2024 guidance mid-point.”

Full Year 2024 Financial Guidance

Recent Strategic and Operational Highlights

• Continue to execute our 2024 new sales hires and portfolio optimization initiatives with each remaining on track or ahead of schedule, enhancing Paysafe’s go-to-market capabilities and drive long-term growth
• Sales team continues to execute on selling more value-add services in the quarter helping to boost Merchant Solutions' take rates
• iGaming revenue growth continues to benefit from deals signed in second half of 2023 and U.S. states that legalized online gambling in 2023
• Continue to rationalize portfolio to reduce risk and improve quality of earnings
• Established partnership with Riot Games to provide gamers with the ability to use paysafecard for a seamless and secure transactional experience
• Capital returns – repurchased 686,396 shares for $11.0 million

Second Quarter of 2024 Summary of Consolidated Results

Total revenue for the second quarter of 2024 was $439.9 million, an increase of 9%, compared to $402.3 million in the prior year period, reflecting 7% growth in total payment volume. Excluding a $2.1 million unfavorable impact from changes in foreign exchange rates, total revenue increased 10%. Revenue from the Merchant Solutions segment increased 13%, 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 6% as reported and 7% in constant currency, reflecting growth from gambling merchants as well as ongoing initiatives related to product and consumer engagement.

Net loss for the second quarter decreased to $1.4 million, compared to $1.8 million in the prior year period. This was largely due to increased operating income, mainly driven by higher revenues, and decreased tax expense, slightly offset by a reduction in other income.

Adjusted net income for the second quarter increased 5% to $36.3 million, compared to $34.7 million in the prior year period.

Adjusted EBITDA for the second quarter was $119.0 million, an increase of 5%, compared to $113.0 million in the prior year period. Excluding a $0.7 million unfavorable impact from changes in foreign exchange rates, Adjusted EBITDA increased 6%, primarily reflecting revenue growth, partially offset by incremental expenses related to previously announced initiatives to expand the sales team and optimize the portfolio.

Second quarter operating cash flow was $54.1 million, compared to $50.2 million in the prior year period, which was mainly driven by movements in working capital. Unlevered free cash flow was $70.0 million, compared to $76.2 million in the prior year period, driven by the timing of bonus payments.

Balance Sheet

As of June 30, 2024, total cash and cash equivalents was $222.4 million, total debt was $2.5 billion and net debt was $2.2 billion. Compared to December 31, 2023, total debt decreased by $50.4 million, reflecting net repayments of $13.3 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 ot