Paysafe Limited

Q2 2026 revenue was $447.4 million, up 4% reported and organic. Adjusted EBITDA was $102.8 million, down 2% year over year, and adjusted EBITDA margin was 23% versus 24.5% in the prior period. Adjusted EPS was $0.43, down 7%, and adjusted net income was $23.1 million. Digital Wallets revenue rose 3% to $206.6 million, with volume of $6.6 billion roughly flat, while Merchant Solutions revenue increased 6% to $246.1 million on 5% volume growth to $37.3 billion. The company generated $45 million of unlevered free cash flow in the quarter and $298 million on an LTM basis, with net leverage at 5.3x at quarter end. Management reaffirmed 2026 revenue and adjusted EBITDA guidance, updated adjusted EPS for incremental interest expense from refinancing, and expects year-end net leverage of 5.1x to 5.2x.

Bruce Lowthers framed the quarter as an inflection point, saying the company has resolved major inherited issues from the SPAC era and is now focused on consistent execution, sustainable growth, and disciplined deleveraging. He highlighted 7.8 million 3-month actives, double-digit consumer acquisition growth in parts of Europe, and continued double-digit user growth in Latin America. His tone was notably more confident and strategic, emphasizing that debt reduction is the main near-term value driver and that every $200 million of net debt reduction could add roughly $3 to $4 per share, all else equal.

John Crawford emphasized the numbers behind the quarter: $447.4 million of revenue, $102.8 million of adjusted EBITDA, $0.43 of adjusted EPS, and $45 million of unlevered free cash flow. He said EBITDA margin declined because Paysafe increased marketing and IT spend by $7 million in Q2 and $16 million in the first half, and he noted a $39 million cash payment expected in the second half related to the legal settlement. He also detailed segment margins, saying Digital Wallets would have been about 40% excluding a roughly $4 million VAT adjustment and $3 million of extra marketing, while Merchant Solutions margin would have been about 18% excluding a roughly $6 million accrual release. He said the refinancing increases interest expense by roughly $25 million on a cash basis, while debt ended the quarter at $2.5 billion and net leverage at 5.3x.

Analysts focused on what supports the second-half EBITDA ramp, and management said it comes from a mix of scheduled product launches, signed customers ramping, new sales pipeline, and stronger current trends, plus lower costs after front-loaded fraud losses and marketing/IT investment. On Digital Wallets, management said Latin America is growing north of 30% but still represents a relatively small part of the P&L and currently sits between the margin profile of core wallet and eCash businesses. Questions also dug into Merchant Solutions growth and the World Cup effect; Bruce Lowthers said World Cup helped more than expected in Q2 and into Q3 but was only a small part of total revenue. He also reiterated that Clover is performing exceptionally well with no pricing pressure and double-digit revenue growth.