Latest news with #LTM
The Hindu
5 days ago
- General
- The Hindu
Site inspection report disfavours Sharavathi project
A site inspection report of the controversial Sharavathi Pumped Storage Project has not recommended the proposal of the Karnataka Power Corporation Limited (KPCL) which seeks diversion of 54.155 hectares of forestland for the project. A detailed site inspection, conducted by Praneetha Paul, Deputy Inspector-General of Forest (DIGF) from the Regional Office, Ministry of Environment, Forest and Climate Change of India (MoEF&CC), Bengaluru, has not recommended the proposal for the project citing 15 reasons including presence of Lion Tailed Macaque Wildlife Sanctuary. However, S. Senthil Kumar, Deputy Director-General of Forests, (Central) Regional Office, MoEF&CC, has recommended the proposal, while suggesting that 'revision in the design to minimise tree-felling and protect the ecological integrity of the area may be considered'. Concern about damages Ms. Paul, who was the inspecting officer, in her report, stated that the reason for not recommending the proposal include felling of more than 15,000 trees, many of which are endemic to the Western Ghats. 'Construction of new roads, widening of roads, construction of the surge shaft, adits, pot head yards, power evacuation etc would result in complete destruction of the wet evergreen forests of canopy density ranging from 0.7 to 1,' the report states as one of the reasons. It further states that the felling of 15,000 trees would result in further fragmentation and creation of isolated populations of the Lion Tailed Macaque (LTM) and other endemic species which may eventually lead to its extinction. 'Alternate CA land proposed, being a shola grassland, will not be able to compensate for the loss of habitat of the LTM,' it said. It also said that as the ecological fallout far outweighs the economic benefits that may be accrued by commissioning this project, 'it is recommended that the project should not be approved.' The inspection was conducted between May 1 and May 9, 2025. Damage acknowledged Meanwhile Mr. Kumar acknowledged that the area is home to significant endemic species, including LTM and the Malabar Pied Hornbill, both of which rely on tall, undisturbed canopy trees. 'There is no alternative alignment as the project depends on utilising reservoirs and gravity for hydroelectricity production,' he states in his recommendation. It further says the proposed project lies within the Sharavathi Valley Lion Tailed Wildlife Sanctuary which harbours the largest known population (730 individuals) of LTM and a separate proposal has been submitted for wildlife clearance which is pending. It added that the Chief Wildlife Warden had recommended modifications to design, including adopting underground structures and minimising surface openings to avoid felling approximately 518 trees in the Surge Tank area and by constructing an underground road from Nagar Basti Kere to Bagodi to preserve approximately 12,000 out of the 13,756 trees marked for removal. 'Building an overground road would disrupt the free movement of canopy dependent species such as the LTM. Revision in the design to minimise tree felling and protect the ecological integrity of the area may be considered. The proposal is recommended,' stated the DDGF .
Yahoo
19-05-2025
- Business
- Yahoo
LATAM Airlines April 2025 Traffic Improves Year Over Year
LATAM Airlines Group (LTM) reported a year-over-year increase in revenue passenger-kilometers (RPK: a measure of air traffic) for April 2025. LATAM Airlines reported a 6.9% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK). This growth was mainly driven by a 10% increase in the company's international operations. During the month, a new international route from Fortaleza in Brazil to Lisbon in Portugal was launched, further strengthening connectivity between South America and Europe. LTM's consolidated traffic, measured in revenue passenger-kilometers (RPK), increased 9.9% year over year. As traffic outpaced capacity expansion, the consolidated load factor — the percentage of seats filled by passengers — rose 2.3 percentage points from April 2024 to 83.4% in April 2025, maintaining healthy load factors across all business segments. During the month, LATAM Airlines transported more than 6.7 million passengers, an increase of 7.6% year over year. Year to date, LATAM Airlines has transported nearly 28 million passengers across its network. LATAM Airlines currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Apart from LATAM Airlines, other airline companies that have reported traffic numbers for April 2025 are Copa Holdings, S.A. CPA and Ryanair Holdings RYAAY. Copa Holdings reported traffic numbers for April 2025 on the back of upbeat air-travel demand. Driven by high passenger volumes, revenue passenger miles (RPM: a measure of traffic) improved on a year-over-year basis in April. To match the demand swell, CPA is increasing its capacity. In April, available seat miles (ASM: a measure of capacity) increased 5.2% year over year. Revenue passenger miles increased 5.5% year over year. Since traffic outpaced capacity expansion, the load factor rose to 86.8% from 86.6% in April 2024. European carrier, Ryanair, reported solid traffic numbers for April 2025, driven by upbeat air-travel demand. The number of passengers transported on Ryanair flights was 18.3 million in April 2025, reflecting a 6% year-over-year increase. RYAAY's traffic in April was higher than the March reading of 15 million, the February reading of 12.6 million and the January reading of 12.4 million. The April load factor of 93% improved 1% on a year-over-year basis, reflecting consistent passenger demand for the airline's services. While the April load factor was in line with the month of March, it was higher than the load factor of 92% reported in February 2025 and 91% reported in January 2025. Notably, RYAAY operated more than 103,000 flights in April 2025. This marks an improvement from 84,000 flights operated in March 2025 and 71,360 flights operated in February 2025. In January 2025, growth at RYAAY was hampered by 38 delayed Boeing BA deliveries. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report LATAM Airlines Group S.A. (LTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
VEON 1Q25 Earnings Release: Strong Start to 2025, Digital Revenues Surge 50%, Driving Growth
VEON 1Q25 Earnings Release: Strong Start to 2025, Digital Revenues Surge 50%, Driving Growth Dubai, May 15, 2025 VEON 1Q25 Highlights Total revenue growth of 8.9% YoY to USD 1,026 million (12.9% YoY in underlying local currency terms) EBITDA growth of 13.7% YoY to USD 439 million (10.4% YoY in underlying local currency terms) Direct digital revenue growth of 50.2% YoY to USD 147 million (+54.3% YoY in local currency terms), representing 14.3% of revenues for quarter Total cash and cash equivalents and deposits of USD 1,775 million, with USD 662 million at headquarters ('HQ'); and gross debt at USD 4,377 million (decreased by USD 4 million QoQ), with net debt excluding lease liabilities at USD 1,810 million (decreased by USD 91 million QoQ) LTM Equity Free Cash Flow of USD 387 million, Capex of USD 135 million VEON Ltd. (Nasdaq: VEON), a global digital operator, announces selected financial and operating results for the first quarter ended March 31, 2025. For the first quarter, VEON achieved 8.9% year-on-year growth in revenues and a 13.7% YoY growth in EBITDA in reported currency (USD). Underlying 1Q25 revenue growth was 12.9% YoY in local currency terms, when adjusted for the cyberattack in Ukraine which impacted the base, and the deconsolidation of TNS+ in Kazakhstan. Our local currency growth rate exceeded the blended weighted average inflation rate in our operating countries of 7.6% in the quarter, showcasing our capability to implement fair value pricing across our markets. VEON's revenue performance was supported by increasingly robust direct digital revenue growth, which rose by 50.2% YoY in reported currency, and by 54.3% YoY in local currency terms. Direct digital revenues comprised 14.3% of total revenues in 1Q25, up from 10.4% a year ago. EBITDA stood at 439 million, representing a 13.7% year-on-year increase in reported currency. When adjusted for the identified items, this represents a 10.4% increase in underlying local currency terms. Capex increased 8.3% YoY, with a capex intensity of 13.1% (-0.1 p.p. YoY) and implies LTM capex intensity of 20.4% (+2.2 p.p. YoY, 17.9% excl. Ukraine) for the quarter. Total cash and cash equivalents and deposits as of March 31, 2025 amounted to USD 1,775 million (including USD 303 million related to customer deposits from our banking operations in Pakistan and excluding USD 30 million in Ukrainian sovereign bonds that are classified as investments) with USD 662 million held at the HQ level. Net debt to LTM EBITDA, excluding lease liabilities, declined to 1.23x as of March 31, 2025, from 1.34x as of December 31, 2024. Outlook for 2025 VEON is maintaining its FY25 outlook whereby it expects underlying local currency growth for total revenue of between 12% and 14% year-on-year and underlying local currency EBITDA growth of between 13% and 15% year-on-year. VEON's 2025 outlook for the Group's capex intensity is in the range of 17%-19%. The Group commenced the second phase of its previously announced share buyback program in March 2025. This second phase of the buyback will be in the amount of up to USD 35 million and follows the completion of the USD 30 million first phase on January 27, 2025. Commenting on the results, VEON Group CEO Kaan Terzioglu said: 'VEON has started 2025 with strong momentum and delivered a set of results that reflect both disciplined execution and strategic clarity. 'We are delivering innovative and locally relevant digital services that enhance our customers' lives across every minute of the day — from financial services and healthcare to entertainment, education, and enterprise applications. This is now complemented by our AI1440 vision, which integrates AI in native languages to truly augment human capabilities, well beyond process optimization. Together, these strategies position VEON as a frontrunner in digital transformation across frontier markets. 'We remain focused on disciplined execution and innovation as we continue to scale impact for our customers and value for our shareholders.' Additional information View the full 1Q25 Earnings Release View 1Q25 Results PresentationView 1Q25 Factbook 1Q25 results conference call VEON will also host a results conference call with senior management at 16:00 GST (14:00 CET, 9:00 EST) today. To register and access the event, please click here or copy and paste this link to the address bar of your browser: Once registered, you will receive registration confirmation on the email address mentioned during registration with the link to access the webcast and dial-in details to listen to the conference call over the phone. We strongly encourage you to watch the event through the webcast link, but if you prefer to dial in, then please use the dial-in details. Q&A If you want to participate in the Q&A session, we ask that you select the 'Yes' option on the 'Will you be asking questions live on the call?' dropdown. That will bring you to a page where you can join the Q&A room by clicking 'Connect to meeting'. You will be brought into a zoom webinar where you can listen to the presentation and once Q&A begins, if you have a question, please use the 'raise hand button' on the bottom of your zoom screen. When it is your turn to speak, the moderator will announce your name as well as sending a message to your screen asking you to confirm you want to talk. Once accepted, please unmute your mic and ask your question. You can also submit your questions prior the webcast event to VEON Investor Relations at ir@ About VEON VEON is a digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than 7% of the world's population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. VEON is listed on NASDAQ and Euronext. For more information, visit: Notice to readers: financial information presented VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") based on internal management reporting, are the responsibility of management, and have not been externally audited, reviewed, or verified. As such, you should not place undue reliance on this information. This information may not be indicative of the actual results for any future period. Notice to readers: impact of the war in Ukraine The ongoing war in Ukraine, and the resulting sanctions adopted by the United States, member states of the European Union, the European Union itself, the United Kingdom, Ukraine and certain other nations, countersanctions and other legal and regulatory responses, as well as responses by our service providers, partners, suppliers and other counterparties, and the other indirect and direct consequences of the war have impacted and, if the war, such responses and other consequences continue or escalate, may significantly impact our results and aspects of our operations in Ukraine, and may significantly affect our results and aspects of our operations in the other countries in which we operate. We are closely monitoring events in Ukraine, as well as the possibility of the imposition of further legal and regulatory restrictions in connection with the ongoing war in Ukraine and any potential impact the war may have on our results, whether directly or indirectly. Our operations in Ukraine continue to be affected by the war. We are doing everything we can to protect the safety of our employees, while continuing to ensure the uninterrupted operation of our communications, financial and digital services. DISCLOSURE REGARDING UKRAINE TOWER COMPANY (UTC) CONSOLIDATION The financial results presented for Kyivstar as part of VEON Group's consolidated Q1 2025 financial statements include the full consolidation of Ukraine Tower Company LLC ('UTC'), consistent with its current ownership and control structure. However, it should be noted that in connection with the anticipated standalone listing of Kyivstar on Nasdaq, the financial disclosures prepared for the listed entity will exclude UTC, as UTC will not be consolidated within the scope of the listed Kyivstar entity at the time of listing. Disclaimer VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") and have not been externally reviewed and/or audited. The financial information included in this document is preliminary and is based on a number of assumptions that are subject to inherent uncertainties and subject to change. The financial information presented herein is based on internal management accounts, is the responsibility of management and is subject to financial closing procedures which have not yet been completed and has not been audited, reviewed or verified. Certain amounts and percentages that appear in this document have been subject to rounding adjustments. As a result, certain numerical figures shown as totals, including those in the tables, may not be an exact arithmetic aggregation of the figures that precede or follow them. Although we believe the information to be reasonable, actual results may vary from the information contained above and such variations could be material. As such, you should not place undue reliance on this information. This information may not be indicative of the actual results for the current period or any future document contains 'forward-looking statements', as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by words such as 'may,' 'might,' 'will,' 'could,' 'would,' 'should,' 'expect,' 'plan,' 'anticipate,' 'intend,' 'seek,' 'believe,' 'estimate,' 'predict,' 'potential,' 'continue,' 'contemplate,' 'possible' and other similar words. Forward-looking statements include statements relating to, among other things, VEON's plans to implement its strategic priorities, operating model and development plans; VEON's ability to achieve anticipated performance results, including VEON's growth trajectory and ability to generate sufficient cash flow to repay its debt maturities and other obligations; VEON's intended expansion of its digital experience including through technologies such as artificial intelligence; VEON's assessment of the impact of the war in Ukraine, including related sanctions and counter-sanctions, on its current and future operations and financial condition; VEON's assessment of the impact of the political conflict in Bangladesh; the expected impact of the reorganization of VEON's wholly owned subsidiary VEON Holdings B.V.; future market developments and trends; operational and network development and network investment, including expectations regarding the roll-out and benefits of 3G/4G/LTE networks, as applicable; spectrum acquisitions and renewals; the effect of the acquisition of additional spectrum on customer experience; the impact of VEON's delisting from Euronext, VEON's HQ relocation to the Dubai International Financial Centre in the United Arab Emirates, VEON's ability to realize the acquisition and disposition of any of its businesses and assets and to execute its strategic transactions in the timeframes anticipated, or at all ,including VEON's ability to complete the business combination that will result in the listing of Kyivstar on the Nasdaq Stock Market LLC; VEON's ability to realize financial improvements, including an expected reduction of net pro-forma leverage ratio following the successful completion of certain dispositions and acquisitions; its dividends; and VEON's ability to realize its targets and commercial initiatives in its various countries of operation. The forward-looking statements included in this document are based on management's best assessment of VEON's strategic and financial position and of future market conditions, trends and other potential developments. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of, among other things: further escalation in the war in Ukraine, including further sanctions and counter-sanctions and any related involuntary deconsolidation of our Ukrainian operations; escalation of the conflict between India and Pakistan; demand for and market acceptance of VEON's products and services; our plans regarding our dividend payments and policies, as well as our ability to receive dividends, distributions, loans, transfers or other payments or guarantees from our subsidiaries; continued volatility in the economies in VEON's markets; governmental regulation of the telecommunications industries; general political uncertainties in VEON's markets; government investigations or other regulatory actions; litigation or disputes with third parties or regulatory authorities or other negative developments regarding such parties; the impact of export controls and laws affecting trade and investment on our and important third-party suppliers' ability to procure goods, software or technology necessary for the services we provide to our customers, including those that arise as a results of baseline or so called "reciprocal tariffs" imposed in the countries in which we operate ; risks associated with data protection or cyber security, other risks beyond the parties' control or a failure to meet expectations regarding various strategic priorities, the effect of foreign currency fluctuations, increased competition in the markets in which VEON operates and the effect of consumer taxes on the purchasing activities of consumers of VEON's other factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risk factors described in VEON's 2024 Form 20-F for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the 'SEC') on April 25, 2025 and other public filings made from time to time by VEON with the SEC. Other unknown or unpredictable factors also could harm our future results. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Under no circumstances should the inclusion of such forward-looking statements in this document be regarded as a representation or warranty by us or any other person with respect to the achievement of results set out in such statements or that the underlying assumptions used will in fact be the case. Therefore, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date hereof. We cannot assure you that any projected results or events will be achieved. Except to the extent required by law, we disclaim any obligation to update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made, or to reflect the occurrence of unanticipated events. Contact Information VEONInvestor Relationsir@
Business Wire
13-05-2025
- Business
- Business Wire
Paysafe Reports First Quarter 2025 Results; Reaffirms Full Year Outlook
LONDON--(BUSINESS WIRE)--Paysafe Limited ('Paysafe' or the 'Company') (NYSE: PSFE), a leading payments platform, today announced its financial results for the first quarter of 2025. First Quarter 2025 Summary (Metrics compared to the first quarter of 2024, unless otherwise noted) Revenue of $401.0 million, decreased 4%; organic revenue growth of 5% Net loss of $19.5 million, or ($0.33) per diluted share, compared to net income of $3.1 million, or $0.05 per diluted share Adjusted net income of $20.9 million, or $0.34 per diluted share, compared to $35.3 million, or $0.57 per diluted share Adjusted EBITDA of $95.2 million, decreased 15%; decreased 14% on a constant currency basis Net leverage 1 of 4.9x as of March 31, 2025 Bruce Lowthers, CEO of Paysafe, commented: "We kicked off the year with strong momentum, exceeding our expectations for organic growth and adjusted EBITDA margin. I'm proud of the team for staying focused and executing our strategy for sustainable growth while successfully completing the sale of our direct marketing business. We also secured new partnerships, launched innovative products through our wallet platform, and continued enhancing its functionality to better connect our 18 million consumers with over 1 million retailers—turning everyday transactions into exceptional experiences. With the second quarter underway, we're operating with a leaner, lower-risk model, a strengthened sales organization, traction with new collaborations, and a robust product pipeline that positions us for accelerated growth in the second half of the year." Recent Strategic and Operational Highlights Organic revenue growth of 5% led by robust volumes in e-commerce Progress across the enterprise-level sales strategy, including continued double-digit bookings growth in the first quarter while accelerating productivity per sales representative Expanded Paysafe's long-term partnership with Fiserv, including several key initiatives focused on empowering small and medium-sized businesses (SMBs) Expanded Paysafe's partnership with Tilled to offer frictionless payments and PayFac-as-a-Service solutions for independent software vendors (ISVs) across the U.S. and Canada Closed on the Company's previously announced agreement to sell its direct marketing payment processing business line ("the business disposal") Repurchased 612.6 thousand shares for $10.0 million in the first quarter of 2025 Published Paysafe's second annual sustainability report (1) Paysafe defines net leverage as net debt (total debt less cash and cash equivalents) divided by the sum of the last twelve months (LTM) Adjusted EBITDA. For the period ended March 31, 2025, total debt was $2,384.6 million and cash and cash equivalents was $234.3 million, and LTM Adjusted EBITDA was $435.3 million. For the period ended December 31, 2024, total debt was $2,363.5 million and cash and cash equivalents was $216.7 million, and LTM Adjusted EBITDA was $452.1 million. Expand First Quarter of 2025 Summary of Consolidated Results Reported revenue for the first quarter of 2025 was $401.0 million, a decrease of 4%, compared to $417.7 million in the prior year period, reflecting a decrease of 6% from the Merchant Solutions segment driven by the business disposal, as well as a 2% decline from the Digital Wallets segment driven by a decrease in interest revenue on consumer deposits and unfavorable foreign exchange rates. Organic revenue growth was 5%, reflecting 6% organic growth from Merchant Solutions and 3% organic growth from Digital Wallets. Net loss for the first quarter was $19.5 million, compared to net income of $3.1 million in the prior year period, largely driven by a decrease in revenue, a decrease in other income related to lower gains on foreign exchange, and an increase in restructuring and legal costs. This was partially offset by the recognition of an income tax benefit in the current period as well as a decrease in selling, general and administrative expenses, including lower credit losses. Adjusted net income for the first quarter decreased to $20.9 million, compared to $35.3 million in the prior year period, mainly reflecting the decline in Adjusted EBITDA and an increase in the adjusted effective tax rate resulting from the inclusion of the base erosion and anti-abuse tax ("BEAT") provision in the current period. Adjusted EBITDA for the first quarter decreased to $95.2 million, compared to $111.9 million in the prior year period, reflecting the business disposal in addition to business mix and lower interest revenue, which were unfavorable to gross profit margin. The combined headwinds from movement in foreign exchange rates and interest revenue on consumer deposits to first quarter revenue and Adjusted EBITDA were $9.3 million (2 percentage-points) and $5.4 million (5 percentage-points), respectively. First quarter operating cash flow was $52.5 million, compared to $58.8 million in the prior year period. Unlevered free cash flow was $57.3 million, compared to $69.2 million in the prior year period. Balance Sheet As of March 31, 2025, total cash and cash equivalents were $234.3 million, total debt was $2.4 billion and net debt was $2.2 billion. Compared to December 31, 2024, total debt increased by $21.1 million, reflecting net repayments of $26.8 million as well as movement in foreign exchange rates. Summary of Segment Results Full Year 2025 Financial Guidance ($ in millions, except per share amounts) (unaudited) Full Year 2025 Revenue $1,710 - $1,734 Adjusted EBITDA $463 - $478 Adjusted EPS $2.21 - $2.51 Expand 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 An archive will be available after the conclusion of the live event and will remain available via the same link for one year. 2024 Sustainability Report Today Paysafe published its second annual sustainability report, following through on its commitment to Paysafe's sustainability strategy. This latest report provides detailed insights into the Company's progress and demonstrates significant strides in advancing governance and policies as well as more sustainable operations across the key pillars of Paysafe's sustainability framework—Trusted Technology, Engaged Employees, and Thriving Society— underpinned by Paysafe's Responsible Business Principles. Key highlights for the year included: Established Paysafe's AI governance framework and an internal AI policy to guide ethical and responsible use of AI Formalized Paysafe's responsible technology principles Awarded EcoVadis sustainability rating of 'Good' Supported 49 individual community initiatives and partnered with over 60 non-profit organizations around the world Achieved a 10% decrease in Scope 1 greenhouse gas emissions and continued the Company's alignment with the Task Force on Climate-Related Financial Disclosures (TCFD) The sustainability report can be accessed on Paysafe's website at About Paysafe Paysafe 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 29 years of online payment experience, an annualized transactional volume of $152 billion in 2024, and approximately 3,300 employees located in 12+ countries, Paysafe connects businesses and consumers across 260 payment types in 48 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 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 networks, issuers and financial institutions; risk related to processing online payments for merchants and customers engaged in the online gambling and foreign exchange trading sectors; risks related to becoming an unwitting party to fraud or being deemed to be handling proceeds resulting from the criminal activity by customers; the effects of chargebacks, merchant insolvency and consumer deposit settlement risk; changes to our continued financial institution sponsorships; failure to hold, safeguard or account accurately for merchant or customer funds; risks related to the availability, integrity and security of internal and external IT transaction processing systems and services; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; failure of fourth parties to comply with contractual obligations; changes and compliance with payment card network operating rules; substantial and increasingly intense competition worldwide in the global payments industry; risks related to developing and maintaining effective internal controls over financial reporting; managing our growth effectively, including growing our revenue pipeline; any difficulties maintaining a strong and trusted brand; keeping pace with rapid technological developments; risks associated with the significant influence of our principal shareholders; the effect of regional epidemics or a global pandemic on our business; and other factors included in the 'Risk Factors' in our Form 20-F and in other filings we make with the SEC, which are available at Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events. Paysafe Limited Consolidated Net Loss per share Three Months Ended March 31, 2025 2024 Numerator ($ in thousands) Net (loss) / income - basic $ (19,472 ) $ 3,056 Net (loss) / income - diluted $ (19,472 ) $ 3,056 Denominator (in millions) Weighted average shares – basic 59.8 61.6 Weighted average shares – diluted 59.8 62.0 Net (loss) / income per share Basic $ (0.33 ) $ 0.05 Diluted $ (0.33 ) $ 0.05 Expand Paysafe Limited Condensed Consolidated Balance Sheets (unaudited) ($ in thousands) December 31, 2024 Assets Current assets Cash and cash equivalents $ 234,339 $ 216,683 Customer accounts and other restricted cash 954,896 1,081,896 Accounts receivable, net of allowance for credit losses of $4,435 and $7,994, respectively 155,357 158,197 Settlement receivables, net of allowance for credit losses of $4,820 and $4,082, respectively 145,182 138,565 Prepaid expenses and other current assets 89,798 81,298 Derivative assets 3,413 — Contingent consideration receivable – current 826 — Total current assets 1,583,811 1,676,639 Deferred tax assets 91,304 91,304 Property, plant and equipment, net 26,013 24,297 Operating lease right-of-use assets 39,604 40,620 Derivative asset 150 5,502 Intangible assets, net 950,350 981,315 Goodwill 2,007,076 1,976,851 Contingent consideration receivable – non-current 3,312 — Other assets – non-current 11,812 12,806 Total non-current assets 3,129,621 3,132,695 Total assets $ 4,713,432 $ 4,809,334 Liabilities and equity Current liabilities Accounts payable and other liabilities $ 193,164 $ 176,940 Short-term debt 10,190 10,190 Funds payable and amounts due to customers 1,139,759 1,235,104 Operating lease liabilities – current 8,060 7,653 Income taxes payable 3,269 5,495 Warrant liabilities 835 — Contingent consideration payable – current 1,856 8,070 Liability for share-based compensation – current 2,638 2,126 Total current liabilities 1,359,771 1,445,578 Non-current debt 2,374,425 2,353,358 Operating lease liabilities – non-current 34,833 35,573 Deferred tax liabilities 80,238 91,570 Warrant liabilities — 1,401 Derivative financial liabilities – non-current 224 — Liability for share-based compensation – non-current 2,031 2,268 Contingent consideration payable – non-current 25 325 Total non-current liabilities 2,491,776 2,484,495 Total liabilities 3,851,547 3,930,073 Commitments and contingent liabilities Total shareholders' equity 861,885 879,261 Total liabilities and shareholders' equity $ 4,713,432 $ 4,809,334 Expand Paysafe Limited Condensed Consolidated Statements of Cash Flow (unaudited) Three Months Ended March 31, ($ in thousands) 2025 2024 Cash flows from operating activities Net (loss) / income $ (19,472 ) $ 3,056 Adjustments for non-cash items: Depreciation and amortization 68,665 68,581 Unrealized foreign exchange gain (5,169 ) (2,519 ) Deferred tax benefit (12,129 ) (1,767 ) Interest expense, net 7,767 3,634 Share-based compensation 8,141 9,359 Other income, net (809 ) (7,162 ) Impairment expense on goodwill and other assets 1,282 653 Allowance for credit losses and other 7,571 11,739 (Gain) / loss on disposal of subsidiary and other assets, net (626 ) 177 Non-cash lease expense 2,336 2,232 Movements in working capital: Accounts receivable, net (4,232 ) (24,222 ) Prepaid expenses, other current assets, and related party receivables (9,186 ) (1,788 ) Accounts payable, other liabilities, and related party payables 5,809 (3,792 ) Income tax (receivable) / payable 2,531 654 Net cash flows from operating activities 52,479 58,835 Cash flows in investing activities Purchase of property, plant & equipment (4,329 ) (3,719 ) Other intangible asset expenditures (22,892 ) (20,706 ) Disposal of subsidiary 1,948 — Receipts under derivative financial instruments 1,312 2,531 Cash inflow from merchant reserves — 6,510 Other investing activities, net 68 1,559 Net cash flows used in investing activities (23,893 ) (13,825 ) Cash flows from financing activities Repurchases of shares withheld for taxes (560 ) (257 ) Proceeds from employee share purchase plan 540 — Purchase of treasury shares (9,998 ) (12,000 ) Settlement funds - merchants and customers, net (134,041 ) (108,302 ) Repurchase of borrowings — (30,545 ) Proceeds from loans and borrowings — 50,242 Repayments of loans and borrowings (22,839 ) (33,759 ) Proceeds under line of credit 197,000 225,000 Repayments under line of credit (201,000 ) (225,000 ) Contingent consideration paid (6,476 ) (7,755 ) Other financing activities 300 — Net cash flows used in financing activities (177,074 ) (142,376 ) Effect of foreign exchange rate changes 39,144 (25,951 ) Decrease in cash and cash equivalents, including customer accounts and other restricted cash during the period $ (109,344 ) $ (123,317 ) Cash and cash equivalents, including customer accounts and other restricted cash at beginning of the period 1,298,579 1,498,269 Cash and cash equivalents at end of the period, including customer accounts and other restricted cash $ 1,189,235 $ 1,374,952 Expand Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. This includes organic revenue growth, Gross Profit (excluding depreciation and amortization), Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage which are supplemental measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ('U.S. GAAP'). Organic revenue growth is defined as growth excluding the impact of foreign currency fluctuations, revenue from interest on consumer deposits, acquisitions, and dispositions. Management believes organic revenue growth to be useful to users of our financial data because it enables them to better understand underlying revenue growth from period to period excluding the impact of these non-organic items. Gross Profit (excluding depreciation and amortization) is defined as revenue less cost of services (excluding depreciation and amortization). Management believes Gross Profit to be a useful profitability measure to assess the performance of our businesses and ability to manage cost. Adjusted EBITDA is defined as net income/(loss) before the impact of income tax (benefit)/expense, interest expense, net, depreciation and amortization, share-based compensation, impairment expense on goodwill and other assets, restructuring and other costs, loss/(gain) on disposal of a subsidiaries and other assets, net, and other income/(expense), net. These adjustments also include certain costs and transaction items that are not reflective of the underlying operating performance of the Company. Management believes Adjusted EBITDA to be a useful profitability measure to assess the performance of our businesses and improves the comparability of operating results across reporting periods. Adjusted net income excludes the impact of certain non-operational and non-cash items. Adjusted net income is defined as net income/(loss) attributable to the Company before the impact of other non-operating income / (expense), net, impairment expense on goodwill and other assets, restructuring and other costs, accelerated amortization of debt fees, amortization of acquired assets, loss/(gain) on disposal of subsidiaries and other assets, share-based compensation, discrete tax items and the income tax (benefit)/expense on these non-GAAP adjustments. Adjusted net income per share is adjusted net income as defined above divided by adjusted weighted average dilutive shares outstanding. Management believes the removal of certain non-operational and non-cash items from net income enhances shareholders' ability to evaluate the Company's business performance and profitability by improving comparability of operating results across reporting periods. Unlevered free cash flow is defined as net cash flows provided by/used in operating activities, adjusted for the impact of capital expenditure, payments relating to restructuring and other costs and cash paid for interest. Capital expenditure includes purchases of property plant & equipment and purchases of other intangible assets, including software development costs. Capital expenditure does not include purchases of merchant portfolios. Management believes unlevered free cash flow to be a liquidity measure that provides useful information about the amount of cash generated by the business. Net leverage is defined as net debt (gross debt less cash and cash equivalents) divided by the last twelve months Adjusted EBITDA. Management believes net leverage is a useful measure of the Company's credit position and progress towards leverage targets. Management believes the presentation of these non-GAAP financial measures, including Gross Profit, Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage when considered together with the Company's results presented in accordance with GAAP, provide users with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of Paysafe's core operating performance. In addition, management believes the presentation of these non-GAAP financial measures provides useful supplemental information in assessing the Company's results on a basis that fosters comparability across periods by excluding the impact on the Company's reported GAAP results of acquisitions and dispositions that have occurred in such periods. However, these non-GAAP measures exclude items that are significant in understanding and assessing Paysafe's financial results or position. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Paysafe's presentation of these measures may not be comparable to similarly titled measures used by other companies. In addition, the forward-looking non-GAAP financial measure of Adjusted EBITDA provided herein have not been reconciled to the comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. We have reconciled the historical non-GAAP financial measures presented herein to their most directly comparable GAAP financial measures. A reconciliation of our forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results. Reconciliation of Revenue to Non-GAAP Organic Revenue Three Months Ended March 31, ($ in thousands) 2025 2024 Revenue $ 401,000 $ 417,738 Currency adjustment (1) 5,430 — Interest revenue adjustment (2) (5,647 ) (9,475 ) Disposal adjustments (3) (5,213 ) (30,665 ) Organic revenue (4) $ 395,570 $ 377,598 Expand (1) This adjustment eliminates the impact of foreign exchange on revenue. (2) This adjustment eliminates the impact of revenue from interest on consumer deposits adjusted to exclude the effect of any fluctuations in foreign exchange rates. (3) This adjustment eliminates all revenue generated from the direct marketing payments processing business line that was disposed of during the three months ended March 31, 2025. (4) Organic revenue is defined as revenues in the stated period excluding the impact from acquisitions, dispositions, foreign currency fluctuations and interest revenue on consumer deposits. For dispositions in the current year, the pre-disposition results are excluded from the organic revenue calculations. There were no acquisitions requiring adjustments in the stated periods. Reported revenue growth and organic revenue growth for the three months ended March 31, 2025 was -4% and 5%, respectively. Organic revenue growth is measured as the change in organic revenue for the current period, divided by organic revenue from the prior period. Expand Reconciliation of Revenue to Non-GAAP Organic Revenue by Segment Merchant Solutions Digital Wallets Three Months Ended March 31, ($ in thousands) 2025 2024 Revenue $ 187,567 $ 190,457 Currency adjustment (1) 5,282 — Interest revenue adjustment (2) (5,187 ) (8,857 ) Organic revenue (4) $ 187,662 $ 181,600 Expand (1) This adjustment eliminates the impact of foreign exchange on revenue. (2) This adjustment eliminates the impact of revenue from interest on consumer deposits adjusted to exclude the effect of any fluctuations in foreign exchange rates. (3) This adjustment eliminates all revenue generated from the direct marketing payments processing business line that was disposed of during the three months ended March 31, 2025. (4) Organic revenue is defined as revenues in the stated period excluding the impact from acquisitions, dispositions, foreign currency fluctuations and interest revenue on consumer deposits. For dispositions in the current year, the pre-disposition results are excluded from the organic revenue calculations. There were no acquisitions requiring adjustments in the stated periods. Reported revenue growth and organic revenue growth for the three months ended March 31, 2025 was -2% and 3%, respectively, for the Digital Wallets segment and was -6% and 6%, respectively, for the Merchant Solutions segment. Organic revenue growth is measured as the change in organic revenue for the current period, divided by organic revenue from the prior period. Expand Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (excluding depreciation and amortization) (1) Gross Profit has been calculated as revenue, less cost of services and depreciation and amortization. Gross profit is not presented within the Company's consolidated financial statements. Expand Reconciliation of GAAP Net (Loss) / Income to Adjusted Net Income Three Months Ended March 31, ($ in thousands) 2025 2024 Net (loss) / income $ (19,472 ) $ 3,056 Other non operating expense / (income), net (1) 564 (9,774 ) Impairment expense on goodwill and other assets 1,282 653 Amortization of acquired assets (2) 33,268 33,603 Restructuring and other costs 7,785 452 (Gain) / loss on disposal of subsidiaries and other assets, net (626 ) 177 Share-based compensation expense 8,141 9,359 Discrete tax items (3) 3,430 5,465 Income tax expense on non-GAAP adjustments (4) (13,459 ) (7,685 ) Adjusted net income $ 20,913 $ 35,306 (in millions) Weighted average shares - diluted 59.8 62.0 Adjusted diluted impact 1.5 0.0 Adjusted weighted average shares - diluted 61.3 62.0 Expand (1) Other non-operating expense / (income), net primarily consists of income and expenses outside of the Company's operating activities, including, fair value gain / loss on warrant liabilities and derivatives, gain / loss on repurchases of debt, gain / loss on foreign exchange and the release of certain provisions. (2) Amortization of acquired asset represents amortization expense on the fair value of intangible assets acquired through various Company acquisitions, including brands, customer relationships, software and merchant portfolios. (3) Discrete tax items mainly represent (a) valuation allowance benefit recorded on deferred tax assets representing $3,801 and $5,502 for the three months ended March 31, 2025 and 2024, respectively (b) measurement period adjustments which were $0 and ($57) for the three months ended March 31, 2025 and 2024, respectively, and (c) discrete tax expense on share-based compensation, which would not have been incurred as share-based compensation expense is removed from adjusted net income, of $0 and $182 for the three months ended March 31, 2025 and 2024, respectively. The remaining discrete tax items mainly relate to the movement in uncertain tax provisions relating to prior years. (4) Income tax expense on non-GAAP adjustments reflects the tax expense on each taxable adjustment using the current statutory tax rate of the applicable jurisdiction specific to that adjustment. Expand (1) The denominator used in the calculation of diluted adjusted net income per share for the three months ended March 31, 2024 and 2025 includes the dilutive effect of the Company's restricted stock units. Expand
Yahoo
13-05-2025
- Business
- Yahoo
Paysafe Reports First Quarter 2025 Results; Reaffirms Full Year Outlook
LONDON, May 13, 2025--(BUSINESS WIRE)--Paysafe Limited ("Paysafe" or the "Company") (NYSE: PSFE), a leading payments platform, today announced its financial results for the first quarter of 2025. First Quarter 2025 Summary (Metrics compared to the first quarter of 2024, unless otherwise noted) Revenue of $401.0 million, decreased 4%; organic revenue growth of 5% Net loss of $19.5 million, or ($0.33) per diluted share, compared to net income of $3.1 million, or $0.05 per diluted share Adjusted net income of $20.9 million, or $0.34 per diluted share, compared to $35.3 million, or $0.57 per diluted share Adjusted EBITDA of $95.2 million, decreased 15%; decreased 14% on a constant currency basis Net leverage1 of 4.9x as of March 31, 2025 Bruce Lowthers, CEO of Paysafe, commented: "We kicked off the year with strong momentum, exceeding our expectations for organic growth and adjusted EBITDA margin. I'm proud of the team for staying focused and executing our strategy for sustainable growth while successfully completing the sale of our direct marketing business. We also secured new partnerships, launched innovative products through our wallet platform, and continued enhancing its functionality to better connect our 18 million consumers with over 1 million retailers—turning everyday transactions into exceptional experiences. With the second quarter underway, we're operating with a leaner, lower-risk model, a strengthened sales organization, traction with new collaborations, and a robust product pipeline that positions us for accelerated growth in the second half of the year." Recent Strategic and Operational Highlights Organic revenue growth of 5% led by robust volumes in e-commerce Progress across the enterprise-level sales strategy, including continued double-digit bookings growth in the first quarter while accelerating productivity per sales representative Expanded Paysafe's long-term partnership with Fiserv, including several key initiatives focused on empowering small and medium-sized businesses (SMBs) Expanded Paysafe's partnership with Tilled to offer frictionless payments and PayFac-as-a-Service solutions for independent software vendors (ISVs) across the U.S. and Canada Closed on the Company's previously announced agreement to sell its direct marketing payment processing business line ("the business disposal") Repurchased 612.6 thousand shares for $10.0 million in the first quarter of 2025 Published Paysafe's second annual sustainability report (1) Paysafe defines net leverage as net debt (total debt less cash and cash equivalents) divided by the sum of the last twelve months (LTM) Adjusted EBITDA. For the period ended March 31, 2025, total debt was $2,384.6 million and cash and cash equivalents was $234.3 million, and LTM Adjusted EBITDA was $435.3 million. For the period ended December 31, 2024, total debt was $2,363.5 million and cash and cash equivalents was $216.7 million, and LTM Adjusted EBITDA was $452.1 million. First Quarter of 2025 Summary of Consolidated Results Three Months Ended March 31, ($ in thousands) (unaudited) 2025 2024 Revenue $ 401,000 $ 417,738 Gross Profit (excluding depreciation and amortization) $ 226,819 $ 247,365 Net (loss) / income $ (19,472 ) $ 3,056 Adjusted EBITDA $ 95,170 $ 111,916 Adjusted net income $ 20,913 $ 35,306 Reported revenue for the first quarter of 2025 was $401.0 million, a decrease of 4%, compared to $417.7 million in the prior year period, reflecting a decrease of 6% from the Merchant Solutions segment driven by the business disposal, as well as a 2% decline from the Digital Wallets segment driven by a decrease in interest revenue on consumer deposits and unfavorable foreign exchange rates. Organic revenue growth was 5%, reflecting 6% organic growth from Merchant Solutions and 3% organic growth from Digital Wallets. Net loss for the first quarter was $19.5 million, compared to net income of $3.1 million in the prior year period, largely driven by a decrease in revenue, a decrease in other income related to lower gains on foreign exchange, and an increase in restructuring and legal costs. This was partially offset by the recognition of an income tax benefit in the current period as well as a decrease in selling, general and administrative expenses, including lower credit losses. Adjusted net income for the first quarter decreased to $20.9 million, compared to $35.3 million in the prior year period, mainly reflecting the decline in Adjusted EBITDA and an increase in the adjusted effective tax rate resulting from the inclusion of the base erosion and anti-abuse tax ("BEAT") provision in the current period. Adjusted EBITDA for the first quarter decreased to $95.2 million, compared to $111.9 million in the prior year period, reflecting the business disposal in addition to business mix and lower interest revenue, which were unfavorable to gross profit margin. The combined headwinds from movement in foreign exchange rates and interest revenue on consumer deposits to first quarter revenue and Adjusted EBITDA were $9.3 million (2 percentage-points) and $5.4 million (5 percentage-points), respectively. First quarter operating cash flow was $52.5 million, compared to $58.8 million in the prior year period. Unlevered free cash flow was $57.3 million, compared to $69.2 million in the prior year period. Balance Sheet As of March 31, 2025, total cash and cash equivalents were $234.3 million, total debt was $2.4 billion and net debt was $2.2 billion. Compared to December 31, 2024, total debt increased by $21.1 million, reflecting net repayments of $26.8 million as well as movement in foreign exchange rates. Summary of Segment Results Three Months Ended March 31, YoY ($ in thousands) (unaudited) 2025 2024 change Revenue: Merchant Solutions $ 217,786 $ 231,398 -6 % Digital Wallets $ 187,567 $ 190,457 -2 % Intersegment $ (4,353 ) $ (4,117 ) 6 % Total Revenue $ 401,000 $ 417,738 -4 % Adjusted EBITDA: Merchant Solutions $ 29,446 $ 49,178 -40 % Digital Wallets $ 82,544 $ 83,274 -1 % Corporate $ (16,820 ) $ (20,536 ) -18 % Total Adjusted EBITDA $ 95,170 $ 111,916 -15 % Full Year 2025 Financial Guidance ($ in millions, except per share amounts) (unaudited) Full Year 2025 Revenue $1,710 - $1,734 Adjusted EBITDA $463 - $478 Adjusted EPS $2.21 - $2.51 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 An archive will be available after the conclusion of the live event and will remain available via the same link for one year. Time Tuesday, May 13 2025, at 8:30 a.m. ET Webcast Go to the Investor Relations section of the Paysafe website to listen and view slides Dial in 877-407-0752 (U.S. toll-free); 201-389-0912 (International) 2024 Sustainability Report Today Paysafe published its second annual sustainability report, following through on its commitment to Paysafe's sustainability strategy. This latest report provides detailed insights into the Company's progress and demonstrates significant strides in advancing governance and policies as well as more sustainable operations across the key pillars of Paysafe's sustainability framework—Trusted Technology, Engaged Employees, and Thriving Society— underpinned by Paysafe's Responsible Business Principles. Key highlights for the year included: Established Paysafe's AI governance framework and an internal AI policy to guide ethical and responsible use of AI Formalized Paysafe's responsible technology principles Awarded EcoVadis sustainability rating of 'Good' Supported 49 individual community initiatives and partnered with over 60 non-profit organizations around the world Achieved a 10% decrease in Scope 1 greenhouse gas emissions and continued the Company's alignment with the Task Force on Climate-Related Financial Disclosures (TCFD) The sustainability report can be accessed on Paysafe's website at About Paysafe Paysafe 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 29 years of online payment experience, an annualized transactional volume of $152 billion in 2024, and approximately 3,300 employees located in 12+ countries, Paysafe connects businesses and consumers across 260 payment types in 48 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 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 networks, issuers and financial institutions; risk related to processing online payments for merchants and customers engaged in the online gambling and foreign exchange trading sectors; risks related to becoming an unwitting party to fraud or being deemed to be handling proceeds resulting from the criminal activity by customers; the effects of chargebacks, merchant insolvency and consumer deposit settlement risk; changes to our continued financial institution sponsorships; failure to hold, safeguard or account accurately for merchant or customer funds; risks related to the availability, integrity and security of internal and external IT transaction processing systems and services; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; failure of fourth parties to comply with contractual obligations; changes and compliance with payment card network operating rules; substantial and increasingly intense competition worldwide in the global payments industry; risks related to developing and maintaining effective internal controls over financial reporting; managing our growth effectively, including growing our revenue pipeline; any difficulties maintaining a strong and trusted brand; keeping pace with rapid technological developments; risks associated with the significant influence of our principal shareholders; the effect of regional epidemics or a global pandemic on our business; and other factors included in the "Risk Factors" in our Form 20-F and in other filings we make with the SEC, which are available at Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events. Paysafe Limited Condensed Consolidated Statements of Operations (unaudited) Three Months Ended March 31, ($ in thousands) 2025 2024 Revenue $ 401,000 $ 417,738 Cost of services (excluding depreciation and amortization) 174,181 170,373 Selling, general and administrative 139,790 144,808 Depreciation and amortization 68,269 68,310 Impairment expense on goodwill and other assets 1,282 653 Restructuring and other costs 7,785 452 (Gain) / loss on disposal of subsidiaries and other assets, net (626 ) 177 Operating income 10,319 32,965 Other income, net 823 12,355 Interest expense, net (33,673 ) (34,965 ) (Loss) / income before taxes (22,531 ) 10,355 Income tax (benefit) / expense (3,059 ) 7,299 Net (loss) / income $ (19,472 ) $ 3,056 Net (loss) / income per share – basic $ (0.33 ) $ 0.05 Net (loss) / income per share – diluted $ (0.33 ) $ 0.05 Net (loss) / income $ (19,472 ) $ 3,056 Other comprehensive income / (loss), net of tax of $0: Gain / (loss) on foreign currency translation 4,076 (7,612 ) Total comprehensive loss $ (15,396 ) $ (4,556 ) Paysafe Limited Consolidated Net Loss per share Three Months Ended March 31, 2025 2024 Numerator ($ in thousands) Net (loss) / income - basic $ (19,472 ) $ 3,056 Net (loss) / income - diluted $ (19,472 ) $ 3,056 Denominator (in millions) Weighted average shares – basic 59.8 61.6 Weighted average shares – diluted 59.8 62.0 Net (loss) / income per share Basic $ (0.33 ) $ 0.05 Diluted $ (0.33 ) $ 0.05 Paysafe Limited Condensed Consolidated Balance Sheets (unaudited) ($ in thousands) March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 234,339 $ 216,683 Customer accounts and other restricted cash 954,896 1,081,896 Accounts receivable, net of allowance for credit losses of $4,435 and $7,994, respectively 155,357 158,197 Settlement receivables, net of allowance for credit losses of $4,820 and $4,082, respectively 145,182 138,565 Prepaid expenses and other current assets 89,798 81,298 Derivative assets 3,413 — Contingent consideration receivable – current 826 — Total current assets 1,583,811 1,676,639 Deferred tax assets 91,304 91,304 Property, plant and equipment, net 26,013 24,297 Operating lease right-of-use assets 39,604 40,620 Derivative asset 150 5,502 Intangible assets, net 950,350 981,315 Goodwill 2,007,076 1,976,851 Contingent consideration receivable – non-current 3,312 — Other assets – non-current 11,812 12,806 Total non-current assets 3,129,621 3,132,695 Total assets $ 4,713,432 $ 4,809,334 Liabilities and equity Current liabilities Accounts payable and other liabilities $ 193,164 $ 176,940 Short-term debt 10,190 10,190 Funds payable and amounts due to customers 1,139,759 1,235,104 Operating lease liabilities – current 8,060 7,653 Income taxes payable 3,269 5,495 Warrant liabilities 835 — Contingent consideration payable – current 1,856 8,070 Liability for share-based compensation – current 2,638 2,126 Total current liabilities 1,359,771 1,445,578 Non-current debt 2,374,425 2,353,358 Operating lease liabilities – non-current 34,833 35,573 Deferred tax liabilities 80,238 91,570 Warrant liabilities — 1,401 Derivative financial liabilities – non-current 224 — Liability for share-based compensation – non-current 2,031 2,268 Contingent consideration payable – non-current 25 325 Total non-current liabilities 2,491,776 2,484,495 Total liabilities 3,851,547 3,930,073 Commitments and contingent liabilities Total shareholders' equity 861,885 879,261 Total liabilities and shareholders' equity $ 4,713,432 $ 4,809,334 Paysafe Limited Condensed Consolidated Statements of Cash Flow (unaudited) Three Months Ended March 31, ($ in thousands) 2025 2024 Cash flows from operating activities Net (loss) / income $ (19,472 ) $ 3,056 Adjustments for non-cash items: Depreciation and amortization 68,665 68,581 Unrealized foreign exchange gain (5,169 ) (2,519 ) Deferred tax benefit (12,129 ) (1,767 ) Interest expense, net 7,767 3,634 Share-based compensation 8,141 9,359 Other income, net (809 ) (7,162 ) Impairment expense on goodwill and other assets 1,282 653 Allowance for credit losses and other 7,571 11,739 (Gain) / loss on disposal of subsidiary and other assets, net (626 ) 177 Non-cash lease expense 2,336 2,232 Movements in working capital: Accounts receivable, net (4,232 ) (24,222 ) Prepaid expenses, other current assets, and related party receivables (9,186 ) (1,788 ) Accounts payable, other liabilities, and related party payables 5,809 (3,792 ) Income tax (receivable) / payable 2,531 654 Net cash flows from operating activities 52,479 58,835 Cash flows in investing activities Purchase of property, plant & equipment (4,329 ) (3,719 ) Other intangible asset expenditures (22,892 ) (20,706 ) Disposal of subsidiary 1,948 — Receipts under derivative financial instruments 1,312 2,531 Cash inflow from merchant reserves — 6,510 Other investing activities, net 68 1,559 Net cash flows used in investing activities (23,893 ) (13,825 ) Cash flows from financing activities Repurchases of shares withheld for taxes (560 ) (257 ) Proceeds from employee share purchase plan 540 — Purchase of treasury shares (9,998 ) (12,000 ) Settlement funds - merchants and customers, net (134,041 ) (108,302 ) Repurchase of borrowings — (30,545 ) Proceeds from loans and borrowings — 50,242 Repayments of loans and borrowings (22,839 ) (33,759 ) Proceeds under line of credit 197,000 225,000 Repayments under line of credit (201,000 ) (225,000 ) Contingent consideration paid (6,476 ) (7,755 ) Other financing activities 300 — Net cash flows used in financing activities (177,074 ) (142,376 ) Effect of foreign exchange rate changes 39,144 (25,951 ) Decrease in cash and cash equivalents, including customer accounts and other restricted cash during the period $ (109,344 ) $ (123,317 ) Cash and cash equivalents, including customer accounts and other restricted cash at beginning of the period 1,298,579 1,498,269 Cash and cash equivalents at end of the period, including customer accounts and other restricted cash $ 1,189,235 $ 1,374,952 Three Months Ended March 31, 2025 2024 Cash and cash equivalents $ 234,339 $ 202,134 Customer accounts and other restricted cash 954,896 1,172,818 Total cash and cash equivalents, including customer accounts and other restricted cash $ 1,189,235 $ 1,374,952 Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. This includes organic revenue growth, Gross Profit (excluding depreciation and amortization), Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage which are supplemental measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("U.S. GAAP"). Organic revenue growth is defined as growth excluding the impact of foreign currency fluctuations, revenue from interest on consumer deposits, acquisitions, and dispositions. Management believes organic revenue growth to be useful to users of our financial data because it enables them to better understand underlying revenue growth from period to period excluding the impact of these non-organic items. Gross Profit (excluding depreciation and amortization) is defined as revenue less cost of services (excluding depreciation and amortization). Management believes Gross Profit to be a useful profitability measure to assess the performance of our businesses and ability to manage cost. Adjusted EBITDA is defined as net income/(loss) before the impact of income tax (benefit)/expense, interest expense, net, depreciation and amortization, share-based compensation, impairment expense on goodwill and other assets, restructuring and other costs, loss/(gain) on disposal of a subsidiaries and other assets, net, and other income/(expense), net. These adjustments also include certain costs and transaction items that are not reflective of the underlying operating performance of the Company. Management believes Adjusted EBITDA to be a useful profitability measure to assess the performance of our businesses and improves the comparability of operating results across reporting periods. Adjusted net income excludes the impact of certain non-operational and non-cash items. Adjusted net income is defined as net income/(loss) attributable to the Company before the impact of other non-operating income / (expense), net, impairment expense on goodwill and other assets, restructuring and other costs, accelerated amortization of debt fees, amortization of acquired assets, loss/(gain) on disposal of subsidiaries and other assets, share-based compensation, discrete tax items and the income tax (benefit)/expense on these non-GAAP adjustments. Adjusted net income per share is adjusted net income as defined above divided by adjusted weighted average dilutive shares outstanding. Management believes the removal of certain non-operational and non-cash items from net income enhances shareholders' ability to evaluate the Company's business performance and profitability by improving comparability of operating results across reporting periods. Unlevered free cash flow is defined as net cash flows provided by/used in operating activities, adjusted for the impact of capital expenditure, payments relating to restructuring and other costs and cash paid for interest. Capital expenditure includes purchases of property plant & equipment and purchases of other intangible assets, including software development costs. Capital expenditure does not include purchases of merchant portfolios. Management believes unlevered free cash flow to be a liquidity measure that provides useful information about the amount of cash generated by the business. Net leverage is defined as net debt (gross debt less cash and cash equivalents) divided by the last twelve months Adjusted EBITDA. Management believes net leverage is a useful measure of the Company's credit position and progress towards leverage targets. Management believes the presentation of these non-GAAP financial measures, including Gross Profit, Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage when considered together with the Company's results presented in accordance with GAAP, provide users with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of Paysafe's core operating performance. In addition, management believes the presentation of these non-GAAP financial measures provides useful supplemental information in assessing the Company's results on a basis that fosters comparability across periods by excluding the impact on the Company's reported GAAP results of acquisitions and dispositions that have occurred in such periods. However, these non-GAAP measures exclude items that are significant in understanding and assessing Paysafe's financial results or position. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Paysafe's presentation of these measures may not be comparable to similarly titled measures used by other companies. In addition, the forward-looking non-GAAP financial measure of Adjusted EBITDA provided herein have not been reconciled to the comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. We have reconciled the historical non-GAAP financial measures presented herein to their most directly comparable GAAP financial measures. A reconciliation of our forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results. Reconciliation of GAAP Net (Loss) / Income to Adjusted EBITDA Three Months Ended March 31, ($ in thousands) 2025 2024 Net (loss) / income $ (19,472 ) $ 3,056 Income tax (benefit) / expense (3,059 ) 7,299 Interest expense, net 33,673 34,965 Depreciation and amortization 68,269 68,310 Share-based compensation expense 8,141 9,359 Impairment expense on goodwill and other assets 1,282 653 Restructuring and other costs 7,785 452 (Gain) / loss on disposal of subsidiaries and other assets, net (626 ) 177 Other income, net (823 ) (12,355 ) Adjusted EBITDA $ 95,170 $ 111,916 Reconciliation of Revenue to Non-GAAP Organic Revenue Three Months Ended March 31, ($ in thousands) 2025 2024 Revenue $ 401,000 $ 417,738 Currency adjustment (1) 5,430 — Interest revenue adjustment (2) (5,647 ) (9,475 ) Disposal adjustments (3) (5,213 ) (30,665 ) Organic revenue (4) $ 395,570 $ 377,598 (1) This adjustment eliminates the impact of foreign exchange on revenue. (2) This adjustment eliminates the impact of revenue from interest on consumer deposits adjusted to exclude the effect of any fluctuations in foreign exchange rates. (3) This adjustment eliminates all revenue generated from the direct marketing payments processing business line that was disposed of during the three months ended March 31, 2025. (4) Organic revenue is defined as revenues in the stated period excluding the impact from acquisitions, dispositions, foreign currency fluctuations and interest revenue on consumer deposits. For dispositions in the current year, the pre-disposition results are excluded from the organic revenue calculations. There were no acquisitions requiring adjustments in the stated periods. Reported revenue growth and organic revenue growth for the three months ended March 31, 2025 was -4% and 5%, respectively. Organic revenue growth is measured as the change in organic revenue for the current period, divided by organic revenue from the prior period. Reconciliation of Revenue to Non-GAAP Organic Revenue by Segment Merchant Solutions Three Months Ended March 31, ($ in thousands) 2025 2024 Revenue $ 217,786 $ 231,398 Currency adjustment (1) 148 — Interest revenue adjustment (2) (460 ) (618 ) Disposal adjustments (3) (5,213 ) (30,665 ) Organic revenue (4) $ 212,261 $ 200,115 Digital Wallets Three Months Ended March 31, ($ in thousands) 2025 2024 Revenue $ 187,567 $ 190,457 Currency adjustment (1) 5,282 — Interest revenue adjustment (2) (5,187 ) (8,857 ) Organic revenue (4) $ 187,662 $ 181,600 (1) This adjustment eliminates the impact of foreign exchange on revenue. (2) This adjustment eliminates the impact of revenue from interest on consumer deposits adjusted to exclude the effect of any fluctuations in foreign exchange rates. (3) This adjustment eliminates all revenue generated from the direct marketing payments processing business line that was disposed of during the three months ended March 31, 2025. (4) Organic revenue is defined as revenues in the stated period excluding the impact from acquisitions, dispositions, foreign currency fluctuations and interest revenue on consumer deposits. For dispositions in the current year, the pre-disposition results are excluded from the organic revenue calculations. There were no acquisitions requiring adjustments in the stated periods. Reported revenue growth and organic revenue growth for the three months ended March 31, 2025 was -2% and 3%, respectively, for the Digital Wallets segment and was -6% and 6%, respectively, for the Merchant Solutions segment. Organic revenue growth is measured as the change in organic revenue for the current period, divided by organic revenue from the prior period. Reconciliation of Operating Cash Flow to Non-GAAP Unlevered Free Cash Flow Three Months Ended March 31, ($ in thousands) 2025 2024 Net cash inflows from operating activities $ 52,479 $ 58,835 Capital expenditure (27,221 ) (24,425 ) Cash paid for interest 25,906 31,331 Payments relating to Restructuring and other costs 6,181 3,453 Unlevered Free Cash Flow $ 57,345 $ 69,194 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (excluding depreciation and amortization) Three Months Ended March 31, ($ in thousands) 2025 2024 Revenue $ 401,000 $ 417,738 Cost of services (excluding depreciation and amortization) 174,181 170,373 Depreciation and amortization 68,269 68,310 Gross Profit (1) $ 158,550 $ 179,055 Depreciation and amortization 68,269 68,310 Gross Profit (excluding depreciation and amortization) $ 226,819 $ 247,365 (1) Gross Profit has been calculated as revenue, less cost of services and depreciation and amortization. Gross profit is not presented within the Company's consolidated financial statements. Reconciliation of GAAP Net (Loss) / Income to Adjusted Net Income Three Months Ended March 31, ($ in thousands) 2025 2024 Net (loss) / income $ (19,472 ) $ 3,056 Other non operating expense / (income), net (1) 564 (9,774 ) Impairment expense on goodwill and other assets 1,282 653 Amortization of acquired assets (2) 33,268 33,603 Restructuring and other costs 7,785 452 (Gain) / loss on disposal of subsidiaries and other assets, net (626 ) 177 Share-based compensation expense 8,141 9,359 Discrete tax items (3) 3,430 5,465 Income tax expense on non-GAAP adjustments (4) (13,459 ) (7,685 ) Adjusted net income $ 20,913 $ 35,306 (in millions) Weighted average shares - diluted 59.8 62.0 Adjusted diluted impact 1.5 0.0 Adjusted weighted average shares - diluted 61.3 62.0 (1) Other non-operating expense / (income), net primarily consists of income and expenses outside of the Company's operating activities, including, fair value gain / loss on warrant liabilities and derivatives, gain / loss on repurchases of debt, gain / loss on foreign exchange and the release of certain provisions. (2) Amortization of acquired asset represents amortization expense on the fair value of intangible assets acquired through various Company acquisitions, including brands, customer relationships, software and merchant portfolios. (3) Discrete tax items mainly represent (a) valuation allowance benefit recorded on deferred tax assets representing $3,801 and $5,502 for the three months ended March 31, 2025 and 2024, respectively (b) measurement period adjustments which were $0 and ($57) for the three months ended March 31, 2025 and 2024, respectively, and (c) discrete tax expense on share-based compensation, which would not have been incurred as share-based compensation expense is removed from adjusted net income, of $0 and $182 for the three months ended March 31, 2025 and 2024, respectively. The remaining discrete tax items mainly relate to the movement in uncertain tax provisions relating to prior years. (4) Income tax expense on non-GAAP adjustments reflects the tax expense on each taxable adjustment using the current statutory tax rate of the applicable jurisdiction specific to that adjustment. Adjusted Net Income per Share Three Months Ended March 31, 2025 2024 Numerator ($ in thousands) Adjusted net income - basic $ 20,913 $ 35,306 Adjusted net income - diluted $ 20,913 $ 35,306 Denominator (in millions) Weighted average shares – basic 59.8 61.6 Adjusted weighted average shares – diluted (1) 61.3 62.0 Adjusted net income per share Basic $ 0.35 $ 0.57 Diluted $ 0.34 $ 0.57 (1) The denominator used in the calculation of diluted adjusted net income per share for the three months ended March 31, 2024 and 2025 includes the dilutive effect of the Company's restricted stock units. View source version on Contacts MediaCrystal WrightPaysafe+1 (904) InvestorsKirsten NielsenPaysafe+1 (646) Sign in to access your portfolio
