Paysafe Limited "Q1 2026 Earnings Recap" (Sell) Chiodo

Research evidence excerpt

Paysafe Limited "Q1 2026 Earnings Recap" (Sell) Chiodo

Global Research

13 May 2026ab

Paysafe Limited Equities

AmericasQ1 2026 Earnings Recap

Diversified Financial

12-month rating Sell *

Q1 2026 key metrics improved, with Merchant Solutions supported by data

sales: Q1 2026 volume, gross profit and adj. EBITDA came in above Street with

12m price target US$7.50

sequential improvement. Merchant Solutions' organic FXN revenue grew ~9% YoY

Prior : US$6.75

(~5% ex ~$7mm data sales called out) supported by eCommerce (+17% in Q1, a few

points of deceleration from Q4) and North America iGaming (with healthy growth at Price (13 May 2026) US$9.34

~28% YoY). Notably, the SMB channel within Merchant Solutions improved to slightly RIC: PSFE.N BBG: PSFE US

positive revenue growth (~2% in Q1 2026), albeit ISO channel growth continued to

pressure gross margins (pay-aways to ISO channel make this a lower gross margin Trading data and key metrics

business). We call out that Merchant organic revenue was supported by ~4% (or ~ 52-wk range US$14.68-6.01

$7mm) of a data licensing deal, albeit without which the underlying organic growth Market cap. US$0.54b

trends still showed sequential improvement to (~5% vs. ~2% in Q4). As to Merchant Shares o/s 57.6m (COM)

segment profitability, management noted that the data licensing deal contribution was Free float 47%

largely offset by credit losses. As to Digital Wallets, organic FXN growth accelerated by Avg. daily volume ('000) 137

~1% to 7% YoY supported by continued strength in LatAm and PaysafeWallet Avg. daily value (m) US$1

expansion in Europe. We note that revenue take rate slightly ticked down by ~10bps (on Common s/h equity (12/26E) US$0.61b

the back of ~9% FXN volume growth). Total 3-month active users improved to 7.9mm P/BV (12/26E) 0.7x