Aug 13, 2026 earnings call — Refinancing, litigation resolution, and consumer growth
Paysafe reported Q2 revenue of $447.4 million and resolved major SPAC-related litigation.
Revenue $0.4B (est $0.4B) · EPS $0.43 (est $0.31)
Key quotes
"We are very pleased to have completed this transaction, which underscores our prudent approach to managing the balance sheet and liquidity."
"This summer, we resolved the final legacy overhang from the SPAC through a settlement in principle with the Farzad litigation which involved legal claims brought by pre-SPAC shareholders."
"Our PaysafeWallet solution also continued to gain traction in Europe, where we are now live in 19 countries."
Analyst Q&A 4
Second-half profit drivers and LatAm wallet margins
Q (Matthew Nakajima-Inglis · RBC): They asked what gives confidence in the second-half adjusted EBITDA ramp and whether new product rollouts are still on track. They also asked how much of Digital Wallet growth now comes from LatAm and how that changes margins.
A: Management said they remain confident in new product initiatives and the vitality index. Revenue growth is roughly split 1/3 scheduled launches and ramps, 1/3 pipeline new sales, and 1/3 current trends. On costs, about $26 million of fraud losses and front-loaded marketing and IT explain roughly $25 million to $30 million of SG&A improvement in the back half, with Q4 as the largest beneficiary; LatAm is meaningful but still relatively small, growing north of 30% and with gross profit in between eCash and core wallet margins.
"On the revenue side, think of it as roughly 1/3, 1/3, 1/3 between scheduled launches and ramps." — John Crawford (CFO)
Interest cost increase and leverage target
Q (James Friedman · Susquehanna International Group): He asked if there is a $30 million to $35 million step-up in interest expense going forward. He also asked if the midterm net leverage objective has changed.
A: John confirmed the reading was correct and said the number includes amortization of upfront costs. In simplest math, if they had done all term loans without a stub and with a plus or minus a 200-basis point increase in spread, they would have been looking at about $30 million all in, and the stub yields roughly $25 million of incremental cash interest. Bruce said the midterm net leverage goal is 3.5x.
"So in simplest math, if we did all of the term loans without a stub with a plus or minus a 200-basis point increase in spread, we would have been looking at about $30 million all in." — John Crawford (CFO)
Merchant volume drivers and Clover update
Q (Timothy Chiodo · UBS): He asked for a breakdown of the 5% Merchant Solutions volume growth: new customers, same-store sales, churn, and the World Cup iGaming impact. He also asked for an update on Clover trends, pricing, competition, and capital traction.
A: Management said SMB attrition slightly improved, existing customer same-store sales slowed a bit, and new sales and NPI remain strong, in line with expectations. The World Cup exceeded expectations in Q2 and into Q3 but is a small part of total revenue and not material. On Clover, it is doing exceptionally well, with no pricing pressure, Clover revenue up double digits, and nice lift from value-added services like the lending product; the company feels good about the relationship with Fiserv.
"I think in regard to the World Cup, World Cup was successful, exceeded what we had from an expectation perspective in Q2 and candidly into Q3." — Bruce Lowthers (CEO)
Licensing/data revenue and recurrence
Q (Susquehanna International Group): She asked them to quantify the licensing revenue: what it was from and whether it will recur.
A: Management said they built a data foundation over about 18 months to almost 2 years and began monetizing it about a year ago. They use the data internally for attrition, fraud, and engagement algorithms, then started selling it as a product. They anticipate this will be a recurring revenue stream and think over time it will be north of a $50 million annual run rate as an initial view.
"As I've said before, we anticipate this is going to be a revenue stream for us going forward." — Bruce Lowthers (CEO)