Payments platform Paysafe Limited (NYSE:PSFE) today announced its financial results for the fourth quarter and full year of 2024.
Paysafe’s financial results were significantly impacted by accelerated merchant exits and associated credit losses during the fourth quarter, reflecting the Company’s strategic decision to reduce its exposure to direct marketing, a business line within the SMB portfolio of the Merchant Solutions segment. This had an unfavorable impact to fourth quarter reported revenue growth for total Paysafe and the Merchant Solutions segment of approximately 3 percentage-points and 5 percentage-points, respectively.
Total revenue for the fourth quarter of 2024 was $420.1 million, an increase of 1%, compared to $414.5 million in the prior year period. Excluding a $1.8 million headwind from movement in foreign exchange rates, revenue increased 2%.
Revenue from the Merchant Solutions segment increased 1%, reflecting double-digit growth in e-commerce as well as modest growth from SMBs, largely offset by a $10.7 million headwind from the disposed business. Revenue from the Digital Wallets segment increased 2% as reported, or 3% on a constant currency basis, supported by product initiatives, which more than offset lower revenue from interest on consumer deposits.
Total payment volume was $151.7 billion, an increase 8%.
Net income for the fourth quarter of 2024 increased to $33.5 million, compared to a net loss of $12.1 million in the prior year period, reflecting an increase in other income due to a gain on foreign exchange, as well as an income tax benefit of $17.7 million, compared to an income tax expense of $13.4 million in the prior year period, which more than offset a decrease in operating income.
Adjusted net income for the fourth quarter of 2024 decreased to $29.6 million, compared to $40.9 million in the prior year period, largely attributable to the same factors that contributed to the decline in Adjusted EBITDA, partly offset by a decrease in interest expense.
Adjusted EBITDA for the fourth quarter of 2024 was $103.3 million, a decrease of 15%, compared to $121.7 million in the prior year period, largely reflecting the increase in credit losses as described above. Credit losses were $22.7 million in the fourth quarter of 2024, an increase of $15.2 million compared to the prior year period.
The combined headwinds from movements in foreign exchange rates and interest on consumer deposits to fourth quarter revenue and Adjusted EBITDA were $5.2 million and $4.4 million, respectively.
Paysafe also announced today that it has received unsolicited preliminary non-binding expressions of interest before and after the Bloomberg article on February 6, 2025, concerning takeover interest in the company.
The Board, with its financial and legal advisors, will consider any proposals that maximize shareholder value.
At this time, the Board has not initiated a sale process and is only reviewing the unsolicited proposals. There is no assurance that any transaction will be consummated. Paysafe does not intend to make any further public comment regarding its consideration of any proposals or indications of interest unless it determines that a disclosure is required by law or otherwise deemed appropriate.
