Paysafe sells business unit and projects growth for 2025, market reacts with stock decline
This article first appeared in Portuguese on 12 February 2025. Check it out here.
Paysafe Limited, a payment platform, announced the sale of its direct marketing payment processing business line to Kort Payments, a provider specialising in omnichannel payments. This decision is part of the company’s strategy to optimise its portfolio and focus resources on areas with greater growth potential.
Financial performance in 2024 and expectations for 2025
In the fourth quarter of 2024, Paysafe recorded revenue of $420 million, representing a 1% increase compared to the previous year’s period. Excluding the sold business, growth was 4%. For the full year of 2024, the estimated revenue is $1.705 billion, a total increase of 6% compared to 2023, or 7%, when disregarding the discontinued business line.
Net income for 2024 is projected to be between $19 million and $25 million, a significant recovery compared to the net loss of $20 million in 2023. However, adjusted EBITDA saw a slight decline of 2%, totalling $452 million. There was a 2% increase in this indicator when excluding the sold business.
For 2025, Paysafe projects revenue growth between 6.5% and 8%, with an adjusted EBITDA margin ranging from 27.1% to 27.6%. The company also expects adjusted EBITDA growth to be in the mid-double digits. These forecasts do not consider the results of the sold business.
Sale of the direct marketing business line
The sale of the direct marketing payment processing business line includes reseller and merchant contracts, technology, and employees. The transaction is expected to be completed within 30 days, subject to finalising items related to transition services. Joel Leonoff, founder and former CEO of Paysafe, leads Kort Payments and mentioned that the acquisition represents an advancement and an important step for the company.
Following the announcement of the sale and preliminary financial results, Paysafe’s stock suffered a 15% decline. The reported revenue in the fourth quarter fell below market expectations, contributing to this negative reaction.
Trends in the payment sector
The payment sector is constantly evolving, driven by technological innovations and changes in consumer preferences. Payment localisation, for example, has become essential for companies seeking global expansion, offering payment methods and experiences tailored to each region. Data-driven performance optimisation also enables businesses to improve their operations and increase revenue.
Tokenisation is also gaining prominence, not only by enhancing payment security but also by improving authorisation rates and customer experience. The global tokenisation market is expected to grow even further in the coming years.
Stay updated with upcoming trends, network and participate in the biggest iGaming conference organized by SiGMA, the global gaming authority. Click here and get to know our community!
