Paysafe Ltd 6-K, filed May 13, 2026
Paysafe Ltd (PSFE)
About this 6-K
Paysafe Ltd filed this 6-K on May 13, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of
(Commission File No.
(Exact name of registrant as specified in its charter)
Not Applicable
(Translation of registrant’s name into English)
(Address of Principal Executive Offices) (Zip Code)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ |
Form 40-F ☐ |
Information Contained in this Form 6-K Report
Financial Statements
This report contains Paysafe Limited’s (“the Company”) Unaudited Condensed Consolidated Financial Statements as of March 31, 2026, including Management’s Discussion and Analysis of Financial Condition and Results of Operations for the period presented therein.
Incorporation by Reference
This Report shall be deemed to be incorporated by reference into our Registration Statement on Form S-8 (File No. 333-256692), Registration Statement on Form S-8 (File No. 333-270582), Registration Statement on Form S-8 (File No. 333-279401) and Registration Statement on Form F-3 (File No. 333-263910), and to be a part thereof from the date on which this Report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
Exhibits
Exhibit |
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Description |
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101.INS |
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Inline XBRL Instance Document* |
101.SCH |
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Inline XBRL Taxonomy Extension Schema Document* |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document)* |
*Filed herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Paysa |
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PAYSAFE LIMITED |
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By: |
/s/ John Crawford |
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Name: |
John Crawford |
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Title: |
Chief Financial Officer |
Date: May 13, 2026
TABLE OF CONTENTS
1. |
Condensed Consolidated Interim Financial Statements (Unaudited) – March 31, 2026 |
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F-1 |
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2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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1 |
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INDEX TO FINANCIAL STATEMENTS
Paysafe Limited
Condensed Consolidated Financial Statements (Unaudited) |
Page No.
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F-2 |
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F-3 |
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F-4 |
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F-5 |
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F-7 |
F-1
Paysafe Limited
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
(U.S. dollars in thousands, except per share data)
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For the three months ended March 31, |
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2026 |
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2025 |
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Revenue |
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$ |
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$ |
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Cost of services (excluding depreciation and amortization) |
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Selling, general and administrative |
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Depreciation and amortization |
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Impairment expense on goodwill and other assets |
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Restructuring and other costs |
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Loss / (gain) on disposal of subsidiaries and other assets, net |
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( |
) |
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Operating income |
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Other income, net |
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Interest expense, net |
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( |
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( |
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Loss before taxes |
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( |
) |
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( |
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Income tax expense / (benefit) |
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( |
) |
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Net loss |
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$ |
( |
) |
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$ |
( |
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Net loss per share – basic |
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$ |
( |
) |
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$ |
( |
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Net loss per share – diluted |
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$ |
( |
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$ |
( |
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Net loss |
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$ |
( |
) |
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$ |
( |
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Other comprehensive income, net of tax of $0: |
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(Loss) / income on foreign currency translation |
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( |
) |
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Total comprehensive loss |
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$ |
( |
) |
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$ |
( |
) |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-2
Paysafe Limited
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(U.S. dollars in thousands, except share data)
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March 31, 2026 |
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December 31, 2025 |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
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$ |
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Customer accounts and other restricted cash |
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Accounts receivable, net of allowance for credit losses of $ |
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Settlement receivables, net of allowance for credit losses of $ |
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Prepaid expenses and other current assets |
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Derivative financial assets - current |
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Contingent consideration receivable – current |
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Total current assets |
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Deferred tax assets |
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Property, plant and equipment, net |
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Operating lease right-of-use assets |
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Derivative financial assets – non-current |
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Intangible assets, net |
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Goodwill |
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Contingent consideration receivable – non-current |
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Other assets – non-current |
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Total assets |
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$ |
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$ |
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Liabilities and equity |
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Current liabilities |
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Accounts payable and other liabilities |
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$ |
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$ |
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Short-term debt |
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Funds payable and amounts due to customers |
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Operating lease liabilities – current |
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Income taxes payable |
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Contingent consideration payable – current |
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Liability for share-based compensation – current |
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Total current liabilities |
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Non-current debt |
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Operating lease liabilities – non-current |
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Deferred tax liabilities |
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Derivative financial liabilities – non-current |
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Liability for share-based compensation – non-current |
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Contingent consideration payable – non-current |
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Total liabilities |
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Shareholders' equity |
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Common shares - $ |
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Additional paid in capital |
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Accumulated deficit |
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( |
) |
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( |
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Treasury shares - at cost; |
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( |
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( |
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Accumulated other comprehensive loss |
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( |
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( |
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Total shareholders' equity |
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Total liabilities and shareholders' equity |
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$ |
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$ |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-3
Paysafe Limited
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
(U.S. dollars in thousands)
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Common |
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Additional paid in capital |
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Accumulated |
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Treasury shares |
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Accumulated other |
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Total |
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December 31, 2025 |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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$ |
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Net loss |
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- |
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- |
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( |
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- |
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- |
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( |
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Loss on foreign currency translation, net of tax of $ |
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- |
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- |
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- |
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- |
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( |
) |
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( |
) |
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Restricted stock units issued (Note 10) |
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( |
) |
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- |
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- |
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- |
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- |
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Share-based compensation |
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- |
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- |
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- |
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- |
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Common shares repurchased (Note 11) |
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- |
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- |
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- |
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( |
) |
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- |
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( |
) |
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Common shares reissued (Note 11) |
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- |
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( |
) |
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- |
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March 31, 2026 |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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$ |
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Common |
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Additional paid in capital |
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Accumulated |
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Treasury shares |
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Accumulated other |
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Total |
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December 31, 2024 |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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$ |
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Net loss |
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- |
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- |
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( |
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- |
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- |
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( |
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Gain on foreign currency translation, net of tax of $ |
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- |
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- |
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- |
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- |
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Restricted stock units issued (Note 10) |
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( |
) |
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- |
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- |
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- |
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- |
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Share-based compensation |
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- |
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- |
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- |
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- |
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Common shares repurchased (Note 11) |
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- |
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- |
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- |
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( |
) |
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- |
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( |
) |
Common shares reissued (Note 11) |
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- |
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- |
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- |
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March 31, 2025 |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
( |
) |
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$ |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-4
Paysafe Limited
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(U.S. dollars in thousands)
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Three months ended March 31, |
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2026 |
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2025 |
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Cash flows from operating activities |
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Net loss |
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$ |
( |
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$ |
( |
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Adjustments for non-cash items: |
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Depreciation and amortization |
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Unrealized foreign exchange gain |
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( |
) |
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( |
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Deferred tax benefit |
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( |
) |
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( |
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Interest expense, net |
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Share-based compensation |
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Other income, net |
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( |
) |
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( |
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Impairment expense on goodwill and other assets |
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Allowance for credit losses and other |
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Loss / (gain) on disposal of subsidiary and other assets, net |
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( |
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Non-cash lease expense |
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Movements in working capital: |
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Accounts receivable, net |
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( |
) |
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( |
) |
Prepaid expenses and other current assets |
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( |
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( |
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Accounts payable and other liabilities |
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Income tax payable / receivable |
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Net cash flows provided by operating activities |
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Cash flows in investing activities |
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Purchase of property, plant & equipment |
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( |
) |
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( |
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Purchase of merchant portfolios |
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( |
) |
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Other intangible asset expenditures |
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( |
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( |
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Disposal of subsidiary |
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Cash inflow from merchant reserves |
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Cash outflow from merchant reserves |
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( |
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Receipts under derivative financial instruments |
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Other investing activities |
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Net cash flows used in investing activities |
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( |
) |
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( |
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Cash flows from financing activities |
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Repurchases of shares withheld for taxes |
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( |
) |
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( |
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Proceeds from employee share purchase plan |
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Purchase of treasury shares |
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( |
) |
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( |
) |
Settlement funds - merchants and customers, net |
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( |
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( |
) |
Proceeds from loans and borrowings |
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Repayments of loans and borrowings |
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( |
) |
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( |
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Proceeds under line of credit |
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Repayments under line of credit |
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( |
) |
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( |
) |
Contingent consideration paid |
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( |
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Other financing activities |
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Net cash flows used in financing activities |
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( |
) |
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( |
) |
Effect of foreign exchange rate changes |
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( |
) |
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Decrease in cash and cash equivalents, including customer accounts and other restricted cash during the period |
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$ |
( |
) |
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$ |
( |
) |
Cash and cash equivalents, including customer accounts and other restricted cash at beginning of the period |
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Cash and cash equivalents at end of the period, including customer accounts and other restricted cash |
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$ |
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$ |
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Three months ended March 31, |
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2026 |
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2025 |
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Supplemental cash flow disclosures: |
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Cash paid for interest |
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$ |
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$ |
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Cash paid for income taxes, net |
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$ |
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$ |
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F-5
The table below reconciles cash, cash equivalents, customer accounts and other restricted cash as reported in the unaudited condensed consolidated statement of financial position to the total of the same amounts shown in the unaudited condensed consolidated statement of cash flows:
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Three months ended March 31, |
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2026 |
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2025 |
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Cash and cash equivalents |
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$ |
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$ |
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Customer accounts and other restricted cash |
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Total cash and cash equivalents, including customer accounts and other restricted cash |
|
$ |
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$ |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-6
Paysafe Limited
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(U.S. dollars in thousands, except per share data)
1. Basis of presentation and summary of significant accounting policies
Description of the Business
In these unaudited condensed consolidated financial statements and related notes, Paysafe Limited, and its consolidated subsidiaries are referred to collectively as “Paysafe,” “we,” “us,” and “the Company” unless the context requires otherwise. Paysafe is a leading global provider of end-to-end payment solutions. Our core purpose is to enable businesses and consumers to connect and transact seamlessly through our payment platforms.
Paysafe Limited was incorporated as an exempted limited company under the laws of Bermuda on
In connection with the Transaction, which was consummated on March 31, 2021, the Company’s common shares and warrants were listed on the New York Stock Exchange under the symbols PSFE and PSFE.WS, respectively. Subsequent to the Transaction, Pi Jersey Topco Limited (“Topco”), funds advised by affiliates of CVC Capital Partners (such funds collectively, “CVC”) and The Blackstone Group Inc. (“Blackstone”) continue to retain ownership in the Company. During the year ended December 31, 2025, the warrants were delisted from trading on the NYSE and the warrants subsequently expired on March 31, 2026.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements for the three months ended March 31, 2026 and the comparative financial information for the three months ended March 31, 2025 and for the year ended December 31, 2025 include the accounts of the Company, and its subsidiaries, based upon information of Paysafe Limited.
All intercompany transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the Company’s financial position, results of operations and cash flows have been included.
These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2025 on Form 20-F filed on March 3, 2026.
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported period. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026 or any other interim period.
On February 28, 2025, the Company finalized a definitive agreement to sell substantially all of the assets related to its direct marketing payment processing business line, previously part of the Merchant Solutions segment (See Note 9). The income associated with this business prior to disposal is included in income from continuing operations as the sale of the business did not qualify as discontinued operations.
Disaggregation of Revenue
The Company provides payment solutions through two primary lines of business: Merchant Solutions and Digital Wallets. For each primary source of revenue within these business lines, the Company’s main performance obligation is to stand ready to provide payment services to merchants and consumers. Due to the concentration of economic factors, products and services in each of the business lines, the Company has presented disaggregated revenue at the segment level (See Note 15).
We do
F-7
under a stand-ready series of distinct days of service, which typically represent all or almost all of the total transaction price for the related contract. The variable consideration that will be allocated to future days of service is not required to be disclosed as these days of services are wholly unsatisfied at the Company’s reporting date. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material.
Significant accounting policies
Financial Instruments - Credit Losses
In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Estimated Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update allows entities to elect a practical expedient when developing reasonable and supportable forecasts as part of estimating expected credit losses that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. This update is effective for annual periods beginning after December 15, 2025, and for interim reporting periods within those annual reporting periods, with early adoption permitted. The Company adopted ASU 2025-05 on January 1, 2026 which did not have a material impact on the Company's consolidated financial statements.
There have been
Accounting Pronouncements not yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which is intended to improve the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. This update requires public business entities to expand disclosures about specific expense categories in the notes to the financial statements, including inventory, employee compensation, depreciation, and intangible asset amortization, among others. This update is effective for annual periods beginning after December 15, 2026 and for interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of the adoption of this update on the consolidated financial statements.
Intangibles - Goodwill and Other - Internal Use Software
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update removes all references to software development project stages and requires entities to start capitalizing software costs when both of the following occur: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. This update is effective for annual periods beginning after December 15, 2027, and for interim periods within those annual periods, with early adoption permitted. The Company is evaluating the impact of the adoption of this update on our consolidated financial statements.
2. Net loss per share
The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to the Company.
The Company uses the treasury stock method of calculating diluted net income / (loss) per share.
F-8
was antidilutive (See Note 10). For the three months ended March 31, 2025 we excluded all potentially dilutive restricted stock units, stock options and warrants in calculating diluted net loss per share as the effect was antidilutive.
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For the three months ended March 31, |
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2026 |
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2025 |
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Numerator |
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Net loss - basic |
$ |
( |
) |
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$ |
( |
) |
Net loss - diluted |
$ |
( |
) |
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$ |
( |
) |
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Denominator |
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Weighted average shares – basic |
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Weighted average shares – diluted |
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Net loss per share |
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Basic |
$ |
( |
) |
|
$ |
( |
) |
Diluted |
$ |
( |
) |
|
$ |
( |
) |
3. Taxation
For the three months ended March 31, 2026, we accounted for income taxes by applying an estimated annual effective tax rate to year to date pre-tax book loss, with the effects of any discrete income tax items recognized in the period in which it occurred. For the three months ended March 31, 2025, we utilized the discrete effective tax method as allowed under ASC 740, Income Taxes, to calculate the interim tax provision. The discrete method treats the year to date period as if it was the annual period and determines the income tax expense or benefit on that basis. In the prior period, the use of the discrete method was more appropriate than the annual effective tax rate method as small changes in estimated pre-tax book income or loss would result in significant changes in the estimated annual effective tax rate.
Our effective tax rate for the three months ended March 31, 2026 and 2025 was (
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred assets will be realized. The ultimate realization of the deferred tax asset is dependent upon generation of future taxable income during the period in which those temporary differences become deductible. Evaluating the need for a valuation allowance for deferred tax assets requires judgment and analysis of all the positive and negative evidence available, including cumulative losses in recent years and projected future taxable income to determine whether all or some portion of the deferred tax assets will not be realized. The Company continues to recognize a valuation on deferred tax assets on tax losses and restricted interest carryforwards in the U.K. and U.S. During the three months ended March 31, 2026, the Company recorded an additional valuation allowance of $
4. Goodwill
Changes in the carrying amount of goodwill are as follows:
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Merchant Solutions(1) |
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Digital Wallets (2) |
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Total |
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Balance as of December 31, 2025 |
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$ |
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|
$ |
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$ |
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Foreign exchange |
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|
— |
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|
( |
) |
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|
( |
) |
Balance as of March 31, 2026 |
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$ |
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|
$ |
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|
$ |
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|||
The Company performs its annual goodwill impairment test for all reporting units as of October 1st, or when events and circumstances have occurred that would indicate the carrying amount of goodwill exceeds its fair value. The Company’s most recent annual impairment assessment of its reporting units as of December 31, 2025 determined that its goodwill was not impaired. For the three months ended March 31, 2026, no events and circumstances were identified that would indicate the carrying amount of either reporting unit exceeded its fair value. However, it is reasonably possible that a decline in the fair value of debt or market capitalization could materially impact
F-9
the estimates in the goodwill impairment assessment. In addition, deterioration in financial performance of either reporting unit, or significant changes in key assumptions used in the annual impairment assessment, such as the discount rate, could result in an impairment charge in the future.
5. Intangible assets
The Company’s intangible assets consisted of the following:
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March 31, 2026 |
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December 31, 2025 |
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Brands |
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$ |
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$ |
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Software development costs |
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Customer relationships |
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Computer software |
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Gross carrying value |
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$ |
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$ |
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Brands |
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Software development costs |
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Customer relationships |
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Computer software |
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Accumulated amortization |
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$ |
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$ |
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Intangible assets, net |
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$ |
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$ |
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||
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Amortization expense on intangible assets for the three months ended March 31, 2026 and 2025, was $
The Company performs an impairment analysis on intangible assets with finite lives when events and circumstances have occurred that would indicate the carrying amount of intangible assets may not be recoverable. For the three months ended March 31, 2026 and 2025, impairment expenses of $
6. Allowance for credit losses
The Company has exposure to credit losses for financial assets, including settlement receivables, accounts receivable, and financial guarantee contracts to the extent that a chargeback claim is made against the Company directly or to the Company’s merchants on card purchases.
The following table summarizes the expected credit allowance activity for settlement receivables, net; accounts receivable, net; and financial guarantee contracts and other, for the three months ended March 31, 2026:
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Accounts |
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Settlement |
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Financial |
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Total |
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Balance as of December 31, 2025 |
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$ |
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$ |
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$ |
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$ |
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Credit loss expense |
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Recoveries |
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Write-Offs |
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( |
) |
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( |
) |
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( |
) |
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Other (1) |
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( |
) |
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( |
) |
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( |
) |
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( |
) |
Balance as of March 31, 2026 |
|
$ |
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|
$ |
|
|
$ |
|
|
$ |
|
||||
F-10
Credit loss expense for the three months ended March 31, 2026 and 2025 was $
7. Debt
The Company's current facilities include the following:
(i) $
(ii) $
(iii) €
(iv) $
The Company has made drawdowns and repayments on the Revolving Credit Facility throughout the quarter. As of March 31, 2026 and December 31, 2025, $
Line of Credit
The Company has a Line of Credit of $
The key terms of these facilities are as follows:
Facility |
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Currency |
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Interest Rate (1) |
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Effective Interest Rate (2) |
|
Facility |
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Principal |
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Principal |
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Term Loan Facility (USD) (3) |
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USD |
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$ |
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$ |
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||||
Term Loan Facility (EUR) (5) |
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EUR |
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Secured Loan Notes (EUR) |
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EUR |
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Secured Loan Notes (USD) |
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USD |
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Revolving Credit Facility (USD) |
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USD |
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Revolving Credit Facility (EUR) |
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EUR |
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|||||
Line of Credit |
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USD |
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|||||
Total Principal Outstanding |
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$ |
|
||
F-11
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March 31, 2026 |
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December 31, 2025 |
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Principal Outstanding |
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$ |
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$ |
|
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Unamortized debt issuance cost |
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( |
) |
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( |
) |
Total |
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Short-term debt |
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Non-current debt |
|
$ |
|
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$ |
|
||
For the three months ended March 31, 2026 and 2025, interest expense, including amortization of deferred debt issuance cost, was $
Maturity requirements on debt as of March 31, 2026 by year are as follows:
Remainder 2026 |
|
$ |
|
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2027 |
|
|
|
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2028 |
|
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2029 |
|
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Total |
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$ |
|
During the three months ended March 31, 2026 and 2025, the Company made principal payments of $
Compliance with Covenants
The Company’s facilities as described above contain affirmative, restrictive and incurrence-based covenants, including, among others, financial covenants based on the Company’s leverage and Revolving Credit Facility utilization, as defined in the debt agreement. The financial covenants under the facilities require the Company to test its Consolidated First Lien Debt Ratio if the principal amount of the Revolving Credit Facility, less any cash and cash equivalents, at the reporting date exceeds
In addition, the Company’s Line of Credit requires us to maintain certain financial covenants for Paysafe Payment Processing Services LLC (“PPPS”), including a Fixed Charge Coverage Ratio of not less than
The Company was in compliance with its covenants as of the date of issuance of these unaudited condensed consolidated financial statements.
Letters of Credit
As of March 31, 2026 and December 31, 2025, the Company had issued approximately $
8. Derivative Instruments
The Company’s derivative instruments consist of interest rate swap agreements ("interest rate contracts"). The interest rate swaps mitigate the exposure to the variable-rate debt by effectively converting the floating-rate payments to fixed-rate payments. The interest rate contracts are measured at fair value using a discounted cash flow methodology and not designated as a hedge for accounting purposes; as such, any fair value changes are recorded in “Other income, net” in the unaudited condensed consolidated statement of comprehensive loss in the respective period of the change.
F-12
The following table summarized the notional amount at inception and fair value of these instruments recognized as "Derivative financial assets and liabilities" in the unaudited condensed consolidated statements of financial position:
Derivative financial instrument |
Fixed rate |
Notional amount |
|
Index |
Effective date |
Maturity Date |
Fair value of asset / (liability) as at March 31, 2026 |
|
Fair value of asset as at |
|
|||
Interest rate swap |
$ |
|
USD-1 month SOFR |
$ |
|
$ |
( |
) |
|||||
Interest rate swap |
$ |
|
USD-1 month SOFR |
$ |
( |
) |
$ |
( |
) |
||||
The Company recognized a gain / (loss) for the three months ended March 31, 2026 and 2025 of $
As of December 31, 2025, the Company's former interest rate swap had a balance of $
For further information regarding the fair value of the derivative instruments see discussion in Note 12 and 14.
9. Gain on disposal of subsidiaries and other assets, net
On February 28, 2025, the Company disposed of substantially all of the assets in its direct marketing payment processing business line (Paysafe Direct, LLC) to KORT Payments for total consideration consisting of $
As a result of the Disposal, the Company recognized a gain of $
Cash consideration |
|
$ |
|
|
Contingent consideration (1) |
|
|
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Total consideration |
|
$ |
|
|
Less: Assets disposed (2) |
|
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|
Gain on disposal of subsidiary |
|
$ |
|
In connection with the Disposal, the Company also entered into a Transition Services Agreement (“TSA”) to provide KORT Payments with certain transitional services, including administrative, information technology, risk and compliance, procurement, and other corporate services for a period up to 18 months. The transition service fees earned related to the TSA are not significant.
Following the disposal of the direct marketing payment processing business line, the leased office space in California is no longer being used by the Company and is expected to be subleased. A recoverability test was performed on the remaining asset within the asset group and it was determined that the asset was not recoverable. This resulted in an impairment of the right of use asset associated with the office lease, which was determined using a discounted cash flow methodology (a Level 2 measurement). An amount of $
F-13
10. Share-based Compensation
The Company operates
2021 Omnibus Incentive Plan (“2021 Plan”)
During the three months ended March 31, 2026, the Company increased the number of shares available for issuance under the 2021 Plan by
During the three months ended March 31, 2026, the Company granted RSUs to all eligible employees. These awards vest
The following table summarizes restricted stock unit activity during the three months ended March 31, 2026:
|
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Restricted Stock Units |
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|
Weighted average grant date fair value |
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||||
Nonvested as of December 31, 2025 |
|
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$ |
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Granted (1) |
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$ |
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Vested (2) |
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( |
) |
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$ |
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Forfeited |
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( |
) |
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$ |
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Performance adjustments (3) |
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( |
) |
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Nonvested as of March 31, 2026 |
|
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$ |
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Stock options
There were
Share based compensation liability (2018 Plan)
Certain employee equity-based awards were modified in conjunction with the Transaction. Their settlement terms changed such that instead of Topco's shares, the awardees received Paysafe Limited common shares as well as Topco’s shares. The modification resulted in a change in the classification of the modified awards, with the Topco shares being accounted for as a liability-classified share-based payment award under ASC 718 as they will be settled in cash. The corresponding liability was measured at fair value at the modification date (i.e. the Transaction date), and is subsequently remeasured at fair value at each reporting date, with changes in its value reported as share-based compensation expense. The awards settled in Paysafe Limited common shares continue to be accounted for as equity-based awards.
F-14
As of March 31, 2026 and December 31, 2025, the share-based compensation liability was $
Employee Share Purchase Plan
Employees are eligible to contribute to the Company’s Employee Share Purchase Plan (the “Purchase Plan”). The Purchase Plan is not intended to be an employee benefit plan under the Employee Retirement Income Security Act of 1974, as amended, nor qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. Under the Purchase Plan, eligible employees may designate from one percent to fifteen percent of their compensation to be withheld for the purchase of PSFE shares at the market price of the shares at the end of each one-month offering period. The Company grants restricted stock units equal to
The Match RSU Award cliff vests six months or one year from the last day of the offering period, subject to the employee’s continued employment at the vesting date. The fair value of the Match RSU Award is recognized on a straight-line basis over the vesting period. The maximum number of shares of common stock authorized under the Purchase Plan for participant contributions and Match RSU Awards is
For the three months ended March 31, 2026 and 2025,
Preference Shares
We have authorized
11. Share Repurchase Program
In November 2023, the Board approved a share repurchase program (the “Share Repurchase Program”), authorizing the Company to repurchase up to $
12. Fair Value Measurements
The Company uses the hierarchy prescribed in ASC 820, Fair Value Measurements, for fair value measurements, based on the available inputs to the valuation and the degree to which they are observable or not observable in the market.
The three levels of the hierarchy are as follows:
F-15
The fair value hierarchy of financial instruments measured at fair value as of March 31, 2026 is provided below.
|
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Level 1 |
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Level 2 |
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Level 3 |
|
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Financial assets measured at fair value: |
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Contingent consideration receivable |
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Derivative financial assets |
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$ |
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$ |
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$ |
|
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Financial liabilities measured at fair value: |
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Derivative financial liabilities |
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Liability for share-based compensation (1) |
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|
$ |
|
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$ |
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$ |
|
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The fair value hierarchy of financial instruments measured at fair value as of December 31, 2025 is provided below.
|
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Level 1 |
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Level 2 |
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Level 3 |
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Financial assets measured at fair value: |
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Contingent consideration receivable |
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Derivative financial asset |
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$ |
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$ |
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$ |
|
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Financial liabilities measured at fair value: |
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Derivative financial liabilities |
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Liability for share-based compensation (1) |
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$ |
|
|
$ |
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$ |
|
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There were no transfers between levels during the three months ended March 31, 2026 and 2025. A reconciliation of the movements in level 3 financial instruments in the period are described in Note 9 and 10.
Financial instrument |
|
Valuation technique used |
|
Significant unobservable inputs |
Contingent consideration receivable |
|
Discounted cashflow |
|
Discount rate of |
Liability for share-based compensation |
|
Market and income approach |
|
Discount rate of |
The Company considers that the carrying value of cash and cash equivalents, customer accounts and other restricted cash, accounts receivable, settlement receivables, prepaid expenses and other assets, accounts payable and accrued expenses, and liabilities to customers and merchants approximate fair value given the short-term nature of these items. As of March 31, 2026, the fair value (a Level 2 measurement) of the Company's debt was $
13. Commitments, Contingencies and Guarantees
Litigation provision
Through the normal course of the Company’s business, the Company is subject to a number of litigation proceedings both brought against and brought by the Company or other against other parties that the Company provides indemnities based upon contractual obligations. The Company maintains liabilities for losses from legal actions that are recorded when they are determined to be both probable in their occurrence and can be reasonably estimated. On this basis, we have recognized a provision of $
On February 16, 2023, Farzad v. Trasimene Capital FT et. al. was filed in the Chancery Court of Delaware and on June 4, 2025, the complaint was amended to include additional defendants, including Paysafe Limited and our former Chief Executive Officer. This Amended Complaint was brought on behalf of former holders of FTAC common stock and asserts breaches of fiduciary duties of certain FTAC Board of Directors and / or Officers in connection with the SPAC Merger and claims of aiding and abetting a breach of fiduciary duty and unjust enrichment against Paysafe Ltd. and our former CEO. Plaintiffs alleged that those shareholders’ Redemption Rights were impaired due to FTAC Defendants' alleged misstatements and omissions about Paysafe's business metrics and financial prospects in connection with the Merger which caused damage to the shareholders. The allegations further state that Paysafe aided the FTAC Defendants in making such misstatements. The complaints seek unspecified damages and an award of costs and expenses, including
F-16
reasonable attorneys’ fees, on behalf of a purported class of all persons who held shares of FTAC II prior to the redemption deadline. The Company filed a motion to dismiss the Amended Complaint on July 7, 2025. On October 23, 2025 the Chancery Court of Delaware granted Company’s Motion to Dismiss the Amended Complaint. A trial date has been scheduled for July 2026 for the remaining defendants.
The Company indemnifies the remaining defendants to the complaint for expenses associated with this litigation based upon various contractual obligations and subject to applicable law. There is no assurance that the remaining defendants will be successful in the ultimate resolution of this matter or that insurance will be available or adequate to fund any potential settlement or judgment or related costs associated with the indemnified parties, which could be material.
The Company vigorously defends its position on all open cases. Except as otherwise noted for the proceedings described in this Note 14, management believes the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on the Company's consolidated financial condition, results of operations or liquidity.
Financial guarantee contracts
Through services offered in our Merchant Solutions segment, the Company is exposed to potential losses from merchant-related liabilities, including chargebacks. A chargeback occurs when a dispute between a cardholder and a merchant, including a claim for non-delivery of the product or service by the merchant, is not resolved in favor of the merchant and the transaction is charged back to the merchant resulting in a refund of the purchase price to the cardholder. If the Company is unable to collect this chargeback amount from the merchant due to closure, bankruptcy or other reasons, the Company bears the loss for the refund paid to the cardholder. The risk of chargebacks is typically greater for those merchants that promise future delivery of goods and services rather than delivering goods or rendering services at the time of payment. The Company has recorded an accrual for current expected credit losses on financial guarantees as of March 31, 2026 and December 31, 2025 (See Note 6).
As of March 31, 2026 and December 31, 2025, $
14. Other income, net
A summary of the amounts recorded in Other income, net is as follows:
|
|
For the three months ended March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Foreign exchange gain |
|
$ |
|
|
$ |
|
||
Fair value loss on contingent consideration |
|
|
( |
) |
|
|
|
|
Gain / (loss) on derivative instruments (1) |
|
|
|
|
|
( |
) |
|
Fair value gain on warrant liability (2) |
|
|
|
|
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|
||
Other (3) |
|
|
|
|
|
|
||
Other income, net |
|
$ |
|
|
$ |
|
||
15. Operating segments
F-17
Operating segments are defined as components of an enterprise that engage in business activities and for which discrete financial information is available that is evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) to make decisions about how to allocate resources and assess performance. Our CODM is defined as our Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), and Chief Operating Officer (“COO”). Our operating segments, which align with our reportable segments, are: Merchant Solutions, which focuses on card not present and card present solutions for small to medium size business merchants; and Digital Wallets, which provides wallet based online payment solutions and also enables consumers to use cash to facilitate online purchases through prepaid vouchers. These
The CODM evaluates performance and allocates resources based on Segment Adjusted EBITDA of each operating segment. The CODM believes Segment Adjusted EBITDA to be a useful profitability measure to assess the performance of our business and to improve the comparability of operating results across reporting periods. The CODM uses the segment measure to analyze the actual performance of each segment against annual budgets, comparable prior reporting periods and against internal forecasts on a quarterly basis and when making decisions about the allocation of capital and other internal resources to the segments.
Segment Adjusted EBITDA of each operating segment includes the revenues of the segment less ordinary operating expenses that are directly related to those revenues and an allocation of shared costs and excludes the impact of income tax (benefit)/expense, interest expense, net, depreciation and amortization, share-based compensation expense, impairment expense on goodwill and intangible assets, restructuring and other costs, loss/(gain) on disposal of subsidiaries and other assets, net, and other (expense)/income, net. The significant segment expenses included within each segment’s Adjusted EBITDA are included in the following tables.
The CODM does not receive segment asset data to evaluate performance or allocate resources and therefore such information is not presented.
The information below summarizes revenue and Segment Adjusted EBITDA for the three months ended March 31, 2026:
|
|
Merchant Solutions |
|
|
Digital Wallets |
|
|
Total |
|
|||
Total external revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Interest Revenue |
|
|
|
|
|
|
|
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|
|||
Intersegment revenue (1) |
|
|
|
|
|
|
|
|
|
|||
|
|
$ |
|
|
$ |
|
|
$ |
|
|||
Elimination of intersegment revenue (1) |
|
|
|
|
|
|
|
$ |
( |
) |
||
Total consolidated revenues |
|
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|
|
|
|
|
$ |
|
|||
Less: |
|
|
|
|
|
|
|
|
|
|||
Cost of services (excluding depreciation and amortization) (1) |
|
$ |
|
|
$ |
|
|
|
|
|||
Selling, general and administrative (2) |
|
$ |
|
|
$ |
|
|
|
|
|||
Segment Adjusted EBITDA |
|
$ |
|
|
$ |
|
|
$ |
|
|||
The information below summarizes revenue and Segment Adjusted EBITDA for the three months ended March 31, 2025:
|
|
Merchant Solutions |
|
|
Digital Wallets |
|
|
Total |
|
|||
Total external revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Interest revenue |
|
|
|
|
|
|
|
|
|
|||
Intersegment revenue (1) |
|
|
|
|
|
|
|
|
|
|||
|
|
$ |
|
|
$ |
|
|
$ |
|
|||
Elimination of intersegment revenue (1) |
|
|
|
|
|
|
|
$ |
( |
) |
||
Total consolidated revenues |
|
|
|
|
|
|
|
$ |
|
|||
Less: |
|
|
|
|
|
|
|
|
|
|||
Cost of services (excluding depreciation and amortization) (1) |
|
$ |
|
|
$ |
|
|
|
|
|||
Selling, general and administrative (2) |
|
$ |
|
|
$ |
|
|
|
|
|||
Segment Adjusted EBITDA |
|
$ |
|
|
$ |
|
|
$ |
|
|||
F-18
A reconciliation of total segments Adjusted EBITDA to the Company’s income before taxes is as follows:
|
|
For the three months ended March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Segments Adjusted EBITDA |
|
$ |
|
|
$ |
|
||
Unallocated corporate costs (3) |
|
|
( |
) |
|
|
( |
) |
Depreciation and amortization |
|
|
( |
) |
|
|
( |
) |
Share-based compensation |
|
|
( |
) |
|
|
( |
) |
Restructuring and other costs |
|
|
( |
) |
|
|
( |
) |
Impairment expense on goodwill and other assets |
|
|
( |
) |
|
|
( |
) |
Other income, net |
|
|
|
|
|
|
||
(Loss) / gain on disposal of subsidiaries and other assets, net |
|
|
( |
) |
|
|
|
|
Interest expense, net |
|
|
( |
) |
|
|
( |
) |
Loss before taxes |
|
$ |
( |
) |
|
$ |
( |
) |
16. Restructuring activities
A summary and description of the amounts included within Restructuring and other costs for each of the periods presented is included below. We do not include Restructuring and others costs within Segment Adjusted EBITDA (as defined in Note 15).
|
|
For the three months ended March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Transaction related costs (1) |
|
$ |
|
|
$ |
|
||
Restructuring (2) |
|
|
|
|
|
|
||
Other (3) |
|
|
|
|
|
|
||
Restructuring and other costs |
|
$ |
|
|
$ |
|
||
2025 Workforce Reduction
In the first quarter of 2025, the Company initiated, and substantially completed, a workforce reduction in connection with cost reduction initiatives and to improve organizational efficiency. In connection with this initiative, during the three months ended March 31, 2025, the Company incurred severance expense associated with one-time termination benefits and ongoing post employment benefit arrangements of $
17. Related party transactions
The Company has provided and purchased services to and from various affiliates of certain directors or entities under common control. The dollar amounts related to these related party activities are not significant to our unaudited condensed consolidated financial statements. Intercompany balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
The Company has historically disclosed transactions with an entity that was considered a related party under ASC 850, Related Party Disclosures. In the current fiscal year, this entity no longer meets the definition of a related party under ASC 850, as this entity is no
F-19
longer affiliated with our directors and beneficial owners. Accordingly, transactions with this entity are no longer disclosed as related‑party transactions.
F-20
PAYSAFE’S MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Paysafe Unaudited Condensed Consolidated Financial Statements included elsewhere in this Form 6-K, with our audited consolidated financial statements and the notes thereto included in our report filed on Form 20-F on March 3, 2026 (the “2025 Annual Report”), and with the information under the heading “Item 5. Operating and Financial Review and Prospects” in our 2025 Annual Report.
Any reference to “we,” “us,” “Paysafe,” the “Company,” “management” and “our” as used herein refers to Paysafe Limited. Amounts preceded with a dollar sign are denominated in U.S. dollars in thousands, unless otherwise noted.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report on Form 6-K (including information incorporated by reference herein, the “Report”) contains or may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as “anticipate,” “appear,” “approximate,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “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. The risk factors and cautionary language referred to or incorporated by reference in this Report provide examples of risks, uncertainties and events that may cause actual results to differ materially from the expectations described in our forward-looking statements, including among other things, the items identified below and those identified in the section entitled “Item 3.D. Risk Factors” of our 2025 Annual Report.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. Although we believe that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Our Company
Paysafe is a leading, global pioneer in digital commerce with over $44 billion in volume processed during the three months ended March 31, 2026 and $40 billion processed during the three months ended March 31, 2025 generating $442,723 and $401,000 in revenue for the three months ended March 31, 2026 and 2025, respectively. Our integrated payments platform offers the full spectrum of payment solutions ranging from credit and debit card processing to digital wallet, eCash and real-time banking solutions. The combination of this breadth of solutions, our sophisticated risk management and our deep regulatory expertise and deep industry knowledge across specialized verticals enables us to empower millions of active users in more than 120 countries to conduct secure and friction-less commerce across online, mobile, in-app and in-store channels. We also provide Digital Wallets solutions for industry verticals in the
1
experience economy, including iGaming (which encompasses a broad selection of online betting related to sports, e-sports, fantasy sports, poker and other casino games), gaming, digital goods, cryptocurrencies, travel and financial services, as well as Merchant Solutions for small and mid-sized businesses ("SMBs") and direct marketing clients.
We go to market, serve and support our clients through an omni-channel model that leverages our global reach and our B2B and B2C relationships. This enables us to manage and serve our clients through our network of offices around the world with strong knowledge of local and regional markets, customs and regulatory environments. We sell our solutions through a combination of direct and indirect sales strategies. We have a direct sales force who builds and develops relationships with larger merchants and help them configure or develop digital and point-of-sale commerce solutions from our suite technology services. We sell our solutions online to smaller merchants using targeted marketing campaigns designed to address specific use cases across verticals, geographies and user profiles. We also leverage a network of partners, such as independent software vendors ("ISVs") and independent sales organizations (“ISOs”), who integrate our solutions into their own services or resell our solutions by utilizing their own sales initiatives.
We operate across two business segments, which provide our digital and point of sale commerce solutions to different end markets: our Merchant Solutions Segment and our Digital Wallets Segment.
Merchant Solutions: Merchant Solutions is marketed under the Paysafe and Petroleum Card Services brands. These solutions include a full range of Payment Card Industry ("PCI") -compliant payment acceptance and transaction processing solutions for merchants and integrated service providers including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems and merchant financing solutions, as well as comprehensive support services that we provide to our independent distribution partners.
Digital Wallets: Our Digital Wallets is marketed under multiple brand names including the Neteller, Skrill, PaysafeCard, PaysafeCash, SafetyPay, PagoEfectivo, as well as a proprietary pay-by-bank solution marketed in Europe under the Rapid Transfer brand. Skrill and Neteller remove friction from complex commerce situations and dramatically simplify the complexity of traditional payment mechanisms, such as card-based payments, enabling our active users to send, spend, store and accept funds online more easily. The PaysafeCard and PaysafeCash brands provide consumers with a safe and easy way to purchase goods and services online without the need for a bank account or credit card and allow merchants to expand their target market to include consumers who prefer to pay with cash. SafetyPay, is a platform that enables eCommerce transactions in Latin American countries, and PagoEfectivo is the leading alternative payment platform and brand in Peru.
2
Trends and Factors Affecting Our Future Performance
Significant trends and factors that we believe may affect our future performance include the items noted below. For a further discussion of trends, uncertainties and other factors that could affect our operating results see the section entitled “Information on the Company – Business Overview” and “Risk Factors” included in our 2025 Annual Report.
One Big Beautiful Bill Act ("OBBBA")
On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA"). The OBBBA makes permanent key
elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. ASC 740, “Income Taxes”, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Consequently, the Company has evaluated all deferred tax balances under the newly enacted tax law and identified any changes required to its financial statements as a result of the OBBBA. The Company recognized a full valuation allowance against the US deferred tax assets during the year ended December 31, 2025, which mainly related to the enactment of this tax law. As of March 31, 2026, the Company continues to maintain a full valuation allowance against its U.S. deferred tax assets.
Global and regional economic conditions
Our operations and performance depend significantly on global and regional economic conditions. Uncertainty about global and regional economic events and conditions may impact our ability to conduct business in certain areas and may result in consumers and businesses postponing or lowering spending.
In the prior year, the United States government has announced the imposition of tariffs on certain imported goods. While we have not yet experienced a significant impact due to our service-oriented business model, in the future there may be an increase in the cost of point of sale terminals, depending on where they are sourced. Further, in the prior year and current quarter, the United States government has experienced shutdowns of non-essential federal programs and services, including the Department of Homeland Security ("DHS"). These disruptions may create near‑term uncertainty in U.S. economic conditions and could modestly affect transaction volumes in travel‑adjacent verticals or slow onboarding processes requiring U.S. government verification services. Further, another prolonged shutdown may adversely affect our US merchant base, potentially leading to reduced revenues and transaction volumes. We continue to monitor these economic conditions, as they may adversely impact our operations and financial results, however, at this time, we do not expect a material impact on our overall business performance.
Recent Company Initiatives and Events
Recent events
Effective as of May 8, 2026, Mr. Eli Nagler resigned from his position as a member of the Board. The Board, upon the recommendation of the Nominating and Corporate Governance Committee, appointed Mr. Ignacio Caride to fill the newly vacated directorship.
On February 26, 2026, Mr. Peter Rutland resigned from his position as a member of the Board but will continue to attend meetings of the Board in a non‑voting observer capacity. Concurrently, Mr. Matthew Bryant resigned from his position as a member of the Board and as a member of the Risk Oversight Committee.
In addition, on February 26, 2026, the Board approved an increase in the size of the Board from ten to twelve members, and, upon the recommendation of the Nominating and Corporate Governance Committee of the Board, appointed each of Mr. Rupert Keeley, Mr. Peter Thompson, Ms. Karin Timpone, and Mr. Edward Wertheim to fill the open directorships. Effective February 27, 2026, Ms. Timpone will serve on the Risk Oversight Committee and the Nominating and Corporate Governance Committee, Mr. Thompson will serve on the Audit Committee and the Compensation Committee, and Mr. Keeley will serve on the Nominating and Corporate Governance Committee. In addition, effective February 27, 2026 the Board approved the appointment of Ms. Heiss to the chair of the Audit Committee, Mr. Brooker to the chair of the Risk Oversight Committee, Mr. Jabbour to the chair of Compensation Committee, and Mr. Keeley to the chair of the Nominating and Governance Committee.
On October 30, 2025, Paysafe was notified by the New York Stock Exchange (“NYSE”) of its intent to commence delisting proceedings for the Company’s warrants due to an abnormally low selling price. On October 31, 2025, the NYSE suspended trading in the warrants effective immediately. The NYSE applied to the U.S. Securities and Exchange Commission to formally delist the warrants which became effective in November 2025. This action does not affect the Company’s common shares, which will continue to trade on the NYSE under the ticker symbol “PSFE.” The warrants expired during the three months ended March 31, 2026 and no warrants remain outstanding.
3
Key Performance Indicators
We regularly monitor the following key performance indicators to evaluate our business and trends, measure our performance, prepare financial projections and make strategic decisions. We believe that these key performance indicators are useful in understanding the underlying trends in the Company’s businesses.
There are limitations inherent in key performance indicators. Investors should consider any key performance indicator together with the presentation of our results of operations and financial condition under GAAP, rather than as an alternative to GAAP financial measures. These measures may not be comparable to other performance measures used by the Company’s competitors.
Volume and Take Rate
Gross dollar volume is calculated as the dollar value of payment transactions processed by the Company. To reflect the distinct nature of our products across each segment, this includes, but is not limited to, the following:
Volume (also known as gross dollar volume) is a meaningful indicator of our business and financial performance, as we typically generate revenue across our solutions based on per transaction fees that are calculated as a percentage of transaction dollar volume. In addition, volume provides a measure of the level of payment traffic we are handling for our consumers and merchants. Many marketing initiatives are focused on driving more volume, either through encouraging greater adoption of our payment products or increasing activity through existing merchants or consumers.
Take rate is calculated as operating segment revenue divided by gross dollar volume. Take-rate is a meaningful indicator of our business and financial performance as it describes the percentage of revenue collected by Paysafe on the volume of transactions processed. This is used by management as an indication of pricing or product mix trends over time rather than absolute pricing within each segment, due to the mix of product types and pricing agreements that will be in place with specific merchants. It will also factor in revenue from fees that are not directly linked to volume-based transactions, such as inactivity fees charged on dormant accounts.
The following table sets forth our gross dollar volume and take rate for the three months ended March 31, 2026 and 2025:
|
|
For the three months ended March 31, 2026 |
|
|||||||||||||
(U.S. dollars in millions) |
|
Merchant Solutions |
|
|
Digital Wallets |
|
|
Intersegment |
|
|
Total |
|
||||
Gross dollar volume |
|
$ |
37,190 |
|
|
$ |
7,056 |
|
|
$ |
(320 |
) |
|
$ |
43,926 |
|
Take Rate |
|
|
0.6 |
% |
|
|
3.1 |
% |
|
|
1.5 |
% |
|
|
1.0 |
% |
|
|
For the three months ended March 31, 2025 |
|
|||||||||||||
(U.S. dollars in millions) |
|
Merchant Solutions |
|
|
Digital Wallets |
|
|
Intersegment |
|
|
Total |
|
||||
Gross dollar volume |
|
$ |
34,275 |
|
|
$ |
5,946 |
|
|
$ |
(370 |
) |
|
$ |
39,851 |
|
Take Rate |
|
|
0.6 |
% |
|
|
3.2 |
% |
|
|
1.2 |
% |
|
|
1.0 |
% |
|
|
Increase / (Decrease) |
|
|||||||||||||
(U.S. dollars in millions) |
|
Merchant Solutions |
|
|
Digital Wallets |
|
|
Intersegment |
|
|
Total |
|
||||
Gross dollar volume |
|
$ |
2,915 |
|
|
$ |
1,110 |
|
|
$ |
50 |
|
|
$ |
4,075 |
|
Take Rate |
|
|
0.0 |
% |
|
|
(0.1 |
)% |
|
|
0.3 |
% |
|
|
0.0 |
% |
Non-GAAP Financial Measure
We report our financial results in accordance with GAAP, which includes the standards, conventions, and rules in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided Adjusted EBITDA as a non-GAAP financial measure.
We include a non-GAAP measure in this Form 6-K because it is a basis upon which our management assess our performance and we believe it reflects the underlying trends and an indicator of our business. Although we believe the non-GAAP measure is useful for investors for the same reasons, the measure is not a substitute for GAAP financial measures or disclosures.
Our non-GAAP measure may not be comparable to other similarly titled measures used by other companies and has limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the operating results as reported under GAAP.
4
An explanation of the relevance of the non-GAAP measure, a reconciliation of the non-GAAP measure to the most directly comparable measure calculated and presented in accordance with GAAP is set out below. The non-GAAP measure has limitations in that it does not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. We do not regard the non-GAAP measure as a substitute for, or superior to, the equivalent measure calculated and presented in accordance with GAAP or the one calculated using a financial measure that is calculated in accordance with GAAP.
Adjusted EBITDA
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 intangible assets, restructuring and other costs, loss/(gain) on disposal of subsidiaries and other assets, net, and other (expense)/income, net. These adjustments include certain costs and transaction items that are not reflective of the underlying operating performance of the Company. Management believes these adjustments improve the comparability of operating results across reporting periods.
We use Adjusted EBITDA as our measure of segment profitability to assess the performance of our businesses. Additionally, we believe it is important to consider our profitability on a basis that is consistent with that of our operating segments. Segment Adjusted EBITDA is not, however, considered a non-GAAP measure as it is presented in conformity with Accounting Standards Codification 280, Segment Reporting, and is excluded from the definition of a non-GAAP measure under the Securities and Exchange Commission’s Regulation G and Item 10(e) of Regulation S-K. We believe that Adjusted EBITDA should be made available to securities analysts, investors and other interested parties to assist in their assessment of the performance of our businesses.
Despite the importance of this measure in analyzing our business, measuring and determining incentive compensation and evaluating our operating performance, as well as the use of Adjusted EBITDA by securities analysts, lenders and others in their evaluation of companies, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for net income (loss) or other methods of analyzing our results as reported under GAAP. We do not use or present Adjusted EBITDA as a measure of liquidity or cash flow.
Some of the limitations of Adjusted EBITDA are:
Results of Operations
Three months ended March 31, 2026 compared to three months ended March 31, 2025
The following table sets forth our results of operations for the three months ended March 31, 2026 and 2025:
|
|
For the three months ended March 31, |
|
|
Variance (1) |
|
||||||||||
(U.S. dollars in thousands) |
|
2026 |
|
|
2025 |
|
|
$ |
|
|
% |
|
||||
Revenue |
|
$ |
442,723 |
|
|
$ |
401,000 |
|
|
$ |
41,723 |
|
|
|
10.4 |
% |
Cost of services (excluding depreciation and |
|
|
192,674 |
|
|
|
174,181 |
|
|
|
18,493 |
|
|
|
10.6 |
% |
Selling, general and administrative |
|
|
168,864 |
|
|
|
139,790 |
|
|
|
29,074 |
|
|
|
20.8 |
% |
Depreciation and amortization |
|
|
70,353 |
|
|
|
68,269 |
|
|
|
2,084 |
|
|
|
3.1 |
% |
Impairment expense on goodwill and other assets |
|
|
152 |
|
|
|
1,282 |
|
|
|
(1,130 |
) |
|
|
(88.1 |
)% |
Restructuring and other costs |
|
|
8,841 |
|
|
|
7,785 |
|
|
|
1,056 |
|
|
|
13.6 |
% |
Loss / (gain) on disposal of subsidiaries and other |
|
|
758 |
|
|
|
(626 |
) |
|
|
1,384 |
|
|
|
(221.1 |
)% |
Operating income |
|
|
1,081 |
|
|
|
10,319 |
|
|
|
(9,238 |
) |
|
|
(89.5 |
)% |
Other income, net |
|
|
4,294 |
|
|
|
823 |
|
|
|
3,471 |
|
|
|
421.7 |
% |
Interest expense, net |
|
|
(33,846 |
) |
|
|
(33,673 |
) |
|
|
(173 |
) |
|
|
0.5 |
% |
Loss before taxes |
|
|
(28,471 |
) |
|
|
(22,531 |
) |
|
|
(5,940 |
) |
|
|
26.4 |
% |
Income tax expense / (benefit) |
|
|
7,981 |
|
|
|
(3,059 |
) |
|
|
11,040 |
|
|
|
(360.9 |
)% |
Net loss |
|
$ |
(36,452 |
) |
|
$ |
(19,472 |
) |
|
$ |
(16,980 |
) |
|
|
87.2 |
% |
5
Revenue
Revenue increased $41,723, or 10.4%, to $442,723 for the three months ended March 31, 2026 from $401,000 for the three months ended March 31, 2025. This increase is largely attributable to an increase of $28,517, or 15.2% in our Digital Wallets segment primarily due to growth in Latin America along with growth from PaysafeWallet in Europe, as well as the impact of favorable foreign exchange rates. There was also an increase of $13,507, or 6.2% in our Merchant Solutions segment mainly due to higher volumes and growth in e-commerce driven by initiatives to expand our sales capabilities as well as revenue generated from data deals, offset partially by decreased revenue following the sale of the direct marketing payment processing business line.
For further detail on our segments, see “Analysis by Segments” below.
Cost of services (excluding depreciation and amortization)
Cost of services (excluding depreciation and amortization) increased $18,493, or 10.6%, to $192,674 for the three months ended March 31, 2026 from $174,181 for the three months ended March 31, 2025. The increase is largely attributable to an increase in our Digital Wallets segment of $11,186 or 20.9% mainly due to growth in lower margin verticals and impact of unfavorable foreign exchange rates. There was also an increase of $7,608 or 6.1% in our Merchant Solutions segments due to higher volumes and growth in e-commerce, as well as growth in lower margin verticals, offset partially by decreased cost of services following the sale of the direct marketing payment processing business line.
Selling, general and administrative
Selling, general and administrative expenses increased $29,074, or 20.8%, to $168,864 for the three months ended March 31, 2026 from $139,790 for the three months ended March 31, 2025. This increase is primarily driven by an increase in share based compensation of $9,912 mainly due to a one-time share award granted to a majority of the Company's employees, an increase in credit losses of $9,742, an increase in personnel costs of $5,723 mainly due to performance based compensation, and an increase in advertising and promotion costs of $4,316. This is partly offset by a decrease in severance costs of $4,873.
Depreciation and amortization
Depreciation and amortization increased by $2,084, or 3.1% to $70,353 for the three months ended March 31, 2026 compared to $68,269 for the three months ended March 31, 2025. This is driven by intangible assets placed into service after March 31, 2025.
Impairment expense on goodwill and other assets
Impairment expense on goodwill and other assets decreased by $1,130, to $152 for the three months ended March 31, 2026 from $1,282 for the three months ended March 31, 2025 as the prior period included an impairment charge of $638 related to a right of use asset for a leased office space following the disposal of the direct marketing payment processing business line.
Restructuring and other costs
Restructuring and other costs increased by $1,056, to $8,841 for the three months ended March 31, 2026 from $7,785 for the three months ended March 31, 2025. The increase was primarily driven by higher legal fees related to the securities litigation against the Company and indemnities provided by the Company in a related class action lawsuit of $2,118, offset partially by a decrease in transformation costs of $1,214 associated with projects to improve merchant platforms as well as finance and risk processes.
Loss / (gain) on disposal of subsidiaries and other assets, net
Loss on disposal of subsidiaries and other assets, net was $758 for the three months ended March 31, 2026 compared to a gain of $626 for the three months ended March 31, 2025. The loss in the current period relates to the disposal of certain property, plant and equipment assets, while the gain in the prior period related to the disposal of the direct marketing payment processing business within the Merchant Solutions segment.
Other income, net
Other income, net increased by $3,471, or 421.7%, to $4,294 for the three months ended March 31, 2026 from $823 for the three months ended March 31, 2025. The increase was primarily driven by an increase of $3,837 in gains on foreign exchange due to the weakening of the Euro, and a fair value gain on derivative instruments of $1,227 compared to a loss of $851 in the prior year. This is offset partially by a decrease in other gains of $1,073 mainly due to a relocation grant received in the prior period, a fair value loss on contingent consideration receivable of $805, and a decrease in fair value gains on warrant liabilities of $566.
Interest expense, net
6
Interest expense, net remained flat at $33,846 for the three months ended March 31, 2026 compared to $33,673 for the three months ended March 31, 2025.
Income tax expense / (benefit)
The income tax expense was $7,981 for the three months ended March 31, 2026 compared to an income tax benefit of $3,059 for the three months ended March 31, 2025. The change in the effective tax rate in 2026 compared to 2025 primarily arises as a result of movements in our valuation allowance related to the recoverability of our deferred tax assets on tax losses and restricted interest carryforwards.
Net loss
The Company had a net loss of $36,452 for the three months ended March 31, 2026 compared to a net loss of $19,472 for the three months ended March 31, 2025. The net loss was largely driven by an increase in selling, general and administrative expenses, an increase in cost of sales, and an increase in income tax expense compared to a benefit in the prior period This was offset partially by an increase in revenue.
Non-GAAP financial measure
Adjusted EBITDA
Adjusted EBITDA for the Company increased $4,068, or 4.3%, to $99,238 for the three months ended March 31, 2026 from $95,170 for the three months ended March 31, 2025. This increase was driven by increased revenue of $41,723, offset by an increase in cost of services of $18,493 and selling, general and administrative expenses (excluding share based compensation) of $19,162, as described above.
A reconciliation of Net loss to Adjusted EBITDA is as follows for the three months ended March 31, 2026 and 2025:
|
|
For the three months ended March 31, |
|
|||||
(U.S. dollars in thousands) |
|
2026 |
|
|
2025 |
|
||
Net loss |
|
$ |
(36,452 |
) |
|
$ |
(19,472 |
) |
Income tax expense / (benefit) |
|
|
7,981 |
|
|
|
(3,059 |
) |
Interest expense, net |
|
|
33,846 |
|
|
|
33,673 |
|
Depreciation and amortization |
|
|
70,353 |
|
|
|
68,269 |
|
Share-based compensation |
|
|
18,053 |
|
|
|
8,141 |
|
Impairment expense on goodwill and other assets |
|
|
152 |
|
|
|
1,282 |
|
Restructuring and other costs (1) |
|
|
8,841 |
|
|
|
7,785 |
|
Loss / (gain) on disposal of subsidiaries and other assets, net |
|
|
758 |
|
|
|
(626 |
) |
Other income, net (2) |
|
|
(4,294 |
) |
|
|
(823 |
) |
Adjusted EBITDA |
|
$ |
99,238 |
|
|
$ |
95,170 |
|
Analysis by Segment
We operate in two operating segments: Merchant Solutions and Digital Wallets. Our reportable segments are the same as our operating segments. Segment Adjusted EBITDA is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. Segment Adjusted EBITDA includes the revenues of the segment less operating expenses that are directly related to those revenues and an allocation of shared costs and excludes the impact of income tax (benefit)/expense, interest expense, net, depreciation and amortization, share-based compensation expense, impairment expense on goodwill and intangible assets, restructuring and other costs, loss/(gain) on disposal of subsidiaries and other assets, net, and other (expense)/income, net.
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The Company allocates shared costs to the two segments. Shared costs are the cost of people and other resources consumed in activities that provide a benefit across more than one segment. Shared costs are allocated to each segment primarily based on applicable drivers including headcount, revenue and Adjusted EBITDA.
Three months ended March 31, 2026 compared to three months ended March 31, 2025
Merchant Solutions
The following table presents our results for the Merchant Solutions operating segment for the three months ended March 31, 2026:
|
|
For the three months ended March 31, |
|
|
Variance |
|
||||||||||
(U.S. dollars in thousands) |
|
2026 |
|
|
2025 |
|
|
$ |
|
|
% |
|
||||
Revenue (1) |
|
$ |
231,293 |
|
|
|
217,786 |
|
|
|
13,507 |
|
|
|
6 |
% |
Cost of sales (excluding depreciation and amortization) (1) |
|
|
132,671 |
|
|
|
125,063 |
|
|
|
7,608 |
|
|
|
6 |
% |
Selling, general and administrative (2) |
|
|
70,513 |
|
|
|
63,277 |
|
|
|
7,236 |
|
|
|
11 |
% |
Segment Adjusted EBITDA |
|
$ |
28,109 |
|
|
$ |
29,446 |
|
|
$ |
(1,337 |
) |
|
|
-5 |
% |
The commentary included below exclude amounts that are outside of our definition of Segment Adjusted EBITDA. Refer to the commentary of these amounts under “Results of Operations”.
Revenue increased by $13,507, or 6%, to $231,293 for the three months ended March 31, 2026 from $217,786 for the three months ended March 31, 2025. This increase was mainly due to higher volumes and growth in e-commerce driven by initiatives to expand our sales capabilities as well as revenue generated from data deals, offset partially by decreased revenue following the sale of the direct marketing payment processing business line.
Cost of services (excluding depreciation and amortization) increased by $7,608 or 6% to 132,671 for the three months ended March 31, 2026 from $125,063 for the three months ended March 31, 2025. This increase is due to higher volumes and growth in e-commerce, as well as growth in lower margin verticals, offset partially by decreased cost of services following the sale of the direct marketing payment processing business line.
Selling, general and administrative increased by $7,236, or 11%, to 70,513 for the three months ended March 31, 2026 from $63,277 for the three months ended March 31, 2025. This increase is due to an increase in credit losses of $9,812, and an increase in advertising and promotion costs of $1,214. The increase is offset partially by a decrease in personnel costs of $3,581 and a decrease in severance of $2,123.
Segment Adjusted EBITDA decreased by $1,337, or 5%, to $28,109 for the three months ended March 31, 2026 from $29,446 for the three months ended March 31, 2025, due to variances explained above.
Digital Wallets
The following table presents our results for the Digital Wallets operating segment for the three months ended March 31, 2026:
|
|
Three months ended March 31, |
|
|
Variance |
|
||||||||||
(U.S. dollars in thousands) |
|
2026 |
|
|
2025 |
|
|
$ |
|
|
% |
|
||||
Revenue (1) |
|
$ |
216,084 |
|
|
|
187,567 |
|
|
|
28,517 |
|
|
|
15 |
% |
Cost of sales (excluding depreciation and amortization) (1) |
|
|
64,657 |
|
|
|
53,471 |
|
|
|
11,186 |
|
|
|
21 |
% |
Selling, general and administrative (2) |
|
|
56,487 |
|
|
|
51,552 |
|
|
|
4,935 |
|
|
|
10 |
% |
Segment Adjusted EBITDA |
|
$ |
94,940 |
|
|
$ |
82,544 |
|
|
$ |
12,396 |
|
|
|
15 |
% |
Revenue increased by $28,517, or 15%, to $216,084 for the three months ended March 31, 2026 from $187,567 for the three months ended March 31, 2025. This increase was primarily due to growth in Latin America along with growth from PaysafeWallet in Europe and the impact of favorable foreign exchange rates.
8
Cost of sales increased by $11,186, or 21%, to 64,657 for the three months ended March 31, 2026 from $53,471 for the three months ended March 31, 2025. The increase is due to growth in lower margin verticals offset by impact of favorable foreign exchange rates.
Selling, general and administrative increased by $4,935, or 10%, to $56,487 for the three months ended March 31, 2026 from $51,552 for the three months ended March 31, 2025. The increase is due to an increase in personnel costs of $3,485, an increase in advertising and promotion costs of $2,896, offset partially by a decrease in severance costs of $1,839.
Segment Adjusted EBITDA increased by $12,396, or 15%, to $94,940 for the three months ended March 31, 2026 from $82,544 for the three months ended March 31, 2025, due to variances explained above.
Seasonality
We have experienced in the past, and expect to continue to experience, seasonal fluctuations in our business. For instance, our businesses historically experience increased activity during the traditional holiday period and around other nationally recognized holidays, when certain of our gaming operators may run promotions, consumers enjoy more leisure time and younger consumers may receive our products as gifts. Our Digital Wallets businesses experience increased activity based on the occurrence and timing of sporting events. Volatility in our revenue, key operating metrics or their rates of growth could result in fluctuations in our financial condition or results of operations.
Inflation
While inflation may impact our revenue and expenses, we believe the effects of inflation, if any, on our results of operations and financial condition have not been significant. However, there can be no assurance that our results of operations and financial condition will not be materially impacted by inflation in the future.
Quantitative and Qualitative Disclosure about Market Risk
Our market risk includes the potential loss arising from adverse changes in foreign currency exchange rates and interest rates. We monitor risk exposures on an ongoing basis. The Company utilizes derivative financial instruments to manage interest rate risk on its variable rate debt facilities and term loans. The company does not apply hedge accounting for its derivative financial instruments.
Interest Rate Risk
We are exposed to interest rate risk relating to the portion of our borrowings that are subject to variable interest rates, as well as investment revenue. The Company actively manages interest rate risk through the use of interest rate swaps or caps. Interest rate swaps convert floating rates to fixed, and interest rate caps limit the potential impact of rising interest rates.
As of March 31, 2026, an increase of 100 basis points in interest rates offered on the bank borrowings would result in a $12.9 million unfavorable impact and a decrease of 100 basis points would result in a $12.9 million favorable impact on annualized net loss. Due to the interest rate floors within the Company’s facility agreement of 0.5% on USD SOFR and 0% on EURIBOR, we may not realize the benefit of a decrease of 100 basis points in the applicable interest rates.
As of December 31, 2025, an increase of 100 basis points in interest rates offered on the bank borrowings would result in a $13.2 million unfavorable impact and a decrease of 100 basis points would result in a $13.2 million favorable impact. Due to the interest rate floors within the Company’s facility agreement of 0.5% on USD SOFR and 0% on EURIBOR, we may not realize the benefit of a decrease of 100 basis points in the applicable interest rates.
Foreign Currency Risk
We have global operations and trade in various foreign currencies, primarily the Great British Pound, Euro, Peruvian Soles, Canadian Dollar, and Swiss Franc. In addition, we are exposed to currency risk associated with translating our functional currency financial statements into its reporting currency, which is the U.S. dollar. As a result, we are exposed to movements in the exchange rates of various currencies against the U.S. dollar. During the three months ended March 31, 2026, our Digital Wallets segment was impacted by favorable foreign exchange.
We manage the exposure to currency risk by commercially transacting materially in U.S. dollars, Euros and Great British Pounds, the currencies in which we materially incur operating expenses. We limit the extent to which we incur operating expenses in other currencies, wherever possible, thereby minimizing the realized and unrealized foreign exchange gain/(loss). The currency of the Company’s borrowings is in part matched to the currencies expected to be generated from the Company’s operations. Intercompany funding is typically undertaken in the functional currency of the operating entities or undertaken to ensure offsetting currency exposures.
9
As of March 31, 2026, had the U.S. dollar strengthened by 10% in relation to all the other currencies, with all other variables held constant, the net assets of the Company would have decreased by $12.1 million. A weakening of the U.S. dollar by 10% against the above currencies would have had an equal and opposite effect.
As of December 31, 2025, had the U.S. dollar strengthened by 10% in relation to all the other currencies, with all other variables held constant, the net assets of the Company would have decreased by $8.1 million. A weakening of the U.S. dollar by 10% against the above currencies would have had an equal and opposite effect.
Credit Risk
Credit risk is the risk of financial loss if a consumer or merchant counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from our cash and cash equivalents, settlement receivables, restricted cash in respect to customer accounts, and trade receivables.
The Company is also exposed to potential losses from merchant-related chargebacks. A chargeback occurs when a dispute between a cardholder and a merchant, including a claim for non-delivery of the product or service by the merchant, is not resolved in favor of the merchant and the transaction is charged back to the merchant resulting in a refund of the purchase price to the cardholder. If the Company is unable to collect this chargeback amount from the merchant due to closure, bankruptcy or other reasons, the Company bears the loss for the refund paid to the cardholder. The risk of chargebacks is typically greater for those merchants that promise future delivery of goods and services rather than delivering goods or rendering services at the time of payment.
The cash and cash equivalents and restricted cash in respect to customer accounts are deposited with different banking partners with a variety of credit ratings. Credit exposures are regularly monitored and managed by the Group’s Treasury and Risk functions.
Settlement receivables primarily relate to receivables from third party payment institutions , as well as receivables from distribution partners arising in our Digital Wallets business. These receivables are closely monitored on an ongoing basis. The Digital Wallets business utilizes credit limits and insurance to limit its overall gross exposure to distribution partners.
Credit quality of a customer and distributor is assessed based on their industry, geographical location and financial background, with credit risk managed based on this assessment (i.e. trading limits, shortened payment period and/or requiring collateral, usually in the form of bank guarantees, insurance or cash deposits or holdbacks which can legally be claimed by the Group to cover unpaid receivables). Outstanding trade receivables are regularly monitored to flag any unusual activities such as chargebacks. Having a significant number of consumers and merchants across multiple geographies and industries helps mitigate the Group’s exposure to concentration risk. Through the Group’s global credit risk framework we forecast, under normal business conditions, the probability of the occurrence of credit events before they occur. Customer credit risk is managed by each business unit subject to our established customer credit risk management policies, procedures and controls.
Liquidity Risk
Liquidity risk is the risk that we may be unable to meet our financial obligations as they fall due. We control and monitor both cash levels and cash flow on a regular basis, including forecasting future cash flows. Our objective to managing liquidity is to ensure that, as far as possible, we always have sufficient liquidity to meet our liabilities as they become due.
In order to mitigate short-term liquidity risk and fund future merger and acquisition activity, we have a $305,000 revolving credit facility available, from which we make draw downs and repayments throughout the period. The balance drawn on the revolving credit facility as of March 31, 2026 was $123,832. As of December 31, 2025 we had drawn down $226,184 on our revolving credit facility.
As of March 31, 2026, and December 31, 2025, the total principal amount of our external borrowings was $2,515,272 and $2,639,448. Subject to the limits contained in the credit agreements that govern our credit facilities, we may be able to incur substantial additional debt from time to time to finance working capital, capital expenditures, investments or acquisitions, or for other purposes. All interest and mandatory debt repayments were satisfied during December 31, 2025 and for the three months ended March 31, 2026.
Our key debt covenant governing these facilities is financial and is monitored monthly. Our primary financial covenant is to maintain a first lien debt ratio below 7.5x Last Twelve Months EBITDA, adjusted for certain items as stipulated in the company’s facilities agreement. As of March 31, 2026, and December 31, 2025, the Company was in compliance with all financial covenants associated with its debt.
In addition, the Company is required to maintain minimum levels of liquidity within its regulated businesses within the United Kingdom and Ireland in accordance with our regulatory requirements. We monitor liquidity levels within our regulated entities on an ongoing basis, in accordance with our liquidity and capital adequacy assessment framework.
10
Liquidity and Capital Resources
Our primary sources of liquidity have been funds generated from operations, issuance of debt, the use of our revolving credit facilities and a line of credit. We assess our liquidity through an analysis of our working capital together with our other sources of liquidity. As of March 31, 2026 and December 31, 2025, we had $257,210 and $250,168 in cash and cash equivalents. Furthermore, we had $181,168 and $78,816 available under our Revolving Credit Facility as of March 31, 2026 and December 31, 2025, respectively.
In addition to our cash and cash equivalents on our unaudited condensed consolidated statements of financial position, we expect to continue to generate cash from our normal operations as well as the ability to draw down on our credit facilities, disclosed below, as required. We believe that we have sufficient financial resources to fund our activities and execute our business plans during the next 12 months.
Share Repurchase Program
For further discussion regarding our Share Repurchase Program, refer to Note 11, Share Repurchase Program, within the unaudited condensed consolidated financial statements included elsewhere in this Report.
Debt
For further discussion regarding our debt facilities, refer to Note 7, Debt, within the unaudited condensed consolidated financial statements included elsewhere in this Report.
As market conditions warrant, we and/or certain equity holders, Blackstone, CVC and/or our respective affiliates, may from time to time seek to repurchase securities that we have issued or loans that we have borrowed in privately negotiated or open market transactions, by tender offer or otherwise. Subject to any applicable limitations contained in the agreements governing our indebtedness, any such purchases may be funded by existing cash or by incurring new secured or unsecured debt, including borrowings under our credit facilities. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material. Any such purchases may relate to a substantial amount of a particular tranche of debt, with a corresponding reduction, where relevant, in the trading liquidity of that debt. In addition, any such purchases made at prices below the “adjusted issue price” (as defined for U.S. federal income tax purposes) may result in taxable cancellation of indebtedness income to us, which may be material, and result in related adverse tax consequences to us.
Cash Flow
Operating Activities
Net cash flows provided by (used in) operating activities mainly consists of our net income / loss adjusted for non-cash items and movements in working capital.
Non-cash items usually arise as a result of timing differences between expenses recognized and actual cash costs incurred or as a result of other non-cash income or expenses. Non-cash items include: depreciation and amortization; unrealized foreign exchange gain/(loss); deferred tax (expense)/benefit; non-cash interest expense, net; share-based compensation expense; other (expense)/income, net; impairment expense on goodwill and intangible assets; allowance for credit losses; gain/(loss) on disposal of subsidiaries and other assets, net; and non-cash lease expense.
Movements in working capital include the movements in: accounts receivable, net, prepaid expenses, other current assets, accounts payable, other liabilities, and income tax receivable / payable. Movements in working capital are affected by several factors including the timing of month-end and transaction volume, especially for accounts receivable, net and accounts payable.
Net cash flows from operating activities increased by $11,387 to $63,866 for the three months ended March 31, 2026 from $52,479 for the three months ended March 31, 2025. The increase is mainly due to an increase in revenue, realized foreign exchange gains and lower interest paid, offset partially by an increase in outflows from working capital.
For the three months ended March 31, 2026 net cash flows used in operating activities of $63,866 primarily consists of a net loss of $36,452, adjusted for non-cash items of $112,596, largely driven by depreciation and amortization of $70,353, share-based compensation of $18,053, allowance for credit losses of $17,102, interest expense, net of $9,221, and non-cash leases expense of $2,354, offset partially by unrealized foreign exchange gains of $3,156, and a deferred tax benefit of $1,798. This was partially offset by net cash outflows of $12,278 from working capital.
For the three months ended March 31, 2025 net cash flows used in operating activities of $52,479 primarily consists of a net loss of $19,472, adjusted for non-cash items of $77,029, largely driven by depreciation and amortization of $68,665, share-based compensation of $8,141, interest expense, net of $7,767, allowance for credit losses of $7,571, and impairment on goodwill and other assets of $1,282,
11
offset partially by a deferred tax benefit of $12,129 and unrealized foreign exchange gains of $5,169. This was partially offset by net cash outflows of $5,078 from working capital.
Investing Activities
Net cash used in investing activities increased $739 to $24,632 for the three months ended March 31, 2026 from $23,893 for the three months ended March 31, 2025. This increase is primarily attributed to an increase in the purchase of merchant portfolios of $6,503, and an increase in other intangible asset expenditures. This is offset by lower purchases of property, plant and equipment of $3,810, and a net cash inflow from merchant reserves of $2,818. The prior year also benefited from a cash inflow of $1,948 associated with the sale of the direct marketing payment processing business line.
Financing Activities
Net cash used in financing activities decreased $50,395 to $126,679 for the three months ended March 31, 2026 from $177,074 for the three months ended March 31, 2025. The decrease primarily resulted from a decrease in the outflow of the movement in settlement funds – merchant and customers, net, offset partially by higher net outflows related to loans and borrowings.
The Company’s regulatory obligations in the United Kingdom and Ireland include the requirement to safeguard customer funds that have been received either in exchange for electronic money (“e-money”) issued or within the transaction settlement cycle to merchants. Such amounts are recorded as an asset in our Consolidated Statements of Financial Position, in customer accounts and other restricted cash, net which is presented as part of cash, cash equivalents, customer accounts and other restricted cash, net as reported in the Consolidated Statements of Cash Flows.
The Company also has a corresponding liability to its customers recognized in our Consolidated Statements of Financial Position as funds payable and amounts due to customers, as well as settlement receivables, net, that represent timing differences in the settlement process between the cash settlement of a transaction and the recognition of the associated liability. The movements in these account balances are presented net within financing activities (collectively "Settlement funds - merchant and customer, net"). The current year outflow in Settlement funds - merchant and customers, net is consistent with the decline in customer accounts and other restricted cash, net.
Borrowings and repayments on all facilities were $266,861 and $371,143, respectively, for the three months ended March 31, 2026 and $197,000 and $223,839, respectively for the three months ended March 31, 2025.
We believe that our current level of cash and borrowing capacity under debt facilities, together with future cash flows from operations will be sufficient to meet the needs of our existing operations and planned requirements for the foreseeable future.
Accounting Pronouncements Not Yet Adopted
Recently issued accounting pronouncements that may be relevant to our operations but have not yet been adopted are outlined in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, within the financial statements included elsewhere in this Report.
Critical Accounting Estimates
There have been no material changes in our critical accounting estimates during the three months ended March 31, 2026. A detailed discussion of our critical accounting estimates is included within our 2025 Annual Report.
12