Paysafe reports Q2 revenue growth and significant debt reduction

Paysafe reported second-quarter revenue of $447.4 million, representing a 4% increase on both a reported and organic basis. The company noted that the first half of the year saw a 7% growth in reported revenue.

Performance varied significantly across business segments. Merchant Solutions adjusted EBITDA rose 28% year-over-year to $50.6 million, driven by strong iGaming volumes in North America and data-licensing deals. Conversely, Digital Wallets adjusted EBITDA declined 9% to $74.9 million, despite a 3% revenue increase in that segment.

On the balance sheet, Paysafe reduced total debt by $106.3 million from year-end and refinanced a significant portion of its debt to extend maturities. The company also reached a settlement in principle regarding the Farzad litigation involving pre-SPAC shareholders, which addressed restructuring expenses related to indemnification obligations.

Adjusted EBITDA for the quarter was $102.8 million, a 2% decline from the previous year, as the company increased investments in marketing and information technology by $16 million in the first half of the year. The company reported a Q2 net loss of $58.9 million.