PSFE: Proving Turnaround Execution Will Shape Share Performance Into 2025

Paysafe’s analyst price target has dropped sharply from approximately $13.52 to $9.27 per share, as analysts note disappointing Q3 results and significantly reduced guidance. Analysts are citing concerns about lower margin growth and slower execution of key initiatives.

Analyst Commentary

Analyst reactions to Paysafe's recent earnings and guidance cut have been mixed, with both optimistic and cautious perspectives on the company's outlook. Below are the key bullish and bearish takeaways that have emerged from recent research notes.

• Bullish analysts maintain that recent tactical, operational, and strategic changes are beginning to show early signs of progress. This hints at a possible turnaround if execution continues.
• Despite the guidance cut, certain analysts retain a positive long-term stance. They suggest the company may still deliver adjusted EBITDA growth by FY26 if management achieves its outlined initiatives.
• Some see current valuations as potentially attractive if the company can deliver on its new guidance and demonstrate more stable execution moving forward.

• Bearish analysts highlight a significant negative mix shift toward lower margin ISO growth, which is contributing to margin pressure and weaker valuation.
• There is concern that execution on key product initiatives is taking longer than management had anticipated. This introduces uncertainty around the timing of future growth.
• The rapid and substantial downward revision of guidance, especially following recent claims of strong visibility, has undermined confidence in management's credibility and forecasting ability.
• Several analysts expect shares to remain rangebound until the company proves it can deliver sustainable growth and meet its updated EBITDA targets.

What's in the News

• Paysafe expanded its partnership with Boosteroid, enabling Brazilian gamers to pay for cloud gaming subscriptions using Pix and Boleto Bancario, the country's most popular payment methods (Key Developments).
• A multi-year strategic partnership with Endava was announced. The aim is to deliver smarter payments and next-generation community engagement, governed by a joint steering committee (Key Developments).
• Paysafe increased its equity buyback plan by $70 million, raising the total authorization to $190 million (Key Developments).
• The company repurchased 1,500,000 shares from July to September 2025. This brings total buybacks since November 2023 to over 10% of shares outstanding (Key Developments).
• Paysafe has formed a new partnership with CMC Markets, adding Skrill and Neteller as digital wallet options for trading account funding and withdrawals in several international markets (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has fallen significantly from $13.52 to $9.27 per share, reflecting more cautious projections.
• Discount Rate remains essentially unchanged at 13.46%, indicating no major shifts in perceived risk.
• Revenue Growth expectations have edged lower, dropping from 6.06% to 5.91%.
• Net Profit Margin has decreased sharply from 7.56% to 4.61%, highlighting greater pressure on profitability.
• Future P/E has risen moderately from 6.92x to 7.34x. This suggests the stock is trading at a slightly higher multiple despite lowered earnings expectations.